What is a mission statement and why is it important to a company explain how it relates to a companys marketing strategy?

Ever encounter a business and wonder what they do and why they do it? What is their fundamental purpose?

“The increase and diffusion of knowledge”

That is the mission statement of the Smithsonian. It tells consumers, both internal and external, what the organization hopes to accomplish in a simple and concise way. Not all mission statements are as poignant as that one. Some provide a broader vision of the company. For example, insurance company Aflac’s mission statement is:

To combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers

It says to both employees and potential customers that they value quality products and services at competitive prices. A mission statement articulates the purpose of the business. That makes it an important part of any brand building plan. Consider how the right mission statement can work for your business.

Why do businesses need a mission statement?

A well-crafted mission statement focuses the business for both employees and the target audience. It serves as a framework, giving everyone involved a launching point to build from when establishing the brand. For consumers, it sets the company apart from the competition without limiting the business purpose.

You notice Google’s mission statement doesn’t mention running a search engine even though that is their initial claim to fame. It is just broad enough to let the business grow into the conglomerate it is today.

What should a mission statement accomplish?

A mission statement should tell others why the business exists and what makes it different.

Why they exist: To prevent and alleviate human suffering in the face of emergencies

What makes them different: They mobilize the power of volunteers and the generosity of donors

How is that different from Goodwill Industries?

Why they exist: To advance employment, education and skill-building

What makes them different: They employee and educate

Clearly, the core business model of these two seemingly similar companies is very different.

Finding a Balance for Your Mission Statement

The goal here is to strike a balance between overt realism: We offer quality products and good service

. . . and optimism: We aim to be an industry leader

Neither one of those statements makes the company stand out, but combined they are stronger. What is it about your business that is better than the other guys, though? That is where adding the key elements come into play.

The Key Elements of a Mission Statement

Focus your statement on these four elements.

• Value – What is the value of the business to both customers and employees?
• Inspiration – Why should people want to work for the company?
• Plausibility – Make it sound reasonable
• Specificity – Tie it back to the business

Value – To create and promote great-tasting, healthier, organic beverages

Inspiration – To grow our business with the same honesty and integrity we use to craft our products

In their mission statement, Honest Tea is not promising to cure cancer, only to make a healthy product. They also point out they create organic beverages that taste great, tying the statement back to the business brand.

Tips for Creating an Effective Mission Statement

There are many schools of thought on how to go about creating the perfect mission statement, but there are some clear do's and don’t's to consider.

• Do keep it short and concise. Sum up the company’s mission in just a few sentences.
• Don’t write an essay. That is not the purpose of this brand building tool. You want the mission statement to be tethered to the brand and that means it must be memorable. Long drawn out prose is rarely memorable.
• Do think long-term. The mission statement is an investment in your company’s future, so keep it open enough to reflect your long-term goals.
• Don’t make it too limiting. We want to provide the best products ever to the town of Elmwood. Do you only see the business selling to the residents of one small town or do you hope to expand at some point?
• Do find out what your employees think of the mission statement. This is a tool designed with them in mind, too, so get their opinion. Ask how they would improve it and what they dislike about it.
• Don’t be afraid to change it. Things change in the business world. If the mission statement no longer represents the company, it is time for a rewrite.

A mission statement is a declaration of what makes the business important. By design, it guides the actions of the employees and draws in customers by creating direction by explaining what the company intends to accomplish.

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A company mission statement can be a nebulous thing. With so many conflicting definitions of what a mission statement is and how it helps businesses establish their purpose, it can be hard to understand how to properly create one and communicate it to your workforce.

Most companies have mission statements, but many of them are outdated and were created before HR leaders had clear guidelines on what makes an effective mission statement. Whether your company needs to create a mission statement from scratch or is looking to refresh your existing one, this article is designed to help you understand the ins and outs of creating an effective mission statement.

In this article, we’ll go over what a company mission statement truly is, why having one is important, how a mission statement differs from a vision statement, what a bad mission statement looks like, and how mission statements define your company culture.

What exactly is a company mission statement?

Let’s put this debate to rest and clearly define what a company mission statement is:

A company mission statement is an action-based statement that declares the purpose of an organization and how they serve their customers. This sometimes includes a description of the company, what it does, and its objectives. 

Now, let’s get more detailed:

A mission statement provides perfect clarity behind the following:

• The “what” of your company: what you deliver to your customers.
• The “who” of your company: who benefits from your product.
• The “why,” of your company: why you do what you do. 

Company mission statements are guidelines by which a company operates. Everything you do as a company should work toward your mission. For examples of great mission statements, see our article, Best Mission Statements: 12 Examples You Need to See.

Most mission statements are between one and three sentences, never exceeding 100 words. We suggest summing up your mission statement in a single succinct sentence to keep it clear and easy for your workforce to follow.

Something to note: your company’s mission statement should be ingrained in your employees’ minds even before their first day on the job. It should be present on all your recruiting and onboarding materials, displayed on social media, and prominently represented on job search sites like Glassdoor. Employees should know your mission statement by heart and feel aligned with it every day they come to work.

Why Having a Mission Statement Is Important

Your mission statement is essential for three key reasons:

1. 1. To communicate to employees what the purpose of their work is. All businesses need a mission statement to ensure your employees clearly understand the purpose behind what drives their work every day.
      
   2. To unite your leadership team in a single direction for the company. A company mission statement is critical to effectively planning your business strategies, making product decisions.
   3. To use in your company branding, especially when recruiting new employees. A company’s mission statement can become the bedrock of all marketing and advertising, which grabs the attention of candidates and customers alike.

Employees committed to a company’s mission experience higher productivity levels and engagement. They are also 54% more likely to stay for at least five years at a company, reducing turnover costs. Furthermore, these employees are 30% more likely to become top-performers than those who are not committed to your company’s mission.

What a Bad Mission Statement Looks Like

Now that you’re educated on what a mission statement is, let’s talk about what a bad mission statement looks like. If your company mission statement has any of the following, it’s time to rewrite it completely.

It’s Full of Buzzwords

Ineffective mission statements are full of trendy buzzwords and business jargon. If your mission statement needs to be read twice to be understood, you should reconsider your phrasing or the entire mission statement itself.

It Contains Grammatical Errors

A bad mission statement may also have typos, grammatical errors, and syntax errors. After you have generated the idea for your company mission statement, be sure to run it by your staff copywriter to ensure it is error-free.

It’s More than Two Sentences

While it’s great that your company has many goals, a company mission statement needs to be succinct and easy to understand. A mission statement with more than two sentences won’t capture your audience, nor will it achieve its goal: to quickly communicate your company’s purpose.

It’s Unattainable

A bad mission statement establishes unrealistic or unattainable goals that negatively impact employee morale. These lofty goals are best left for your vision statement or even cut from your mission and vision completely.

How does a company mission statement impact your culture?

Your company’s culture is defined by several components, the most important being your core values. However, your company mission statement plays a major role in creating culture and even works together with your core values to shape the behaviors and shared goals of your employees every day. Here are six ways your company mission statement impacts your company culture.

1. Mission Statements Work in Tandem With Your Core Values

Your company culture is the collective behavior of your organization, defined by your company core values. We define core values as ideals that guide organizations on how to make decisions. To learn more about core values, check out our article, Developing the Best Company Core Values: The Ultimate Guide. 

Your mission statement should be directly aligned with your core values. Your core values establish what behaviors you want to see from your employees every day, and your mission statement should establish the shared goals those behaviors work toward. In tandem, a mission statement and your company core values should shape the attitudes, goals, and behaviors of your employees every day.

For example, if your mission statement is to “provide the most intuitive online shopping experience for car shoppers,” your core values should align with this shared goal. A great example of core values that align with this mission statement are:

• Put the customer first
• Lead with empathy
• Listen first, ask second

All three of these core values work toward this common goal, putting the mission statement at the center and simultaneously establishing what kind of behaviors your employees should exhibit.

2. Mission Statements Influence Your Company’s Future

When considering the future of your company, your mission statement should always be top-of-mind. By identifying the purpose of your work, you concretely define your company’s goals and commitments. Once these goals are set, you can develop a strategy to achieve them. That being said, every product decision you make should also be aligned with your company mission statement. Every time you plan to enhance your product, take a step back and consider: does this align with our company’s purpose? Does this deliver on our mission?

If you find yourself struggling to answer these questions, you might want to re-evaluate those decisions and the direction of your product to ensure it aligns with your company mission statement.

3. Mission Statements Establish Shared Goals

Just like they pave the way for the company’s future, mission statements also establish the shared goal employees are working toward. In tandem with your core values, a company mission statement paves the way for how individual employees think about their jobs.

Ensuring employees are clear on their purpose and know exactly what is expected of them paves the way for company culture. Employees can tailor their work and day-to-day actions to align with this shared goal so you can effectively drive results across different departments. These shared goals also give employees something to bond over. If everyone in the company knows exactly what they are working toward, they are more likely to collaborate regularly. This breaks down silos between departments, and a company united is far more likely to thrive.

4. Mission Statements Build Trust at All Levels

When dealing with company culture, building trust between employees and leadership is key. Organizations high in trust are 2.5 times more likely to be identified as high-performance organizations with more revenue growth than lower performance organizations. In fact, 81% of employees working for companies with a strong mission statement reported that they had trust in leadership, compared to 54% of organizations without a strong mission statement. 

That being said, the value of trust within a company can’t be overstated. By leveraging a strong company mission statement, you establish trust between leadership and employees, strengthening your organization from within. If your lower-level employees know even the c-suite is working toward the same mission, they will be more likely to trust that when management makes decisions, they have all employees’ best interests in mind.

5. Mission Statements Establish Consistency, Even After Growth

As your company grows, you will expand departments, hire new employees, and adjust your working environment to an ever-changing business model. Every step on this journey opens you up to losing your focus and unique company culture. However, with a strong company mission statement working with your company core values, you can ensure each individual facet of your organization works toward shared goals. This protects your company culture and prevents it from slipping away from its intended direction.

To establish this consistency, ensure your mission statement is as clear as possible with no room for misinterpretation. If your mission statement is vague, your employees will be left scratching their heads and wondering what the true goal is, especially as your company grows. Tenured employees might have a different interpretation of your mission than your newly hired employees, causing a rift between the two groups. Entire teams might begin working toward different goals, deepening the disconnect between departments and causing friction. For this reason, it’s essential that you create a clear and concise mission statement that leaves no room for interpretation. 

6. Mission Statements Attract and Retain New Employees

As we discussed in the section above, company growth inevitably means hiring new employees. But how do you know you’re hiring the right people for your business?

Your mission statement greatly impacts which job seekers are attracted to your business. Create a mission statement designed to catch the attention of candidates whose values align with your own. It’s one of the strongest messages you can send to the public, extending far beyond internal communication. 

Job seekers attracted to your company mission statement will be predisposed to align with company values and contribute positively to your company culture. By attracting these employees, you build a strong company culture full of people you can rely on to work toward your mission. And the best part? Employees who support your mission are more likely to stay at your company for longer.

Get Started

Company mission statements are an incredibly powerful tool. Think carefully before creating yours, and more importantly, do your research in advance to understand what mission statement will best align with your company. 

Next, talk to your leadership team about what they value about your company and what long-term goals they want to achieve within the next five to ten years. Find common themes in their answers and use them to brainstorm ideas for your company mission statement. Take these ideas back to leadership and decide on your company’s mission statement together. For more details on how to create a mission statement, check out our article, Best Mission Statements: 12 Examples You Need to See.

Now, more than ever, employees need strong shared goals and a mission to work toward. It’s time to find yours.

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