Definition
Mission statement is a description of what an organization actually does what its business is and why it does it. [1]
Customer-oriented missions. Customer-oriented missions define organizations purpose in terms of meeting customer needs or providing solutions for them. They provide more flexibility than productoriented missions and can be easily adapted to changing environment. For example, Nokias statement connecting people is customer-oriented. It does not focus on mobile phones or smartphones only. It provides a solution to customer needs and could easily have worked 50 years ago, and will continue to work in the future. It also gives more strategic flexibility for the company. In Nokias case, it may start providing VoIP software to allow calls to be made over the internet and its mission would still be valid.
Product-oriented missions. Product-oriented missions focus on what products or services to serve rather than what solutions to provide for customers. These statements provide less flexibility for the company because most products have short life cycle and offer limited market expansion. The company that defines its business as providing best health insurance products may struggle to grow to other insurance product categories. For a mission to be effective it must include the following 9 components [2]:
Customers. Who are your customers? How do you benefit them? Products or services. What are the main products or services that you offer? Their uniqueness? Markets. In which geographical markets do you operate? Technology. What is the firms basic technology? Concern for survival. Is the firm committed to growth and financial soundness? Philosophy. What are the basic beliefs, values and philosophies that guide an organization? Self-concept. What are the firms strengths, competencies or competitive advantages? Concern for public image. Is the firm socially responsible and environmentally friendly? Concern for employees. How does a company treat its employees?
Informs organizations stakeholders about its plans and goals; Unifies employees efforts in pursuing company goals; Serves as an effective public relations tool; Provides basis for allocating resources; Guides strategic or daily decision making; Shows that a company is proactive.
Public image, concern for employees, philosophy and customers are the most important components of a mission; Citizenship, teamwork, excellence and integrity are the values used most often by the companies with effective missions; Influential statements include words such as: communities, customers, employees, ethics, global and quality/value [4]; Statement should be customer-oriented; Use less than 250 words; Be inspiring and enduring.
NOTE! Every mission must be communicated to organizations stakeholders to have any positive impact. It must be constantly revised and adjusted to meet any changing situation.
FedEx
Mission: FedEx Corporation will produce superior financial returns for its shareowners (5) by providing high valueadded (7) logistics, transportation and related information services (2) through focused operating companies. Customer (1) requirements will be met in the highest quality manner appropriate to each market segment served (3). FedEx Corporation will strive to develop mutually rewarding relationships with its employees (9), partners and suppliers. Safety will be the first consideration in all operations (9). Corporate activities will be conducted to the highest ethical and professional standards. (6) Comments: FedEx mission lacks the answers about technologies (4) and social responsibilities (8), which is one of the key characteristics that have to be in successful statement. It also lacks all the values pointed out in the guidelines that are used by successful companies in their statements. It is also product-oriented.
Intel
Mission: Delight our customers (1), employees (9), and shareholders (5) by relentlessly delivering the platform and technology (2, 4) advancements that become essential to the way we work and live. Comments: Intels mission is poor because it lacks 4 components: markets (3), philosophy (6), self -concept (7) and public image (8). It is customer-oriented but does not use any of the top 4 values and is too short.
Toyota
Mission: Toyota will lead the way to the future of mobility, enriching lives around the world (3) with the safest and most responsible (6) ways of moving people (1). Through our commitment to quality, constant innovation (4, 7) and respect for the planet (8), we aim to exceed expectations and be rewarded with a smile. We will meet challenging goals (5) by engaging the talent and passion of people (9), who believe there is always a better way. (6) Comments: Toyota has only missed to mention its products. Their mission is customer-oriented, inspiring and enduring but it doesnt clearly mention its customers or social responsibilities.