Importance Of Mission Statement In Business
Introduction to mission statement:
In simple words, a mission statement is explanation or introduction of a business or organization described for the understanding of customers, consumers, partners and other businesses in the market. If we try to explain a mission statement deeply, we realize that it’s not just an introduction of an organization but it actually tells what the leadership and partners think of their organization and how they see its future. From core objectives, goals to the vision, description of products and services, intended clients and market and partnership with other companies in the market are some of the features a mission statement should include. One of the key reasons that an organization issues a mission statement is to explain its reason of existence, direction and future objectives to customers, partners, stakeholders, employees and general public.
Key elements of a mission statement:
Importance and uses of mission statement:
- It explains organizational direction:
There is a popular saying that it’s your direction that counts not your intentions. When we observe this statement from the point of view of a business owner or its employees, we feel that a mission statement if prepared properly can explain where the organization is going and how the higher management and leadership sees its future after 2 or 3 or 5 years. Not only that this gives hope and motivation to the employees but it also helps create better reputation in the market.
- It focuses on future of the organization:
One of the key features of a mission statement is that it explains what a company is doing currently and where the current efforts are going to take it in coming future. One of the reasons for higher employee turnover is that employees and workers are not certain about the future of the organization so as soon they get a better opportunity, they leave. Mission statement briefly explains where the leadership sees the company in the future and how it’s going to enhance the overall lives of its workers.
- It gives a decision making format:
When it comes to a mission statement in an organization, it has the same importance as a compass has for a ship or map for a tourist. Without mission statement, management doesn’t have the boundaries to make critical decisions and a common plan can result a devastating situation if it’s prepared without a proper mission statement.
- It helps align the organization on right course:
One of the key reasons why organizations usually fail is that there are multiple channels of communication inside the company. A decision is made by the higher management but it reaches employees and workers from different sources and loses its integrity and core purpose. With a mission statement, you can bring your entire team to the same page where everyone understands and knows what the company stands for and where it’s going to be in the near future.
- It helps adopt the change:
Change is something that most people don’t like whether it’s in our personal life or work life but companies often need to change course of action and implement or change new and existing policies for the betterment of organization and its employees. If a change is implemented suddenly, it’s possible that workers and management might resist it but this is something that you need to control with the mission statement. Your mission statement can easily explain why the change is inevitable and what benefits it can bring for your company and its employees.