6 Reasons Why The Company Mission Statement is Essential

Imagine getting up day after day, going through the same routine and realizing at the end of the day that there is really no purpose to what you are doing. Seldom do we realize that each of us here have innately embarked on a mission but with different purposes. Companies are no different, they are as human and they too have mission to achieve. Every company is made of its employees; if it was not for these people, then companies would just be like an empty canvas. It is very important the company and its employees are on the same page to facilitate smooth functioning. It is also imperative that the employees are in agreement of the company’s values and principles and share the same vision. Cohesive & comprehensive growth is of utmost for both the organization and its individuals. Enlisted here are some such reasons why company mission statement is essential.

1. Underlines the purpose of the organization

A mission statement explains why an organization exists, in other words, it states the purpose of a company’s existence. It also states what the company is doing currently and sets the parameters for what it does not do. It is very clear that the behavior of the employees shapes the mission statement of any organization and vice versa. A corporate mission statement is vital to the success of a company. It can unite the employees and drive them towards achieving the company’s goal.

2. Guides the actions of the company and its employees

Going by Wikipedia’s description, “The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making”. This sentence is self explanatory in the sense that we can see that each of these points is directly related to employee output.

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3. Defines the behavior of employees

Since a mission statement guides the actions of the organization, it completely defines the behavior of the employee inside and outside the organization. The rules and regulations, the work culture and the organization culture as a whole are defined by the mission statement which in turn is a major determinant of employee performance.

4. Shows the path to achieve goals

The overall goal which is the driving force behind the staff actions is embodied in the mission statement. The alignment of individual goals to the company goals is very essential for overall success and development of both the entities. The mission statement provides a defined path and guides the employees through the means to reach the end.

5. Works are a yardstick

The mission statement also acts as a framework to evaluate the current activities. Thu,s it is a valid yardstick to measure whether what the company is doing is adding value or not. This is very important as it helps the company to find what the limitations in employee performance are and train them accordingly.

6. Helps to maintain focus

Many companies tend to lose focus after sometime and go astray from their initial goal. It is at these times that the mission statement helps in bringing the companies onto track again. If not for the mission statement, then companies like GE & Apple would have ceased to exist and be where they are.

Rejuvenating of the mission statement periodically is also critical and should be in line with the pace of growth of the company. This renewal process should also include the key staff and volunteers so as to completely understand their point of view and also to make sure that they agree with its intent and meaning.

It is clear from the above information that the mission statement is the bible for any organization helping it to reach the goal it sets. Also the mission statement defines the employee behavior and hence invariably it does & should matter to the company staff.

As Norman Drummond rightly put it “Over 70% of people leave their jobs because of the way they are led.” With a strong and focused mission, it is possible to take the company along with its employees to new heights.