8 Importance of a Mission Statement in an Organization

Importance of Mission Statement

The mission statement of the organization works as a means to connect employees of the organization with the mission’s objectives to be competitive at the present. The mission statement deals with the present conditions of the company ultimately aiming to achieve the vision.

Following are the main importance of an effective mission statement to an organization.


A mission statement helps to bring uniformity to the organization. The mission statement clearly outlines the duties and responsibilities within the organization. This also helps to make an organization consistent in the achievement of stated targets.

The mission also helps employees to be clear on their tasks, motivates them to work more, builds positivity for the organization, and ultimately builds a sense of synergy for goal achievement.

Resource Allocation

The mission statement also acts as an effective means for resource allocation. It clarifies to whom to serve products or services – who are the customers, how to support the community, how to enhance employees relation, how to compete in the market, etc.

By clarifying what to do to get what, the mission statement helps to allocate the required resources to each sector in a proper manner to achieve the desired goals.

Develops Organizational Culture

Organizational culture is the totality of norms, values, and beliefs which is unique to other organizations. Like the vision, the mission is also unique in nature.

As is unique, the mission statement brings a new way of functioning and builds new values, norms, beliefs, and systems that are strategic for achieving organizational goals and that differentiate the firm against other firms. In addition, it also inspires stakeholders of the firm to develop an organizational culture that supports the desired goals of the organization.

Enhances Employee Ownership

It is obvious that employees work longer when they feel they are valued, treated well, and have some ownership in the organization they work. Along with concerning the customers, community, and shareholders the mission statement equally concerns the employee’s welfare.

The mission statement may add the increment of increase in employee’s salary after some time, bonuses, increase satisfaction, motivation of employees, and other steps to enhance employees ownership. It also increases employees’ normative commitment to the organization so that they internally feel like working in the organization.

Defines the Business

The mission statement defines the business as exactly in what particular business the organization is heading in terms of products or services, customers, and community.

The mission statement is not future-forward like the vision, it is more concrete than the vision. It is easily reachable in a short period of time. It tells about what actually the organization does at the present to get the future desired position.

Organizational Responsibility

The mission statement also reflects the organizational responsibility toward customers, employees, shareholders, the community, and environmental issues.

The mission statement is not concrete only to achieving organizational goals rather it also deals with the environmental concerns, health of customers, satisfaction to investors, growth of employees, etc. so that the firm will be positively accepted by the market and prosper in long term.

Shows the Operational Philosophy

The mission statement differentiates the organization from others in terms of operational philosophy. As so, a firm may differ in terms of the quality it provides to the market, the brand image it has created in the market, and the self-concept or uniqueness it has got.

Helps the Strategy

Last but not least, the importance of the mission statement is that it also adds to the formulation and implementation of the strategies in the organization. The strategies are formulated based on the vision and mission statement and are also implemented to achieve the stated goals following the vision and mission statement.

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