6 reasons why your company needs a clear mission statement.
I am often asked about the importance of mission statements – and whether is it really that important to have a written mission statement?
In many companies it seems to just be a plaque on the wall with little or no value. Here is why I think it is critical that every business (including small businesses) have a clear, written mission statement.
- It determines the companies direction and future…
Smart business owners use this statement to remind their teams why their company exists because this is what makes the company successful. The mission statement serves as a “North Star” that keeps everyone clear on the direction of the organization.
“It’s your direction, not your intention, that determines your destination.”
Where will you be in 1 year? 3 years? 5 years? The mission tells us what we’re doing today that will then take us where we want to go in the future.
2. It helps decision making
A clear mission sets important boundaries which enable business owners to delegate both responsibility and authority. Mission is to the company what a compass is to an explorer, a map to a tourist, a rudder to a ship, a template to a machinist. It provides a framework for thinking throughout the organization. It provides the boundaries and guardrails you need in order to stay on the path to your preferred future.
3. It forms the basis for alignment
When a new employee is hired, it’s critical that the new hire know what the company does and where the company is going. The mission statement forms the basis for alignment not only with the owner, but the entire team and organization. Your team will all be on the same page when it comes to what you do and why you do it, which leads to better effectiveness and efficiency.
- It welcomes change
Many people are resistant to change because it causes us to feel insecure and sometimes out of control. However, if the mission is clear, then team members are more likely to see the value of the change and how it helps the organization accomplish the mission. This will create a culture that welcomes change when warranted.
- It shapes strategy
Every business and business owner needs a strategy. But strategies must not be created in a vacuum. Instead of looking at what’s new or what competitors are doing and trying to copy them, wise business owners create the most effective strategies possible to accomplish the mission their company is set out to accomplish.
- It facilitates evaluation and improvement
It has been said that “What you measure will be your mission.” If you have a clear, written statement of mission you will know exactly what to measure and how to measure it.
Most small businesses do not have a mission or vision. If you are one of them, and believe in the value and missed business opportunity, get in contact for an initial strategy call. We would love to help you develop your mission, vision and values to take your business to the next level.