Alexander Chandler, CEO/President Alexander Advisory Group. Business Consultant. Harvard Business School Alumni.
Consider the foundation on which your business lies. What are the underlying values? What is the mission, vision and purpose? These are often overlooked but are important when setting a strategy for scaling or revitalizing a business.
A mission statement defines what you do on a daily basis for the next few years. A vision statement is your dream or ideal long-term goal that could be five to 10 years in the future.
Creating a mission, values and vision makes a statement as to how a company and its personnel will interact with the consumer, its colleagues and even competitors. The value, mission and vision statements of a company are the foundation on which all business is conducted and decisions are made.
A purposeful statement clarifies the moral path the company should take when facing challenges and seeking opportunity. The people within an organization should act in accordance with the values of the company or entity. A “company is only as good as its people,” the old saying goes. If the company has a value system where the ends justify the means, then integrity can take a back seat to results. To some, ethics are irrelevant, but to most, it is an important asset as reliability and trust go hand in hand.
A mission statement should state the purpose of what your business does and how you will do it. The statement should also be simple. An easy formula to remember when crafting this is the famous 5 W’s: who, what, where, when and why (and how).
• The who are you and your team.
• The what are goals you want to accomplish.
• The where is the marketplace or ideal customer.
• The when is inferred to be ongoing.
• The why is the purpose for which you are in business.
• The how are the services you provide and the values by which you operate.
For a mission statement to be effective, it must be backed up by a value system. Adopting and stating core values lays the foundation and sets the tone for how a business will operate. What values should you adopt when formulating a core values statement? My recommendation is to pick three or four core values that you live by and set the moral parameters that are most important to the company.
As a founder or team member, setting values is an important step as you are creating a mirror of your own value system. True values are how a person or entity acts when there are no consequences, under duress, faced with moral dilemmas or even in a position of power. To turn a phrase: “How does everyone act when no one is looking?”
When choosing your values, I recommend stating at least two integral morally relevant attributes that you can live by daily yet can be aspirational in nature. Trust is a good example. It is a multifaceted word which denotes how business is conducted and relationships are valued. A good relationship is established by trust. Trust infers the right thing will be done even “when no one is looking.”
There are many options, but I recommend one of the values be aspirational. Creativity is a great example of an enduring value. Creativity is a synergistic word that describes not only how you operate but also how you deal with issues that may seem insurmountable. Solving big problems sometimes involves creativity, especially when dealing with the wants and needs of people or challenging market conditions that come about periodically.
Another of the value statement affirmational words should be reflective of who you are but not be obvious. It should also relate some form of assurance. Certainty is a value that comes to mind. Certainty is not something that comes immediately off the shelf like trust or integrity, but it evokes a positive image that you will be there as a company in the future for your employees, customers and the community. Simply put, it states others can rely on you. A multifaceted value statement should show the world that you are well rounded with core values as well as aspiring to be a positive influence.
Strong mission and value statements should tell others who you are at your core, state your purpose and be inspirational. Have a statement and value system that reflects the best of your virtues. Other than being a guiding purpose when starting a business, these words should be guides to reflect on during challenges or periods of growth. For example, a big contract dangled in front of you by someone who is of low character or is known for unethical behavior can be tempting.
A strong value system and mission statement can remind you where your priorities lie and guide you to make decisions that are for the greater good rather than short-term monetary gain. These statements are what you want to be today and act as your guide. Remember, mission and values matter.
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