Mission statements have become a very common business tool with more than 50% of the companies in USA and UK having some form of mission statement. It has been realised that there is a need to clarify to the employees the purpose and philosophy of the company. The recognition of the importance of organisation culture has created the interest in the purpose of setting up a kind of a message, highlighting the company purpose and management philosophy. It has been realised, that the middle management is always becoming more and more demanding of their organisation, and constantly asking for clarifications of direction of purpose and values, and the “inner identity” of the corporate.
As a result, the corporate, in searching for the right tool to help them manage, has come with mission statements, where it has tried to put forth the company’s identity, its purpose, and a philosophy, for a better management of the organisation. But, regardless of the attention being given to mission statements, there is little understanding as to what such a statement should include, and what role does it have to play in the management of the company’s identity or culture. These facts have been gathered after extensive research, involving interviews with managers, and studying in-numerable mission statements from all over the world.
There is a need to understand how an organisation can enthuse commitment amongst its managers and employees, and what should a mission statement play in this process. The word ‘Mission’ of a corporate would generally mean the identification of the organisation’s character, and the reason for its very existence. A mission statement should be characterised by projecting four parts of an organisation: purpose, strategy, values, and behaviour standards. The “Strategy” would address the nature of business, meaning, the organisation’s positioning vis-à-vis their competitors. It includes the source of the organisation’s competitive edge. The “Behaviour Standards” would define the norms and rules that the organisation follows, “Values” would be the principles of the moral value that forms the base of the behaviour standards, and “Beliefs” would be the very faith on which the organisation has been built upon, a faith which has been drilled into the organisation by its founding dynasty.
There are frustrations in business processes. These frustrations evolve with the business having no definite purpose or direction. It has become so necessary for organisations to put forth a mission, which provides a clear business conception, its purpose, and its mission.
“A strong sense of corporate identity is as important as slavish adherence to business unit financial results”. Michael Porter1.
The question comes up, how to practice what is written in a mission statement, such as the one which says, ‘to reach beyond minimal’. Beliefs are said to be the signposts, guides, and goals of the organisation, which are open to discussions. It becomes a document forming base on which the company exists.
“Beliefs are another professional tool of management to be utilised to reach our common goals”. James Bere2.
“I recently visited the local office of a company that for many years has prided itself on its elegantly worded mission statement. Indeed. A framed copy of the document was permanently displayed on the lobby wall. When I had finished my business, a company veteran asked me if there was anything else I wanted. So I asked for a copy of the statement. ‘The what?’ he asked. ‘You know.’ I told him ‘that document on the wall as you walk in.’ He was completely mystified. Finally I took him over to the door and showed him what I was talking about. I left him staring at the mission statement, open mouthed and reading it, no doubt, for the first time”. Laura Nash3
In preparing a mission statement, the suggestion for the need of one may come from an external consultant. This, he may suggest, as a requirement to help and unite the company. In writing such a statement, the questions that are asked, in an attempt to write a mission statement, often brings out the gaps that the senior management has in its thinking process. The pressure in describing an organisations strategy, and management approach, also comes from the financial institutions or communities. This acts as external stimuli in forming a document, comprising that of a mission statement. The present need for a mission statement is also felt, when analysts and financial commentators become critical about the function of the managers, who lack strong commitment for the company’s vision, activities, and management style.
The requirement for a mission statement also comes from within the company, becoming internal stimuli. There are three sources for such stimuli. The first one develops from the internal audience, such as, the section of middle management, wanting clarifications on where the company is heading to, and what the company stands for. The second source may come from the company executives themselves, having deep differences in opinion immerging out of discussions relating to the future of the company, and in the matter of company governance. The Chief Executive himself could be the third source, who may find that there is a need for a change in strategy and culture, and may re-write the mission of the organisation, and communicate the change down the line. This change could be on the basis of a new regime.
1 Michael E Porter - ‘From Competitive Advantage to Corporate Strategy’. Harvard Business Review, May- June, 1987. P 52
2 James Bere, Chief executive Officer. Borg-Warner Corporation. Quoted in Harvard Business School, Case No 383-091. ‘The Beliefs of Borg-Warner’.
3 Laura Nash - ‘Mission Statements - Mirrors and Windows’. Harvard Business Review, March-April 1988 p 155.
Over twenty two years experience in Oracle. Significant development & Management skills viz.,technical writing, project planning and execution, project management, Oracle sql, pl/sql, data flow design, database design, datawarehousing, Oracle applications viz., manufacturing, scm, crm, financials, hrms,workflow, Oracle discoverer, forms, reports, etc., having expertise in Business Analysis. Presently a Sr. Program Manager with a Large IT organisation in London, looking after 10 Oracle applications project in Europe, and managing offshore development partners.
Education:
1. Fellow - Institute of Electronics & Communication Engineers.
2. MSc. Eng (Computer Science), University of London.
3. BSc. Eng (Electronics), University of London.
Hobby: Writing
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