The article speaks about how a mission should be written, so it will provide a clearer and well defined purpose. It’s explained the advantages and limitations of having it. It also explore whether a standalone statement or a broader model should be a better mission statement. This is followed by proposing a new definition of a mission, demonstrating how it is rooted in good practice, and presenting its benefits and limitations. Some context of practical implication discussed as well. Findings
The paper initially shows the inconsistent use of the concept of mission in the expanded list approach. It then proceeds to show similar inconsistencies in three of the most respected models of guiding statements in the literature. Vision Framework (Collins and Porras (1991, 1995, 1996, and 1997) Ashridge Mission Model (Campbell and Yeung (1991)) Model of organizational vision –Liptons Model (Lipton’s (1996, 2003)) Mission Statements Approaches Check List Type: – The article says that to get a well-defined mission statement, it has to have the checklist-type approach.
Research shows that many times companies are only setting a single line of mission statement which does not constitute all the items in the checklist which makes it a poor mission statement. This is where suggestions are being made to the organizations to redefine the mission statement by David and David (2003), They suggest the following comprehensive list of nine components that an effective mission statement should include: Customers (the target market) Products/services (offerings and value provided to customers) Geographic markets (where the firm seeks customers)
Technology (the technology used to produce and market products) Concern for survival/growth/profits (the firm’s concern for financial soundness) Philosophy (the firm’s values, ethics, beliefs) Public image (contributions the firm makes to communities) Employees (the importance of managers and employees); Distinctive competence (how the firm is different or better than competitors). Compilation Logic: – Variously referred to as statements of purpose, values statement, goals and strategies, corporate creed, corporate philosophy, and so on. (Leuthesser and Kohli (1997,).
A mission statement is a clear definition of the mission and purpose of the organization, it may be referred to as the organization creed statement, statement of purpose, statement of general principles, statement of corporate intent or vision statement. ” (Strong (1997, p. 269)) Strategic Intent: – “Strategic intent captures the essence of winning” (Hamel and Prahalad, 1989, p. 64). An effective mission statement basically answers one question: How do we intend to win in this business? ” Welch and Welch (2005, p. 14). Brief on the Model
Vision Framework: – In vision framework, a well-conceived vision consist of 2 major parts. Those are core ideology and envisioned future. The core ideology speaks about the purpose of the organization. It consists of explaining the character of the organization, what it stands for and why it exists. The 2 parts of core ideology are core values and core purpose. Core values are the principals of the organization and core purpose is the fundamental reason of the organization existence. The envisioned future is what the organization would like to achieve.
Ahihridge model: – In Ashridge model, the mission statement should consist not only the purpose but also the strategy, values and standards of behavior. The purpose in this context reflects as to who the organization is on business for. The strategy part speaks about the business logic on saying which business brings the competitive advantage while the values speak of the emotional and moral logics which eventually motivate the employees. The standards of behavior will convert the strategy and values into policies and guidelines.
Liptons Model: – Lipton’s model speaks of 3 components. Those are mission, strategy and culture. The mission specifies the fundamental and unique purpose of the business. The strategy is about how the mission can be achieved while obtaining the competitive advantage of the business. The culture is the part which describes the values, standards of behavior and leadership style of the organization Differences of 3 Model The “Ashridge” model emphasizes the importance of a “sense of mission” and Lipton talks about a “sense of vision.
In both models can see purpose, strategy, values, and standards of behaviors. However the vision model comprises of vision and mission elaborated both other 2 models. The contents of those elements, however, are not always the same. Proposed Definition The proposed definition of mission statement should consist of 3 things. Those are, commitment to reflect authenticity of the mission, a significant value which is exciting and inspiring and a worthy cause for the members of the organization to embrace on. This new definition aims to provide benefits are individual and organization level.
Two benefits can be derived and those are to create a clear focus for the employees and it helps organizations to make strategic decision in regards to resources which help the success of the business. Strength & Drawback Analysis The variety of organizations’ mission statements is so wide that no single definition can possibly be exhaustive. There are authentic and fabricated mission statements, and not all existing varieties are necessarily authentic. This definition, by design, excludes all those varieties of mission statements that are not authentic, i. e. that imply no particular choice. The proposed definition reverses the logic of compilation and synthesis in favor of a more focused approach. Evidently, a definition built on choice can never be exhaustive. Limitation & Direction for future Research The paper, however, focusses mainly on content and does not thoroughly address the process of developing a mission and how this process relates to and influences the mission’s content. This is a fruitful research opportunity. Observation Mission statement framework should include some components to measure the organizational outcomes.