The 3 Parts of a Mission Statement

In today’s business landscape, having a strong mission statement is more important than ever.

A mission statement is the foundation of your company’s identity and there are three parts to a mission statement: the purpose, the vision, and the values.

As a leadership coach with decades years of experience, I have seen many times how important a well-crafted mission statement can be.

In this post, I’ll share my insights on the 3 parts of a mission statement and how to create a mission statement that truly represents your company’s values and goals.

At the end of this post, you’ll have a clear understanding of what a mission statement is and how to craft one that will help your company thrive.

Let’s dive right in.

What is a mission statement and why is it important?

A mission statement is a short statement that defines the purpose, vision, and values of a company. It’s the foundation of a company’s identity and serves as a guiding light for the team and customers.

A well-crafted mission statement will define what your company does, why it exists, and what it stands for.

So, if you want to build a successful business, having a well-crafted mission statement is essential:

It clarifies your purpose

If you don’t know why your company exists, it’s hard to know what you should be doing. A mission statement clarifies your purpose and helps you stay focused on your core goals.

It guides decision-making

A mission statement serves as a guide for decision-making. If you’re ever unsure of what to do, you can always refer back to your mission statement and ask yourself if the decision aligns with your company’s values and goals.

It sets you apart

Your mission statement defines what makes your company unique. By highlighting your values and vision, you can differentiate your company from competitors and create a loyal customer base.

It motivates your team

When your team knows what your company stands for, it’s easier for them to stay motivated and focused on their work.

Let’s look at a well-crafted mission statement.

The mission statement of Patagonia, an outdoor clothing company, is

“We’re in business to save our home planet.”

This statement makes it clear that the company’s values center on environmental activism and sustainability, and motivates both employees and customers to support the brand.

Part 1: Purpose

The purpose of a mission statement is to define the core reason why your company exists. It is the backbone of your business and sets the tone for everything you do.

Why purpose matters

If you want your business to succeed, it’s essential to have a clear and concise mission statement that defines your purpose.

• It gives your business direction: A clear purpose statement gives your business direction and focus. It’s a roadmap that guides decision-making and helps you stay on track.
• It helps build a strong brand: Your purpose is what sets you apart from your competitors. When you have a strong purpose statement, it helps build a strong brand that customers can relate to.
• It attracts the right customers: When you clearly state your purpose, it attracts customers who share your values and vision. This leads to a loyal customer base and long-term success.
• It inspires your team: When your team knows the purpose of the business, it inspires them to work towards a common goal. It gives them a sense of purpose and helps them feel like they’re part of something bigger than themselves.

Strong purpose statements

• Tesla: “To accelerate the world’s transition to sustainable energy.”
• Warby Parker: “To offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.”
• TOMS: “To improve lives through business.”
• Airbnb: “Belong anywhere.”

These companies have strong purpose statements that define their values and vision. Their purpose statements guide their decision-making and set them apart from their competitors.

Part 2: Values

The values section of a mission statement is where you define the principles that guide your company’s behavior and decision-making. It outlines what your company stands for and what you believe in.

Why values matter

Having a clear set of values is important for building a strong company culture and for attracting customers from your target market who share those values.

• It guides decision-making: When your company’s values are clearly defined, it makes decision-making easier. You can refer back to your values statement and ask if the decision aligns with your company’s principles.
• It helps build a strong culture: When you have a strong set of values, it helps build a strong company culture. Your employees know what you stand for and what is expected of them, which leads to a more positive and productive work environment.
• It attracts the right audience: When your values are clear, it attracts customers who share those values. This creates a loyal customer base that is aligned with your company’s mission and vision.
• It sets you apart from the competition: Your values are what set you apart from the competition. When you clearly define your values in your mission statement, it helps differentiate you from other companies in your industry.

Strong value statements

• Google: “Don’t be evil.”
• Zappos: “Deliver WOW through service.”
• Whole Foods: “We sell the highest quality natural and organic products available.”
• Nike: “To bring inspiration and innovation to every athlete in the world.”

These companies have strong values statements that define what they stand for and what they believe in. This sets them apart from their competitors.

Part 3: Goals

The goals section of a mission statement defines your company’s ambitions and what you hope to achieve. It outlines what you want to accomplish and what your long-term vision is.

Why clear goals matter

Having clear goals in your mission statement is essential for the long-term success of your business.

• It gives your business direction: When you have clear goals, it gives your business direction and focus. It helps you stay on track and work towards a common goal.
• It motivates your team: When your team knows what the goals are, it motivates them to work towards achieving those goals.
• It sets expectations for customers: When you have clear goals, it sets expectations for customers. They know what you’re working towards and can see that you have a clear vision for the future.
• It helps with decision-making: When you have clear goals, it makes decision-making easier. You can always review your goals and ask if a decision aligns with your long-term vision.

Strong goals statements

• Amazon: “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.”
• LinkedIn: “To connect the world’s professionals to make them more productive and successful.”
• Microsoft: “To empower every person and every organization on the planet to achieve more.”
• Coca-Cola: “To refresh the world, inspire moments of optimism and happiness, and create value and make a difference.”

These companies have strong goals statements that define what they hope to achieve and what their long-term vision is. Their goals guide their decision-making and motivate their team to work towards a common goal.

Crafting Your Mission Statement

Now that you understand the three parts of a mission statement, it’s time to combine them into a cohesive statement that represents your company’s values and goals.

Here are some quick tips on how to craft a strong mission statement:

1. Keep it simple

Your mission statement should be easy to understand and remember. Use simple language and avoid industry jargon.

2. Be concise

Your mission statement should be no more than one or two sentences. It should be short and to the point.

3. Use active language

Use active language in your mission statement to make it more engaging and powerful.

4. Focus on the why

Focus on the purpose of your business and why it exists. This will give your mission statement more meaning and impact.

5. Get feedback

Get feedback from your team, customers, and other stakeholders. This will help you refine your mission statement and make it more effective.

Crafting a strong mission statement takes time and effort, but it’s worth it in the long run.

Final thoughts

Creating a strong mission statement is essential for any business looking to achieve long-term success.

If you clearly define your purpose, values, and goals, you can create a foundation for success and build a strong brand that resonates with customers and employees alike.

So, which part of your mission statement are you going to focus on first?

Let me know by sending me a message.

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Let’s help more leaders and entrepreneurs develop the skills they need to drive their teams and businesses forward.

Thanks for reading!