An old business relic

Do you have a business mission statement? This means you can:

  1. recite your mission as one clear, compelling sentence, and

  2. put your hand on some document where it is written down, and

  3. every employee can do all of the above too

If all of the above don’t apply – and I mean all of the above, there is no point in having one.

Even the greatest fans of ‘mission statements’ will admit that the purpose of a mission statement is to be a guiding light for the whole organisation; keeping everybody on the same path, so to speak.

I have an admission to make: I don’t have a mission statement or a vision statement.

Guy Kawasaki is not a great fan – he prefers something called a mantra. Guy names the following examples as mantras, but to me they are simply glorified taglines.

  • Federal Express: “Peace of mind”

  • Nike: “Authentic athletic performance”

  • Target: “Democratize design”

  • Mary Kay “Enriching women’s lives”

My question to you is this: Do these ‘mantras’ help you (the business owner/ entrepreneur) in any way whatsoever?

Mission statements belong to an era where there was business certainty. (Not sure when exactly that was.) And it was developed by shonky consultants to give them something to do during the first session of the annual strategic planning retreat.

The idea of something like a ‘mantra’ is important because it demonstrates to the business owner that the can articulate something about the business succinctly. BUT the thing/idea that the entrepreneur must focus on is the ‘business model’.

The difference is that I like to focus on ‘how things are meant to work now’ as opposed to the kind of business we would like to be.

There isn’t a sexy way of explaining this: your business model is simply a statement of how you make money. You can state that plainly or esoterically. ‘Peace of Mind’ (FedEx example) does not help anybody make the right decisions in the business.

Let’s apply the receptionist test:

An irate customer calls. The receptionist is the only one at Head Office since everybody else is on a strategic planning retreat. The customer complains that a parcel that was promised did not arrive. How does ‘Peace of Mind’ help her (or him) make a decision?

On the other hand, if she knew that: “We are in the business of moving any parcel, anywhere, on time” – she would have a useful guideline. She could make a decision – even hire a chopper to deliver the emergency parcel. And the boss would have to reward her (even if the cost exceeded the return.)

  • If someone called and asked if they deliver parcels to Timbuktu - she would have an answer.

  • If some called and asked if they delivered dead cats – she would have an answer.

  • If someone asked if they could get something somewhere by tomorrow – she would have an answer.

Being able to articulate your business model has real, practical value. It clarifies what you do, how you do it and who you do it for.

The above example obviously can be refined and re-written to suit the business. One word makes a big difference.

Consider these slight changes:

• We are in the business of moving any parcel, anywhere, on time, profitably.

• We are in the business of moving any parcel, anywhere, on time, guaranteed.

• We are in the business of moving […] parcels, anywhere, on time.

• We are in the business of air freighting any parcel, anywhere, on time. Getting it right is extremely valuable – the consultants have that part right.

But if you end up with words like ‘empowering’, ‘transparent’, ‘stakeholders’ or any of that nonsense in your mission statement, it may be time for a re-think.

Can you articulate your business model? Examples of good/bad mission statements? Do you disagree because you have one that works?

Are you a judge?

Can you handle the truth?

© 2017 Ganador Management Solutions (Pty) Ltd PO Box 243 Kiama, NSW, 2533 Australia