Denice R. Preston
Of the three functional categories that drive value in business–i.e., the “hard,” the “soft,” and the “intangible”–mission statements comfortably reside in the third, alongside such concepts as brand and culture.
This article, despite the skepticism often associated with mission statements and after uncovering some of the most valuable gems within the corporate world, argues that when mission statements are crafted and used effectively, they can drive billions of dollars in value.
The Good, Bad and the Ugly
In the business of building businesses, there exist three functional categories required to drive value. First, the Hard Functions. These include disciplines such as finance, operations, and coding/programming. Second, the Soft Functions provide strategy, marketing, and sales. The third category, which is the most difficult to quantify or value, is what I have labeled intangible assumptions. This includes concepts like brand culture and person. These assets, despite the doubt and skepticism that surrounds them often, are some of the most valuable once they have been optimized.
In this article, I will examine in detail the mission/mission statements of a company. I will analyze the role, purpose, and value-creation capability of these statements. Then, using case studies selected from hundreds of them, I’ll discuss how to create the best and use them.
Ma Raison D’etre… The Mission Statement
Entrepreneurs, businesspeople, and people of all kinds are drawn from different backgrounds. Some of them have a purpose in mind and a direction, while others are still searching for their raison de tre.
Businesses aren’t so different. I, along with others, think that businesses are crude expressions of the worldviews, ambitions, and insecurities of their promoters. The rest, who have a less sacred view of money-making, may disagree. Every business, like everything else, has a reason for being.
Mission statements are short statements that explain the reason an organization exists (i.e., “why”). These statements can take many forms. They range from being succinctly brilliant, like Virgin Atlantic’s “…to “embrace the human spirit and allow it to fly,” to 249 words, which is Avon.
Mission statements are one of the best tools for unification, decision-making, and group cohesion available to leaders and corporations. They can bring together groups with diverse interests and drive them toward a common goal.
What is a mission statement?
Mission statements are unique in that they can be used both offensively (to create opportunities) and defensively (to mitigate negative outcomes). We should, however, first understand what makes a good/effective statement.
Create Effective Mission Statements
You may have seen a slew of opinion pieces in list format that try to convince you that there is a formula, shortcut, or proven method of creating a mission. You should be aware that I’m afraid I have to disagree with most of the collective discourse. (And you should, too.) Many of these articles agree that a great mission must address/answer the following question.
What is the story that defines your brand?
What is your company doing [for its customers, employees, and shareholders (i.e., shareholders)]
What does your company do?
Who is your company doing it for?
What unique value can your company offer?
In this format, I would like to reiterate without apology that answering these questions will only put your organization and any casual viewers of your content to bed. The worst part is that companies who have used this template for their mission statements have ended up with generic and uninspired messages that have filtered down to their employees and managers.
In fact, I think that mission statements are designed to inspire and motivate us to go beyond the ordinary and unite us around a common goal. As an entrepreneur, I have used my mission statement as a way to motivate and inspire my team. Below are the parameters that I think make a great mission statement:
Great Mission Statements should be simple and emotional
Most effective mission statements tend to be the simplest and the simplest in language. They communicate a powerful message with a purpose that is clear and compelling and leaves the consumer feeling just tingly moved. Ikea and Coca-Cola are two examples of mission statements that work.
Create a better life for many people
Both brands could have taken an alternative path, like the one shown in the blueprint above. Ikea, for example, could have advertised its “easily assemblable, functional designs …” and Coca-Cola its “refreshing carbonated beverages,” but both would have been less effective.
Great Mission Statements Should Be Lofty…Almost Transcendent Yet Realistic and Within Reach
The best mission statements are those that speak of a more ambitious, almost surreal, but also realistic, achievable, and plausible ambition for your company. WeWork and eBay are two great examples.
eBay’s mission is to create a global marketplace online where anyone can buy and sell anything. This will enable economic opportunities around the globe.
Warby Parker and Whole Foods’ mission statements, in addition to WeWork’s excellent work, perfectly capture this sentiment.
A rebellious attitude and lofty goals characterized Warby Parker’s founding: offer designer eyewear for revolutionary prices while leading the way in socially-conscious businesses.
Whole Foods has managed to use “love” two times in corporate literature that is aimed at the public. This alone is worthy of our respect. Both statements are true to who these companies really are and what their priorities in the world are. Be true to yourself!
This is perhaps because, as a founder of a company that I have built in my image, this quality ranks high on my list of important attributes for a great statement. Effective mission statements should be congruent within and outside organizations. They should also have enough gravity to draw and unite diverse groups around a shared mission, attitude, or belief. Virgin Atlantic and InVision are both notable in this respect:
