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50 PART 2 • STRATEGY FORMULATION

The fine balance between specificity and generality is difficult to achieve, but it is well
worth the effort. George Steiner offers the following insight on the need for a mission
statement to be broad in scope:

Most business statements of mission are expressed at high levels of abstraction.
Vagueness nevertheless has its virtues. Mission statements are not designed to express
concrete ends, but rather to provide motivation, general direction, an image, a tone,
and a philosophy to guide the enterprise. An excess of detail could prove counterpro-
ductive since concrete specification could be the base for rallying opposition.
Precision might stifle creativity in the formulation of an acceptable mission or pur-
pose. Once an aim is cast in concrete, it creates a rigidity in an organization and resists
change. Vagueness leaves room for other managers to fill in the details, perhaps even
to modify general patterns. Vagueness permits more flexibility in adapting to chang-
ing environments and internal operations. It facilitates flexibility in implementation. 13
As indicated in Table 2-3, in addition to being broad in scope, an effective mission
statement should not be too lengthy; recommended length is less than 250 words. An effec-
tive mission statement should arouse positive feelings and emotions about an organization;
it should be inspiring in the sense that it motivates readers to action. A mission statement
should be enduring. All of these are desired characteristics of a statement. An effective
mission statement generates the impression that a firm is successful, has direction, and is
worthy of time, support, and investment—from all socioeconomic groups of people.
It reflects judgments about future growth directions and strategies that are based on
forward-looking external and internal analyses. A business mission should provide useful
criteria for selecting among alternative strategies. A clear mission statement provides a
basis for generating and screening strategic options. The statement of mission should be
dynamic in orientation, allowing judgments about the most promising growth directions
and those considered less promising.

A Customer Orientation
A good mission statement describes an organization’s purpose, customers, products or
services, markets, philosophy, and basic technology. According to Vern McGinnis, a mis-
sion statement should (1) define what the organization is and what the organization aspires
to be, (2) be limited enough to exclude some ventures and broad enough to allow for
creative growth, (3) distinguish a given organization from all others, (4) serve as a frame-
work for evaluating both current and prospective activities, and (5) be stated in terms
sufficiently clear to be widely understood throughout the organization. 14
A good mission statement reflects the anticipations of customers. Rather than developing
a product and then trying to find a market, the operating philosophy of organizations should be
to identify customers’ needs and then provide a product or service to fulfill those needs.

TABLE 2-3 Ten Benefits of Having a Clear Mission and Vision
1. Achieve clarity of purpose among all managers and employees.
2. Provide a basis for all other strategic planning activities, including the internal and external
assessment, establishing objectives, developing strategies, choosing among alternative
strategies, devising policies, establishing organizational structure, allocating resources, and
evaluating performance.
3. Provide direction.
4. Provide a focal point for all stakeholders of the firm.
5. Resolve divergent views among managers.
6. Promote a sense of shared expectations among all managers and employees.
7. Project a sense of worth and intent to all stakeholders.
8. Project an organized, motivated organization worthy of support.
9. Achieve higher organizational performance.
10. Achieve synergy among all managers and employees.