Is a Mission Statement Enough?
Discover the importance of a mission statement and how it can steer your business toward success. Learn the difference between having a mission statement and being a mission-driven business and how you can strengthen your business's mission-driven approach.
Listen to the BBSI Entrepre(doers) Podcast
In this episode, we are joined by BBSI’s Salt Lake City Area Manager, Richard Webb. Richard is an entrepreneur and a business consultant and has owned a number of businesses. His background and history make him a great resource for what it takes to turn your business into a mission-driven one.
What is a Mission Statement?
A mission statement serves different purposes for each business, but the primary driving force behind creating a mission statement is always to explain the reason for the business's existence and the underlying meaning behind its work. A business can create a mission statement to establish a presence within its target audience, gain recognition, and generate revenue.
Here are a few considerations when creating a mission statement:
- What’s the purpose of earning income through this business?
- What am I going to do with the revenue?
- What does my business do that fills a need in the community or for those who work around me?
By crafting a clear and concise mission statement, businesses can communicate their values and objectives to their employees and customers. This, in turn, can help build a strong brand identity and establish a sense of purpose that drives the success of the business. A well-defined mission statement can be a powerful tool for any business looking to succeed in today's competitive market.
What is a Mission-Driven Business?
Once a business has established a mission statement, hard work and leadership are required to reinforce the purpose and messaging behind the mission statement. After that, a business can start transforming into a “mission-driven” business.
A mission-driven business is one that prioritizes its purpose beyond just generating profit. The mission statement serves as a guide, clearly stating the business’s purpose, values, and goals. Unlike other businesses that focus solely on short-term profits, mission-driven businesses prioritize long-term success while positively impacting society. By prioritizing their purpose, these businesses aim to create a sustainable business model that generates revenue while embodying their purpose with everything they do.
Ultimately, being a mission-driven business can improve employee engagement, customer loyalty, and financial performance, among other positive outcomes.
The Difference Between Having a Mission Statement and Being a Mission-Driven Business
While a mission statement is something you can print out and hang on the wall, the qualities that differentiate a business from simply having a mission statement and being mission-driven are leadership and culture.
Establishing and maintaining a strong organizational culture requires effective leadership. Once a business's mission statement has been driven and reinforced, it can unite all departments toward a common purpose. Mission-driven businesses make decisions with their mission statement in mind; these decisions can be as big as hiring or as small as the layout of their office space.
What sets a mission-driven business apart from others is its ability to use the mission statement to create tangible improvements that deliver results in the business and within the greater community where it does business.
The Benefits of Being a Mission-Driven Business
Embracing a mission-driven approach can lead to a wide range of benefits for businesses:
- Greater employee engagement and retention: Mission-driven workers are 54 percent more likely to stay five years at a business, and 30 percent more likely to grow into high performers than those who arrive at work with only their paycheck as the motivator.
- Improved customer loyalty: Consumers are increasingly drawn to businesses prioritizing social responsibility and ethical practices. By embracing a mission-driven approach, businesses can build customer trust and loyalty.
- Stronger brand identity: A well-defined mission statement can help a business stand out from its competitors and build a stronger brand identity.
- Better financial performance: By prioritizing purpose, businesses may attract higher-performing employees, partners, and customers who share their values and are willing to pay a premium for products or services.
When a business makes decisions with its mission statement in mind, the potential for what it can achieve becomes exponentially greater.
How Can Businesses Strengthen Their Mission and Utilize It to Drive Their Strategy and Growth?
Having a mission-driven business sounds like a dream, but achieving it requires hard work and effective leadership. Webb has offered helpful tips for reinforcing the company's mission statement.
- Start on day one: Every new hire should know what your mission statement is and what the goal is behind that mission statement.
- Incorporate the statement into training: By embedding your mission statement into your training curriculum, you align the entire organization with the central purpose of your business.
- Embrace your mission statement: All interactions with the business should in some way reflect or consider your mission statement.
- Annual reviews: Structure your annual reviews around how that employee has worked to better understand and incorporate the business's mission statement into their work.
Businesses should remember that a mission statement's primary objective is to foster a positive culture. By embodying the values and principles articulated in the mission statement and instructing the leadership team to do the same, organizations have the potential to create a superior work environment for their employees and achieve greater success.
What Do Businesses Need to Do to Stay Motivated?
The sustainability of a mission statement in a mission-driven business relies heavily on its leadership's ability to remain motivated. Webb offers his thoughts on this topic in a recent episode of our podcast, Entrepre(doers), "Is a Mission Statement Enough?"
During the discussion, Webb mentions a book he read, Drive by Daniel Pink, in which the author outlines the three essential components necessary for motivation:
- Autonomy: Having a level of autonomy where we can call our own shots to some degree.
- Mastery: Where we can develop strong skills in one or a couple of things and feel proud of those skills.
- Purpose: Having a sense of purpose that brings joy and meaning to the job.
“Businesses looking to cultivate a stronger sense of unity and a more positive work culture through a mission-driven strategy should read this book,” Webb says. “It is an essential read for any business owner looking to gain results from their mission statement and stay motivated.”
BBSI Helps Businesses Strengthen Their Mission and Achieve Growth
BBSI recognizes that connecting a business's mission statement and aspirations to its financial goals takes time and effort. By working closely with business owners, we strive to help them understand and communicate the purpose behind their work to their employees. This may also require owners to reexamine their motivations for creating the business. Through this process, we help businesses build a bigger picture around their mission statement and create a culture that drives their desired results.
Disclaimer: The contents of this white paper/blog have been prepared for educational and information purposes only. The content does not provide legal advice or legal opinions on any specific matters. Transmission of this information is not intended to create, and receipt does not constitute, a lawyer-client relationship between BBSI, the author(s), or the publishers and you. You should not act or refrain from acting on any legal matter based on the content without seeking professional counsel.
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