e-Business Plan Tutorial: Mission Statement

e-Business Plan Tutorial: Mission StatementMission statement characteristics: A mission statement has the following key characteristics:

Visionary: Above all else a mission statement offers a vision of what a business aspires to be. A visionary mission statement helps people understand what the business is about and how they can contribute to the achievement of the vision. So mission statements frequently contain wording such as "to be the best", "the highest quality", and "in the world".

Broad: A company cannot be all things to all people, but a mission statement should not limit a company's area of service or expertise too narrowly. Especially in the fast-paced world of electronic commerce, customer needs, and customers, can change rapidly. A mission statement should be broad enough to allow the company to meet those needs without annual revisions of the statement.

For example, the original mission of classmates.com was to reunite classmates in American high schools. However, the business quickly found a market in colleges and universities as well, and then the military and the workplace. Soon classmates.com found it was not in the classmates business, it was in the personal networking business. CEO Michael Schutzer acknowledges that he would choose another name, and a broader mission, had he started the business today. "Our business is more than high school reunions," he says. "It is a personal network for reconnecting people." (Dot-com Content that Works?)

Realistic: The broad vision needs to be tempered with realism, to be both practical and workable. Mission statements that include everything or over promise will not give a clear indication of what the business is about. A lofty, unrealistic mission statement will not have great credibility. Instead the best statements are direct and powerful.

For example, in October 2002 Microsoft changed its mission statement from "To empower people through great software -- any time, any place, and on any device" to "To enable people and businesses throughout the world to realize their full potential". The new mission statement is certainly broad enough, but is it realistic? Does it overpromise? Does it give any indication what Microsoft is about? Most mission statement writers would think the new mission statement is a step backward, using the criteria listed here.

Motivational: The statement should be written in such a way that it inspires commitment among employees, customers, partners, and funding agencies about what this company will do or produce. Some organizations emphasize the inspirational value of their mission statement above all else, using it to express the company's philosophy and values.

Short and concise: The mission statement should be no longer than 25 words. Some consultants recommend that the mission statement be short enough that an employee can easily remember it and readily repeat it. Similarly, management guru Peter Drucker suggests it should be able to fit on a t-shirt.

Easily understood: The statement should use plain language that is convincing and easy to understand. For example, a technology company's mission statement should not include jargon or technology concepts that are unfamiliar to people outside the area. Consider using the "grandmother test" on your mission statement -- would your grandmother understand what your company is about if she read your mission statement?