The Mission Statement

A mission statement is a short summary of why a company exists. It explains what the company wants to do for the world. The mission statement is not a goal, but it is used to help make goals. This makes sure that the company's goals match up with the reason it was created in the first place.

Some people do not agree that a mission statement is important. Many companies do well without one. But we believe that creating a mission statement is important for startups. A good mission statement can help identify what the company is about and what the stakeholders (customers, shareholders and employees) want.

How does the mission statement complement other corporate statements?

The mission statement is the first thing in the company statements:

• Mission: Why we exist
• Values: What we believe in and how we will behave
• Vision: What we want to be
• Strategy: What our competitive game plan will be
• Balanced scorecard: How we will monitor and implement that plan
  

The mission statement is a guide for the company. It tells the company what to do. The mission statement is not very specific. The first part of the mission statement is the company's objective. The objective is what the company wants to achieve.

Creating your startup’s mission statement

The elements of a mission statement may include:

• corporate values (for example, environmental policies, employee policies) to create a positive sense of identity;
• strategic elements (for example, product definition, market definition);
• and a business definition to establish a sense of purpose, identity, and commitment for employees, customers, and corporate stakeholders.

Bad practices when creating your mission statement

• Avoid creating a mission statement that fails to set your company or products apart from the competition. Generic messaging provides no tangible benefit.
• Do not use too many words that are overused, such as “best,” “communities,” “customers,” “excellence,” “leader” and “quality.” This will make it easier to create a mission statement that is different from others.

Questions to help frame your mission statement

A mission statement outlines your business purpose and its core values. Use these questions as a guide to craft an effective mission statement:

• What business are we in?
• What needs are we serving?
• Why do we exist?
• How do we serve customers?
• What assets and skills do we bring to the market?
• How do we believe that market will grow and develop in the future?

References

Kawasaki, G. (2004). The Art of the Start. London: Penguin Group. pp. 31-33.

Collis, D.J., and Rukstad, M.G. (2008, April). Can You Say What Your Strategy Is? Harvard Business Review, 1-10.

Aaker, D.A. (2001). Developing Business Strategies. New York: John Wiley & Sons. pp. 31-33.

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