Evaluating and Writing Mission Statements¶
Developing and refining the skill of writing and evaluating mission statements is essential for strategic management. The most effective way to hone this skill is by studying actual mission statements from companies and assessing their alignment with the nine key components of a strong mission statement.
Key Components of a Mission Statement¶
To recap, a comprehensive mission statement typically includes the following nine components:
- Customers: Who are the firm’s customers?
- Products or Services: What are the firm’s major products or services?
- Markets: Geographically, where does the firm compete?
- Technology: Is the firm technologically current?
- Concern for Survival, Growth, and Profitability: Is the firm committed to growth and financial soundness?
- Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
- Self-Concept: What is the firm’s distinctive competence or major competitive advantage?
- Concern for Public Image: Is the firm responsive to social, community, and environmental concerns?
- Concern for Employees: Are employees a valuable asset of the firm?
Evaluating Mission Statements¶
Example 1: Dell’s Mission Statement¶
Dell’s Mission Statement: "Dell’s mission is to be the most successful computer company (2) in the world (3) at delivering the best customer experience in markets we serve (1). In doing so, Dell will meet customer expectations of highest quality; leading technology (4); competitive pricing; individual and company accountability (6); best-in-class service and support (7); flexible customization capability (7); superior corporate citizenship (8); financial stability (5)."
Analysis: - Strengths: Dell’s mission statement includes eight of the nine components, making it a robust and comprehensive mission statement. It clearly identifies the company's commitment to customers, its products, technology, and financial stability, as well as its corporate philosophy and public image. - Weakness: The only component missing is Concern for Employees (9), which is critical as employees are fundamental to achieving the company's mission.
Example 2: L’Oreal’s Mission Statement¶
L’Oreal’s Mission Statement: "At L’Oreal, we believe that lasting business success is built upon ethical (6) standards which guide growth and on a genuine sense of responsibility to our employees (9), our consumers, our environment and to the communities in which we operate (8)."
Analysis: - Strengths: L’Oreal’s mission statement emphasizes ethical standards, responsibility towards employees, and concern for public image. - Weaknesses: The statement lacks six of the nine components, including: 1. Customers: It does not clearly define who the company’s customers are. 2. Products or Services: It does not specify what products or services L’Oreal offers. 3. Markets: There is no mention of the geographical scope of L’Oreal’s operations. 4. Technology: The statement does not address whether L’Oreal is technologically current. 5. Concern for Survival, Growth, and Profitability: It does not highlight L’Oreal’s commitment to financial stability or growth. 6. Self-Concept: The statement lacks a clear articulation of L’Oreal’s distinctive competence or competitive advantage.
Writing Mission Statements¶
Best Practices for Writing a Mission Statement¶
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Inclusion of the Nine Components: Ensure that the mission statement addresses all nine key components. This provides a well-rounded perspective on the organization’s purpose, values, and direction.
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Brevity and Clarity: While comprehensive, the mission statement should also be concise—typically less than 250 words—making it easy to understand and remember.
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Inspiration and Motivation: The statement should inspire and motivate both internal and external stakeholders, reflecting the organization’s aspirations and values.
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Alignment with Vision: Ensure that the mission statement aligns with the organization’s vision, outlining how the vision will be achieved.
Evaluating Mission Statements¶
Evaluating a mission statement involves checking its inclusion of the nine components, but this is just the start. The overall effectiveness of the statement must also be assessed based on how well it communicates the organization’s purpose, how it resonates with stakeholders, and whether it provides a clear and motivating direction for the future.
Conclusion¶
In comparing the two examples: - Dell’s Mission Statement is more comprehensive, as it covers eight of the nine key components, making it a strong model for what a mission statement should encompass. - L’Oreal’s Mission Statement, while strong in certain ethical and social aspects, falls short by not including many of the critical components, making it less effective overall.
There is no single "best" mission statement for any organization, as it requires good judgment and a thorough understanding of the organization's unique context. However, ensuring that the mission statement includes the essential components and effectively communicates the organization's purpose is key to its success.
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