Importance of Mission Statement
A clear mission statement acts as an “invisible hand” that guides people in the organization.
It shapes strategy. Every business needs a strategy. But strategies must not be created in a vacuum. Instead of looking at what’s new or what competitors are doing and trying to copy them, wise business owners create the most effective strategies possible to accomplish the mission.
It determines the company’s direction. Smart business owners use this statement to remind why their company exists because this is what makes the company successful. It sets the tone for the business’s goals. It helps all stakeholders focus on the same goals.
A clear mission sets important boundaries which enable business owners to delegate both responsibility and authority and it helps all stakeholders focus on the same goals.
Mission statement should be based on company’s’ competitive advantage. It helps to differentiate company from competitors.
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