Do you really need a mission statement? What are the most important mission statement benefits that you should be aware of? Learn more in this article!
Probably, the best answer to this question, or should we say the best hint at the importance level of a mission statement to an organization can best be gleaned from another question:
Why would a company spend thousands, millions, or even billions in dollars and time, trying to develop a mission statement? And then, even more resources further on public relations to unveil this mission purpose to their stakeholders?
It’s all in the benefits, which needless to say are pivotal to an organization’s growth and success. In this article, we’re going to examine the benefits of a mission statement, with a focus on 12 of which we consider the most important.
What is the purpose of a mission statement?
A mission statement is one of the most frequently used management tools in every organization; it is one of the simplest and most fundamental necessities of a business.
This is not surprising when we consider some of the benefits.
At its core, the purpose of a mission statement is to communicate the direction of an organization, make day-to-day operating decisions, keep the organization focused, and motivate employees.
These benefits are more than enough for a business to take the time to develop one, as it’s the foundational idea upon which an establishment has been founded.
We will now look closely at each of these wins, along with several other broader mission statement benefits.
One of the biggest mission statement benefits is clarity. A mission statement serves to clarify purpose and set direction. Think of it as some kind of a guiding star for your establishment.
A good mission and vision statement will be the foundation for your strategy and a guiding tool for a plethora of organizational activities – from recruitment down to marketing.
Since it’s often difficult to prioritize everything, your company’s mission statement will help you clearly define what to focus on. It is the springboard for the organizational objectives and targets.
Forbes says that an estimated “… 64% of consumers find brands much more attractive if they actively communicate their purpose. That’s why a mission statement is so crucial.”
Next on our list of mission statement benefits is direction.
When the goals and focus of an organization are clearly defined, direction is established. This makes it easier to effectively plan and execute strategies and align with policies. How does your company brand and position itself in the market and to its competitors? What are its values, mission, and vision?
What are its short and long-term goals? Answers to these questions help make it clear how to approach your business and what routes to go.
Mission statement benefits: direction
In addition to saving time and resources, charting out a path for your organization and staying on track to it makes it easier to convince people to support your organization’s journey.
Speaking of important mission statement benefits, we have to mention focus.
As an organization grows and expands its reach and as market conditions change (for better or for worse), it becomes easier for both employers and employees to get pulled in too many different directions.
The result: loss of focus – a common case when there is no mission statement or when a poorly defined one is in use. This scenario should be avoided, as it negatively affects an establishment’s image and removes from its brand.
A strong mission statement allows you to have consistency across your organization and keep in line with your company’s goals. This is needed to help guide the brand through major growth.
It should focus energy and attention, helping employees work through different organizational problems and evaluate multiple possibilities. This way, outputs can be created at a maximum.
At Marketing Toolbox, we can help you define your company’s mission, so that everyone, from staff persons to target market, is able to look at and understand their roles at/with the agency through the lens of purpose.
You will be more likely to earn the loyalty of your employees, customers, and (prospective) partners if you’re able to clearly communicate and sell your company’s foundational ideas to them.
Mission statement benefits: trust
This can be done through good and effective use of a mission statement. And by the way, this is not only just applicable to commerce, but in all aspects and levels of human interactions.
A perfectly executed example on “trust” would be PayPal’s mission statement: “To build the web’s most convenient, secure, cost-effective payment solution.”
Next on our list of mission statement benefits is uniqueness.
A mission statement gives you the chance to edge out the competition. What makes your brand different from other companies’? You should use your mission purpose as a creative way to stamp your authority and authenticity in the market.
The goal should be such that when consumers consider your products and/or services, they will remember why you deviated from the crowd.
Isn’t that great?
Well, just remember to keep things brief and clear, just about a sentence long. A lot of details can confuse or lose the attention of consumers, so select your words carefully. Ensure your intentions are clear, connect with your customers, and set yourself apart from the crowd, then watch your business grow.
Another worthy benefit of a mission statement is that it is a great tool for recruitment.
An inspiring mission purpose will attract the right type of talents to your organization (maybe even from your competitors), or it might persuade fresh talents on the market, like college graduates, who are a great fit and who share the cultural values of your organization.
One of the biggest mission statement benefits is motivation.
People want to believe in the work that they do. Defining the mission purpose of your company is a good way to motivate your employees, partners, target market, and other stakeholders.
Mission statement benefits: motivation
A mission statement not only dictates and influences how an organization should conduct itself, but also HUGELY impacts how your staff members perceive their roles. It guides, influences, and shapes the culture within your organization.
It cannot be overemphasized that organizational culture is a pivotal part of staff engagement and employee satisfaction. It’s important to give your staff a solid reason to believe in the work they do.
7. Measure progress
When you have a clearly defined mission/vision and have decided on a specific route, it becomes easier to keep on track in that direction and measure progress accordingly.
Measuring progress is one of the most underestimated mission statement benefits, but it’s also extremely important nonetheless.
8. Support/building community
If you have a mission statement that champions an honorable cause, that appeals to people’s emotions, or that solves a special problem, it will be easier to get the support of investors, consumers and the general public.
Organizations and brands that cater for children, women, the less privileged, the handicapped, and animals, or ones that promote initiatives such as environmental protection and world peace have an easier time getting people ready to network and partner with them.
It’s easier for a company to forge out an identity for itself when it knows exactly why it exists. Answering this question of existence makes an organization’s intentions clear to both consumers and investors. Keep it clear, concise, and even catchy to provide the best clarity between your company and investors & consumers alike.
Also, try tying together your mission statement with your company’s vision and values for best results. A mission statement creates a sense of identity for the brand it serves and a feeling of purpose for the employees – this cannot be overemphasized.
Mission statement benefits: identity
10. Guiding culture
A mission statement provides a blueprint for organizing and guiding the decisions of an organization. When it’s properly designed, a mission statement will help your company evaluate options and decide on what is best for the establishment according to its preferred future.
An organization’s mission statement also serves as a guide for its culture and workplace environment for positive growth. It helps the company to create and uphold the integrity of the brand’s traditions, cultures, and values. These qualities, of course, must be indoctrinated into employees and must reflect in their codes and conducts.
Hubspot defines this as “unification”. In their own words:
“The larger a company is, the more departments and employees it has, not to mention hired contractors or outsourced workers. The more a project is disseminated and touched by different divisions, the easier it is to lose sight of the overall goal. With an explicit mission statement, all workers understand how their roles fit into the larger picture.”
11. Aligning behavior
Our list of mission statement benefits continues with aligning behavior.
Needless to say, every business is created to serve a particular purpose and provide a specific need (an idea which a mission statement aims to capture). To achieve these objectives and continue to grow, an establishment must hold itself accountable.
All hands must be on deck, as employees, consumers, and partners align their codes and conduct towards the same goal. Behavior and action must be kept congruent with preferred results, at all times, in all conditions.
This is only possible when an organization clearly understands its own purpose and communicates it convincingly to other stakeholders outside the establishment.
Mission statement benefits: behavior
12. Improved performance
And last but not least, one of the mission statement benefits that we should not forget about is performance.
Employees can increase their job performance when there is a clear goal, a guiding culture, and behavior alignment. Talk of a great way to motivate staff members to work toward a firm’s vision and raise the bar for themselves.
Mission statement benefits: conclusion
That wraps it up for us on the benefits of a mission statement. Just a recap.
A mission statement is a management tool that, if appropriately used, has the potential to help increase the probability of success for your establishment. It is not just useful but essential.
It will ensure that your organization has a (clear) direction and goal, that your stakeholders support your purpose, and that your skills and resources are aligned to facilitate growth and success.
When it is properly crafted, a mission statement encapsulates an organization’s core values and beliefs. The simple act of putting your thoughts on paper will create clarity.
What are some of the most important mission statement benefits for you? Let us know in the comments below!