In order to find out why are mission statements important to a business, you should know about what a mission of an organization is. A mission statement is an organization’s expression of the purpose of its existence to its employees, clients, competitors and the entire world. Businesses basically exist to make profits and expand, but in order to be successful, the company should have a clear and specific mission that reaches the public far and wide and explains them about the benefits of doing business with your company.
Mission statements are a crucial aspect of an organization’s existence, as they clearly present the basic purpose of the organization. This determining factor of existence will serve as the uniting cause for the company towards the achievement of its goals.
Every business should consist of a mission for its existence, which is unique and serve as its identity. Mission of the organization is almost synonymous with its goals and objectives.
Mission statements generally consist of purpose, a business statement, and an expression of values of the company. Purpose explicitly represents the purpose of the company. For instance, a product based company’s purpose statement is to develop products. The business statement defines how the development is going to take place. Statement of values tells about the values that are shared throughout the organization and how they play their role in contribution towards the final result.
A good mission statement has to be inspiring to the employees. The statement helps to lay some focus to the staff of the organization. As the progress of their work strengthens, they will be able to observe the end result and value of their contribution towards the purpose. A well drafted mission statement allows all the employees, to understand and realize their own personal role in the success of the organization.
A customer oriented mission statement will be able to rightly convey the customers that the organization is committed to their purpose and requirements. It assures them about the intentions and services offered by the company. When customers come to know that the values defined by the firm are the ones they agree and recognize with, then they are likely to be associated more closely with the organization. It’s a natural human tendency to work with people with similar values and interests.
Framing a mission statement is the first and foremost step for an organization, which sets the path for determining a calculated management process. It also leads to the initialization of other work procedures, which are a part of formulating a strategic plan. The goals and objectives of the organization are set after the mission statement is determined.