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Our September,
2004 newsletter is entitled "How To Write A Mission Statement."
Our monthly newsletters feature articles on various aspects of
preparing a business plan and over time should lead you through
the entire business planning process.
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How
To Write A Mission Statement
Courtesy of Ralph Brown, Sequus Inc. http:///www.sequus.mb.ca/
It is recommended
that every new business develop a Mission Statement as the process
of doing so will enable you to focus your thoughts on the major
purpose of your business. For this same reason, your Mission Statement
should be reviewed and updated if necessary on a regular basis
The Mission
Statement
- What business do
you want to be in?
- What is the purpose
of your business?
- Why do you want
to be in business?
A mission statement
is designed to answer these questions. Mission can be defined
as the purpose of the business - the statement that describes
what the business is and what it is not.
These seem like simple
questions to answer but they are not. The easy answer is to say,
“we are in business to make a profit,” or, “the
purpose of a business is to make money.” These are valid
answers and it is important for every business to make money,
but they are business objectives and are insufficient as a mission
statement.
The mission of any
business is to solve customer problems and to meet customer needs.
If the business is successful providing goods and services that
help people to solve problems and meet needs, then it has earned
the right to make a profit. If the products or services the business
provides meet these needs - profits will be forthcoming.
Developing
Your Own Mission Statement
To develop
your own mission statement, complete the five steps below:
- Mission
Development Step 1: Identify Customers or Clients
- Mission
Development Step 2: Identify Customer Needs
- Mission
Development Step 3: Identify Your Product or Service
- Mission
Development Step 4: Identify Business Values
- Mission
Development Step 5: Writing the Mission Statement.
Mission
Development Step 1: Identify Customers or Clients
Identify the clients or customers your organization is created
to serve. Then rate them as to their importance. Importance refers
to how important it is to your business to provide a product or
service to this group.
Think of groups
of customers. For example an art gallery may serve the following
customers:
- Those working
in the immediate area
- Tourists
who are visiting the city
- Residents
of the city willing to travel to the gallery to purchase giftware
- Members
of the local community who want to take evening art classes
A ceramic
artist may serve the following customers:
- Wholesale
customers who own or operate galleries in centres across the
country
- A local
gallery
- A local
giftware store
- Several
outlets that willing to take ceramic products on consignment.
1. In the table below identify your groups of customers.
2. Rank each group in order of importance.
- H - High
- M - Medium
- L - Low
Clients
or Customers |
Importance |
| a) |
|
| b) |
|
| c) |
|
| d) |
|
| e) |
|
| f) |
|
Mission
Development Step 2: Identify Customer Needs
Identify
the needs of the clients or customers that your organization is
created to serve, then rate them as to their importance. Importance
refers to how important it is to your business to satisfy that
particular customer need.
You may have to think
of groups of customers. For example, an art gallery may satisfy
the following customer needs.
- The need for tourists
to visit a unique place in the city
- The need for those
working in the immediate area to have a peaceful and inspiring
place to visit during noon hours.
- The need for residents
of the city to purchase original and inspiring art from artists
that they know.
A ceramic artist may
serve the following customer needs:
- The need of a number
of retail outlets to have a dependable supplier.
- The need of a wholesaler
to have a dependable supplier whose work is original, dependable
and suitable for export.
1. In the table below identify the needs of your customers.
2. Rank each group in order of importance.
- H - High
- M - Medium
- L - Low
Customer
Needs |
Importance |
| a) |
|
| b) |
|
| c) |
|
| d) |
|
| e) |
|
| f) |
|
Mission Development Step 3: Identify
Your Product or Service.
Identify the actual and potential products and
services your organization will provide to your customers. Then
rate them as to their importance. Importance refers to how important
it is to your business to provide these particular products or
services.
For example,
an art gallery may provide the following products and services.
- Original
contemporary art
- Aboriginal
art
- Inuit art
- Cards and
other small giftware
A ceramic
artist may provide the following products and services.
- Five different
tea sets at various price points
- Five different
artistic vessels
- Original
light sconces
- Limited
edition wall tiles
1. In the table below identify your products or services.
2. Rank each group in order of importance.
- H - High
- M - Medium
- L - Low
Products or Services |
Importance |
| a) |
|
| b) |
|
| c) |
|
| d) |
|
| e) |
|
| f) |
|
Mission
Development Step 4: Identify Your Business Values.
Identify
the underlying values and standards that should characterize the
products and services provided by your organization.
- What is
important to your new business?
- How do
you want to do business?
- How do
you what others to think about you and the way you do business?
1. In the table below identify your business values. Please see
the second table below for suggested values.
2. Rank each group in order of importance.
- H - High
- M - Medium
- L - Low
Business Values |
Importance |
| a) |
|
| b) |
|
| c) |
|
| d) |
|
| e) |
|
| f) |
|
| g) |
|
Suggested
Business Values |
| Accuracy |
Best
Investment |
Reliability |
Best
Products |
| Responsible |
Results
Orientated |
Highly
Specialized |
Industry
Standard |
| Achievement
Oriented |
Cooperation |
Solution
Oriented |
Special
Expertise |
| State-of-the-art |
Success
Oriented |
Supportive |
Teamwork |
| Effective |
Performance
Driven |
Proactive |
Profitable |
| Progressive |
Stability |
Growth |
Respect |
| Social
Responsibility |
Cost
Effective |
Creative |
Credible |
| Customer
Oriented |
Customer
Service |
Dependable |
Trustworthy |
| Unique |
Visionary |
Excellence |
Respectable |
| Consistency |
Industry
Pioneer |
Innovative |
Leadership |
| Loyalty |
Market
Leader |
Quality |
Discipline |
| High
Energy |
Cohesive |
Commitment |
Compassion |
| Other |
Other |
Other |
Other |
Mission
Development Step 5: Writing the Mission Statement
Use
the information from the four Mission Development Worksheets as
background data to answer the three questions posed below. If
you can answer these three questions in one short and concise
statement, you will have met the requirements of a mission statement.
The
Three Questions:
- What do
we provide?
- To whom?
- So they
will perceive us how?
Example: A
Porcelain Artist
-
What does he provide? - A wide selection of decorative
and functional porcelain
- To
whom? - Discerning customers who value beauty and quality
- So
they will perceive him how? - Original, Experimental,
Accessible, Reliable - One who builds beauty and quality into
his work.
Mission
Statement for the Porcelain Artist
Roberto de Korompay focuses on designing and fashioning a wide
selection of decorative and functional porcelain for discerning
customers who value beauty and quality. To accomplish this Roberto
de Korompay endeavours to:
- Be original
in his approach.
- Maintain
a high level of craftsmanship.
- Experiment
with new forms and finishes to keep the work constantly evolving.
- Offer a
product line with a variety of price points so that the work
is accessible to everyone.
There are
many value words in the statement, which are used to answer the
question "So they will perceive us how?" The mission statement
also focuses on the customer as opposed to the end user. Very
often the customer and the end user are different. Recall that
a customer is the person or business that pays for the products
while the end user is a person or business that uses the product.
A customer is somebody who makes the actual purchase. An end-user
is the person for whom the product has been purchased - a friend,
a loved one, a bride and groom etc
Writing
Your Mission Statement
Now
try to write your own Mission Statement, answering the following
three questions:
- What do
you provide?
- To whom?
- So they
will perceive you how?
Evaluating
Your Mission Statement
Now
that you have written your mission statement, ensure that it conforms
to the following criteria.
- The mission
statement should not be concerned with a particular job. It
should be concerned with your business as a whole.
- The mission
statement should act as an umbrella statement and all jobs and
activities associated with the business should fit.
- The mission
statement should be short and concise.
- The mission
statement should be meaningful to customers, employees and management.
- The mission
statement should be focused on how your business will help your
customers by meeting needs or solving problems.
More
Examples of Mission Statements
Ceramic
Artist
Create stunning one-of-a-kind ceramic art works for private and
public commissions that are uncompromising in their integrity
and excellence.
Artist Run
Gallery
With an emphasis on quality, The Exchange Gallery provides a variety
of original contemporary art to enhance both corporate and individual
environments.
Business Objectives
In some cases, you may wish to write business objectives that
evolve from the mission statement. Example:
Artist Run
Gallery
With an emphasis on quality, The Exchange Gallery provides a variety
of original contemporary art to enhance both corporate and individual
environments. To ensure it is meeting these goals, The Exchange
Gallery endeavours to:
- Provide attentive,
courteous and consistent customer service;
- Offer a range of
highly specialized original works of art;
- Maintain a roster
of both prominent senior as well as most promising emerging
artists, and
- Develop itself as
a leader in fostering art appreciation within the community.
We hope you will
find this month's newsletter useful.
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