What Is a Mission Statement?

What Is a Mission Statement?

Let me tell you directly: a company uses a mission statement to explain its purpose for existing in simple and concise terms. You’ll find that the statement is generally short, either a single sentence or a short paragraph.

Key Takeaways

Understand this: a mission statement is what a company uses to explain its purpose in simple terms. It’s usually one sentence or a short paragraph that covers the company’s culture, values, and ethics. These statements serve purposes like motivating employees and reassuring investors about the company’s future. When you craft one, think about how your company impacts customers, donors, investors, or the community, and why you aim to help them. Remember, a mission statement might overlap slightly with other marketing content, but it’s distinct from a vision statement, value statement, brand, or slogan.

How a Mission Statement Works

Mission statements serve a dual purpose, as I see it. They help employees stay focused on their tasks and encourage them to find innovative ways to boost productivity toward company goals. A company’s mission statement defines its culture, values, ethics, fundamental goals, and agenda. It shows how these apply to stakeholders: employees, distributors, suppliers, shareholders, and the community. These groups can align their goals with the company’s using the statement.

The statement reveals what the company does, how it does it, and why. Prospective investors might check it to see if the company’s values match theirs. For example, an ethical investor against tobacco wouldn’t invest in a company aiming to be the largest cigarette manufacturer.

It’s common for large companies to spend years and millions refining their mission statements, which sometimes become household phrases. But mission statements aren’t just for companies; successful individuals craft personal ones too, incorporating financial, professional, spiritual, and relational aspects to maintain work/life balance and boost achievement.

Drafting a Mission Statement

Narrowing down your company’s focus into one statement can be tough, but here are some tips to help you write a good one. Start by outlining what your company does—this could be a product you produce or a service you provide to customers, whatever keeps your business running.

Next, describe how your company does it, but don’t get technical. Focus on the values at your business’s core, like quality, customer service, sustainability, or fostering creativity and innovation. These are key points to include.

Be sure to include why you do what you do—this sets you apart from competitors and highlights what makes your business unique. Keep it short and to the point. After drafting, review it, edit, and have someone else look it over. Once approved, incorporate it everywhere you can, and remember to review it periodically. Your company might outgrow it or shift direction, requiring a new one.

Important Note

Here’s something crucial: a company’s mission is its identity, and its vision is the journey to accomplish it. Take as long as you need to craft the right statement.

Displaying a Mission Statement

Once crafted, it’s up to the company to make the mission statement public—it only has value if shared with customers, vendors, donors, and employees. Since it’s short, you can easily include it in marketing materials, on the website, or in documents. You might even have employees add it to email signatures.

It’s also a perfect elevator pitch that key team members should memorize. Use it to introduce your company at events or casual encounters—it captivates interest quickly.

Advantages and Disadvantages of Mission Statements

Mission statements aren’t perfect; they have pros and cons. On the advantages side, they outline goals and industry position for customers, competitors, and stakeholders, helping the organization stay focused and make right decisions. They clarify purpose, assuring customers and investors of commitment to goals and values, while guiding and motivating employees.

They add validity, showing thoughtful leadership and inspiring investors, employees, or donors. But disadvantages exist: statements can be too lofty, distracting from short-term steps. Developing one takes time and money, potentially wasted if it’s bad, leading to opportunity loss. Crafting is hard with many ideas but limited space, and some may disagree without room for rebuttal.

Fast Fact

Know this: a mission statement isn’t required, but it might be needed for nonprofit grants or by interested investors.

Mission Statement Examples

Mission statements vary, but here are examples from big companies: Nike’s is 'To bring inspiration and innovation to every athlete* in the world.' Walmart’s: 'We save people money so they can live better.' Starbucks: 'To inspire and nurture the human spirit—one person, one cup and one neighborhood at a time.' Tesla: 'To accelerate the world’s transition to sustainable energy.' JP Morgan: 'We aim to be the most respected financial services firm in the world.'

Mission Statements vs. Other Statements

Don’t confuse mission statements with others. A vision statement can change and outlines what the company must do to stay true to its mission—mission is identity, vision is the journey. A value statement is direct, guiding decisions with actions like 'acting ethically' or 'being transparent,' while mission describes high-level purpose.

Company goals are specific, often measurable, and driven by the mission. A brand encompasses marketing, events, reviews, and logo, shaped partly by the mission. A slogan is brief and memorable, like 'Just Do It,' meant for marketing, not as informative as a mission statement.

What's an Example of a Mission Statement?

Take Microsoft’s: 'Our mission is to empower every person and every organization on the planet to achieve more.'

What's in a Good Mission Statement?

A good one is concise, limited to one sentence but encompassing the company’s entire purpose, focusing on long-term goals for customers.

How Do I Write a Mission Statement?

There’s no single best way, but start by considering what your business does for customers, employees, and the public. Collect more content than needed, then refine to one sentence. Think about personal experiences and broader impacts, not just narrow business elements—like Microsoft focusing on empowerment, not a specific product.

The Bottom Line

In summary, a mission statement is a simple, brief description of a company’s purpose, defining its culture, goals, and values. It gives customers, employees, and investors a clear view of priorities, motivates staff, keeps them focused, and reassures investors.