Mission Statements in Service & Industrial Corporations

 A summary of the research by Greengarten-Jackson, Yau, Gitlow, and Scandura

The "What" and "Why" of Mission Statements

• Vision Statement: A dream for the future state of the organization. It's the "what" an organization wants to become.

• Example: "To make people happy" (Disney)

• Mission Statement: The current reason for an organization's existence. It's the "how" the organization will achieve its vision.

• Importance:

• Aligns organizational processes with business strategies.

• Provides employees with a sense of purpose.

• Serves as a framework for decision-making.

• Research indicates a link to improved firm performance and customer service.

The Research Study

• Purpose:

1. To determine the issues addressed by, and the underlying structure of, existing mission statements.

2. To identify "ideal" prototype mission statements to guide organizations.

• Population: The 50 largest industrial and 50 largest service corporations in the USA in 1992.

• Methodology:

• Collected mission statements through telephone interviews.

• Used content analysis, affinity diagrams, and interrelationship diagraphs to analyze the data.

Key Findings: Do Companies Have Mission Statements?

• 76% of industrial companies had mission statements.

• 58% of service companies had mission statements.

• Reasons for not having one:

• Industrial Companies: The industry is changing too quickly.

• Service Companies: Lack of time to develop one.

What's in a Mission Statement? (Industrial Companies)

The most common themes in the mission statements of industrial corporations were:

1. To provide for shareholder wealth

2. To provide products/services of superior quality

3. To be a responsible corporate citizen

4. To make a profit

5. To be the best in our field

6. To meet the needs of our customers

What's in a Mission Statement? (Service Companies)

The most common themes in the mission statements of service corporations were:

1. To be the best in our field

2. To make a profit

3. To provide for shareholder wealth

4. To improve the quality of life

5. (Tied) To maintain high ethics, provide superior quality, ensure long-term growth, and meet customer needs.

The "Ideal" Vision Statement

Based on the analysis of root effects (the ultimate desired outcomes), the study proposed an ideal, generic vision statement:

"We want to succeed by having long-term growth and being one of the best companies to work for."

The "Ideal" Mission Statement

Based on the analysis of root causes (the actions required to achieve the vision), the study proposed an ideal, generic mission statement:

"We will become a total quality company by respecting our employees and partnering with our customers."

Practical Takeaways

• The proposed "ideal" statements can serve as a starting point for any organization.

• They provide a unifying message for diverse companies.

• They offer a sense of constancy in rapidly changing environments.

• This approach helps overcome the "lack of time" argument by providing a solid foundation.

Conclusion

• Mission and vision statements are crucial for aligning strategy and culture.

• This study provides an empirical basis for understanding the content of these statements.

• The "ideal" statements offer a practical tool for leaders to develop or refine their own, fostering a shared sense of purpose and driving organizational success.

References: Scandura, T. A., Gitlow, H., Choi Yau, S., & Greengarten‐Jackson, J. (1996). Mission statements in service and industrial corporations. International Journal of Quality Science, 1(1), 48-61.