Importance of Mission statement and objective setting

1. What is mission statement?
Why is it important?
How to develop a mission
statement?

2. WHAT IS IT?
A written declaration of an organization's core
purpose and focus that normally remains
unchanged over time.
Properly crafted mission statements:
(1) serve as filters to separate what is
important from what is not,
(2) clearly state which markets will be served
and how, and
 (3) communicate a sense of intended
direction to the entire organization.

3. A good mission statement answers several
key questions about your business:
What are the opportunities or needs that the
company addresses?
What is the business of the organization? How
are these needs being addressed?
What level of service is provided?
What principles or beliefs guide the
organization?
IT MAY ANSWERS SOME KEY QUESTIONS

4.  IT DETERMINES THE COMPANY’S DIRECTION
 IT FOCUSES THE COMPANY’S FUTURE
 IT PROVIDES A TEMPLATE FOR DECISION-MAKING
 IT FORMS THE BASIS FOR ALIGNMENT
 IT WELCOMES HELPFUL CHANGE
 IT SHAPES STRATEGY
 IT FACILITATES EVALUATION AND IMPROVEMENT
WHY EVERY BUSINESS (EVEN SMALL
BUSINESSES) HAVE A CLEAR, WRITTEN
MISSION STATEMENT.

5. HOW TO WRITE A GREAT MISSION
STATEMENT

6.  You don’t have to actually write the story—it’s definitely not
included in the mission statement—but do think it through:
 Imagine a real person making the actual decision to buy what
you sell. Use your imagination to see why she wants it, how
she finds you, and what buying from you does for her. The
more concrete the story, the better. And keep that in mind for
the actual mission statement wording: “The more concrete,
the better.”
 A really good market-defining story explains the need, or the
want. It defines the target customer, or “buyer persona.” And
it defines how your business is different from most others, or
even unique. It simplifies thinking about what a business
isn’t, what it doesn’t do.
1. START WITH A MARKET-DEFINING
STORY

7.  Start your mission statement with the good you do. Use your
market-defining story to bring out whatever it is that makes
your business special for your target customer.
 This is a part of your mission statement, and a pretty crucial
part at that—write it down.
 If your business is good for the world, incorporate that here
too. But claims about being good for the world need to be
meaningful, and distinguishable from all the other
businesses. Add the words “clean” or “green” if that’s really
true and you keep to it rigorously. Don’t just say it, especially
if it isn’t important or always true.
2. DEFINE WHAT YOUR BUSINESS DOES
FOR ITS CUSTOMERS

8.  Good businesses are good for their employees too or they
don’t last. Keeping employees is better for the bottom line
than turnover. Company culture matters. Rewarding and
motivating people matters. Qualities like fairness, diversity,
respect for ideas and creativity, training, tools, empowerment,
and the like, actually really matter.
 Stating that you value fair compensation, room to grow,
training, a healthy, creative work environment, and respect for
diversity is probably a good idea, even if that part of your
mission statement isn’t unique. That’s because the mission
statement can serve as a reminder—for owners, supervisors,
and workers—and as a lever for self-enforcement.
 And this is rare in mission statements. The vast majority are
focused on messaging for customers.
3. DEFINE WHAT YOUR BUSINESS DOES
FOR ITS EMPLOYEES

9.  In business school they taught us that the mission of
management is to enhance the value of the stock. And shares
of stock are ownership. Some would say that it goes without
saying that a business exists to enhance the financial position
of its owners, and maybe it does.
 However, this element too, as with the suggestion about
including employees, is unusual. Few mission statements do
it. That’s understandable, since most mission statements are
outward facing only, aimed at customers and nobody else.
 Still, some of the best mission statements incorporate a much
broader sense of mission that includes, or at least implies,
the mission of ownership
4. ADD WHAT THE BUSINESS DOES FOR
ITS OWNERS

10.  Whatever you wrote for points two through four
above, go back and cut down the wordiness.
 Good mission statements serve multiple functions,
define objectives, and live for a long time. So, edit.
This step is worth it.
5. DISCUSS, DIGEST, CUT, POLISH,
REVIEW, REVISE

11. OBJECTIVE SETTING

12.  Objectives describe what needs to be done to achieve a goal.
 They must be relatively short-term, practical statements
about what needs to be done.
 Objectives which are written down and are verifiable can be
far more useful if they are SMART in nature which means
Specific, Measurable, Attainable, Relevant and Time Bound.
OBJECTIVES

13.  Specific: Well-defined to inform employees exactly what is
expected, when, and how much. With specific goals, managers
can easily measure progress toward goal completion.
 Measurable: Provide milestones to track progress and
motivate employees toward achievement.
 Attainable: Success needs to be achievable with effort by an
average employee, not too high or too low.
 Relevant: You should focus on the greatest impact to the
overall company strategy.
 Time-bound: Establish enough time to achieve the goal, but
not too much time to undermine performance. Goals without
deadlines tend to be overtaken by the day-to-day crises
SMART

14.  A good objective should be precise and well defined.
 Should be consistent with the values of an organization.
 Must fulfill the measurability criterion in quantifiable terms.
 Should be challenging for encouraging better performance
and attainment of superior standards.
 Should be achievable and must be within the purview of an
individual’s capability.
 Should be mutually agreed by the manager and the employee
concerned.
 Must be time bound and emphasize on team based results.
PREREQUISITES FOR A GOOD OBJECTIVE

15.  Behavioral Parameters: Behavioral parameters are normally
set out within the competency frameworks, identified as
desirable and undesirable behaviors which may be useful in
the process of performance planning and reviewing.
 Values: The objective may be to drive all the efforts of the
employees and the management team for up holding the core
values of the company.
 Performance Improvement: This objective aims at realization
of an improved performance by directing all the attention
towards achieving better results. This objective is highlighted
in the performance improvement plans of the employees
which describe what steps or measures can be jointly adopted
by the managers and the employee for an optimal
performance.
CON……..

16.  Work Objectives: These are the key result areas in a role
profile of an employee which not only explains what has to be
done but also why a job has to be done. For example, respond
proactively to the customer complaints and queries for
maximizing customer satisfaction. Effective work objectives
clearly define an activity in terms of the results or standards
which are to be accomplished.
 Targets: These are the results which can be measured in
quantifiable terms like output, income, cost reduction, service
delivered, etc
 Tasks/Projects: These are the objectives which carry a
deadline and should be fulfilled within a specified time frame
or can be completed in phases
OBJECTIVES CAN BE BROADLY
CLASSIFIED UNDER THE FOLLOWING
HEADS:

17.  Developmental Objectives: These objectives are highlighted in
the personal development plans and include the diverse areas
of development for an employee which can help in the
enhancement of skills and knowledge levels of an employee.
CON……..