(Originally published on OUBS Blog)
In 1973, Peter Drucker said: “That business purpose and business mission are so rarely given adequate thought is perhaps the most important cause of business frustration and failure.”
Two schools exist in relation to mission, one describing mission in terms of business strategy (What is our business and what should it be?) and one in terms of philosophy and ethics (to generate co-operation among employees through shared vvalues and standards of behaviour). It should be seen that it involves both hearts (culture) and minds (strategy) of employees.
The Ashridge mission model links strategy, values, purpose and behaviour standards.
Purpose can be to maximize wealth for the shareholders. Others believe it should be to satisfy all the stakeholders. A third group believes the purpose should be aimed towards a higher ideal, which is likely the most motivating for emplyees if they share that ideal.
Strategy defines the distinctive competence and competitive advantage the company has or plans to have.
Behaviour standards are the translation of purpose and strategy into policies and standards of action.
Values then are the beliefs and moral principles that lie behind the company’s culture.
A strong mission exists when the four elements of mission reinforce each other. A sense of mission comes up when the values of the individual and organisation match. Careful recruitment is essential here.
Does basing mission statements on business strategy make sense, every change in biz strategy changes will entail a change in ur mission statement!!! What alot of confusion it’s going to create in the organisation at large!! Basing it on the values and behaviour (culture) that the mgmt wants to create in its employees will automatically lead to whatever vision or mission they have in mind for the future of the company. Acc. to me that’s the best way to go.
Any chance you could give me some ideas for a mission statement for a film studio!
Hi all, who are reading my comment!I`m a professor in a business polytechnic in Helsinki, Finland. My purpose is to write a basic business book for finnish students in a year. I´m delighted to find a new model when thinking and describing the business mission. I hear about AMM from my students and now I started to collect information about how common the model is. In what universities professors use it. And – what is most important – who has created the model? In what books or scientific articles I can find it? I would be happy, if someone of us can “show me something” about it. E-mail me, but use the abstact AMM. So I can find your answers and I don´t think they are rubbish!BR from Helsinki, where we can just now enjoy the spring really coming!Tarja Jokinen
Can anyone help me apply the AMM to Tesco’s mission statement ‘To create value for customers to earn their lifetime loyalty’Thanks Terri
Mission and vision are just jargons if they are not broken down into functional goals and are quantified.And going by both schools will not give you an answer while articulating the misiion and vision.Startegy based planning will end up in too much short term mission and ethics based will lead to lack of customer focus or where as an organisation they envisage the customer to be.