In business, a mission statement defines what an organization is, why it exists and the reason for being. What are the benefits of having a highly defined mission statement? Explain why it is important for a company to define its values explicitly.

Mission statements, a formal summary of the vision, objectives and values of a company, have become increasingly popular around the world. With the correct formulation and implementation, a mission statement can create clear vision of a company's main objectives. This can facilitate strategic direction of how a company moves from its present situation to its desired position. (Mirvis, Googins & Kinnicutt, 2010) Effective mission statements also have the ability to engage employees, and evoke an emotional response. With the right leaders, this response can be used as a tool to guide the behaviour of employees. (Campbell, 1997) "Vision without action is a daydream. Action without vision is a nightmare", as this Japanese proverb suggests, mission statements can only be seen as a beneficial tool if the actions of a business complement its vision.

Whilst mission statements are prominent in the corporate world, there is much debate about the process involved, and what one is to entail specifically. Collis and Rukstad (2008)(as cited in Khalifa, 2011) define the mission statement as "the underlying motivation for being in business in the first place." Based on this definition, the purpose of a mission statement is to identify the core values of why the business exists. However, the mission statement goes beyond that of just identifying company values. Identification (the why) is just the first process of many. From here, a company must then strategise the how, what, and when, in order to fully reap the benefits of a mission statement. ("Mission Statements, " 1999)

The success of a company falls heavily on its ability to function in a manner that fulfils its corporate values and objectives. (Campbell &Yeung, 1991) When a company explicitly delineates its values in the form of a defined mission statement, clear vision is articulated. This vision aids in communicating a sense of direction and purpose, and assists in keeping a company ‘on track’. (Bartkus, Glassman & McAfee, 2000) This process of analysing corporate values and deriving vision, also better positions a company to implement a process of how they want to work in order to be successful; opposed to simply what they have to do. (Ackoff, 2007) An overall awareness of corporate vision allows for a true appreciation and understanding of who they are, where they want to be, and how they need to act in order to get there. This leads to a significant increase in their ability to strategically plan for their success. (Keeling, 2013)

Without vision, a company lacks clear direction and motivation, and has no true perception for the future. This negates progress, and is detrimental to a company’s success. (Raynor, 1998) For a company to progress forward, aligned with its vision, a strategy needs to be thought out and implemented. Mission statements are a key aspect in providing ‘intellectual framework’ for company strategy. This framework, has the potential to navigate a company from where it currently sits, to where it wants to be. (Mirvis, Googins & Kinnicutt, 2010) Short term goals are critical when implementing strategy plans, and will assist in the overall attainment of corporate objectives, thus moving the company forward. Having a mission statement ensures a company’s short term goals complement its long term interests. (David, 1989) These goals ensure that a company stays focused on what really matters, to itself and to all involved, including employees. (Ireland & Hitt, 1992)

An individual’s behavior and decisions are shaped by values, and therefore a company must establish common values to promote uniformity. (Jaszay, 2002) Khalifa (2012) believes that an effective mission statement gives a sense of purpose to the individual, which brings about a sense of direction. Common values and purpose are a byproduct of a defined mission statement, and reiterates its importance in corporate structure. However, it is not just the mission statement that is important, but ensuring the employees chosen are suited, and ‘matched’ to the company’s vision. (Campbell & Yeung, 1991) When an individual can relate or be matched to the mission of the company, they will be inspired and motivated, as company goals are aligned with personal goals. (Klemm, Sanderson & Luffman, 1991) Intrinsic fulfillment comes once a goal has been accomplished, especially if that goal is personally important. (Campbell & Yeung, 1991) An employee becomes engaged when they comprehend the mission of the company, distinguish its values, and feel enriched by being connected with them. (Campbell, 1997)

To engage employees, management must lead in a way that encourages, and not merely dictates. (Jaszay, 2002) Mission statements that are effective, inspire and motivate all involved, including management, and non-managerial personnel. (Keeling, 2013) When a precise and real mission statement is present, it can be used as a tool to guide employee behaviour. (Campbell, 1997) It is essential however, that management have an understanding of the values of both the company and employees so that when deciding on resource allocation, comprehensive matching can occur. (Campbell & Yeung, 1991) By knowing the personal values of employees, you are able to delegate tasks based on what you know they will be motivated by, thus increasing overall efficiency. (Khalifa, 2012) Mission statements set the fundamental vision for all tasks to be undertaken by the company. For the overall mission to be accomplished it is imperative that all employees are working collectively together towards a common goal. Mission statements give direction for this.

As Khalifa (2012) also identified, in order for a mission statement to be effective it is not about how well it is written, but how real its intent. A statement must ‘evoke emotion’ in order to attain commitment from those involved. (Campbell, 1997) If a mission statement makes an emotional connection to an individual, the corporate purpose becomes that of a personal one. As discussed previously, an employee is inspired and motivated when company values align with personal values. (Klemm, Sanderson & Luffman, 1991) This motivation gives a greater sense of purposes and worth within the company, and improves the overall morale of company culture, which leads to enhanced productivity. (Kaufman, 2015)

Whilst the benefits of mission statements can clearly be argued, it is important to note that their efficiency is based on a company's ability to implement strategy derived from its mission. (David, 1989) Top tier management are essentially responsible for making sure that a company is progressing in the direction of its mission. However, it is imperative, that they have a team of employees that are all working in unity, in the same direction, guided by the vision and values of the company. (Karanja, Muturi, Mukabi, & Kabata 2013) Sound leaders who possess strong communication skills and have an ability to inspire and motivate, are imperative for the development and implementation of efficient mission statements. (Morden, 1997) Without such leaders, a company is missing out on the potential impact mission statements can have.

Developing a well defined mission statement is a critical process for all companies to undertake. With clear vision, derived from an effective mission statement, a company can collaboratively work together to achieve common goals. Mission statements express corporate values that better define what a company is about, and how it wishes to act. Having strict values within a company allows employees to have an understanding of what is expected from them, and enables a clear depiction of what and how something needs to be done. When personal values align with corporate ones, a sense of purpose and worth is established within the individual. When employees have a sense of purpose and intrinsic fulfillment, there is an overall improvement in the morale of company culture. This increases motivation levels and provides an environment in which people want to work and succeed, which in turn improves productivity. This alone proves a beneficial reason for companies to develop mission statements. However, the overall value of a mission statement includes, increases in productivity, direction, motivation and cultural morale. As Ackoff (1987) stated, " An organization without a shared vision of what it wants to be is like a traveller without a destination. It has no way of determining whether it is making progress." The fundamental key of company success; ensuring it is always moving forward to pursue its vision; a process driven by an effective mission statement.

REFERENCES:
Ackoff, R. (1987). Mission Statements. Planning Review, 15(4), 30-31. doi: 10.1108/eb054196
Bartkus, B., Glassman, M., & McAfee, B. (2000). Mission Statements: Are they smoke and mirrors? Business Horizons, 43(6), 23-28. doi: 10.1016/S0007-6813(00)80018-X
Campbell, A. (1997). Mission Statements. Long Range Planning, 30(6), 931-932. doi:10.1016/S0024-6301(97)00084-8
Campbell, A., & Yeung, S. (1991). Brief case: Mission, vision and strategic intent. Long Range Planning, 24(4), 145-147. doi: 10.1016/0024-6301(91)90015-G
Campbell, A., & Yeung, S. (1991). Creating a sense of mission. Long Range Planning, 24(4), 10-20. doi: 10.1016/0024-6301(91)90002-6
David, F. (1989). How companies define their mission. Long Range Planning, 22(1), 90-97. doi: 10.1016/0024-6301(89)90055-1
Ireland, D. & Hitt, M.A. (1992). Mission Statements: Importance, Challenge, and Recommendations for Development. Business Horizons, 35(3), 34-42. doi: 10.1016/0007-6813(92)90067-J
Jaszay, C. (2002). Company Values and Ethical Leadership. Journal of Human Resources in Hospitality & Tourism, 1(3), 47-55. doi: 10.1300/J171v01n03_04
Karanja, T., Muturi, P., Mukabi, M., & Kabata, D. (2013). Small Business Management. International Journal of Business Social Science, 4(16), 113-142.
Kaufman, R. (2015). The Air Mauritius story: how HR can impact company culture. Strategic HR Review, 14(1), 2-7. doi: 10.1108/SHR-01-2015-0010
Keeling, M. (2013). Mission Statements. Knowledge Quest, 42(1), 30-36.
Khalifa, A.S. (2012). Mission, purpose, and ambition: redefining the mission statement. Journal of Strategy and Management, 5(3), 236-251. doi: 10.1108/17554251211247553
Khalifa, A.S. (2011). Three Fs for the mission statement: what’s next? Journal of Strategy Management, 4(1), 25-43. doi: 10.1108/17554251111110104
Klemm, M. Sanderson, S. & Luffman, G. (1991). Mission Statements: Selling Corporate Values to Employees. Long Range Planning, 24(3), 73-78. doi:10.1016/0024-6301(91)90187-S
Mirvis, P., Googins, B., & Kinnicutt, S. (2010). Vision, mission, values: Guideposts to sustainability. Organizational Dynamics, 39(4), 316-324. doi: 10.1016/j.orgdyn.2010.07.006
Mission Statements - What are they for and how effective are they? (1999). Leadership & Organization Development Journal, 20(5). doi: 10.1108/lodj.1999.02220eab.004
Morden, T. (1997). Leadership as Vision. Management Decision, 35(9), 664-672. doi: 10.1108/00251749710186504
Raynor, M. (1998). That vision thing: Do we need it? Long Range Planning, 31(3), 368-376. doi: 10.1016/S0024-6301(98)80004-6

Word Count: 1410