Topic 4: Mission and Vision Statement

What Do We Want to Become?

Vision Statements answers the question —

Vision Statements

• A clear —— provides the foundation for developing a comprehensive —— statement.

Vision Statement Analysis

• this statement should reveal the type of business the firm engages.

What Is Our Business?

Mission Statement answers the question —

Mission Statements

is a clear and enduring statement of purpose that:

• States the reason for being

• Distinguishes an organization from others

• Answers, "What is our business?"

Peter Drucker

• father of modern management

• emphasized the importance of asking: “What is our business?” — which is the same as asking: “What is our mission?”

The Importance (Benefits) of Vision and Mission Statements

• these statements help guide a company’s goals and direction.

Process of Developing Vision and Mission Statements

• Involve Many Managers

• Provide Background Readings

• Individual Drafting

• Merge into Draft

• Gather Feedback

• Revise & Finalize

According to King and Cleland, organizations should carefully write a mission statement because it brings important benefits, such as:

• Clear Purpose

• Strategic Focus

• Resource Allocation

• Organizational Alignment

Characteristics of a Mission Statement

• Broad in scope

• Fewer than 150 words in length

• Inspiring

• Identifies the utility of a firm’s products

• Reveals that the firm is socially responsible

• Reveals that the firm is environmentally responsible

• Includes nine components

• Reconciliatory

• Enduring

Components of a Mission Statement

• Customers

• Products or services

• Markets

• Technology

• Survival, growth, and profitability

• Philosophy

• Self-concept (distinctive competence)

• Public image

• Employees

Evaluating and Writing Mission Statements

There’s no perfect mission statement—good judgment is key. It should be motivating, customer-oriented, informative, inspiring, and enduring, not just list keywords.