There are people who lead there life as the life proceeds. Some take each day as it comes. There are others like Mahatama Gandhi, Subhash Chandra Bose, Abraham Lincoln who had an aim of life and each had set a path which they followed to achieve their targets. Consider Mahatama Gandhi and Subhash Chandra Bose. Both had the ultimate aim of achieving freedom for the country. Yet the way they approached their vision was just opposite. Similarly we have companies who sell the same products and services. Yet the approach that they take is very different just the way individuals can be in choosing the path they are going to follow. Mission statements are like these guiding paths which the companies choose for self. They can be compared to the Pole Star the sailors in the olden day used to guide them in the wild seas. But for the Pole Star the ships would have gone where the waves directed them. Same goes for the companies as well. They are guided by (at least they claim) the mission and the vision statements they have, in the actions they undertake. Let us have a closer look at what is meant by a Mission statement and its different attributes and properties.
Mission Statement:
The purpose of mission statements is to communicate what the organisation intends to do for self and for the different stakeholders.
Having effective and appropriate mission statements are part of strategic planning when one plans for longer duration and tries to project where the company will be after 5,10, 15 years and how the company plans to reach there.
The intended audience lie both outside the organisation but also to the insiders, those who are the employees of the organisation. The audience realm includes the present customers, future customers, the different hierarchy of management, current and future employees, Government and all the stakeholders of the company.
What is it that the Mission Statement should communicate? What are the elements of an effective Mission Statement?
A good mission statement should communicate not only what the products and services of the company are but should include more than that. The mission statement should tell the reason[i] for the existence of the company, except of course to earn capital, and what business the company is in and intends to be in.
This is one point where there can be many objections. One school of thought says that since Mission Statement is forward looking in nature hence should state on where the company intends to take itself in future and not where it is[ii], however some believe that Mission Statement should also give an indication what is the company’s business and what is the company trying to do for the customers. So as per them the realm includes the present in addition to the desired future.
The characteristics that should be present in a mission statement for it to be effective are discussed now[i],[ii].
It should have a formulation of firm’s objective that enables progress towards them to be measured. Lest the achievements are not measurable the purpose of the mission statement is not properly served. The mission statement should differentiate the company from other companies. This means that is should not be vague and generic.
The mission statement should state the business the company aims to be in and not necessarily is in (as stated above, this view has been opposed by some).
The mission statement should be exciting and inspiring. It would be desirable if the mission statement states the competitive advantage, the core competencies the company has. That will make the mission statement different from mission statement of other companies and make the mission statement far more meaningful than it will be sans it.
The mission statement should also clearly identify who the company thinks are its customers and indicate at a macro level how the company is planning to satisfy the customer’s needs. Here one must take caution that the fashion changes and style does not. Similarly the technology and the products that the customer needs changes but there are few basic needs of customers and the values they appreciate that have withstood the test of time and are not likely to change. A mission statement should concentrate on those guiding principles of the solution the company is providing and not on the products and services. Please note that this does not mean the mission statement is intended for the customers only. It should specify the customers but should be such that it makes sense for all the stakeholders of the company.
Mission statement is a way to direct the company. It is also a medium of communication for the stakeholders of the company. Hence it has to be clear and easily understandable. That is, it should be devoid of technical jargons and meaningless phrases.
Are Mission Statements achievable?
The Mission Statements are not any definite target that the company has to achieve. The achievable targets are the goals, objectives and vision. Mission statement is the path company will take to achieve the short, medium and the long term ends. As such the mission statements can become redundant once the objective and visions have been achieved and needs to be revised after some time so as to stay relevant with the time, the nature of the economy and the stature of the company. A good example to illustrate this point will be the old example of Girls scout. Their former mission statement w as[i] "to prepare young girls for motherhood and wifely duties." Hardly any young lady will get excited to join the institution which has such an outdated mission statement and some may even find such a statement weird to the extent of being offensive. Few companies had their mission statement as earning xyz amount of revenue. Such targets are achievable and their mission statements need to be up-dated with time.
Vision
To be among the global top 10 by 2010.
Mission
To help customers achieve their business objectives
by providing innovative, best-in-class consulting, IT solutions
and services. Make it a joy for all stakeholders to work with us.
Here we see that the mission statement acts as the guiding path and the Vision may be achievable. But the mission statement of TCS is such that it can be used even after the Vision has been (or not) achieved. This I will personally treat as a good mission statement because it clearly states the path the company is going to follow in short, medium and long term.
I feel that the mission statement of a company is not a few loosely correlated ideas or a long task list but a practical statement of “way of life” the company intends to have. A well written and well developed mission statement can act as a strong marketing and promotional tool and should be developed with great care and effort should be have it as relevant as possible.
Mission Statement:
The purpose of mission statements is to communicate what the organisation intends to do for self and for the different stakeholders.
Having effective and appropriate mission statements are part of strategic planning when one plans for longer duration and tries to project where the company will be after 5,10, 15 years and how the company plans to reach there.
The intended audience lie both outside the organisation but also to the insiders, those who are the employees of the organisation. The audience realm includes the present customers, future customers, the different hierarchy of management, current and future employees, Government and all the stakeholders of the company.
What is it that the Mission Statement should communicate? What are the elements of an effective Mission Statement?
A good mission statement should communicate not only what the products and services of the company are but should include more than that. The mission statement should tell the reason[i] for the existence of the company, except of course to earn capital, and what business the company is in and intends to be in.
This is one point where there can be many objections. One school of thought says that since Mission Statement is forward looking in nature hence should state on where the company intends to take itself in future and not where it is[ii], however some believe that Mission Statement should also give an indication what is the company’s business and what is the company trying to do for the customers. So as per them the realm includes the present in addition to the desired future.
The characteristics that should be present in a mission statement for it to be effective are discussed now[i],[ii].
It should have a formulation of firm’s objective that enables progress towards them to be measured. Lest the achievements are not measurable the purpose of the mission statement is not properly served. The mission statement should differentiate the company from other companies. This means that is should not be vague and generic.
The mission statement should state the business the company aims to be in and not necessarily is in (as stated above, this view has been opposed by some).
The mission statement should be exciting and inspiring. It would be desirable if the mission statement states the competitive advantage, the core competencies the company has. That will make the mission statement different from mission statement of other companies and make the mission statement far more meaningful than it will be sans it.
The mission statement should also clearly identify who the company thinks are its customers and indicate at a macro level how the company is planning to satisfy the customer’s needs. Here one must take caution that the fashion changes and style does not. Similarly the technology and the products that the customer needs changes but there are few basic needs of customers and the values they appreciate that have withstood the test of time and are not likely to change. A mission statement should concentrate on those guiding principles of the solution the company is providing and not on the products and services. Please note that this does not mean the mission statement is intended for the customers only. It should specify the customers but should be such that it makes sense for all the stakeholders of the company.
Mission statement is a way to direct the company. It is also a medium of communication for the stakeholders of the company. Hence it has to be clear and easily understandable. That is, it should be devoid of technical jargons and meaningless phrases.
Are Mission Statements achievable?
The Mission Statements are not any definite target that the company has to achieve. The achievable targets are the goals, objectives and vision. Mission statement is the path company will take to achieve the short, medium and the long term ends. As such the mission statements can become redundant once the objective and visions have been achieved and needs to be revised after some time so as to stay relevant with the time, the nature of the economy and the stature of the company. A good example to illustrate this point will be the old example of Girls scout. Their former mission statement w as[i] "to prepare young girls for motherhood and wifely duties." Hardly any young lady will get excited to join the institution which has such an outdated mission statement and some may even find such a statement weird to the extent of being offensive. Few companies had their mission statement as earning xyz amount of revenue. Such targets are achievable and their mission statements need to be up-dated with time.
Vision
To be among the global top 10 by 2010.
Mission
To help customers achieve their business objectives
by providing innovative, best-in-class consulting, IT solutions
and services. Make it a joy for all stakeholders to work with us.
Here we see that the mission statement acts as the guiding path and the Vision may be achievable. But the mission statement of TCS is such that it can be used even after the Vision has been (or not) achieved. This I will personally treat as a good mission statement because it clearly states the path the company is going to follow in short, medium and long term.
I feel that the mission statement of a company is not a few loosely correlated ideas or a long task list but a practical statement of “way of life” the company intends to have. A well written and well developed mission statement can act as a strong marketing and promotional tool and should be developed with great care and effort should be have it as relevant as possible.
________________________________________
[i] Mission Statement, mystrategicplan, web-source: http://www.mystrategicplan.com/strategic-planning-topics/mission-statements.shtml
[ii] Mission Statements, ACKOFF, R.L., (1986). Management in Small Doses, Wiley, NY.
References:
"best practices,Strategic Planning",Publisher:Foundation for Community Association Research; web-source: http://www.cairf.org/research/bpstrategic.pdf
“Strategic Planning”; Civicus; web-source: http://www.civicus.org/new/media/Strategic%20Planning.pdf
http://www.smbtn.com/books/gb21.pdf
"Corporate Mission Statements: A Strategic Management Issue";Leann Cardani; websource: http://www.stfrancis.edu/ba/ghkickul/stuwebs/btopics/works/mission.htm
5 comments:
A nice comprehensive description indeed about the mission statements of an organization and their relevance in the current scenario..I would like to add few more points..it's something the company it supposed to follow in a world where externalities are absent..due to bounded rationalities and externalities, the path of an organization get diverted from mission statement leading into differentiation between actual and stated mission.
"I feel that the mission statement of a company is not a few loosely correlated ideas"....thats very fine
because it should be practically
implemented even for a very sort period of time...your effort is really appreciable.
A very well written note on Corporate Planning. But, a big question is "Are Companies actually able to implement, what they actually Planned?".
Every company plans, but implementation is a major hurdle. There are few companies like Walmart which dont have Mission & Vision, it works on its core values. A Company has to identify its Core-Purpose of existence, it can be either by Mission/Vision/Core Values. But If a company fails to motivate its employees & customers, then all plannings will go for toss.
Wow!! After reading this stuff I've got so many more viewpoints with which I can look at Mission statements. What makes this post all the more impressive are the examples that you've used to make your point.
Great Stuff. Keep posting more on such 'Corporate Planning' issues.
Your views on global warming were quite out of the box. I never considered global warming from a management perspective. The fact that it can effect business to the magnitude of billions of dollars is quite revealing
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