What Is The Purpose Of An Organization's Mission Statement – A mission statement describes why the company exists, what its overall purpose is, what kind of products or services the company offers, and its target audience. It can also describe the company’s location of operation. This may include a brief description of the company’s philosophy or values, its key competitive advantages, or its desired future state. It has always been associated with Christian groups; indeed, for many years, it was assumed that a missionary is someone who is engaged in religious work. In 1598, the word “mission” originated from the Jesuits sending their members overseas (“missio”, in Latin means “act of sending”). The purpose of an organization is not just an explanation given by an external party, but an expression of its organization. the needs and goals of the leaders.

A mission statement communicates the company’s direction and purpose to its employees, customers, suppliers, and other stakeholders. It also helps employees to contact the company. Since mission statements describe an ongoing, organizational goal and focus, mission statements are rarely changed over time. Mission statements describe the reasons for a company’s existence. In it, the objectives of the organization and the nature of its products or services are defined. Every business should have a mission statement. A mission statement should explain what the organization does, how it works, and why it works the way it does.

What Is The Purpose Of An Organization's Mission Statement

Build the best product, don’t cause unnecessary damage, use business to inspire and implement solutions to environmental problems.

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To inspire and nurture the human spirit – one person, one cup and one community at a time. If you’ve been hearing the word Purpose in the corporate lexicon lately, you’re not alone. Words like ‘purpose driven organization,’ and ‘from profit to purpose,’ are everywhere. Every company wants to transform itself into a purpose-driven company these days as it has become the management style of the 2020s. In quick response, many consulting firms and business schools around the world have established objective processes and curricula led by self-proclaimed objective pundits who charge mega bucks for their advice. Books and articles with a purpose are flying off the shelves like hotcakes. Google the phrase “goal-driven” and you will immediately realize how powerful this process is.

Isn’t it good news that companies want to be purpose driven? The consumer, the consumer and society together will benefit, right? Yes and NO. I write NO in capital letters because many organizations are doing it wrong instead of doing it right. And objective pundits are not helping. I have nothing against the process because it is very necessary in today’s environment, but if you really want your organization to be driven by purpose, let’s get a few things straight:

1.Purpose is not new: For executives trying to transform their companies into purpose-driven organizations, I have the first question – Why now? Has your organization been without purpose all this time? One CEO I asked quickly replied, “No, so far we have only worked to increase profits, now we need to increase the target.” Although this CEO spoke with good intentions to make a positive difference to society, like many others, he does not understand the meaning of the word ‘purpose.’ According to the Merriam Webster dictionary, purpose is

By this definition, his company always had a goal – to increase profits. What the CEO was really trying to say is that he wants his company to consider the needs of the community while developing a business strategy. In other words, he wants the company to do a

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2.Purpose is not good: I recently listened to a purpose pundit from a leading business school talk about the benefits of purpose in organizations. Purpose is motivation, purpose is motivating, purpose is the glue that enables a higher level of engagement… he went on and on about how an organization that defines purpose attracts better talent and serves society better. Again, it made me ask: Since when did purpose become a good word in itself? If the dictionary definition is to be believed, the intention can be good or bad. As I listened to the list of the benefits of having a clear goal, I couldn’t help but think about the Mafia. They have a clear purpose and meet all the criteria mentioned by this pundit – motivation, inspiration, common glue and more.

For a goal to be good, it must be a high goal as described in section 1 above. It should be based on the right values ​​– something that should, but doesn’t, get enough attention in the current goal mania. More on this in section 5 below.

3. A mission statement alone is not enough: Many organizations spend millions creating and socializing new mission statements, and they think their work is done. Just having a lofty expression like, ‘

It does not make a company a high moral organization. If you haven’t guessed, the above is Facebook’s purpose or mission statement. Accordingly, Boeing presents this statement:

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If these companies really believed in a higher purpose, would they have sold our data or compromised our security respectively?

4.Profit is not the enemy of purpose: An executive I listened to recently said, “We are making two changes, one from profit to purpose, and the other from value to value.” High words indeed. Here are my questions: Are you saying that you are not going to focus on making or increasing profits again? And what do you mean by “from value to value?” What is a commercial organization that exists, if it is not providing value to society with its goods and services in exchange for profit? Let’s be clear, the ultimate goal should not be at the expense of profit. If anything, the opposite is proving to be true. In today’s very clear age where ordinary people are very knowledgeable, customers and consumers are demanding the highest quality from companies and rejecting the products (if they have an alternative available) of those that do not.

5. Purpose AND values; not just a goal: Finally, before an organization realizes its lofty goals, it must ask itself honestly what qualities it values ​​most, and commit to two things:

A. The goal it says is based on mutual values. Mutual values ​​are those rooted in the belief that development and well-being are interrelated and cannot be increased in isolation. In corporate terms, this means the belief that in order for a company to maximize shareholder returns over the long term, it must pursue strategies that create positive social impact.

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Another purpose pundit recently said that while values ​​and attitudes make up an organization’s culture, its purpose is the reason it exists. He drew a pyramid in which strategy and execution plans formed the base, character and behavior formed the middle, and purpose covered the top. By showing the purpose above, he said that the purpose was the most important – the “why” of the company’s existence. I strongly disagree, because a) a purpose without real values ​​may not be the highest goal that many CEOs today are looking for, and b) whether the spirit of the highest goal is followed or not it depends on the extent to which ethical principles are used in making difficult decisions. So, if you want to create an organization with a higher purpose, first clearly state the values ​​that will drive the process, then make sure that the values ​​are lived and used regularly. In this sense, purpose and character should have equal standing.

In short, while I welcome and applaud all efforts, CEOs should aspire to transform their companies into High Performance Organizations (HPOs), not just Purpose Driven Organizations. The following figure summarizes the importance of HPO: Organizational structure is a process that determines how certain activities are carried out in order to achieve the goals of the organization. These duties may include rules, duties, and responsibilities.

Organizational structure also determines how information flows between levels within the company. For example, in a centralized structure, decisions flow from the top down, while in a decentralized structure, decision-making power is distributed among different parts of the organization. Having an organizational structure in place allows companies to stay focused and focused.

Businesses of all types and sizes use organizational structures extensively. They describe some of the leadership within the organization. A successful organizational structure defines each employee’s role and how it fits within the overall system. Simply put, organizational structure determines who makes the company achieve its goals.

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This arrangement gives the company a visual indication of how it is structured and how it can move forward in achieving its goals. Organizational structure is often depicted in some type of chart or diagram such as a pyramid, where the most powerful members of the organization sit at the top, while the least powerful are at the bottom.

Not having a formal structure can be a problem for some organizations. For example, employees may struggle to know who they should report to. That can make it uncertain who is responsible for conducting the meeting.

Having a structure in place can help with success and provide clarity for everyone at every level. This also means that each department can be multifaceted

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