If you’re looking for tips on how to write a company mission statement that actually makes a difference for your organization, you’ve come to the right place.
A company mission statement informs how you run your business. It sets you apart from your competitors and helps customers choose you over them. It keeps you and your employees focused so that you can more easily decide what you’re going to work on next. Or, if you should change course.
Over 90% of businesses with well-defined mission statements surpass industry averages in growth and profits. This shows the impact this North Star can have. So, let’s explore how to write a company mission statement that drives results.
What is a company mission statement?
A company mission statement is a series of points, a sentence, or a paragraph that explains what drives your company and why it exists.
It’s a way to ground everything you do, and for customers to hold you accountable. So there’s a lot to consider when it comes to how to write a company mission statement.
Why do company mission statements matter?
Business growth
When thinking about how to write a company mission statement, remember that it plays a key role in your ability to grow as a business.
As mentioned in the introduction, over 90% of companies with well-defined mission statements achieve growth and profits above industry averages.
This is likely because, when discussing new projects, teams can use the mission statement as a compass. Does the new idea/project keep you heading in the direction of business objectives? Or is it a distraction that will take you off course?
If it’s a distraction, they can pause for now or discard the effort for good.
Hiring
When hiring, your company mission statement will affect the types of people who want to work with you.
For instance, a company that puts the environment at its core will be very different from a company that lobbies for the fossil fuel industry.
Including your mission statement in your job postings can help attract and repel the right people. That way, you can improve your quality of hire. How you want your business to come across is key when approaching how to write a company mission statement.
Employee motivation
63% of employees feel motivated when companies have strong mission statements. Compare that to half for companies that don’t have them.
And it makes sense. When we know why we’re doing something, and we’re on board with that why, it’s a lot more motivating. When we feel like we’re doing something for the sake of it, things can get boring, repetitive, and frustrating fast.
It’s important to consider what drives your employees to help frame how to write a company mission statement.
Employee retention
Mission statements also have an impact on retention. Among Millennials, retention increases by 5.3x when they feel connected to the company mission.
However, this is less significant for non-millennials, demonstrating a generational difference.
That being said, Millennials are still the largest group in the workforce. They’re also quickly becoming the next generation of leaders and decision makers. So appealing to them when it comes to how to write a company mission statement is essential.
Employee engagement
Unfortunately, only 28% of employees feel connected to their company’s purpose. This is despite the fact that 84% of Millennials prioritize it.
So, by getting them on board with your mission, you can increase engagement and motivation. And as ripple effects, productivity and profits, too.
Target audience
Your company mission statement works as a magnet to the right types of customers.
For example, clothing brand Patagonia’s mission focuses around the environment. This encompasses everything from the fabrics it uses to repairing garments someone bought in the 1990s (or replacing them for free!). It creates investment pieces that last users for decades.
A fast fashion brand, on the other hand, focuses on cheap fabric, cheap labor, and cheap costs for its customers.
Rather than sustainability and longevity, their focus is on following fashion trends. This means clothes may not last as long, but their target audience is unlikely to mind if they’re most cost or trend-focused.
When it comes to how to write a company mission statement, you need to keep your target customer in mind as well.
What to consider around how to write a company mission statement
Analysis of mission statements from Fortune 500 companies found that:
- 51% mention customers
- 25% include service/services
- 43.8% mention products and services
- 19.2% emphasize global presence
That’s not to say you have to include any of these in yours. But it’s always worth knowing what your competitors focus on as your mission statement can be a differentiator (such as in the Patagonia example above).
It just goes to show that there’s a wide range of elements to take into account when it comes to how to write a company mission statement.
How to write a company mission statement
Always do your competitor research first. This will help you find what differentiates you.
Then, write down a list of core values or interests. Get as many as you can, then cross out the ones that overlap heavily with your competitors.
The ones you’re left with show what differentiates you and can help you to stand out. You can then stick to articulating it as 3-5 points, or turn them into a complete sentence.
Keeping it short makes it more memorable. It doesn’t have to be a catchy slogan, but if it is, all the better.
If it isn’t, you can use it to inform your marketing slogan(s).
For example, an accounting software that wants to make tax returns simpler can use words like simple or easy in their mission statement and marketing copy. They can then view all future campaigns through the lens of whether it communicates the tool’s ease of use.
When thinking about how to write a company mission statement, remember that it should help you stand out.
Conclusion
Your company mission statement makes it clear to customers, employees, and shareholders what drives your business. It helps you attract the right types of customers and employees and repel those who are the wrong fit. This can improve everything from your employee experience to your customer satisfaction.
Now that you know how to write a company mission statement, it’s time to put in the work. Want to organize your employee initiatives to get everyone behind your mission?
Workrowd can help. You can store all your employee initiatives in one, easy-to-follow place. Everyone can personalize their own dashboards to find what they need regardless of how long they’ve worked at your organization or what they do. This way, it’s easier to get everyone rallied behind your mission statement. Get in touch today to book your free demo.
