T7 – Characteristics Of A Mission Statement

A Declaration Of Attitude

A mission statement is more than a statement of specific details; it is declaration of attitudes

and outlook. It usually is broad in scope for at least two major reasons. First, a good mission
statement allows for the generation and consideration of a range of feasible alternative
objectives and strategies without unduly stifling management creativity. Excess specificity
would limit the potential of creative growth for the organization. However, an overly general
statement that does not exclude any strategy alternatives could be dysfunctional. Apple
Computer’s mission statement, for example, should not open the possibility for
diversification into pesticides – or Ford Motor Company’s into food processing.

Second, a mission statement needs to be broad to reconcile differences effectively among,

and appeal to, an organization’s diverse stakeholders, the individuals and groups of
individuals who have a special stake or claim on the company. Thus mission statement
should be reconciliatory. Stakeholders include employees, managers, stockholders, board of
directors, customers, suppliers, distributors, creditors, governments (local, state, federal and
foreign), unions, competitors environmental groups and the general public. Stakeholders
affect and are affected by an organization’s strategies, yet the claims and concerns of diverse
constituencies vary and often conflict. For example, the general public is especially
interested in social responsibility, whereas stockholders are more interested in profitability.
Claims on any business literally may number in the thousands and they often include clean
air, jobs, taxes, investment opportunities, career opportunities, equal employment
opportunities, employee benefits, salaries, wage, clean water and community services. All
stakeholders’ claims on an organization cannot be pursued with equal emphasis. A good
mission statement indicates the relative attention that an organization will devote to meeting
the claims of various stakeholders.

As indicated in Table 7-1, in addition to being broad in scope, an effective mission statement
should not be too lengthy; recommended length is less than 250 words. An effective mission
statement should arouse positive feelings and emotions about an organization; it should be
inspiring in the sense that it motivates readers to action. A mission statement should be
enduring. All of these are desired characteristics of a statement. An effective mission
statement generates the impression that a firm is successful, has direction and is worthy of
time, support and investment – from all socioeconomic groups of people.

It reflects judgments about future growth directions and strategies that are based on forward-
looking external and internal analyses. A business mission should provide useful criteria for
selecting among alternative strategies. A clear mission statement provides a basis for
generating and screening strategic options. The statement of mission should be dynamic in
orientation, allowing judgments about the most promising growth directions and those
considered less promising.
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Table 7-1 Characteristics Of A Mission Statement

1. Broad in scope; do not include monetary amounts, numbers, percentages, rations, or
objectives
2. Less than 250 words in length
3. Inspiring
4. Identify the utility of a firm’s products
5. Reveal that the firm is socially responsible
6. Reveal that the firm is environmentally responsible
7. Include nine components customers, products or services, markets, technology, concerns for
survival/growth/profits, philosophy, self-concept, concern for public image, concern for
employee
8. Reconciliatory
9. Enduring

A Customer Orientation

A good mission statement describes an organization’s purpose, customers, products or

services, market, philosophy, and basic technology. According to Vern McGinnis, a mission
statement should (1) define what the organization is and what the organization aspires to be,
(2) be limited enough to exclude some venture and broad enough to allow for creative
growth, (3) distinguish a given organizations form all others, (4) serve as a framework for
evaluating both current and prospective activities, and (5) be stated in terms sufficiently clear
to be widely understood throughout the organizations.

A good mission statement reflects the anticipations of customers. Rather than developing a
product and then trying to find a market, the operating philosophy of organizations should be
to identify customers’ needs and then provide a product or service to fulfill those needs.

Good mission statements identify the utility of a firm’s products to its customers. This is
why AT&T’s mission statement focuses on communication rather than on telephones; it is
why ExxonMobil’s mission statement focuses on transportation rather than on railroads; it is
why Universal Studios’ mission statement focuses on entertainment rather than on movies. A
major reason for developing a business mission statement is to attract customers who give
meaning to an organization.

The following utility statements are relevant in developing a mission statement:

Do not offer me things

Do not offer me clothes. Offer me attractive looks.
Do not offer me shoes. Offer me comfort for my feet and the pleasure of walking.
Do not offer me a house. Offer me security, comfort and a place that is clean and happy.
Do not offer me books. Offer me hours of pleasure and the benefits of knowledge.
Do not offer me CDs. Offer me leisure and the sound of music.
Do not offer me tools. Offer me the benefits and the pleasure that come from making
beautiful things.
Do not offer me furniture. Offer me comfort and the quietness of a cozy place.
Do not offer me things. Offer me ideas, emotions, ambience, feelings and benefits.
Please, do not offer me things.

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Mission Statement Components

Mission statement can and do vary in length, content, format and specificity. Most
practitioner and academician of strategic management feel that an effective statement should
include nine components. Because a mission statement is often the most visible and public
part of the strategic-management process, it is important that it includes the nine
characteristics as summarized in Table 7-2, as well as the following nine components:

1. Customers – who are the firm’s customers?

2. Products or services –what are the firm’s major products or services?
3. Markets – geographically, where does the firm compete?
4. Technology – is the firm technologically current?
5. Concern for survival, growth and profitability – is the firm committed to growth
and financial soundness?
6. Philosophy - what are the basic beliefs, values, aspirations and ethical priorities of the
firm?
7. Self-concept – what is the firm’s distinctive competence or major competitive
advantage?
8. Concern for public image – is the firm responsive to social, community and
environmental concerns?
9. Concern for employees – are employees a valuable asset of the firm?

TABLE 7-2 Characteristics Of A Mission Statement

1. Broad in scope; do not include monetary amounts, numbers, percentages, ratios, or objectives
2. Less than 250 words in length
3. Inspiring
4. Identifying the utility of a firm’s products
5. Reveal that the firm is socially responsible
6. Reveal that the firm is environmentally responsible
7. Include nine components customers, products or services, markets, technology, concern for
survival/growth/profits, philosophy, self-concept, concern for public image, concern for
employees
8. Reconciliatory
9. Enduring

Excerpts from the mission statements of different organizations are provided in Table 7-3 to
exemplify the nine essential mission statement components.

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Table 7-3 Examples Of The Nine Essential Components Of A Mission Statement

1. Customers
We believe our first responsibility is to the doctors, nurses, patients, mothers and all others who use our products
and services. (Johnson&Johnson)

2. Products Or Services
AMAX’s principal products are molybdenum, coal, iron ore, copper, lead, zinc, petroleum and natural gas,
potash, phosphates, nickel, tungsten, silver, gold and magnesium (AMAX Engineering Company)

3. Markets
We are dedicated to the total success of Corning Glass Works as a worldwide competitor. (Corning Glass
Works)
Our emphasis is on North American markets, although global opportunities will be explored (Blockway)

4. Technology
Control Data is in the business of applying micro-electronics and computer technology in two general areas:
computer-related hardware; and computing-enhancing services, which include computation, information,
education and fiancé (Control Data)
We will continually strive to meet the preferences of adult smokers by developing technologies that have the
potential to reduce the health risks associated with smoking. (RJ Reynolds)

5. Concern for Survival, Growth and Profitability

In this respect, the company will conduct its operations prudently and will provide the profits and growth which
will assure Hoover’s ultimate success. (Hoover Universal)

6. Philosophy
Our world-class leadership is dedicated to a management philosophy that holds people above profits. (Kellogg)
It’s all part of the Mary Kay philosophy – a philosophy based on the golden rule. A spirit of sharing and caring
where people give cheerfully of their time, knowledge, and experience
(Mary Kay Cosmetic)

7. Self-Concept
Crown Zellerbach is committed to leapfrogging ongoing competition within 1,000 days by unleashing the
constructive and creative abilities and energies of each of its employees. (Crown Zellerbach)

8. Concern For Public Image

To share the world’s obligation for the protection of the environment. (Dow Chemical)
To contribute to the economic strength of society and function as a good corporate citizen on a local, state, and
national basis in all countries in which we do business. (Pfizer)

9. Concern For Employees

To recruit, develop, motivate, reward, and retain personnel of exceptional ability, character, and dedication by
providing good working conditions, superior leadership, compensation on the basis of performance, an attractive
benefit program, opportunity for growth, and a high degree of employment security. (The Wachovia
Corporation)
To compensate its employees with remuneration and fringe benefits competitive with other employment
opportunities in its geographical area and commensurate with their contributions toward efficient corporate
operation. (Public Service Electric & Gas Company)

Writing And Evaluating Mission Statements

Perhaps the best way to develop a skill for writing and evaluating mission statements is to
study actual company missions. Therefore, the mission statements presented in Table 7-4 are
evaluated based on the nine desired components. Note in Table 7-4 that numbers provided in
each statement reveal what components are included in the respective documents. Among
the statements in Table 7-4, note that the Dell mission statement is the best because it lacks

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only one component, whereas the L’Oreal statement is the worst, lacking six of the nine
recommended components.
There is no one best mission statement for a particular organization, so good judgment is
required in evaluating mission statements. Realize that some individuals are more
demanding than others in assessing mission statements in this manner. For example, if a
statement merely includes the word “customers” without specifying who the customers are, is
that satisfactory? Ideally a statement would provide more than simply inclusion of a single
word such as “products” or “employees” regarding a respective component. Why? Because
the statement should be informative, inspiring, enduring, and serve to motivate stakeholders
to action. Evaluation of a mission statement regarding inclusion of the nine components is
just the beginning of the process to assess a statement’s overall effectiveness.

TABLE 7-4 Example Mission Statements

Fleetwood Enterprise will lead the recreational vehicle and manufactured housing industries (2,7) in
providing quality products, with a passion for customer-driven innovation (1). We will emphasize
training, embrace diversity and provide growth opportunities for our associates and our dealers (9). We
will lead our industries in the application of appropriate technologies (4). We will operate at the highest
levels of ethics and compliance with a focus on exemplary corporate governance (6). We will deliver
value to our shareholders, positive operating results and industry-leading earning (5). (Author comment:
statement lacks two components: Market and Concern for Public Image)

We aspire to make PepsiCo the world’s (3) premier consumer products company, focused on convenient
foods and beverages (2). We seek to produce healthy financial rewards for investors (5) as we provide
opportunities for growth and enrichment to our employees (9), our business partners and the communities
(8) in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and
integrity (6). (author comment: Statement lack three components: customers, technology and self-concept)

We are loyal to Royal Caribbean and Celebrity and strive for continuous improvement in everything we
do. We always provide service with a friendly greeting and a smile (7). We anticipate the needs of our
customers and make all efforts to exceed our customers’ expectations (1). We take ownership of any
problem that is brought to our attention. We engage in conduct that enhances our corporate reputation and
employee morale (9). We are committed to act in the highest ethical manner and respect the right and
dignity of others (6). (Author comment: Statement lacks five components: Products/Services, Markets,
Technology, Concern for survival/Growth/Profits, Concern for Public Image)

Dell’s mission is to be the most successful computer company (2) in the world (3) at delivering the best
customer experience in markets we serve (1). In doing so, Dell will meet customer expectations of highest
quality; leading technology (4); competitive pricing; individual and company accountability (6); best-in-
class service and support (7); flexible customization capability (7); superior corporate citizenship (8);
financial stability (5). (Author comment: Statement lacks only one component: Concern for Employee)

Procter & Gamble will provide branded products and services of superior quality and value (7) that
improve the lives of the world’s (3) consumers. As a result, consumers (1) will rewards us with industry
leadership in sales, profit (5), and value creation, allowing our people (9), our shareholders, and the
communities (8) in which we live and work to prosper. (Author comment: Statement lacks three
components: Products/Services, Technology and Philosphy)

At L’Oreal, we believe that lasting business success is built upon ethical (6) standards which guide growth
and on a genuine sense of responsibility to our employee (9), our consumers, our environment and to the
communities in which we operate (8). (Author comment: statement lacks six components: Customers,
Products/Services, Markets, Technology, Concern for Survival/Growth/Profits, Concern for Public Image)

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