Inspire Firms With Mission Statements

October 5, 2007
Investor's Business Daily

As a company grows and adds new employees, its founders often struggle to preserve the firm's core identity. That's where a mission statement can help.

A mission statement addresses key questions that affect every worker: Why are we here and what are we trying to accomplish?

"Without answers to those questions, people work at cross-purposes and aren't aligned," said Ken Gaebler, head of Gaebler Ventures, a Chicago-based business incubator. "A mission statement gives greater clarity to the organization."

Ideally, you and your management team should craft a mission statement during your company's infancy. If you put it off too long, your work force may lack unity and pursue clashing goals.

Condense your mission statement into one to four sentences, Gaebler says. If it's any longer, people may not pay attention.

Convey a clear message without fluff. While some experts recommend vibrant words and lofty language, Gaebler says to keep it simple.

"Amazon.com has a great mission statement even though the word choice is dull," he said. It reads, "To build a place where people can come to find and discover anything they might want to buy online."

When devising a mission statement, test its effectiveness. If a competitor could use it, that means it's too generic. It should differentiate your firm from the pack.

"The best mission statements are customer-centric," Gaebler said. "You may want to include the word 'customer' so that you're not too inward-focused."

Drill down to communicate what you're going to do to delight the customer. Aspiring to provide "the best service" is too vague, but stating that you'll "harness technological advances to deliver exceptional service" can reinforce your firm's tech-savvy approach.

After you finalize your mission statement, disseminate it widely. Refer to it in staff meetings and employee training programs. When weighing strategic business decisions, ask your team, "Does this decision support our mission?"

Look for opportunities to link individual praise to your firm's mission. If you see an employee providing superior service, jot a note expressing appreciation for that person's adherence to the company's mission.

Revisit the mission statement regularly to ensure that it remains relevant. You may need to modify the wording as circumstances change.

"I used to work for a company that reviewed its mission statement every couple of years without changing it," said Andrew Clarke, chief executive of Ground Floor Partners, a Chicago-based consulting firm. "They spent $60,000 over the four or five years I was there on consultants suggesting ways to update the mission statement. But the founder-CEO didn't want the mission to change."

Clarke eventually persuaded the firm's leaders to tweak the mission statement as part of a companywide rebranding. That sparked a surge in sales.

© 2007. Investor's Business Daily.