Management Communication

In: Business and Management

Submitted By icebury
Words 700
Pages 3
What's the benefit of a mission or vision statement?
By Ron Robinson, President of ABARIS Consulting Inc.
February 4, 2002
What is a mission statement?

According to Bain & Company, mission statements are one of the most frequently used management tools. Organizations spend thousands of hours and dollars developing mission statements and then more resources again on public relations to unfold them to their stakeholders. This is not surprising when you review the often-stated benefits of mission statements:
• To communicate the direction of the organization.
• To help make day-to-day operating decisions.
• To keep the organization focused.
• To motivate employees.
Many authors have a variety of beliefs of what should be included in a mission statement. Ireland and Hill (1992) state that the mission statement should include the organizations goals, purpose, product and market scope and philosophical views. Davies and Glaister (1997) believe that it should include the organizations statement of purpose and inspirational view for the future. While Jamieson and Justice (1999) state that the framework for the development of a mission statement should begin with the organizations primary purpose, target market, core products or services, critical values and measures of success. One of the better practical definitions has been provided by Bartkus, Glassman and McAfee (2000) who basically state a mission statement is a statement to communicate a description of the firm to its current and prospective stakeholders to determine if they want to be involved with it.

The reality is, there is no one agreed definition of what should and should not be included in a mission statement. We believe a mission statement is a simple, short statement that clearly communicates the purpose of the organization to its stakeholders. Nothing more, nothing less. For practical purposes,…...

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