Does a Mission Statement Define Your Business?

Does a Mission Statement Define Your Business?

There are approximately 18.5 million companies in North America , with 83% of companies using a mission statement . But according to Chris K. Bart, a professor of strategy and governance at McMaster University, he estimates that only 10% of mission statements say something meaningful . Does this mean that there are only approximately 185,000 companies in North America that are competitive, forward thinking with strong corporate cultures while the rest are wandering aimlessly through the economic landscape?

Peter Drucker stated that “A business is not defined by the company’s name, statutes, or articles of incorporation. It is defined by the want the customer satisfies when he buys a product or service. To satisfy the customer is the mission and purpose of every business. The question “What is our business?” can, therefore, be answered only by looking at the business from the outside, from the point of view of customer and market.” Peter states that a business is defined by what it provides for a customer’s satisfaction. There are two aspects that are important to every company when defining who they are: what they provide customers and their internal corporate culture.

Is a company defined by its mission statement? NO!!! There are two aspects to defining how your company is perceived. There are internal customers, employees, and external customers, consumers, who look to your company for satisfaction on varying levels. The external customers look for the goods and services provided, quality, and price. Their satisfaction is met when they receive what they want. The mission statement has no bearing on them achieving this satisfaction. The internal customers have economic and, sometimes more importantly, psychological needs that must be met for a company to reach its