Developing a mission statement is about focusing on what you want the business to accomplish that is MEASURABLE from an outsider's perspective. The mission is not a "soft" statement full of hope and good feelings...it's a MISSION, as if you're heading to war (not sure I like a war analogy, but it fits for crafting a mission statement). The hope and good feeling is for the company's vision.
Consider Desert Storm (part one). The mission was to "remove the Iraqi Army from Kuwait". Nothing about "freedom" (although that was implied). Nothing about right or wrong (again implied). Nothing about how it will be done. Just a measurable MISSION to accomplish. To achieve your mission, the details will be developed through strategic planning, but the mission stands alone.
A lot of companies have mission statements that, in my mind, are more "vision" or "value" oriented. I don't see the need for two vision statements, even if one of them is called a "mission". Here are some examples of good and bad:
Albertson's: Guided by relentless focus on our five imperatives, we will constantly strive to implement the critical initiatives required to achieve our vision. In doing this, we will deliver operational excellence in every corner of the Company and meet or exceed our commitments to the many constituencies we serve. All of our long-term strategies and short-term actions will be molded by a set of core values that are shared by each and every associate. [Too soft and profoundly nondescriptive]
Levi: People love our clothes and trust our company. We will market the most appealing and widely worn casual clothing in the world. We will clothe the world. [Great...shoots very high, but measurable and a great tool for focus. Does Levi do designer suits or prom dresses? Nope...not "casual" as specified in their mission. They have clear focus on their product and who they're selling to]
Kerr-McGee Corporation: Create value for shareholders through the energy business. [What is value to a shareholder? Does $0.01 divident per share fulfill this mission? I don't think this one is clear enough]
IKON: Helping our customers manage document workflow and increase efficiency through best-in-class products and services. Fostering the growth and development of our employees. Providing a distinct advantage to our suppliers as a distribution channel of choice. Growing shareholder value through strong execution of our strategies. [Good. Growing value is better than "creating value" (see above). Most elements in this miession are measurable]
Applied Materials: Applied Materials' mission is to be the leading supplier of semiconductor fabrication solutions worldwide-through innovation and enhancement of customer productivity with systems and service solutions. [Good...measurable]
Avaya: Provide the world's best communications solutions that enable businesses to excel. [What is "best"? Through whose eyes is this measured? I'd have preferred to see "market domination" or "provide comm servides to 80 of the Fortune 100...]
Auto Nation: To be America's best run, most profitable automotive retailer. [Good...most profitable is something you can measure...although "best run" is a bit on the hard-to-measure side]
Estee Lauder: The guiding vision of The Estee Lauder Companies is "Bringing the best to everyone we touch". By "The best", we mean the best products, the best people and the best ideas. These three pillars have been the hallmarks of our Company since it was founded by Mrs. Estee Lauder in 1946. They remain the foundation upon which we continue to build our success today. [Love this one because it defines "the best". Still a bit touchy feely since "best" could mean a variety of things, but I believe this mission gives focus to everthing the company does, from hiring to R&D to marketing, etc.]
Lincoln Financial Group: As one of the country's premier financial services organizations, Lincoln Financial Group is committed to providing its customers with the life insurance, retirement and investment products and services they need to maintain their quality of life. As a concerned corporate citizen, the company's Foundation has sustained a strategic philanthropic program to improve the quality of life in the communities where our employees live and work. [This one leaves me wondering whether it's good or not, which probably means it's not good because it doesn't move me. I get hung up on "maintain their quality of life" since I don't know what that is...or if it's even consistent within their ideal customer base]
Family Dollar: For Our Customers-A compelling place to shop...by providing convenience and low prices. For Our Associates-A compelling place to work...by providing exceptional opportunities and rewards for achievement. For Our Investors-A compelling place to invest...by providing outstanding returns. [Almost good. Not necessarily measurable, but good for providing focus and direction]
Here's a good case study to illustrate WHY a good mission statement is important and should be followed to provide focus. Fred's Grocery:
As an example of how a company mission statement can serve as a focus for improvement in your business's performance, consider the case of Fred's Grocery, a small one-store business, which suffered sales declines when a large chain supermarket opened a store in the neighborhood.
Fred initially considered lowering prices and adding many new items to compete, at great expense and lower margins. However, a family discussion about the "mission" of Fred's Grocery caused Fred to respond in a less direct, less costly, less risky manner.
Fred and his family realized that their mission was to serve the convenience needs of local, upscale neighborhood shoppers for specialty items and "fill-in" grocery items that they needed. The majority of Fred's shoppers spent an average of only $12 ($5-$25 per visit), considerably less than at the larger chain store. Fred and his family decided they would offer more services and specialty items than the larger chain store. Their array of specialty goods, prices, and services also separated them from convenience store chains like 7-11.
Fred's carried all groceries to the shoppers' cars and apartments and delivered gift baskets/flowers, at no extra charge within a five-block radius of the store. They also added specialty items to their store, putting in an espresso coffee bar, wine kiosk, and food/flower gift assortments. They upgraded and limited the amount of fruits and fresh vegetable selections and added fresh, warm breads and cookies.
After one year, Fred's Grocery realized its best year ever and increased both shopper traffic and average sale by 100 percent to an average of over $25 per shopper. Fred felt the new chain store was the best thing that ever happened to his business, thanks to the time he took to discuss and refine his mission statement!
(Source for case study: http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P03_4002)
(Source for mission statements: http://www.missionstatements.com/fortune_500_mission_statements.html)
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