Q&A - What role do mission statements play in business?

Mission statements: an exercise in public relations or a key part of providing the direction that management and employees need as they go about their business? The debate about the relevance and usefulness of mission statements has raged for many years.

A mission statement attempts to put into words what a business or organisation is all about. It attempts to define in a punchy, understandable phrase:

• The overriding goal of the business
• The reason for its existence
• A strategic perspective
• A vision for the future

Here are some examples:

Esporta Health Clubs:

Levi Clothing

What makes an effective mission statement? A good mission statement:
• Contains a formulation of objectives that enables progress towards them to be measured
• Differentiates the business from its competitors
• Defines the markets or business in which the firm wants to operate
• Is relevant to all major stakeholders - not just shareholders and managers
• Excites, inspires, motivates & guides

Research has found that effective mission statements tend to be:

• Brief
• Flexible (able to accommodate change)
• Business specific and distinctive
• Effective at communicating key values
• Realistic and achievable
• Based on consultation
• Supported by senior management

Unfortunately, many mission statements are ineffective. This has led some commentators to question the role of mission statements. Amongst the common criticisms levied are:

• Not always supported by actions of the business
• Often too vague and general
• Often merely statements of the bleeding obvious
• Often seen as a PR exercise
• Sometimes regarded cynically by staff
• Sometimes not a true reflection of reality
• Not supported wholeheartedly by senior management