The Relationship between Mission and Objectives
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1 The Relationship between Mission and Objectives It is important to distinguish the similarities, differences and relationships between expressions -such as mission, objective, goal/aim - that could sometimes be confusing in the workplace because of their subtleties. A correct understanding of their definitions and implications in business is a key for success. The concepts and examples in this document will help you answer exam questions and use correctly and efficiently these business terminologies. I. Mission The term mission was first used in the English language for Jesuits to qualify their sending abroad. A general modern definition would define a mission as an important task given to some party (physical or/and moral). Keeping in mind this broad vision will help you understand and determine the implications of the term mission regarding any type of organisation. 1. Organisational Mission The organisational mission defines the fundamental reason why a specific business exists. It gives the following information about it: The kind of products and services operated; The targeted audience (age, gender, community, ); The core values of the organisation; 1
2 To come up with a consistent and purposeful Organisational Mission, entrepreneurs are often required to study in details the market s components and its environment. 2. The Vision Statement The word Utopia best describes what a vision statement is as it refers to a perfect state of things. It is the state of things that you see and define as best fit for your audience, including your suppliers, customers and partners. The subjects addressed would be perfectly dealt with in your Utopia; such concerns could include for instance hunger in the world, animal mistreatments, poverty, child abuse In other words, it is your definition of paradise in regard to your targeted audience. Vision statements have a set of frequent characteristics such as: Universality: it bears concepts and ideals common to mankind, regardless of ethnicity, gender, religion, time or space; Catchiness: the combination of words is appealing and easily remembered; Insight: this is a key factor in motivating the involvement of the public. There has to be more social and profound interactions between the organisation and its counterparts; Practicality: they are easy to share - through word of mouth for instance- and advertise - e.g. on a piece of clothing; The vision statement could be a single or a compilation of sentences inviting the public to identify itself and support the firm s vision because of the shared beliefs regarding the future. It creates value by infusing in the audience the feeling that they are contributing to be closer to this common state of Utopia they are pursuing; whether it is being done consciously or subconsciously, the outcome brings them closer to the organisation. Examples of vision statements from a few notorious businesses: Kraft Foods To make today delicious 2
3 CVS Caremark To improve the quality of human life Disney To make people happy American Express The world s most respected service brand The most effective vision statements are often short and direct to the point. Sometimes, unlike Disney s example above - 4 short simple words -, they can take the form of an elaborate testimony determining common goals for the future, like the following vision statement from PepsiCo: "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today. Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company." These examples show that composing a good vision statement depends upon the awareness of all the components discussed. When brainstorming vision statements, entrepreneurs envision what would represent them the most if their businesses were perfect and the best in what they do. Doing so is helpful in defining a referential for each and every kind of industry. Even if businesses are imperfect by nature, because made of imperfect people, the public perceives the message because this is a clear declaration of intention, and since actions come from intentions, they matter as much as the later. 3. The Mission Statement The mission statement is a declaration of the prevailing directions and functions of a business (other kind of organisations such as NGOs often have Mission Statements as well). It shares attributes of a vision statement in the sense that it also encompasses a widespread variety of issues. A mission statement s main difference is characterized by a more realisticoriented and tangible. Rather than being a claim supporting of a dream - part of the function of a vision statement-, it is a call for concrete action. It is often accomplished in a mission 3
4 statement by invoking specific issue(s) relevant to the present and near future. The prevalent features of a mission statement include: A short statement: a mission statement is often straightforward and concise, generally 1 to 3 short sentences; A result-oriented statement: a mission statement lays down the main achievements it is working toward achieving a specific goal; A comprehensive statement: a mission statement includes the business s most important objectives. Therefore, it has to be adaptable to include a wider audience; Examples of Mission Statements form famous businesses: Charles Schwab: To help everyone be financially fit; Google: To organize the world s information and make it universally accessible and useful; ING: We lead Americans back to savings; Kickstart: To get rural families out of poverty; Sony: To emotionally touch and excite our customers; Merck: The mission of Merck is to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return; Mission statements are vital in determining a common philosophy of principles carrying the company s core values; however, because of its typical short length, the mission statement rarely contains all of the organisation s crucial guidelines. Evasive mission statements -such as ING s example above - could spread misunderstanding and doubts in the audience s perception of the company (for employees, customers, investors, partners and all of the other parties involved). Too long and/or complex mission statements have the disadvantage 4
5 of being hard to memorize -such as Merck s example above- and are more subject to misinterpretations than shorter ones. II. Aims and Objectives Once an organisation defined its mission, its vision statement and its mission statement, its ultimate objectives over the long-run become much clearer. However, in order to progress toward its goals, an organisation needs to define more short-term oriented and measurable objectives. The expression aim, which invokes closeness, has the same implications as short-term objectives. The achievement of such milestones permits to the organisation to be focused on the present and persistent; the positive feedback loop established on a shortterm basis reinforces its commitment over the long-run. The organisation constantly creating, tracking and reviewing these objectives increases its adaptability, profitability and sustainability. 1. Different Forms of Objectives Objectives could take different forms and could aim at multiple targets. Because a business objectives could serve different functions within a sentence, the following list should be understood as non-mutually exclusive as an objective may be categorized in several sections simultaneously: Targeting communities: objectives aimed at changing the audience s attitude in order to reach a goal. For instance, a business could work toward the goal of increasing the awareness about women s rights at the workplace. The result is that it could contribute effectively to the improvement of women s condition at work. Targeting practice: objectives designed to help the progress of the business s other objectives. For example, a restaurant could implement a plan for employees to help them improve customer s experience by adopting rules to provide them with a 5
6 memorable experience. In this case, the plan is the aim itself, and the result is a better service provided to customers. Targeting behaviour: objectives created to impact directly individuals actions and say in their daily routine; such objectives subsequently aim to impact on the end result itself. For instance, a mayor pushing laws banning smoking in public places (e.g. New York). The objective is to adopt the laws banning smoking in public place and the result sought is to reduce the number of smokers in the city. 2. Common Features Well determined objectives and aims share common characteristics. The best way to remember these features is to use the acronym SMART first coined in 1981 from a paper of George T Durand- meaning that to be efficient, objectives and aims need to be as follows: Specific It should inform about the how much of what (e.g. +15% subscription) and within a defined timeline; reaching the objective within the deadline being more desirable than after. Measurable The data could be collectable, recordable and analyzable (gross margin or other kind of ratios). Assignable/Achievable It reveals the specific parties inside and/or outside the organisation involved in its achievement. Because unrealistic short-term objectives are nothing but a source of discouragement, it has to be achievable and realistic. Relevant The objective has to remain consistent with the organisation s broader mission. Time-oriented It should be inserted in the organisation s general timeline, which indicates when an objective is planned to be achieved. More recently, an increasingly important and key determining factor is considered: 6
7 Stimulating: The synergy of the SMART values has to be stimulating to those who achieve these objectives and those around witnessing them. In conclusion, the relationship between mission and objectives is a conceptual process in the creation of an organisation s founding principles. A particular attention is dedicated by organisations to define the line between its mission and its objectives, as they are both on different levels. One being more conceptual, and the other more technical, both are designed to achieve the common short and long term goals of the organisation. 7
8 Multiple Choice Question 1. The term mission was first used in English to: a. Dictate the terms of a contract; b. Motivate religious people; c. Qualify the sending abroad of Jesuits; d. None of the above; 2. What is an organisational mission? a. A non-governmental organisation; b. The reason of being of an organisation; c. A strategy to organize a business; d. All of the above; 3. What kind of information can an organisational mission give? a. The kind of products and services operated; b. The targeted audience (age, gender, community ); c. The core values of the organisation; d. All of the above; 4. What is the main difference between vision statements and mission statements? a. There is no difference; they both mean the same; b. Mission statements are based on ideals whereas vision statements are based on more realistic goals; c. Vision statements are based on ideals whereas mission statements are founded on realistic goals; 8
9 d. b. & c.; 5 What is the difference between goals and short-term objectives in business terminology? a. There is no difference; the term goal implies proximity; b. Goal is for the long term and the other for short-term; c. There is no difference; the term objective is long-term oriented; d. a. & c.; 6. Who is George T. Durand? a. The founder of Kraft Foods; b. The first person to have coined the acronym SMART; c. A consulting firm; d. None of the above; 7. SMART is for: a. Specific, Marketed, Assignable, Relevant, Time-oriented; b. Specific, Measurable, Assignable, Relevant, Time-oriented; c. Specific, Measurable, Achievable, Relevant, Time-oriented; d. b. & c.; 8. Which of the following objective targets process? a. A multinational want to launch a campaign against cancer; b. A local grocery store wish to raise awareness about nutrition; c. A hotel wants to implement a plan to increase customer satisfaction; d. All of the above; 9
10 9. Which statement is true about the different forms of objectives? a. They are mutually exclusive; b. They are all the same; c. They are non-mutually exclusive; d. None of the above; 10. Which statement is false about mission statements? a. It is a declaration of the role of an organisation; b. They are oriented towards realistic goals; c. They are always short - no longer than a few words; d. None, all of the above are correct; Answers 1: c ; 2: b ; 3: d ; 4: c ; 5: d ; 6: b ; 7:d ; 8:c ; 9: c ; 10: c ; 10
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