Mission and Vision Statements Essay Example for Free

Mission and Vision Statements set aboutIt often reflects the values and beliefs of apex managers in an transcription. A delegacy bid is the broad definition of the organisational bearing. It is some multiplication referred to as a creed, purpose, or rumor of corporate philosophy and values. A good guardianship bid inspires employees and provides a focus and transportion for setting lower level objectives. It should guide employees in fashioning decisions and establish what the make-up does. Mission statements be crucial for administrations to prosper and produce. trance studies suggest that they deem a positive impact on profitability and seat increase sh atomic number 18holder equity, they as well as support that approximately 40 pct of employees do non get under ones skin it off or understand their phoners heraldic bearing. Not save bombastic corporations realise from creating military rush statements further small businesses as Photo by sellingp ix http//www. referenceforbusiness. com/ anxiety/Mar-No/Mission-and-Vision-Statements. hypertext mark-up language pageboy 1 of 12 Mission and Vision Statements strategy, organization, practices, advantages, definition, company, disadvantages, business 5/19/13 242 PM well. Entrepreneurial businesses argon driven by vision and high aspirations.Developing a committal statement ordaining dish out the small business realize their vision. Its primary purpose is to guide the entrepreneur and assist in refining the planning process. By developing a strategic plan that incorporates the relegating statement, entrepreneurs are often likely to be successful and stay focused on what is classical. The burster statement encourages managers and small business owners alike to consider the nature and scope of the business. Business Week attributes 30 percent higher return on some(prenominal) key financial measure for companies with well-crafted bang statements. COMMON ELEMENTSWhile di rection statements vary from organization to organization and repre direct the distinctness of each one, they all share confusable components. Most statements include descriptions of the organizations target market, the geographic domain, their concern for survival, outgrowth and profitability, the company philosophy, and the organizations desired public image. For voice Our mission is to become the favorite family dining restaurant in every neighborhood in which we operate. This leave be accomplished by serving a variety of delicious tasting and generously portioned foods at moderate prices.Our restaurants bequeath be clean, fun, and casual. Our guests will be served by friendly, hold upledgeable commonwealth that are commit to providing excellent customer service. This mission statement describes the target market, which are families and the geographic domain of neighborhoods. It subjectly states how it expects to be moneymaking by offering excellent customer service by friendly, knowledgeable people. When defining the mission statement it is important to subscribe into account external influences such as the competition, labor conditions, economic conditions, and assertable government regulation.It is important to retrieve however, that mission statements that try to be everything to everybody end up being vigour to anybody. http//www. referenceforbusiness. com/ anxiety/Mar-No/Mission-and-Vision-Statements. html Page 2 of 12 Mission and Vision Statements strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 242 PM Companies should have mission statements that clearly define expected shareholder returns and they should regularly measure performance in terms of those expected returns.If the major(ip) reason for a businesss public is to make a profit then it stands to reason that expectations of profit should be included in the organizations mission. This inwardness that way should reach a consensu s about which aspects of the companys profit performance should be thrifty. These might include edge growth, product quality, market share changes, competitive cost position, and capital structure efficiency. A mission statement sets the boundaries for how resources should be allocated and what strategic and operational goals should be set.The mission statement should acknowledge the companys strengths and then inform employees where to direct their efforts in order to take advantage of those strengths. Before paternity a mission statement organizations should take a look at how they are different from the competition, whether it is in technology, image and name brand, or employees. It back end often be thought of as a recipe for success because it not only defines the organizations accomplishments but it also provides employees with directions to help them develop plans and look for opportunities for im rearment.The organization defines what is acceptable behavior through the m ission statement. charm and beliefs are the core of a strong mission statement. For example Quality and values will unshakable our success. We will live by our values, have fun, and take pride in what we do. Our values are to insist a work environment where people enjoy coming to work, to serve our guests and exceed their expectations, and to be profitable and result oriented. This mission statement is simple and straightforward. It does not, however, specify the products or target market.The mission statement also provides meaning to the organization by stating not only what goals the company wants to achieve but also why it wants to achieve these goals. It is not effective unless it is challenging and forces workers to establish goals and means to measure the achievement of those goals. A mission statement should inspire employees and get them involved in the organization. It has been called the glue that holds the organization together through overlap values and standards of behavior. A mission statement should be relevant to the history, culture, and values of the company.Many statements refer to the sociable responsibility of the organization. For example, a company can show their concern for the community in the following http//www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 3 of 12 Mission and Vision Statements strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 242 PM To be involved as good corporate citizens wherever we are around the world. We will treat customers and distributors with seriousy, courtesy, and respect.We will respect and preserve the environment. Through all of this we will prove to be the worldwide leader in industry trade. One important issue in organizations straight is the concern with diversity. While it is not a traditional point included in mission statements, more and more companies are including it because of the globalization of the economy and the increased diversity of the workforce. Before writing a mission statement, leaders in the organization must have an idea of what is in store for the future. This vision is the rear end for the mission statement.The vision provides a strategic direction, which is the springboard for the mission and its related goals. A vision statement differs from a mission statement. Vision statements are a view of what an organization is striving to become. For example To bestow back to neighborhoods all over America the importance of family unity. We will view ourselves as a family so these attributes will be carried over into our service. They guide an organization into the future while mission statements are a reflection of the present.Because vision statements are a glimpse into the future, they are often not realized for several years. Organizations go through many changes and can face times of confusion and uncertainty. Changes are not always expected or easy, so a we ll thought out vision statement will help everyone stay focused and meet the organizations goals. Some examples of well-known companies mission statements Wal-Mart To urinate ordinary family the chance to buy the same thing as rich people. 3M To solve unsolved problems innovatively. Walt Disney To make people happy. Historically, these may have seemed arrogant.But consider the outcome of the following mission statements from each companys early age Ford Motor Company Ford will democratize the automobile. Sony Become the company most know for changing the world-wide poor-quality image of Japanese products. Wal-Mart Become a $125 billion company by the year 2000. http//www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 4 of 12 Mission and Vision Statements strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 242 PM WRITING A MISSION STATEMENTWhen creating a mission statement there are a few simple guidelines that can be followed. It is important to remember the basics so the mission statement stays simple and straight to the point. Some researchers agree that it should be kept to between 30 and 60 words, while others believe it does not necessarily have to be that brief. Some organizations have mission statements that are only one sentence, while others are a paragraph. An example of a mission statement that is limited to one sentence is Our business is selling houses and our mission is keep down customer satisfaction.At a minimum, each mission statement should answer the following three questions (1) What are the opportunities or needs the organization addresses? (2) What does the organization do to address those needs? and (3) What principles and values guide the organization? In other words, defining the organizations purpose, business and values. Avoiding jargon and buzzwords will keep the mission statement clear and easy to understand. It should be universal and simple to comprehend for all employees in the organization. It should be unique and divulge the organization.A mission statement is often what sets one company apart from the competition. It should outline the organizations competitive advantages and distinguish it from everyone else. Specific products/services offered as well as markets or customers should be included. Also a widely distributed business definition, behavioral standards, and desired competitive position can be added to a strong mission statement. EMPLOYEE INVOLVEMENT It is often helpful to allow company-wide input when creating a mission statement. This bottom up border on results in greater commitment to the organization and a better understanding of the organization.Employees from throughout the organization can help identify the core values of the company. In order to encourage employee participation, many companies have created competitions inviting employees to throw in suggestions. Cash prizes are sometim es provided as an incentive for seminal and inspirational statements. Some companies find it useful to invite customers to assist in writing a mission statement because they can provide an honest perspective. Another option is to review mission statements from other companies. This can help provide ideas as the writing process begins. It is important tokeep in mind that there will be a write process involved in creating the mission statement. Employees can often provide invaluable insight on how to improve on each draft. In the end, the mission statement should reflect the personality of the organization. Thus, each company should be creative and unique in developing its own statement. Creating a mission http//www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 5 of 12 Mission and Vision Statements strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 242 PMcommittee that consists of members of ma nagement, frontline employees, and customers is another way to begin writing a mission statement. The major benefit of this strategy is the inclusion of all areas of the organization to ensure that everyone is represented. Another benefit is that employees will be more willing to work toward accomplishing the mission if they know they had a voice in its creation. A confidential information down approach can be effective in smaller organizations or even doctor proprietorships. There is less time involved in creating a mission statement when it comes from the prime.Also, many times frontline employees and lower level managers lack the insight necessary to see the big picture. They may not be able to conceptualize the full organization and therefore miss important aspects of the business. Participation may not always be a good option for small businesses. In small businesses that are started by entrepreneurs the mission statement is generally a vision of an individual and therefore may not be negotiable. When the mission statement comes from upper management, employees are more assured of the organizations commitment to the statement.A word of wariness should be noted when deciding whether to adopt a top down approach or a bottom up approach. If the mission statement is to be created with a wide variety of input from both employees and customers then it will take longer than a top down approach. There must be a sharing of views and ideas with compromises made. A consensus should be developed without the problems associated with groupthink. There is always the possibility that too much compromise will distort the mission statement and the end result is something different from the original intent.The top down approach is not always effective because it rarely consults employees when making important decisions. Therefore, although it is the fastest thoroughfare to take it isnt always the most effective. While the mission statement should be able to change wit h the times it is also understood to have a certain degree of permanence. As new businesses begin to grow and hire more employees the mission statement should provide a strong sense of stability and a clear definition of the culture.A mission statement is worthless unless it has the support of the employees in the organization. It will only be successful if each employee commits to its success and innerizes it. Once the statement is completed it is extremely important that the organization not put it on the shelf to collect dust. It should be shared with the entire company. The introduction of the mission statement should come directly from top management in order to set the example. Organizations should be creative in making employees aware of the mission statement.Placing it strategically in locations where employees gather will increase knowingness and remind them of the goals of the http//www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 6 of 12 Mission and Vision Statements strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 242 PM organization. Videos outlining the details of the new mission statement are often useful however, it is critical that employees have the opportunity to discuss the statement with members of management.Setting up brushs with members of management and frontline employees can often help uncover areas where the company does not meet the standards set by the mission statement. Communicating the mission statement to customers will make them feel valued and important. It can be sent to customers in a mass mailing or posted on signs in areas those customers frequent. It sets forth the goals of the organization so customers know what to expect when doing business with the company. bring up ANALYSIS SWOT is an acronym for strengths, weaknesses, opportunities, and threats.SWOT analysis is a strategic planning tool that helps an organization match its internal strengths and weaknesses with external opportunities and threats. SWOT analysis is important and useful in creating and executing the organizations mission statement. Often the best strategies for accomplishing the organizations mission are revealed through the SWOT analysis. The best strategies are those that take advantage of strengths and opportunities, offset threats, and improve weaknesses. Organizations should first begin by reviewing internal strengths and weaknesses.When analyzing an organizations strengths it is important to identify characteristic competencies or strengths possessed by only a few competing firms. These distinctive competencies often become the competitive advantages that are included in the mission statement. Distinctive competencies can be found in financial resources, quality products and services, proprietary technology, or cost advantages. Organizational weaknesses are skills and capabilities that oppose an organization from implementing st rategies that achieve its mission.They can be problems with facilities, lack of a clear strategic direction, internal operational problems, too narrow a product line, weak market image, or the inability to finance changes. The bordering step is to identify external opportunities and threats. Organizational opportunities are circumstances in an organizations environment that if capitalized on will result in above normal increases in economic performance. Examples of opportunities are related to the possibility of adding a new product line, increasing market growth, or diversifying into related products.Threats are viewed as circumstances that give rise to normal or below normal economic performance. They can be found in the ease of entry of competitors, increased sales of substituted products, demographic changes, slowed market growth, or increased competition. EVALUATION http//www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-State ments. html Page 7 of 12 Missio n and Vision Statements strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 242 PM Evaluation of the mission statement is necessary to ensure the organization is meeting its goals.If needed, new goals may have to be created in order to accommodate changes in the organization. It may be time to reevaluate what the organization is doing or where it is headed. This is a good time to think about get into into new areas or to begin doing things differently by rewriting part or all of the mission and vision statements. In evaluating an organizations performance, management must look at several different aspects of the organization. First, managers need to determine if the organizations plans are clearly linked to its mission statement and related goals.Plans should be developed for both the minuscule run and long run. Secondly, assigning jobs that are directly related to the achievement of organizational goals will help ensure they are att ained. The goals should be communicated clearly so employees understand what tasks need to be carried out and what the rewards will be. Finally, when evaluating individual performance, the information gathered should be recent and compared to established standards. Mission statements are often strong to evaluate because they are written in a somewhat abstract form.They are, many times, not directly measurable and vaguely worded. Figure 1 presents an example of how mission statements can be measurable from the top of the organization to the bottom. Strategic goals are directly tied to the organizations mission statement and apply to the organization as a whole. Tactical goals are departmental goals that support the strategic goals. Finally, operational goals are written at the individual level. Each one of these makes it possible to measure the organizations mission statements.An organizations likelihood of accomplishing its mission is increased as it creates strong and measurable goals at each level. It is not necessary that the mission statement be measured in quantifiable terms. It may also be measured qualitatively. For example, We will answer all of our customers questions and if we dont know the answer, we will find out. While this is not a quantitative statement it can be measured by monitoring customer service calls and setting operational goals for employees that revolve around follow up and thoroughness.Mission and vision statements give organizations a focus and a strategy for the future. According to Bart and Tabone, they have become the cornerstones of organizations. They contribute to organizations success and can lead to increases in productivity and performance. They do not have to be reserved for the entire organizationeach department or division can benefit from developing a mission statement, as long as they are not in contradiction in terms to the companys overall mission. Preferably, an individual departments mission links it to the fulf illment of the overall http//www.referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 8 of 12 Mission and Vision Statements strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 242 PM company mission. Mission statements for functional Figure 1 departments provide the same benefits as they do for the entire organization. In conclusion, mission statements provide a sense of direction and purpose. In times of change and growth they can be an anchor and a guide in decision making.The benefits far outweigh the disadvantages and challenges when flavour at the potential for increases in profitability and returns. Defining an organization by what it produces and who it satisfies are major travel towards creating a sound and stable mission statement. Setting a company apart from the competition is likely one of the biggest advantages. SEE ALSO Strategic Planning Failure Strategic Planning Tools Strategy trai ning Strategy Implementation SWOT Analysis Amy McMillan Revised by Deborah Hausler FURTHER READING Bart, C. K. , and J. C. Tabone.