Mission Statement

Mission Statement

Managers and employees are occasionally searching for a purpose and a sense of identity. They want more than just pay, safety and an opportunity to develop their skills. They want a "Sense of Mission". In fact there are a number of functions that a Mission can have in any organization. These can be internal and external and include:

1.            To inspire and motivate managers and employees to higher levels of performance. (Sense of Mission)

2.            To guide resource allocation in a consistent manner.

3.            To help to balance the competing and often conflicting interests of various organizational stakeholders.

4.            To provide a sense of direction.

5.            To promote shared values amongst employees.

6.            To refocus an organization during crises.

7.            To improve corporate performance.

 

A Mission Statement is an articulation of a company's mission. An often-used definition of a mission statement is: "a broadly defined but enduring statement of purpose that distinguishes the organization from others of its type and identifies the scope of its operations in product (service) and market terms" (Pearce, J.: The company mission as a strategic tool. Sloan Management Review, 1982, 23-3, pp. 15-24). According to Campbell, mission statements frequently do more harm than good because they imply a sense of direction, clarity of thinking, and unity that rarely exists. Instead of uplifting employees with elevating ideals, they encourage cynicism. The Ashridge Mission Model from Andrew Campbell is a method that can be used to create or analyze a Mission, Sense of Mission and Mission Statement. The Ashridge model integrates two historic schools to determine a Mission:

 

•             The Strategic School. A Mission is primarily seen as the first step in the strategy process. It defines the business's commercial rationale and target market.

•             The Cultural/Philosophy/Ethics School. A Mission is primarily seen as an expression or statement that should ensure good cooperation between employees. It is cultural glue which enables an organization to function as a collective unity.

 

The Ashridge Mission Model contains the following four elements which should be linked tightly together, resonating and reinforcing each other to create a strong Mission:

 

Purpose

·         For the benefit of the shareholders (See: Shareholder Value Perspective)

·         For the benefit of all its stakeholders (See: Stakeholder Value Perspective)

·         For the benefit of a higher ideal, going beyond merely satisfying the needs of its stakeholders.

 

Strategy

The commercial logic for the company. Strategy links purpose to behavior in a commercial, rational, left-brain way. (Compare: Whole Brain Model)

 

Values

The beliefs and moral principles that lie behind a company's culture.

 A Sense of Mission occurs when employees find their personal values aligned with the organizational values. Values give meaning to the norms and behavioral standards in the company. Values are strong motivators to act in the best interests of the purpose of the company. They can provide a rational for behavior that is just as strong as strategy.

But in another, emotional, moral, ethical and right-brain way. It is for this reason that the Ashridge framework has a diamond shape. Compare: Seven Signs Of Ethical Collapse

 

Policies and Behavioral Standards

Guidelines to help people to decide what to do on a day-to-day basis.