home
Company mission: examples and technologies for creating a Mission
A mission is needed both by the organization and by each individual. Some manage to find an organization while working in which they manage to implement their own Mission. The company's presence of a Mission can be compared to the presence of a ship with a guiding star in the sky, which it is guided by in order to continue its further journey, without having an accurate map of the area. A company’s mission is not a panacea for all ills, but its presence can inspire people, help them feel the meaning and significance of their work, and understand why they should get up in the morning and come to your office. It's up to you to decide why you exist. Mission and purpose, like a magnet, attract you to the company the best people
, and gives customers the opportunity to once again be convinced that you really care about them.
100 best Missions of Western and Russian companies: read below
If your company has , we can help you convey it to all target audiences of the organization. Perhaps you are ready to upgrade your Mission? Then we will be able to tell you how best to formulate the Vision and Mission of the organization. If you have both, contact us in order to choose the right strategy to realize your Vision and realize your Mission! But first, read to the end - and look at examples of the Missions of many successful companies! Every top manager sooner or later needs to answer the question: which development path to choose:
Modern business is characterized by a high level of uncertainty and a high rate of change occurring in almost all industries. , but while we think about it, “now” turns into “yesterday”, and many ideas become either irrelevant or implemented by someone else. The question arises: how to develop a business and how to choose priority areas? Studies of the best companies both abroad and in Russia clearly indicate that success is more often achieved by those organizations that have a clearly formulated Mission that is shared by all its employees.
"Does our organization need a Mission?, and if necessary, then what is it?” Many companies do not look for an answer to this question and, as a result, their activities are rather chaotic and unsystematic. This kind of activity is aimed at “short-term” or “instant” profit. Such companies participate in a race where they and their competitors do, and they have to “run in order to just stay in place.” Some organizations have a mission slogan that hangs on their website, but none of the employees know it. Do such companies really have a Mission, and that when carrying out their activities they act based on the Vision? No!
So does an effectively operating business need a Mission or not? If the company’s business brings stable profits even without a Mission, then perhaps we should treat this phenomenon as a fashion trend that will soon pass? The world is changing too quickly to hesitate. Behind the formulation of the Mission there is always the uniqueness of the company, and the Values that are important both to the organization’s personnel and to its managers, shareholders and clients.
“The mission is the glue that prevents the company from falling apart as it grows, decentralizes, and diversifies.”
If a company has neither uniqueness nor values, perhaps it simply has access to good resources, and will be able to exist carefree for some time (depending on at what stage life cycle she is situated). What then? The difference between companies that follow their Mission and ordinary companies lies in the quality of their development and those with a Mission will implement it and move to new stage, and companies floating with the flow are likely to lose their bearings and face the problem of self-determination and survival.
100 EXAMPLES OF MISSIONS OF FAMOUS COMPANIES:
Here are examples of missions of successful companies (their short versions are slogans), which show how in one or two lines you can explain the reason for the existence of an organization:
If your company cannot be recognized by the wording of the Mission, it means either your Mission is unsuccessful, or the company needs to define its Uniqueness!
Apple Computer, Inc. Mission at the beginning of its activities, "We offer the highest quality computers to people around the world."
Best Friends Animal Society's mission: A better world through kindness to animals.
A company's mission is a stated statement as to what or why the organization exists, other than making a profit.
The New York Public Library's mission is to inspire lifelong learning, advance knowledge, and strengthen our communities.
Walmart's Mission: We save people money so they can .
Unilever's mission is to energize life. We meet people's daily food and hygiene needs. Our brands help you feel great, look great and get more pleasure from life.
The mission of the Coca-Cola company is based on 3 principles, which are formed as follows: Refresh the world, body, mind and spirit; through our drinks and our deeds; Bring meaning to everything we do. Our vision is based on five words that reflect our values! Each of them is based on a word that, coincidentally, begins with the letter “P.” This is what the five Ps sound like: Personnel, Planet, Products, Partners, Profit!
Megafon's mission: MegaFon will unite Russia, breaking down barriers and developing communications to become everyone's obvious choice. MegaFon proceeds from the company's social mission, which is to create conditions for people to communicate, without regard to borders and distances.
Microsoft Company Mission (Microsoft):Our mission at Microsoft is to help people and business organizations around the world fully realize mine Achieving this goal requires talented, energetic, bright and creative people, having the following virtues: integrity and honesty, enthusiasm, openness and respect, willingness to solve complex problems, self-criticism and responsibility.
Youtube video hosting mission: to provide quick and easy video access and the ability to share videos frequently.
Lenovo company mission (Lenovo): For those who do! For those who do! (alternatively, “For those who act!”). At Lenovo, our vision is that Lenovo will create personal devices that inspire more people, inspired by our own culture, and through which we build a business that is respected around the world. This Vision guides us in achieving our mission to become one of the world's greatest technology companies. We will do this through: Personal Computing, Convergence and Culture.
MTS Company Mission: We work to make MTS the best operator for its customers. We want every person who comes to an MTS salon, calls our call center, or uses the company’s services to enjoy being an MTS client. Thanks to reliable communications, MTS provides customers with the opportunity to build and improve their lives and constantly develop. All MTS resources are aimed at ensuring that, thanks to the company’s services, the lives of MTS clients become more eventful, interesting and filled with new opportunities.
The mission of the Russian Railways (RZD) company is to satisfy market demand for transportation, increase operational efficiency, quality of services and deep integration into the Euro-Asian transport system.Russian Railways brand mission:We are a critical part of the global system of movement of people, goods and technology. We work for clients, contribute to the unification of peoples, and integrate Russia into a single economic space. Our solutions are based on a unique infrastructure, the skill of a team of high-level professionals and innovative technologies.
Mission of the Aeroflot Group: We work so that our clients can quickly and comfortably travel vast distances, which means they can be mobile, meet more often, and work successfullyand see the world in all its diversity. Vision: Our goal is to remain the undisputed leader in domestic and international air transportation in Russia and to be inamong the best airlines in the world, combining dynamic development and high reliability with quality service.
Mission of the Holding Company "Constellation Aquarius":
We see our mission in achieving the best results for shareholders, clients and employees of the Company. Our efforts and our successes are aimed at creating a healthy, strong and prosperous state and society as a whole. We strive to be the best, which means: employees are proud of their achievements, we are preferred by clients and authorities, we are respected by competitors, we are respected in society. We define following goals for the Holding Company: stable long-term profit generation from management of shareholders’ assets, creation of new types of business,
asset restructuring. Our approach to business is based on: using the most effective methods of managing business processes, creating a favorable, comfortable atmosphere for employees to work, allowing them to form a corporate culture and cultivate team spirit. To assess business performance we are looking at: increasing shareholder returns, increasing financial efficiency, increasing competitive advantages,
favorable public opinion, a dedicated team of like-minded people. (From this example it is clear that the mission should contain not only a slogan, but also a decoding of what the company understands by it, namely its success criteria, its goals, approach to business, performance assessment and much more! For publication in open sources usually used short version mission, and a more detailed one with specific numbers and plans is used to implement strategic management within the organization).
»: We contribute to the development of companies that create the Future!
What should be the company's mission? If you can guess from the wording of the Mission which company we're talking about, then this Mission already deserves attention! When a Mission Statement is vague or does not reflect the company's deepest intentions, it often appears too general. In this case, you can put any company name in a similar formulation, and such a Mission will look exactly the same. Avoid standard clichés, and hackneyed phrases, and too abstract descriptions of the reason for the existence of your organization.
Every organization plans its activities in the long term. Such activities allow us to develop an adequate development strategy for the company. Forward thinking allows you to determine the priority directions in which the organization should move.
This process is entirely the responsibility of senior management. It develops the mission of the organization. This allows you to direct the movement of the entire company in the required direction. Why is it important? The fact is that the mission of an organization is its credo. It will be discussed further below.
The mission of an organization is a concept that reflects the purpose of the company's activities, its main goal. This is management’s vision of the meaning of the enterprise’s functioning. It is also a reflection of the company’s future position, its aspirations and the main direction of movement.
The mission allows you to demonstrate to the public and employees the concept of the organization. This helps create a company's identity, setting it apart from the crowd of competitors. This concept also includes the meaning of the activities of an enterprise, firm, its plans and aspirations.
The formation of the vision is carried out by the management or creators of the business. At the same time, the perspective for which the mission is created may be different. This depends on the characteristics of the functioning of the business unit, its position relative to competitors, and its place in the market.
The mission of an organization is the position of the company in the long term, which is formed by management under the influence various factors. The distance horizon can range from several months to several years. The larger the company, the more global its mission will be.
For example, a corporation that is a leader in the industry forms a vision of its position in combination with the economic, political, and social situation. After all, it is precisely in these areas that its activities have a significant impact. Planning in this case can be carried out both within one country and the world economy as a whole. Smaller companies view their position in terms of the scale of their influence on the industry.
Vision is formed solely for perspective. When the enterprise reaches the desired state, the process of developing a new mission occurs. The previous goal loses its relevance. The mission allows you to take into account the current state of the company and assess its capabilities to achieve specific goals. It details the status of the organization, making it clear not only to management, but also to the general public.
The goals and objectives of the organization's mission determine the need for this process. This allows you to single out a specific company or enterprise from the mass of similar companies. When building a mission, management strives to solve the following tasks:
The goals of the mission are qualitatively new states, market positions for which the organization must fight. These actions relate to both the internal and external environment of an enterprise or firm. This takes into account the interests of groups of people who, to one degree or another, influence the work and position of the company.
The definition of an organization's mission is influenced by certain factors. There are only 5 groups of components that are taken into account during this process.
The first category includes the history of the creation and development of the organization. In this case, both the failures and achievements of the company in the past are taken into account. This is the image of the organization that developed at the time the mission was formed.
The second group includes features of management style and the behavior of company owners.
The third group is existing resources. It is these that the company can manage in achieving its goals and objectives. Resources include cash, product brands, technologies, employee professionalism, etc.
The fourth group is the surrounding competitive environment. The fifth category of factors that are taken into account when developing a mission includes the distinctive advantages of the company. They distinguish it from its competitors, which allows it to win in the fight against them.
Developing an organization's mission and goals is challenging. Therefore, the management of some enterprises cannot correctly develop them during strategic planning.
To create the right vision and express it to the masses, it is necessary to consider the main components that make up the mission. These include:
Based on the listed components, a general idea of the existence of the company is created. Without this, it will not be possible to formulate a mission adequate to existing conditions.
The mission of an organization can be viewed from two points of view. There is a broad and narrow approach to understanding its meaning. Their differences should be understood for correct formation visions.
In a broad sense, a mission is a purpose, a special philosophy of the organization’s existence. In this case, it is formed without a clear link to the product range, category of consumers, or available resources. This is a general definition. In a broad sense, the mission is revealed as values and principles taken as the basis for activities. This determines the company's actions.
In a narrow sense, a mission is considered as a specific statement about the meaning of an activity. It shows how the company differs from its competitors. In this case, attention is focused on methods, features of production, consumer groups and market segments.
To better understand how such a process is carried out, consider an example of an organization's mission statement. For example, in the formulation by its head of the purpose of existence of the American credit company Sun Banks, there is a statement about promoting economic development, the well-being of the entire society as well as clients. This is achieved by providing individuals and legal entities with high quality credit services. At the same time, high standards of ethics and economics are taken into account. The company sees its mission as ensuring fair distribution of profits for its shareholders and treatment of employees.
The mission of the Department of Higher Management educational institution is the training of personnel of the appropriate skill level for work in production organizations and the service sector. Preparations are being made for professional activity in a market economy, in a competitive environment through the application of modern theoretical and practical knowledge. This is necessary for the continuous, comprehensive development of the organization. The activities of the department guarantee that graduates receive decent work and high rewards for their work.
The mission and strategy of the organization allows us to solve many management problems. Therefore, every company that wants to become a leader in the industry must work towards this process.
Forming a mission allows you to systematically evaluate the strengths and weak sides organization and its competitors. Managers also investigate development threats to the business, as well as existing opportunities. This allows you to make decisions that are appropriate to the current situation.
Setting a mission allows you to unite departments of a large corporation, remote production, and bring them to a single standard of activity. This increases staff motivation and interaction between management of different departments.
A properly developed mission helps improve the company’s image and create a recognizable brand. This attracts the attention of investors and shareholders. In this case, the value of the company on the market increases.
The mission and goals of the organization are closely related. Without developing a main credo, it is impossible to select adequate goals for activities. The goal is the end result that the company strives for. The mission allows you to build directions to achieve the desired position of the enterprise within the industry.
Goals do not have clear quantitative definitions. The company is moving towards the main one by building its mission. With the help of various levers, all structural units are managed to move towards the main goal.
It is the mission that reflects how this process occurs, what areas are priority. She sets certain boundaries, creating her own image, image. Goals cannot go beyond the mission. They are part of it. The mission is formulated to answer the question of what is the main goal of the organization.
An organization's strategic mission cannot be created without adequately defining long-term goals. They are being developed in several main directions. Each of them contributes to achieving established milestones and conquering heights.
To formulate the main goal and mission of the organization, long-term strategic plans are developed in 7 directions. These include the company's position in the competitive space, innovation and technology that will create the best product.
Goals are also created in the field of marketing (sales, creating a product image), production (increasing labor productivity, product quality, reducing costs, etc.), finance (their rational use). One of the important areas is also personnel management and management.
Managing an organization's mission is impossible without setting adequate goals. They must be characterized by certain qualities. Long-term goals should be specific and measurable. They must be correlated in their properties with the planning horizon. The shorter the horizon, the more specific the goals should be.
You should also set achievable goals. Otherwise, it significantly reduces work motivation. Also, all goals should be directed in the same direction. They relate to the mission. Goals should not interfere with each other's achievement.
The core missions of organizations influence their future destiny. If this process is not carried out correctly, management will inevitably face difficulties of various sizes. For example, during perestroika, domestic enterprises saw their mission as preserving the workforce. As a result, motivation and productivity decreased significantly. Therefore, the well-being and development of the company largely depends on the correct development of the mission and goals.
Having considered the features of the strategic planning process, we can say that the mission of the organization is an important component of the company’s positioning in the market. The efficiency of the enterprise depends on the correctness of this process.
Mission is a management construct used in strategic management, allowing the management object to be positioned in outside world. The mission defines what the organization was created and exists for. The mission must identify the general purpose of its creation, the reason for its appearance and existence, what its appearance can give to the outside world.
So, let's say, Henry Ford presented the mission of the Ford Motor Company as a desire to provide people with cheap transport.
In the understanding of some managers, the main fundamental goal for which an organization is created and exists remains making a profit. However, it is more correct to represent profit as an assessment of the results of an organization’s activities, the equivalent of the social significance of what it has done, and not as the goal of its activities.
In this sense, the words of D. Packard, one of the founders of the company, are indicative Hewlett-Packard: “First of all, I would like to talk about why our company exists at all. In other words, what is all this for? Many will say that in order to simply make money, and they will be wrong. Profit is, of course, an important result of the activities of any company, but we must look deeper and find the true meaning of our existence."
And further: “If you look back and look around at the world modern business, it may seem that people are only interested in money and nothing but money. However, the main motives arise largely from the desire to achieve something more: to create a product, to provide a service - in general, to accomplish something that is of value."
The mission of the organization contains general characteristics) of what it was created for, its purpose, positioning in the outside world, approaches to the formation of internal culture. Its development precedes the development of the concept and development strategy of the organization. It includes: definition of the area of activity; general vision of development paths; a vision of personnel competence, competitive advantages, and the main groups interested in its functioning, which may include consumers of its products, shareholders, management, personnel, creditors.
Let us define the concept of mission.
The mission of an organization is a management construct that determines what it was created for, its purpose, positioning in the outside world, and internal culture.
In the practice of strategic management, there are mainly two mission models - enlarged and detailed. Enlarged The mission model usually contains short description the purpose of the organization, the main idea of its creation.
Detailed The model more fully reveals the purpose of the organization, the fundamental goals of its creation, due to which it can achieve success, unlike other organizations.
The detailed mission of the organization may include the following sections.
The degree of elaboration of the mission in different organizations varies. Greater value given to the development of a mission in organizations operating in the field of business. Therefore, we will pay more attention to developing a mission specifically for a business organization. Let's consider the main principles underlying the development of the mission.
1. The mission must contain the unifying and guiding idea of creating the organization. Mission development is carried out both for small business organizations and for giant corporations. For a small company, a mission is an idea that determines the main direction of its activities. For a corporation, the mission becomes the little that is common beyond headquarters to all of its largely decentralized, independently managed divisions.
The main thing, according to Jim Brodhead FPL Group. - Any company operating in business must have a clearly defined mission.
Ralph Larsen, Chairman of the Board of Directors and Chief Executive Officer Johnson&Johnson believes that the mission represents the company's credo, its code of honor. Even with decentralized organizational structures mission refers to what unites disparate units that take on a life of their own.
From point of view Michael Armstrong Chairman of the Board of Directors and Executive Director AT&T the mission must contain a guiding idea: “The main thing is that it is real and practical so that people can accept and believe in it.” Such an idea could, for example, be a clearly formulated purpose of the company: “instead of a company that communicates between two points, become a communication company “for all distances,” from the point where the client is located to any point with which he wants to contact.”
John Popper, Chairman of the Board of Directors Procter&Gamble The company's mission is to serve people and provide them with the best products. He considers the main indicators of the company's success to be the total shareholder return on invested capital and market share.
In his opinion, the main indicators of the company’s performance also include the percentage of sales of goods that are superior to competitors’ products: “We strive to ensure that such products account for more than 90%. We test on consumers and monitor the results like vultures. If the percentage falls, We feel bad."
No matter how the ideas are formulated for a large or small organization general, positioning it in the outside world, they must exist. They are formulated in the form of its mission.
2. Mission is the idea around which the activities of an organization are formed.
Not everyone understands the purpose of the mission as a management construct and how necessary it is for use in the practical activities of the organization. Therefore, when developing a mission, the main idea of creating an organization must be clearly formulated and presented, consolidating the activities of its structural divisions and employees and forming its internal culture.
M. Ibuka - founder of the company Sony characterizing her activities, he said: "Sony - a pioneer who never follows others or lags behind. Our goal is to provide the whole world with high-tech products using Newest technologies. Our company will always explore the unknown... Our principle is to value and develop human abilities... we always try to bring out the best in people. This is the life force .
In his understanding, the key principles of the company are as follows: “We are not afraid of difficulties and spare no effort in developing useful, highly intelligent products that will bring great benefits to society. We rely on the talent, performance and personal qualities of our employees, providing everyone with the conditions for maximum realization of their abilities and skills.” .
For the company Procter&Gamble highest quality products - this, on the one hand, key factor success, thanks to which high milestones in the economy have been achieved, and on the other hand - one of the most important corporate values companies. The company's core values, according to general director "Johnson&Johnson" R. Larsen are important not only because they provide a competitive advantage, but also because “they are consistent with our beliefs ... we would remain true to them, even if in some situations it was not justified from a commercial point of view.”
3. The mission precedes the development of such management structures as the concept of development of the organization, strategy, plan. In strategic management, there is a long distance from the mission of any company to specific production tasks or action plans. Between them is a chain of management structures, such as concept, development strategy, plan. Each component of this chain is a necessary stage on the path from understanding the overall goals of the organization's development to an operational or tactical management decision. In order for them not to be only the property of the manager, but to become components of the management system, its managers and staff, they must be clearly formulated.
A useful link in this chain is the mission. A clearly formulated, detailed mission is used to develop the concept of the organization's development, its strategy and plans aimed at achieving the fundamental goals of the organization.
In the absence of an understanding of the fundamental goals of creating and developing an organization, a strategic vision of development paths, and ways to achieve set goals, management decisions become “short-sighted”, activities take on the features of fussiness, the interconnection of actions and their effectiveness are lost. Today, the presence of the above management constructs, including the mission, characterizes the maturity of the organization’s management culture and its management system.
4. Mission is the most fundamental and least changing management construct. Mission is a management construct that plays a special role in the strategic management process. Once defined, it, unlike such a management structure as strategy, is practically not revised, remaining unchanged for the entire period of the organization’s existence. Only fundamental changes in the organization’s activities can lead to its revision.
Mission is the most conservative component of the strategic management process. External environmental conditions and market conditions may change significantly, transformations and radical restructuring of the organization may be carried out, which will lead to adjustments to previously made decisions, including strategic ones. The mission, despite all the changes that have occurred, if they are not of a fundamental nature that affects its positioning in the outside world, retains its main content, being one of the cornerstones of the internal culture of the organization.
Therefore, when developing a mission, it is necessary to highlight the fundamental points that characterize the purpose and activities of the organization.
Bill Marriott Chairman of the Board of Directors and President Marriott International believes that the main idea of creating a corporation can be formulated as follows: “to become a global company in the hotel business. To provide first-class service.”
For Paul O'Neill, Chairman of the Board of Directors and Chief Executive Officer Alcoa Incorporated The main ideas of the corporation's mission remain: "to become a leader in sales, income, product distribution in the world", "to build work around customer needs", "to become the safest organization in the field of production", "to be responsible for the environment."
As an example of an enlarged formulation, we give the mission formulated by one of the Moscow construction companies: “Being on the verge of millennia, having studied the experience of pioneers and applying the latest technologies, we strive to become the largest developer in the city, providing Muscovites with new and high-quality housing, while recreating and preserving the historical appearance old Moscow."
And the detailed mission statement includes the following points.
The mission of the same organization can be formed in different ways. Thus, for a company producing video equipment, it can be defined both as a desire to provide video equipment to the widest possible range of customers, and as a desire to create complex systems that provide maximum opportunities for a selected circle of consumers. The mission must formulate the tasks that the organization seeks to undertake, thereby defining its place and purpose in society.
Before formulating the mission of the organization, it is necessary to form a vision of the organization’s position in external environment, the fundamental goals of its creation, imagine what makes it unique, what problems it is designed to solve, what it is responsible for, and why it is being created.
Acceptance of the organization's mission as official document occurs depending on the management style adopted in the organization. In a democratic management style, a preliminary version of the mission is submitted for discussion by all members of the organization and, after taking into account the expressed opinions, comments and wishes, it becomes an official document recognized in the organization. If the management style in an organization is authoritarian, then in various possible forms of document development, the opinion of the manager is decisive. Discussion of the mission project in this case is rather formal.
If the organization’s activities are positively perceived by the external environment, which is reflected, in particular, in the profit received, this means that the fundamental goals of the organization were set correctly and it was possible to ensure the fulfillment of the tasks set during its creation. Only in this case can we say that the organization took place, the idea of its creation turned out to be productive, and the efforts of the organization’s personnel were not in vain.
A clearly formulated mission of the organization contributes to the strategically targeted activities of the organization, defining its internal core and fundamental goals of activity.
The mission of the organization is the most important component of the strategic development plan of any company. Mission is the reason for the existence of an enterprise. The mission is determined in the process of strategic planning; it is the main strategy of the enterprise, in accordance with which all other activities are built. Its adoption makes it possible to clearly define the purpose of the activity of a given enterprise and does not give managers the opportunity to focus on personal interests.
The mission defines the main purpose of the company. A company usually begins its activities with a clear mission established by senior management. However, over time, the mission is gradually erased as the company develops new products and conquers new markets. To choose a mission, an enterprise must clearly define who its customers will be and what customer needs it will satisfy. Based on the mission, the goals of the activity are determined.
A distinctive feature of a mission is that it must be completed after a certain period of time.
The duration of the mission must be foreseeable and fairly short. As practice shows, most often this period is five years. This is done so that the generation of workers present when the mission statement is adopted can see the results of their labor.
It is necessary to distinguish between a broad and narrow understanding of the mission.
In a broad sense, the mission is considered as a statement of philosophy and purpose, the meaning of the enterprise’s existence. The philosophy of an enterprise defines the values, beliefs, principles according to which the enterprise intends to carry out its activities.
It is the purpose that determines the activities that an enterprise intends to carry out and what type of enterprise it intends to be. The philosophy of a company usually rarely changes. Although it may change, for example, with a change of owner. As for the second part of the mission, it may vary depending on the depth of changes that may occur in the enterprise and in the environment of its functioning.
In a narrow sense, the mission- a formulated statement regarding why or for what reason the enterprise exists, i.e. the mission is understood as a statement that reveals the meaning of the enterprise’s existence, in which the difference between this enterprise and similar ones is manifested.
An enterprise mission statement is the first step in rethinking a business. A mission statement is an expression of the vision of your business, your company. The mission helps to achieve clarity of purpose within the company, serves as the foundation for making all important decisions, introduces an element of commitment in achieving the goals of the enterprise, and leads to understanding and support of the company in the external environment in achieving its goals.
Achieving a strategic goal involves:
Improving the corporate governance system in order to create maximum value for the Group;
A qualitative change in the system of relationships with clients - the introduction of a new ideology of working with clients, based on a combination of standard technologies with individual approach to the client;
Maximum use of potential international cooperation to promote modern financial services using external resource sources for the purpose of developing the business of the Group’s clients;
Improving the Group’s internal control and risk management system;
Providing a high level of information and technological support for the Group’s business;
Formation of a team of professionals capable of solving modern problems of the Group’s development;
Implementation of further regional expansion along the path of maximum proximity to service users.
The main goal of any enterprise is to make a profit. Often this goal is identified with the mission, but this contains a huge catch for the organization itself, since in this case it is very difficult for the manager to distinguish the activities of his company from competitors and, as a result, count on a long existence.
Goals are set based on the following principles:
Specific and measurable;
Achievability and reality. Unattainable goals cannot be motivated, but the implementation of easy goals is poorly motivated, therefore, goals must correspond to the abilities of employees;
Availability of deadlines;
The elasticity of goals, the possibility of their adjustment. This principle is especially relevant in our constantly changing conditions.
In the conditions of market relations, taking into account the constant changes in the position of the enterprise itself, its competitors, intermediaries, buyers, forms of financing and the state of the industry in which the organization operates, the obligatory goal of the strategy is also to overcome risk or risk situations not only in the present, but also in the future.
The goal of an activity is the desired state of the control object after a certain time. The coherence of staff work depends on its correct formulation. But no matter how well the goals of the enterprise are formulated, they must be communicated to the staff, which often does not happen in our enterprises due to an insufficiently developed communication system.
Many companies develop formal mission statements. A mission statement is a statement of a company's core purpose: what it wants to achieve in the broadest sense. A clear mission statement acts as an "invisible hand" that guides the company's employees, allowing them to work independently and at the same time collectively to achieve the overall goals of the company.
The goals of the enterprise can be short-term, medium-term and long-term.
Short term goals are determined for no more than a quarter or a year. This could be an increase in the assortment at a trading enterprise, or the sale of stale goods within a certain time frame, etc.
Medium-term goals are established for a period of one to three years. This includes increasing capacity and improving quality.
Long-term goals are defined for a period of three to ten years. They may include the development of new markets, universalization of production, etc.
After establishing the mission and goals, the enterprise can begin further activities.
Traditionally, companies define their business in terms of the goods they produce (“We make furniture”) or the technology they use (“We develop software”). But the company's mission statement must be market-oriented.
Defining activities in market terms is better than defining them in product or technology terms. Products or technologies will eventually become obsolete, but the basic needs of the market may remain the same forever. The market-oriented mission defines the company's activities based on its focus on satisfying the basic needs of customers.
That's why Rolls-Royce says it's in the business of power, not jet engines. Visa does not provide credit cards, and the opportunity for clients to exchange values without even leaving home, to purchase almost everything and almost everywhere.
When defining a mission, company management should avoid two points: both excessive specificity and excessive vagueness.
The mission should be:
Realistic.
Specific. It should suit this company and no other.
Based on specific features.
Stimulate. The mission should make people believe.
The company's mission statement should reflect the company's vision and direction for the next ten to twenty years.
Companies should not revise their mission every few years in response to the slightest changes. market environment. However, a company should redefine its mission if it does not inspire consumer trust or conflicts with the optimal path for the company.
At each level of management, the company's mission must be translated into specific strategic goals. Increasing profits becomes next main goal companies.
Profits can be increased by increasing sales or cutting costs. Sales can be increased by expanding the company's share of the domestic market, expanding into new foreign markets, or a combination of both. These goals become the company's current marketing objectives.
These goals should be as specific as possible. The goal “increase our market share” is not as specific as the goal “increase our market share by 15% by the end of the second year.” Thus, we can conclude: the company’s mission determines the philosophy of the enterprise and the main direction of activity, and strategic goals are actually measurable tasks facing the company.
The formation of company goals comes from an assessment of the company's potential capabilities and its provision with appropriate resources. In management theory, the goals of an organization are divided into general goals, developed for the company as a whole, and specific goals, developed for the main activities of the company's divisions on the basis of a general strategy.
General goals reflect the company's development concept and are developed for the long term.
There is a typical scheme for ranking overall goals, expressed by formulating the general directions of the company:
Ensuring maximum profitability, with the existing set of activities, determined by the following indicators: sales volume, level and rate of profit, annual growth rate of sales and profit, amount paid wages, level of product quality, etc.
Ensuring the stability of the company’s position in the following areas: technical policy (expenses for research and development of new products), competitive potential (cost reduction, designing new markets), investment policy (amount of capital investments and their directions), personnel policy (provision of labor resources, their training and payment, etc.), solving social issues.
Development of new directions of development, new types of activity of the company, which involves: the development of a structural policy, including diversification of production, vertical integration, acquisitions and mergers, development of information systems.
Specific goals are developed within the framework of general goals for the main areas of activity in each division of the company. The most important among them are:
Determining the level of profitability for each individual division. Primary importance in determining the profitability of each division is given to such an indicator as the rate of return on invested capital.
In comparison with data from previous years, this indicator is the most important not only in planning, but also in control, i.e. planning and reporting and plays a decisive role both in determining goals and in assessing the results and efficiency of the company. Depending on the degree of centralization of management, profitability goals for each division can be set either at the level of senior management or at the level of the manager of the subsidiary company.
In the first case, they are determined centrally, but the indicators for each division are differentiated depending on the specific conditions that arise for each of them. In highly decentralized companies, production departments can set their own profit margins for each product. The indicators they develop are agreed upon by senior management and linked to the global goals of the company.
Other specific goals are developed after determining profitability goals and are in the nature of subgoals, the achievement of which is an important step towards the company achieving its mission. They are usually established by defining development directions in the relevant functional areas.
In particular, subgoals may include:
- in Marketing- achieving a certain level of sales in absolute terms or a specified share of sales in one or more market segments, introducing new products, determined by the number or ratio to all products produced; measures to improve the distribution and sales promotion system, expand the scope of technical services provided, etc.
- in the field of R&D- development of new products, adaptation of traditional products to the requirements of specific foreign markets; - improvement of the technical level of production.
- on production- establishing standard indicators that ensure the efficient use of these resources, developing various programs: reducing costs and monitoring product quality, producing new and improving products.
- in finance- determination of the structure and sources of financing, in particular, the share of own funds in the proposed capital investments for the planning period.
The goals of branches and subsidiaries, usually formed by the parent company, are as follows:
Increasing sales and growth rates of the company;
Increasing the company’s market share, increasing profits and especially profit margins, “getting used to” the branch and its contribution to the development of the economy of the host country.
Defining mission and goals consists of three subprocesses, each of which requires a lot of responsible work.
The first sub-process is to determine the mission of the company, which in a concentrated form expresses the meaning of the company’s existence, its purpose.
This part of strategic management ends with the subprocess of short-term goals.
Defining the mission and goals of the company leads to the fact that it becomes clear why the company operates and what it strives for. And knowing this, you can choose a better strategy of behavior.
The company's goals give uniqueness and originality to the choice of strategy in relation to each specific company. The goals reflect what the company strives for. If, for example, the goals do not imply intensive growth of the company, then appropriate growth strategies cannot be selected, even though there are all the prerequisites for this both in the market, in the industry, and in the company’s potential.
In principle, there are two possible approaches to setting enterprise goals. The essence of the first approach is quite simple and well known to Ukrainian management specialists: set goals based on the achieved level, adding, say, 2-3% to last year’s figures. This is the so-called method “planning from what has been achieved.”
The second approach to setting corporate goals is much more complicated; it involves dividing the process of setting goals into a number of sequential steps:
1. Definition of the mission (philosophy) of the business.
2. Establishing long-term general goals for the planning period.
3. Definition of specific goals (tasks).
It is believed that the main advantage of this step-by-step approach is that it forces managers and specialists of the enterprise to think about what they want to achieve and how.
Mission is a business concept that reflects the purpose of the business, its philosophy (this term literally means« responsible task, role).
The mission helps to determine what the enterprise actually does: what is its essence, scale, prospects and directions of growth, differences from competitors. At the same time, it focuses attention on the consumer, and not on the product, since the mission (philosophy) of a business is most often determined taking into account consumer interests, needs and requests that are satisfied by the business. Therefore, defining a mission is closely related to marketing and involves answering the question: “What benefits can the company bring to consumers while achieving more success On the market?"
To illustrate the concept of mission, you can compare two approaches to business: opening a hairdresser or a beauty salon for women. The second approach is based on consumer needs and considers the business more broadly, with a growth perspective: today - only hairstyles, tomorrow - makeup, healing procedures etc. In this case, the mission of the business can be defined, for example, like this: “We make women beautiful.”
It is believed that the mission statement should be bright, concise, dynamic, easy to understand (often a slogan) and reflect the following aspects:
Range of satisfied needs;
Characteristics of the enterprise's products and their competitive advantages;
Business growth prospects.
Surveys show that 60-75% of North American companies have a clearly defined mission. The leaders of many new Ukrainian companies also define the mission of their business. Let's give examples of the company's mission statement.
Company mission Xerox perfectly demonstrates the prospects for business growth - “From copiers to the office of the future.”
Other examples of missions:
- “We save your time and money” (Investbank);
- “One step ahead of demand” (Nadia company, Kharkov);
- “We don’t just sell equipment. Our main task is to offer solutions to problems for your business” (Self-propelled chassis plant, Kharkov);
- “We don’t just carry out transportation - we offer transport services” (Southern Railway, Kharkov).
Mission of the organization
Organizational values
Type of values | Categories of values | Characteristics of goals |
Theoretical | Truth, knowledge, rational thinking | Long-term research and development |
Economic | Practicality, greed, accumulation of capital | Growth, profitability, results |
Political | Power, recognition | Total capital, sales volume, number of employees |
Social | Beautiful human relationships, lack of conflict, involvement | Social responsibility, friendly atmosphere in the organization |
Aesthetic | Artistic harmony, composition, form and symmetry | Product design, quality, attractiveness |
Scientific | Scientific potential | Patent and science intensity |
Ethical | Consistency with the world around you | Ethics, moral issues |
Mission- this is a system of views on the position and role of the company in the market and on the prospects for its development. A mission is a compromise between the interests of the market and the goals of the company.
Mission in a company, a fundamental document that describes the company's area of activity, guiding principles and value system. Mission organization - the most general goal of the organization as a competitive structure, presented in the most general form and clearly expressing the main reason for the existence of the organization. Variants of definitions of an organization's mission differ in a wide variety of content.
Mission objectives. The mission statement is intended to address the following objectives:
Company mission– a statement of the philosophy and purpose, the meaning of the organization’s existence. An organization's philosophy defines the values, beliefs and principles by which the organization intends to carry out its activities. Purpose defines what an organization intends to do and what type of organization it intends to be. An organization's philosophy usually rarely changes. As for the second part of the mission, it may vary depending on the depth of changes that may take place in the organization and in the environment of its functioning.
Company's mission according to F. Kotler, it should be formulated taking into account the following factors:
rf-gk.ru - Portal for mothers.