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There are many ways to define or approach a company mission statement, but the intent is the same in all cases: Mission statements are meant to align an organization’s employees to a clear, primary purpose. While many mission statements aren’t particularly inspiring, the most effective ones help employees find meaning in their work and feel like they’re making a difference for the greater good.
What is it about your company culture that defines your organization’s identity and builds your employee alignment? How do you tell the world about the values behind your company? A mission statement keeps everyone on the same page with respect to why you’re even in business at all. While you may feel that your primary purpose for existing is to be financially profitable, no company will achieve long-term success if its only mission is “to make money.” Larger goals matter, both for you and for your employees. Here’s an exploration of what mission statements are and are not, together with five characteristics that amazing company mission statements all have in common.
What is a mission statement?
A mission statement is a short description that outlines a company’s business objectives, culture, and values. Usually in a sentence or two, it answers the what, how, and why of a company’s overall purpose, synthesizing important ideas to differentiate a business from their competitors. This is different from a personal mission statement which defines an individual, their values, and aspirations in life. In both cases, a mission statement encapsulates a company and individual’s essence while serving as a guide to help them achieve their goals.
Why is a mission statement important?
A mission statement is important because it helps different stakeholders understand the purpose and top priorities of a company. For employees, especially, mission statements can empower company core values and cultures, motivating them to work with purpose and meaning and develop a long-term growth and commitment to their workplace. From a business’s standpoint, a clear and powerful mission statement can set a company apart from competition by emphasizing its competitive advantage. At any stage of your business, it is crucial to always circle back to your company mission statement and ensure your progress stays on track to success.
What is the difference between a vision statement and a mission statement?
A vision statement concisely expresses what a company wants to become and accomplish while a mission statement explains what the company does to achieve it. In simple words, the first one focuses on the future while the second one focuses on the present. A powerful vision statement needs a strong and clear mission statement. These two often go hand in hand and provide a high-level sense of direction for a company. For employees, a strong vision guides teams to work on what matters most for their company and promotes purpose-driven business approach.
Mission statements are as varied as individual companies, but the really outstanding ones do have certain characteristics in common:
5 characteristics of amazing company mission statements
1. They are short and punchy
A mission statement shouldn’t be an essay. You’ll have better luck aligning your employees when they can remember what your mission statement actually is, instead of recalling it merely as a wall of words on a sign somewhere. Likewise, it should not be written in corporate jargon. Gee Ranasinha, CEO of marketing firm Kexino, puts it this way: “Mission statements need to be written using words and sentences that ‘normal’ people use and understand.”
Casual dining giant Darden Restaurants has truly mastered the art of brevity. Its mission statement: “To nourish and delight everyone we serve.” Darden saves a deeper dive into their company’s values for their employee page, on which they go into much more detail.
2. They start with an action verb
It’s helpful to read a few online lists of the very best mission statements. For instance, in this list you’ll notice that most of the statements have an action word at the beginning of the statement. After the word “To…” you see such words as “inspire,” “create,” “reinvent,” “give” and so on. Although there are variations in which some companies describe what they are going to “be” rather than what they’re going to “do,” the majority use very active phrasing.
3. They are specific
Your mission statement should reflect the specific nature of your business and define your company culture and character. Check out two different statements, demonstrating this point. Here’s an example: “Deliver to customers and employees.” Would you be able to tell what kind of product this company is selling? Now compare the first example with, “To discover, develop and deliver innovative medicines that help patients prevail over serious diseases.” This statement, from Bristol-Myers Squibb Company, tells you precisely what the company does.
4. They are directed both inside and outside
Ever stumbled upon a company’s mission statement that left you scratching your head, wondering who it was really talking to? You’re not alone. Crafting a mission statement isn’t just about ticking off a box — it’s about crafting a narrative that resonates both within and beyond the company walls.
Imagine reading a corporate mission statement solely fixated on shareholder value and ethical standards. Sure, it’s crucial for the company’s internal compass, but does it make you want to buy their products? Probably not.
So, let’s pivot to an example that satisfies both: Universal Health Services Inc. Their mission reads: “To provide superior quality healthcare services that patients recommend to family and friends, physicians prefer for their patients, purchasers select for their clients, employees are proud of, and investors seek for long-term returns.” This shows how a mission statement can satisfy both internal and external stakeholders, better shape perceptions, and build connections between different groups.
5. They are revisited every few years
Mission statements must grow with the company. Regardless of how carefully you plan the path of your business, the passage of years will inevitably bring evolution. To keep your company’s mission statement relevant, it should be reevaluated every few years. While you may not need to rewrite it entirely, companies often find that it’s necessary to add something to a mission statement as they move forward with development.
Amazon is a great example of how corporate evolution can alter a mission statement. The ecommerce giant was originally an online book retailer with this as their mission statement: “to use the Internet to transform book buying into the fastest, easiest, and most enjoyable shopping experience possible.” However, as the company expanded into new areas, the mission statement needed to change. Its mission is now “to be Earth’s most customer-centric company, Earth’s best employer, and Earth’s safest place to work.” This shows how a company’s mission statement can — and should — evolve with the company.
How to create a sincere mission statement
Is your company’s mission statement up to date? Does it reflect your organizational core values and culture? According to Forbes, a clear and concise mission statement offers guidance and a sense of purpose for the company and everyone in it. And when an organization is seen going on the right track to achieve its goals, employee recognition is needed to embrace their hard work.
Recognition, just like a sincere mission statement, helps improve employee loyalty, alignment, and belonging. Watch our webinar recording, “5 Key Considerations for Building a Culture of Belonging in 2024”, to take your mission statement to the next level and go deep into what makes a great employee culture.
In this article:
Key insights
- Discover what a mission statement is and why it's important to your company.
- Find 5 characteristics of amazing mission statements.
