How To Write A Great Company Mission Statement In 3 Steps

Summary

In this video, Tamer Shahin discusses how to create an effective company mission statement. He explains the differences between a mission and a vision, emphasizing that a mission outlines the daily purpose of a business and its core actions. Key questions to ask when forming a mission include: Why does your business exist? Who does it serve? And what does it do? Shahin provides examples from companies like Tesla and IKEA to demonstrate how a mission links to vision. The video is part of Shahin's Firestarter program, designed to help small businesses grow.

Takeaways

• 🚀 The mission statement is crucial for your business from Day Zero and guides day-to-day operations.
• 🎯 The mission focuses on what the business does daily and why it exists, distinguishing it from the vision.
• 🔗 The mission links the company's values and vision together, serving as the core purpose of the business.
• 📋 Before diving into strategy, foundational elements like the mission and vision need to be in place.
• ❓ Key questions to form a mission: Why do we exist? Who do we serve? What do we do to achieve our goals?
• 💡 A good mission statement needs to be clear, concise, and address the business's purpose and target audience.
• 🌍 Example missions: Tesla's mission is to accelerate the transition to sustainable energy, while Facebook's mission is to build community and bring the world closer together.
• 🏡 IKEA’s mission ties into their vision by offering affordable, well-designed home furnishings to as many people as possible.
• 📝 Focus on answering the core questions first when writing a mission, rather than creating fancy or complex language.
• 🎯 After defining the mission, the next step is developing the business strategy to guide the company's growth and operations.

Q & A

What is the main purpose of a company's mission statement?

The mission statement defines a company's day-to-day purpose, outlining what the business does, why it exists, and what it aims to achieve on a regular basis.

How does a mission statement differ from a vision statement?

A mission statement focuses on what a company does daily and why it exists, while a vision statement is more about the long-term future and the ultimate goal the company aims to achieve.

Why is it important to create a mission statement from Day Zero of starting a business?

Creating a mission statement from the beginning helps guide the direction of the company, ensuring that all actions are aligned with its purpose and long-term goals.

Where does the mission statement fit within a company's strategy playbook?

The mission statement fits between a company's values and its vision, linking the two together by defining the company's purpose and what it does to achieve its vision.

What key questions should be asked when developing a mission statement?

The key questions are: Why do we exist? Why is achieving our purpose important? What will we work on to achieve our goals? Who do we serve, and what do we do?

Why should a company understand its purpose when formulating its mission?

Understanding the company’s purpose is essential because it serves as the foundation for its mission, guiding its daily activities and defining why the business exists.

What is the role of clarity in writing a mission statement?

A mission statement should be clear and concise, effectively communicating the company's purpose, who it serves, and what it does without needing fancy wording.

How does Tesla's mission statement serve as an example?

Tesla’s mission, 'to accelerate the world's transition to sustainable energy,' clearly defines its purpose and what it aims to achieve, guiding its daily operations toward this goal.

What is the difference between IKEA's vision and mission statements?

IKEA’s vision is to 'create a better everyday life for the many people,' while its mission focuses on offering well-designed, functional home furnishings at affordable prices to support this vision.

What is the next step after defining the company's mission, according to the video?

The next step is to develop the business strategy, which involves identifying challenges and creating a plan to achieve the mission and vision in a sustainable and consistent manner.