Sometimes you don’t know where the journey will take you. In private life, this can be a charming plan. A couple of friends arranged their vacation on an equal footing. The country was agreed in advance (Sweden, by car), and the two of them took it in turns to decide on the exact destination.
In a business environment, however, spontaneous changes of direction tend to cause irritation. There must be no doubt about the identity of an organization, its values and its goals – too much depends on it. The purpose of a mission statement is to maintain orientation. Questions such as:
- Why does our company exist?
- Where do we want to go and how do we do it?
- On what basis do we act?
can help to develop a strong mission statement.
Elements of a mission statement
A mission statement is a complete package of purpose, vision, mission and values. They are the guard rails that are set internally and externally. Internally, they provide orientation; externally, in the best case, they can inspire and attract people to the company – customers and also new minds. It defines the purpose and direction of the company and serves as a guide for employees and the strategic direction.
Each level has its own role:
- Purpose: The purpose of a company is its overarching intention, it legitimizes its existence and describes its positive impact on society. Purpose goes beyond financial goals and connects employees, customers and other stakeholders on an emotional level.
- Vision: The vision describes the long-term goal or the desired state that the company wants to achieve. It provides an inspiring view of the future and motivates employees to work towards a shared vision. It is based on a visionary idea that is achievable but requires a certain amount of effort.
- Mission: The mission describes the company’s activities and behavior in order to realize its vision. A well-formulated mission enables employees to focus on the essential tasks and goals and helps to align all areas of the company.
- Values: Values give us orientation. They bundle the principles on which behavior and decisions are based. They represent the ethical standards and thus serve as an anchor for behavior. Companies that clearly define their values and act accordingly create trust among their customers and employees. Values also serve as a compass for employees and can serve as a basis for cooperation and the development of a positive corporate culture.
“A good mission statement is the result of co-creation. Employee participation is the be-all and end-all for companies to develop a strong and effective mission statement.” (A. Montua)
Taken together, the levels have the power to shape nothing less than the essence of the company. That is why it is important:
- It creates identity
A strong mission statement unites employees in a common purpose. This motivates and promotes the commitment of each individual and also that of managers.
- It provides orientation
A mission statement provides orientation for strategic planning and decision-making. It defines the framework within which decisions can be made. Inconsistencies are avoided and goals can be pursued more effectively. All initiatives, projects and plans should ideally be derived from the mission statement.
- It promotes employer branding
An attractive mission statement provides insight into the most important aspects of a company and thus attracts talent. In employer branding and also in employee engagement, it helps to set an example and send clear signals. In addition to employees, customers are also more willing to work with transparent partners.
Especially in times of change, a mission statement can provide security and orientation as well as release energy and productivity by actively addressing and classifying disruptive changes.
Best together
In order to develop an authentic and effective mission statement, employees must be involved in the process. Then it can achieve the traction, the degree of activation that the company needs. People will only set off if there is a worthwhile goal waiting for them. New colleagues will only have the right skills and the necessary determination if these are formulated. Our appeal to companies is to dedicate themselves to their mission statement together with their employees. Intensive engagement with the central questions of the company’s purpose, goals and principles of cooperation is a solid foundation for ongoing changes and challenges.