What is the missing name in the following mission statement? "We are committed to building the ------- brand. Providing dazzling products that radiate the dynamic aspirations of the digital age, it is our aim to bring new levels of quality to people's lives."
The difficulty of answering the question reflects some issues about mission statements and missions generally. Consult any textbook on strategic management. It will say a corporate mission is a key ingredient of success, embodying a unique organisational identity, vision, purposes and values. Thus, it enlists the commitment and energy of its members toward the greater good of the enterprise.
A mission statement serves to make the mission explicit, although it is neither necessary nor sufficient to make a mission useful. The usefulness of a mission rests on its relevance, on the process of its development, and on the way it is promoted throughout the enterprise.
Relevance - Uniqueness is crucial to the relevance of a mission. Members of an organisation are unlikely to embrace a mission that could be bought off the shelf. They have to feel that their company is distinctive, with an especially favourable image and reputation. This is where companies that enjoy some particular positioning within their industry find it easier to foster a sense of mission.
Changing strategic circumstances can invalidate the relevance of missions. They can become dysfunctional when beliefs, habits and emotional commitment, once the foundations of success, act as traps, not only to resist change, but to blind companies from recognising the need for it.
In many cases, while the basic purposes of the mission remain the same, the strategy has to change. Ryanair repositioned itself in the early 1990s adopting a budget airlines strategy after losing millions of pounds as a direct competitor to Aer Lingus. Currently, Marks & Spencer is struggling to reassert its dominant position in UK retailing, as its traditional middle market is invaded by specialist retailers at the top end, discounters from the lower end, and of course e-tailers.
Other aspects of mission relevance are well demonstrated in the takeover of Canadian drinks and entertainment group, Seagram by the French media and environment company, Vivendi. Seagram's original core business was in spirits, and Vivendi's was water. Ironically, now the spirits and environmental businesses will be sold or spun off. These transformations in the essential purposes of each company raise questions of how such a far flung conglomerate can forge a coherent mission, much less get staff to identify with it. These problems are rarely considered by the chief protagonists in mega-mergers.
Under the rubric of relevance is the question of how broad or narrow the mission should be. Missions that are too broad are aimless, even if some of them sound very exhilarating as mission statements.
Overly narrow missions can also be damaging. It was to the credit of the Kerry Group that it realised early on that its traditional dairy business was too limiting in a sector with over-capacity, slow growth etc.
Relevance can be adversely affected by an overly specific mission that proclaims a leadership standing. In 1997, British Airways declared its intention "to be the undisputed leader in world travel". How do you assess "leader" and "world travel", even if you can define them in the first place? There really is no way of testing the achievement of BA's aspiration.
The irrelevance of BA's mission was exposed as it plunged into losses, having once been the world's most profitable airline.
Mission development - This encompasses who participates, and the context in which the mission is developed. Some companies hire consultants to devise a mission, working with top management.
This is worse than useless, a mechanical exercise. The end product is usually a collection of words, a mission statement, not a mission. A mission statement that bears no relationship to the motives and values of the body of the enterprise is bound to invoke indifference at best, and cynicism and resistance at worst.
Of course, mission statements are often mere public relations devices, to appeal to important constituencies, like shareholders or customers. The current fashion is to mention all stakeholders as vital to the firm. However, unless these declarations are backed up by actions they only invite distrust. And if employees do not believe in them, they will not be enacted anyway.
Promotion - Obviously, where there has been widespread participation in mission development, integrated with strategy, the mission is inherently embraced by all the actors.
The fewer the participants and the more remote they are from the mainstream organisation, the harder it will be to win over everyone to the mission. Sometimes it can be accomplished by an inspirational leader with a compelling vision and values. Examples are Walt Disney, and Sam Walton of WalMart. But it can be dangerous with charismatic but unscrupulous or egomaniac leaders, like Robert Maxwell.
Even without widespread participation, trusted managers who clearly live by the mission they are trying to promote are more likely to succeed. They lead by example, showing consistency between what they say and what they do. When management behaviour is inconsistent with the espoused mission, it will eventually lose the confidence of its internal and external stakeholders.
Effective missions should direct the organisation toward a positive and challenging vision of its future. The means of getting there should not be delineated too specifically, but should still be indicative enough to offer guidance about the values, strategy and behaviour that suits the talents, resources and cultural identity of the enterprise. A somewhat "open" mission of this nature should facilitate adaptation to changing circumstances.
A mission developed through widespread participation, grounded within the strategic architecture of the firm, will sell itself, provided there is a climate of goodwill among all the participants. Without such participation, a credible management team must lead by example and communicate convincingly the mission's relevance and emotional attractions.
(By the way, the "correct" answer to the missing name is Philips, although the names of any number of companies would not have been "incorrect".)
Dr Eleanor O'Higgins is a lecturer in strategic management and business ethics at UCD graduate business school.
