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I’ve had a 30-year love-hate relationship with mission statements. I’ve read thousands. I love it when a mission statement defines a business so well that it feels like strategy—and that does happen—and I hate it when a mission statement is generic, stale, and completely useless.
Your company’s mission statement is your opportunity to define the company’s goals, ethics, culture, and norms for decision-making. The best mission statements define a company’s goals in at least three dimensions: what the company does for its customers, what it does for its employees, and what it does for its owners. Some of the best mission statements also extend themselves to include fourth and fifth dimensions: what the company does for its community, and for the world.
The vast majority of the mission statements are just meaningless hype that could be used to describe any business in the category. People write them because some checklist or expert said they had to.
A well-developed mission statement is a great tool for understanding, developing, and communicating fundamental business objectives, and should be expressed in just a paragraph or two. If you read it out loud, it should take about 30 seconds. And it should answer questions people have about your business, like:
• Who is your company?
• What do you do? What do you stand for? And why do you do it?
• Do you want to make a profit, or is it enough to just make a living?
• What markets are you serving, and what benefits do you offer them?
• Do you solve a problem for your customers?
• What kind of internal work environment do you want for your employees?
Unfortunately few mission statements actually do that.
So how do you make sure yours isn’t one of the bad ones? Over the decades I’ve spent reading, writing, and evaluating business plans, I’ve come up with a process for developing a useful mission statement, and it boils down to five steps:
1. Start With A Market-Defining Story
You don’t have to actually write the story—it’s definitely not included in the mission statement—but do think it through:
Imagine a real person making the actual decision to buy what you sell. Use your imagination to see why she wants it, how she finds you, and what buying from you does for her. The more concrete the story, the better. (And keep that in mind for the actual mission statement wording: “The more concrete, the better.”)
A really good market-defining story explains the need, or the want, or—if you like jargon—the so-called “why to buy.” It defines the target customer, or “buyer persona.” And it defines how your business is different from most others, or even unique. It simplifies thinking about what a business isn’t, what it doesn’t do.
This isn’t literally part of the mission statement. Rather, it’s an important thing to have in your head while you write the mission statement. It’s in the background, between the words.
2. Define How Your Customer’s Life Is Better Because Your Business Exists
Start your mission statement with the good you do. Use your market-defining story to suss out whatever it is that makes your business special for your target customer.
Don’t undervalue your business: You don’t have to cure cancer or stop global climate change to be doing good. Offering trustworthy auto repair, for example, narrowed down to your specialty in your neighborhood with your unique policies, is doing something good. So is offering excellent slow food in your neighborhood, with emphasis on organic and local, at a price premium.
This is a part of your mission statement, and a pretty crucial part at that—write it down.
If your business is good for the world, incorporate that here too. But claims about being good for the world need to be meaningful, and distinguishable from all the other businesses. Add the words “clean” or “green” if that’s really true and you keep to it rigorously. Don’t just say it, especially if it isn’t important or always true.
3. Consider What Your Business Does For Employees
These days, good businesses want to be good for their employees. If you’re “hard numbers”-oriented, keeping employees is better for the bottom line than turnover. And if you’re interested in culture and employee happiness, then defining what your business offers its employees is an obvious part of your strategy.
My recommendation is that you don’t assert how the business is good for employees—you define it here and then forever after make it true.
Qualities like fairness, diversity, respect for ideas and creativity, training, tools, empowerment, and the like, actually really matter. However, since every business in existence at least says that it prioritizes those things, strive for a differentiator and a way to make the general goals feel more concrete and specific.
While I consulted for Apple Computer, for example, that business differentiated its goals of training and empowering employees by making a point of bringing in very high-quality educators and presenters to help employees’ business expertise grow. That’s the kind of specificity you should include in your mission statement.
With this part of the mission statement, there’s a built-in dilemma. On the one hand, it’s good for everybody involved to use the mission statement to establish what you want for employees in your business. On the other hand, it’s hard to do that without falling into the trap of saying what every other business says.
Stating that you value fair compensation, room to grow, training, a healthy, creative work environment, and respect for diversity is probably a good idea, even if that part of your mission statement isn’t unique. That’s because the mission statement can serve as a reminder—for owners, supervisors, and workers—and as a lever for self-enforcement.
If you have a special view on your relationship with employees, write it into the mission statement. If your business is friendly to families, or to remote virtual workplaces, put that into your mission.
4. Add What The Business Does For Its Owners
In business school they taught us that the mission of management is to enhance the value of the stock. And shares of stock are ownership. Some would say that it goes without saying that a business exists to enhance the financial position of its owners, and maybe it does. However, only a small subset of all businesses are about the business buzzwords of “share value” and “return on investment.”
In the early years of my business I wanted peace of mind about cash flow more than I wanted growth, and I wanted growth more than I wanted profits. So I wrote that into my mission statement. And at one point I realized I was also building a business that was a place where I was happy to be working, with people I wanted to work with; so I wrote that into my mission statement, too.
5. Discuss, Digest, Cut, Polish, Review, Revise
Whatever you wrote for points two through four above, go back and cut down the wordiness.
Good mission statements serve multiple functions, define objectives, and live for a long time. So, edit. This step is worth it.
I’ve been writing professionally all of my adult life. I was a foreign correspondent for a decade, and then I billed more than $2 million in business plan consulting, and then I wrote books published by Entrepreneur Press, McGraw-Hill, Dow Jones-Irwin and others, and thousands of blog posts for this site and a number of high-profile sites; I’ve never written anything that wasn’t better with editing. And most of what I’ve written was better after I cut it to half its original length.
As you edit, keep a sharp eye out for the buzzwords and hype that everybody claims. Cut as much as you can that isn’t unique to your business, except for those special elements that—unique or not—can serve as long-term rules and reminders.
Read other companies’ mission statements, but write a statement that is about you and not some other company. Make sure you actually believe in what you’re writing—your customers and your employees will soon spot a lie.
Then, listen. Show drafts to others, ask their opinions, and really listen. Don’t argue, don’t convince them, just listen. And then edit again.
And, for the rest of your business’s life, review and revise it as needed. As with everything in a business plan, your mission statement should never get written in stone, and, much less, stashed in a drawer. Use it or lose it. Review and revise as necessary, because change is constant.
Final note: Should I apologize for putting the word “easy” into the title of this piece? Sometimes I confuse interesting, useful, and important with easy. I always underestimate tasks I like doing.
Source: Tim Berry
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