Mission Statements drive purpose. Every organization exists to fulfill a purpose. Research tells us that a clear mission statement is a must.
As a strategic tool, mission statements drive purpose.
Mission statements communicate the core identity of an organization to current employees, prospective employees, current and prospective customers, and the general public5,10,11.
Hear an example of capturing WHY in a mission statement:
Make sure your mission presents a compelling challenge.
Mission statements drive purpose best when they capture a compelling challenge. Satisfaction with the stated mission influences overall business performance and whether the mission is achieved3,4,5.
Strong mission statements link to financial performance.
Mission statements - especially those that focus on values, purpose, and distinctiveness - positively impact a business's financial performance. Research evidence shows impact on: profit margin, stock market return, earnings per share, and return on investment5,7,8,9,11,14.
Want innovation? Put it in your mission.
Mission statements drive purpose beyond the day-to-day. Mission statements directly impact an organization's innovation behaviors and practices1,2,5.
Mission statements influence job applicants.
Authentic mission statements attract people who fit your company's values and personality. Good fit decreases turnover12.
People love and keep jobs in mission-driven organizations.
People who are satisfied with and committed to their company’s mission:
Braun, S., Wesche, J. S., Frey, D., Weisweiler, S., & Peus, C. (2012). Effectiveness of mission statements in organizations – a review. Journal of Management & Organization, 18(4), 430–444. https://doi.org/10.5172/jmo.2012.18.4.430
Brown, W. A., & Yoshioka, C. F. (2003). Mission attachment and satisfaction as factors in employee retention. Nonprofit Management and Leadership, 14(1), 5–18. https://doi.org/10.1002/nml.18
Desmidt, S., Prinzie, A., & Decramer, A. (2011). Looking for the value of mission statements: A meta‐analysis of 20 years of research. Management Decision, 49(3), 468–483. https://doi.org/10.1108/00251741111120806
Seok Eun Kim, & Jung Wook Lee. (2007). Is mission attachment an effective management tool for employee retention? An empirical analysis of a nonprofit human services agency. Review of Public Personnel Administration, 27(3), 227–248. https://doi.org/10.1177/0734371X06295791