How to Compose a Mission Statement for a Business Plan
Composing a mission statement can be the best way of setting business goals for new or established operations. The process can result in a greater, shared understanding of the company and what it needs to achieve to reach its potential. Taking time to gather input on the elements needed for a business statement, and then feeding back to employees the results, can create employee buy-in and boost morale.
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Instructions
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Identify the business purpose and ask the question "What business are we in?" advise the editors of "The Ultimate Small Business Guide." Then ask what the business reputation, or brand, should become for the near future. Make a list on a whiteboard of the most important business goals such as new products or services and how the products will impact customers. Type the list in a document and email it to the management team for an initial review.
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Use the process of writing a mission statement to create company buy-in. Involve a range of people in creating the mission statement. Using the example from the farm business, agriculture educator Julia Woodruff, in an article for The Ohio State University Extension, advises: "It is essential that everyone directly involved in the operation of the farm business ... have the opportunity for input. This will provide a more true statement of what the farm business does and what it values."
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List parts of the business that make the most profit and result in the most satisfied customers. Confirm that this matches the core values of the operation. List other business activities and determine whether or not they fit the central purpose of why the business was started and how it operates.
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Ask executives, managers and hourly employees to write, in two or three sentences, what they normally say as they describe the business to customers, friends or family. Have them answer the question "What does this business do better than any other business of its type and why should a customer choose this business over the competition?" Request the exercise be done individually or as a departmental team such as the production team, marketing team or sales team. Survey the most loyal customers and ask what they see as the purpose of the business, what attracts them, and why they do repeat business.
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Compose a mission statement draft that "defines the fundamental methods of operation and addresses unknown circumstances" writes Michael Vulpillat in a document titled "Strategy, Tactics and Business Dogfighting" on the website Strategyplus.org.
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Evaluate the draft to determine if it addresses how the business operates in the context of the industry, how it services customers through specifics such as on-time delivery or technology, and how it is positioning for the future. Set it aside for a week and then read it aloud while alone before revising further or using as the finished draft. Instruct others to do the same and then collect comments for the final revision.
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Tips & Warnings
Set a time limit on composing the statement, such as two weeks.
Revisit the mission statement in six months to a year to see if it needs revision.
Use the process to capture what uniquely sets the business apart from competitors.
Do not be discouraged if employees don't understand the overall business goals. Use it as a method to communicate more clearly.
Do not let the process become complicated and confusing.
References
Resources
- Photo Credit business plan image by Mykola Velychko from Fotolia.com business team image by dinostock from Fotolia.com
