Resources

How to Develop a Great Mission Statement

by Scott Smith

I don't like traditional mission statements. They make me roll my eyes in frustration and disappointment at the time that is, all to often, wasted in creating them. I'll explain why, but let's start with some examples:

  • It is our mission to globally engineer high-payoff technology and competently integrate scalable leadership skills to meet our customer's needs.
  • It is our job to assertively leverage existing timely intellectual capital so that we may completely customize long-term high-impact leadership skills, because that is what the customer expects.
  • It is our business to enthusiastically administrate scalable content in order that we may collaboratively provide access to economically sound materials to exceed customer expectations.

Pretty words - with absolutely no meaning.

Dilbert's boss generated the mission statements above. If you go to the Dilbert (the master of business) website, you will find a mission statement generator. The pointy-head boss can regenerate one for you with every click.

On that site, you can find a list of adverbs: quickly, proactively, efficiently, assertively, interactively, professionally, authoritatively; verbs: maintain, supply, provide access to, disseminate, network, create, engineer, integrate, leverage other's; adjectives: professional, timely, effective, unique, cost effective, virtual, scalable, economically sound, inexpensive, value-added; and nouns: content, paradigms, data, opportunities, information, services, materials, technology, benefits.

The lists are hilarious. Why? Because we have all seen a mission statement or two in our day that was just a bunch of words with no meaning. You cannot associate them with any real people's behavior.

The purpose of a mission statement is to "point the way" for an entire organization. Can you do that in just a couple of sentences? I'm not convinced.

A software company I'm familiar with once had a mission statement with phrases like "butt-kicking technology," "spunky attitudes," "feel the energy" and "demolish the competition." At least it was entertaining. But, alas, now they have discarded those emotion-filled phrases and returned to a more traditional mission statement. From their website: "To deliver predictive, easy-to use solutions everywhere. To establish an enviable culture that sustains projects, attracts people and facilitates both corporate and personal growth. To be recognized worldwide for our leadership." Yeah. you and a million other companies now share the same mission.

The very first paragraph in David Maister's book, The Professional Service Firm, says, "One of the most interesting discoveries in my consulting work has been the fact that (apparently) every professional service firm in the world has the same mission statement, regardless of the firm's size, specific profession, or country of operation. With varying refinements of language, the mission of most professional firms is: 'To deliver outstanding client service; to provide fulfilling careers and professional satisfaction for our people; and to achieve financial success so that we can reward ourselves and grow.'"

Hah! I knew I wasn't alone in my observation!

Is the fact that practically all mission statements look the same a bad thing? Is there any value in mission statements? I claim that the real value of mission statements is not in the words that are written, but in the process by which they are written.

So. what makes for a good process? For most of my career, I've worked with teams and organizations to help them be more efficient. Much of that work has been in setting purpose, values and goals with these teams and organizations. When I was a young guy right out of college, I thought I was hot stuff. Truth is, I sucked at this. But now, many years later, I think I've come up with some of the vital keys needed to create a valuable mission statement. These keys are based on my many failures and many successes. They work for me; I hope they will work for you.

Key One - Involve The Right People

Who is the mission statement for? If it is for the group that I am in, then I better have significant input. There is a huge difference between someone who pulls a piece of paper out of her drawer and says, "Here's our mission statement. The execs wrote it at an offsite at Jackson Hole last summer while I was here working like a dog," and someone who says, "Our mission? Well, our team worked on that together in our conference room about a year ago and we review and update it every couple of months. Let me explain it to you." A valuable mission statement is one that is "owned" by those who must live by it.

Key Two - Be Flexible

is best, if you can't be flexible and make the process fit the specific needs of the team, it ain't going to work. The process for creating a business direction needs to work for the team or organization that is creating it. Chances are the group you are working with today thinks and works differently than the group you will work with tomorrow. Use the keys and common sense, but let the process be flexible enough to fit the needs of the group.

Key Three - What Is Important?

Michael O'Connor, an organizational behavior consultant, said, "When aligned around shared values and united in a common mission, ordinary people accomplish extraordinary results."

EXHIBIT 1

What should our organization, department, unit, or team stand for? What should be the values by which we operate? Look over the list of values below. Circle any values that "jump out" because of their importance to you. Then, write your top three values, in order of importance, below the list. Feel free to add values if needed.

Truth Candor Efficiency Prosperity Initiative Respect Environmentalism Fairness Power Order Control Spirituality Courage Adventure Competition Cooperation Excitement Humor Creativity Collaboration Happiness Resources Honor Dependability Innovation Trust Obedience Excellence Financial Growth Teamwork Community Support Service Integrity Profitability Peace Freedom Loyalty Friendship Clarity Influence Security Justice Love Quality Persistence Hard Work Sincerity Responsiveness Fun Fulfillment Relationships Purposefulness Wisdom Strength Flexibility Self-Control Perspective Cleverness Commitment Success Recognition Stewardship Learning Support Honesty Justice Originality Influence

The purpose of discussing what is important is to unite around the shared values of the group. Combine that unification with a common mission and the results can be astounding.

Figure 1

A team or organization is made up of people. People have values. What do the people in this group value? What the people in the team or organization value has a tremendous influence on what the group is capable of accomplishing.

The members of the group should discuss what values are important to them. A helpful process might be to brainstorm values, then narrow the list down to less than a dozen, then use a Forced Decision Matrix to help the group understand which values are most important to them.

  • List of Example Values that a group can use to help them brainstorm. (Refer to Exhibit 1.)
  • Agree on which values are the most important. (Refer to Exhibit 2.)
  • Develop a values document for your company. (Refer to Exhibit 3.)

EXHIBIT 2

Decide which values are most important. As you go through these steps, refer to the table in Figure 1.

  1. List your values in a grid.
    2.
  2. Look at each box in the grid and compare the two items.
    3.
  3. Mark the box with an "X" if you think the top item is more important than the side item. Mark the box with an "O" if you think the side item is more important than the top item.
    4.
  4. Add the number of X's in the vertical columns and place the totals in the Total X's row (second to the bottom).
    5.
  5. Add the number of O's in the horizontal rows and place the totals in the Total O's column on the right side.
    6.
  6. Add the corresponding Total X's and Total O's score together for each item and place the total in the Category Total row (very bottom).
    7.
  7. Items with a higher Category Total are more important than those with a lower Category Total.
    8.

Next, prioritize the list of values. For instance you may end up with: 1. Character, 2. Work, 3. Customer, 4. Creativity, 5. Courage, 6. Charisma, and 7. Profitability.


EXHIBIT 3

Collective Communications Corporation Values

Character

Respect others and treat them fairly. Have the patience to understand perspectives, nurture talent and develop opportunities.

Work

Commit and deliver. Value competitiveness and professionalism, but always maintain integrity.

Customer

Exceed customer expectations - never under deliver.

Courage

Do the right thing - always.

Charisma

Maintain a positive perspective.

Profitability

Make money and utilize resources efficiently.

Key Four - What Are The Results You Want?

Write a description of what your team or organization or business will look like in six months, one year, or eighteen months - pick a time horizon. What do you want to look like at that time? Describe the mountain you are now climbing as if you had already reached the top. A good guideline is to brainstorm ideas for this description, then narrow it down and refine the wording. This description should be about a page long.

Make each paragraph measurable. For each paragraph, ask yourself, "When the time horizon arrives, will we be able to measure whether or not we meet this description?"

You may want to stop and look at a couple of examples of mission descriptions:

  • Statement of Business Direction for Widget International, Inc. (Refer to Exhibit 4.)
  • Collective Communications Corporation: Our Business. (Refer to Exhibit 5.)


Exhibit 5.) Are these good examples? I don't know! Again, the value is not in the words but in the process used to create the words. The better question to ask is, "Are the managers united by a set of common values and an incredible drive to cooperatively accomplish what is described in the mission?" If so, then these are excellent examples.

Key Five - Where Are You Now? How Are You Going to Get To Where You Want To Go?

I believe that this is the most powerful key to adding value to a mission statement process. There are a few suggested steps for this key:

Step 1: What has to be done in order to accomplish this mission?

Take the time to brainstorm everything conceivable that you can do to accomplish the mission. Keep brainstorming until you break through the obvious ideas and get to the creatively awesome ideas that are going to launch you to accomplishing your mission in extraordinary ways. Eat lots of sugar during this process - it helps J.

Step 2: Narrow the list to those that you really think are necessary.

Take the sugar-enhanced list that you've created and get rid of the ideas that are unrealistic. The narrowed list becomes your action plan for accomplishing your mission.

Step 3: Organize and Prioritize

There are lots of ways to do this. Organize ideas into topics, by responsibility, by time frames, or organize them any way that works for the group. The result you want is this: You need to know which tasks are most important (which tasks are you going to focus on first, second, third, and last). You also need to know who is responsible for making sure each task is completed - you need one "the buck stops here" person assigned to each task.

Let's stop here and look at an example of a company's action plan. (Refer to Exhibit 6.)

Key Six - Measure!

Now you know what the group values, you know what you want to be, you know where you are, and you know how you are going to get from here to there. You've just finished a period of intense contemplation, brainstorming and planning. Now, leave the conference room, put the stuff in a drawer and get back to business as usual.

NO!!!!!!!

That is the biggest mistake you can make. Unfortunately, it is the most common mistake I've seen made. If you want value out of this process, then use the Action Plan to guide your work day-to-day and week-to-week. Review the Action Plan and mission monthly with your team or organization. Review your progress, refine the mission and the plan, add to it, take away from it, keep it alive, and you will accomplish the extraordinary.

The most important deliverable from the keys I've outlined in this article is an astounding unity among the team members. The communication required to complete a mission statement, as I've described it, is the basis for continuing growth and change among the participants as the team or organization goes forward meeting the challenges laid out by their mission. It is much more valuable than any piece of paper with pretty words will ever be, even if those words do include "butt-kicking technology" and "spunky attitudes."

EXHIBIT 4

EXHIBIT 4 Statement of Business Direction for Widget International, Inc.
(Achieved by November 1, 2001)

Widget International is lean and aggressive. We have a global presence that enables us to provide solutions to every major market of the world. We have achieved our first two quarters' revenue and expense targets. Our unification of Widgets with Gadgets for business provides the foundation for open standard solutions on industry and standard hardware. Our unique value-add is in the innovative products, services and programs for the development, deployment and management of these solutions. We have delivered products, services, and programs that reflect this direction.

Over the past two quarters we retained and grew our existing customer base by moving them to Widget/Gadget-based solutions. Our customers are the solution providers to small- to medium-size businesses and government organizations, including resellers with specialties in vertical markets such as retail, medical billing, pharmaceutical, international banking and government; and corporate developers. 1500 of our existing solution providers have registered and been trained how to develop, deploy or manage our solutions.

Three major industry hardware or software manufacturers validated Widget International as the trusted provider of these Internet solutions by investing, agreeing to major co-marketing rollouts, or agreeing to be partners.

Our growth opportunity is in three areas:

  1. Assisting solution providers in moving existing customers to Widget. 1500 (10%) of our existing customers have purchased our solutions (Widget Basic, Widget Development, Widget Pro, or PropaWidget). Additionally, 20 Gadgets have been or are being ported to Widget Basic or Widget Pro using our Widget Development products or services.
  2. Focusing on service firms that are consolidating. We have targeted and contacted 50 new service firms.
  3. Assisting 1 and 2 in scaling their solutions to the high-end data center. We have two committed partners in addition to Zydget, and have identified 5 customers who are interested in this platform.

The company is market driven. Our matrix organizational structure produces clear decisions and enables efficient execution of market-driven business plans. Employees understand and have accepted the reporting structure.

We recognize that to achieve our business objectives and maximize efficiencies, our internal systems must facilitate and automate our business processes utilizing our own technologies. Those internal innovative systems and processes must incorporate input from partners, customers, and the industry, resulting in better products, services, and programs. The company runs on Widget or Gadget - we use our own products.

We use committees to set direction, allocate resources, resolve conflicts, and empower employees to execute the business plans. We have established the following committees:

  • Executive
  • Strategy
  • Technology
  • Resource
  • Operations
  • Business-line
  • Product
  • Communication
  • Policy

Our management team and employees execute our strategy and business plans, while supporting each other in their respective roles. We encourage aggressive debate and complete alignment around decisions.

Widget International's culture is based on performance, measurable results, and accountability. Geographic and cultural diversity gives Widget International the unique ability to address the same challenges that exist for many of its customers. By meeting these challenges, through processes, systems, and education, Widget International is uniquely positioned to lead the market in business solutions for a new era. Our employees are motivated, innovative, and proactive. They have integrity and foster an environment of seeking to understand before being understood. We respect the need for balance between an individual's business and personal life.

 


EXHIBIT 5

Collective Communications Corporation: Our Business (Achieved by June 2002)

Collective Communications Corporation (CCC) is the leading Internet networking software company. CCC technology eliminates dependencies on existing network infrastructures at the platform, organizational or service provider level. We make the Internet a reliable, cost-effective business tool by providing an "Information Dial Tone." Our software enables people to securely access their data, applications, and information service from any Internet-connected device anywhere in the world. These capabilities empower our customers to create new products and services, enhance existing products, and reduce infrastructure and delivery costs.

CCC enjoys a positive perception in the market place. We create win/win relationships with our clients: we focus on building the infrastructure (a win for them), and our clients focus on developing innovative business solutions (a win for us). Successful clients are our best marketing tools. Both the investment and end-user communities now realize the power of our technology, making CCC one of the underpinnings of the new technology age.

As a soon-to-be public company, we are financially stable with a solid financial future. We have built a good foundation, and we are expanding both our infrastructure and team; immature systems and processes do not hinder us. Management is free to continually evolve the business and pursue business growth opportunities. We are always ahead of the competition. Our biggest challenge is managing growth, and controlling the by-products of that growth.

Our company is a place where people have the freedom to think laterally. We are an exciting place, with a professional attitude. People have flexible work schedules that enable them to deliver on their goals and objectives; but, work is often very intense. People have the necessary breaks - "cooling off periods" - that they deserve after a job well done or that they need to continue to be productive. Our 70-100 employees work and play hard; those who excel in this environment make a lot of money and enhance their careers

Company leadership is constantly evaluating new products and strategic relationships to correctly position us for continued growth. We are expanding internationally, with satellite offices in Europe and Asia. Expansion continues to push our technology ahead of the competition. Our growing set of development partners is helping CCC define how the world uses the Internet to conduct business.


Rank/ID
Category
 Robert
L. 		craig
M. 		James
B. 		Mark
S. 		Kel Kathy
T. 		Helen
D. 		Je Harry
P.
Compl.
Date
1
 Financial Plan
1.01
 Figure out how to balance resources with available money
P
P
L
1.02
 Define budgetary responsibilities
P
P
L
1.03
 Reduce budgets proposed to the board of directors by 10% (create a 10% buffer)
P
L
1.04
 Require all new product ideas and initiatives to have a revenue strategy prior to development
P
L
P
P
P
1.05
 Create appropriate budget and spending review processes
P
P
L
1.06
 Establish and implement company-wide purchase order systems and policies
L
P
1.07
 Create a strong DOA
L
P
P
P
P
1.08
 Define P&L responsibilities
P
L
P
P
P
1.09
 Determine a method of prioritizing and allocating resources
P
L
P
P
P
1.10
 Develop overall fiscal/financial model for the company
P
P
L
P
1.11
 Write an operations/policy manual
P
L
P
P
1.12
 Establish a clear business model
P
P
L
1.13
 Complete budgets and resulting activities needed to achieve budgets
P
P
L
1.14
 Create a budgeting process that gives management insight into what is and is not being done
P
P
L
1.15
 Increase employee sensitivity to spending accountability
P
P
L
P
P
P
P
P
P
1.16
 Educate employees on all financial policies and processes
P
P
P
P
P
P
P
L
P
1.17
 Manage Budget
P
L
P
P
P
P
P
P
P
1.18
 Allocate appropriate resources for the business initiatives
P
L
P
P
P
1.19
 Follow proper procedures and help the executive team be an example for other employees (i.e. If CEO doesn't do the paper work to follow travel policies, why should I?)
P
P
P
P
P
P
P
L
P
2
 Business Plans
2.01
 Develop economically viable business plans for each of the 3 business lines
P
L
P
P
P
2.02
 Create transition plan for Netware and NT customers to our products
L
2.03
 Identify 50 customers for Widget X
L
2.04
 Create a business plan template
P
L
P
2.05
 Examine pricing strategy for each product (raise)
L
P
2.06
 Find 50 xSP customers using more than 100 Widget Z systems as a Web Server
L
2.07
 Create a template for what it takes to roll out a product internationally
L
2.08
 Identify and target strategic markets geographically
L
2.09
 Determine market size of our target customer
L
2.10
 Create pricing strategies to encourage movement to our new product lines
L
P
2.11
 Determine how to identify the 5 customers who are interested in our high-end data center platform
L
2.12
 Determine our target markets
P
L
P
P
P
2.13
 Perform analysis on what percentage of our business is done in each vertical and what the current size of each is and what the growth trend is for each
L
2.14
 Assist in developing appropriate product and service pricing models that will maximize margins
P
L
P
P
P
2.15
 Perform market analysis of the xSP markets
L
2.16
 Target deployments of failed Widget Z companies
L
2.17
 Target deployments of our competition in Germany and Japan
L
2.18
 Perform an in depth analysis of our competitor's products
L
3
 Key Hires
3.01
 Hire a VP of corporate marketing
L
P
P
P
P
P
P
    
3.02
 Hire three business line managers
P
L
P
P
P
P
P
    
3.03
 Hire a marketing manager or BLM with application development experience (not just OS)
P
L
P
P
P
P
P
    
4
 Organixational Definition
4.01
 Finish the implementation of the organizational structure
L
P
P
P
P
P
4.02
 Define the accurate charters for Deploy On
P
L
P
P
P
4.03
 Define the accurate charters for Manage On
P
L
P
P
P
4.04
 Define the accurate charters for Develop On
P
P
P
P
P
4.05
 Determine who should fill the board seats that are becoming available
L
P
P
P
P
P
P
P
P
4.06
 Define the charter each of the councils
L
P
P
P
4.07
 Determine who is accountable for success of councils and how their success will be measured
L
P
P
P
P
P
P
P
P
4.08
 Establish formal job descriptions for all positions
L
4.09
 Define policy for CTO office coordination with engineering
L
P
P
P
P
4.10
 Pull field marketing and channel marketing into one organization (make it happen effectively)
L
4.11
 Transition meetings to councils
L
4.12
 Assign formal leadership to remote offices
L
P
4.13
 Identify members of business line councils
P
L
P
P
P
4.14
 Get agreement on the executive team for the charter and deliverables for each council
L
P
P
P
4.15
 Finish org chart at Ransom level and below
P
P
P
P
P
P
P
L
P
4.16
 Define reporting and authority lines in the organization
L
P
P
P
4.17
 Build a new presentation of the organization chart
P
L
P
4.18
 Determine and document the escalation mechanism for conflict in councils
L
4.19
 Identify members of strategy council
L
4.20
 Identify members of technology council
L
4.21
 Create a standard output of council actions and decisions for the rest of the company
L
4.22
 Communicate, implement and train on matrix organization structure (the why, what, and how)
L
P
P
4.23
 Identify cross functional roles of CTO team within the matrix organization
P
L
P
P
P
4.24
 Create council reporting template
L
4.25
 Create the templates for council documents
L
4.26
 Identify members of operations council
L
4.27
 Define the role and importance of the council
L
4.28
 Create a handbook for councils
L
P
P
P
4.29
 Clearly charter the three marketing groups
L
P
5
 Additional Investment
5.01
 Position the company for another round of funding in November
L
5.02
 Engage Compaq, IBM and Japanese mfg., Oracle as investors
L
P
P
P
P
5.03
 Get investment from industry players to help us develop an IA64 product
L
P
P
P
P
5.04
 Get financial commitment or buy in from major partners on our short and long term strategies
L
P
P
P
P
5.05
 Create plan to get industry investors and partners to invest
L
P
6
 Widget X
6.01
 Define Widget X online strategy
P
P
L
6.02
 Determine market demand for Widget X online
P
P
L