CHAPTER 6 Criteria below: Characteristics of a Good Mission StatementA good miss
ID: 354706 • Letter: C
Question
CHAPTER 6 Criteria below:
Characteristics of a Good Mission StatementA good mission statement has the following characteristics:•It should be short, about 200 to 300 words, definitely no more thana single page. Drafting a concise mission statement can pose a chal-lenge for many executive teams that are inclined to describe atlength the premise of the organization. •It should be memorable (one reason for the brevity). Key stake-holders, certainly the managers and employees, should be able toremember it, almost verbatim, and explain it to someone elsewithout hesitating.•It should be stated in broad enough terms to allow for the genera-tion and consideration of feasible alternative objectives and strate-gies without unduly stifling management creativity. The generalityof language gives the firm flexibility in adapting to changingexternal environments and internal operations.•It should be expansive in a way that reconciles differences among,and still appeals to, an organization’s diverse stakeholders(employees, managers, shareholders, board of directors, customers,suppliers, distributors, creditors, government regulators and payers,labor unions, competitors, public interest groups, communitygroups, media, and the general public). All stakeholders’ claims onan organization cannot be satisfied with equal emphasis. A goodmission statement indicates the relative attention that an organiza-tion will give to the interests of different stakeholders.•It suggests where managers should be looking for future opportu-nity, and steers them away from other areas. It provides a basis forgenerating and screening strategic options, and selecting specificstrategies to implement.•It highlights the points of differentiation with other businesses, par-ticularly competitors, and sets forth the basis for the firm’s competi-tive advantage.•It arouses positive feelings and emotions about the organization andan individual’s role within it. It attracts and deters potential staff. Itgives the impression that the firm is successful, knows what it isdoing, is professionally managed, has direction, and is worthy oftime, support, and investment.•It is communicated to, understood by, and embraced by all membersof the organization.•It is more pragmatic, with a more immediate purpose, than a visionstatement.The faster the external environment is changing, the more frequentlythe mission should be reviewed. A successful organization will inevitablyoutgrow its original mission. As time passes and its operations expand,the organization will develop new competencies and a more perceptiveview of available opportunities. Mission changes will seem to make sense.Even if they are not overly concerned about their social obligations,for-profit corporate executives still have to reconcile an inevitable dualityin their missions. the business, the shareholders, on the investments that they have madein the business. The other mission concerns the substance of the organi-zation’s operations—the products and services that it creates and the cus-tomers that it offers them to. Many, perhaps most, for-profit businessshareholders do not care about the substantive mission of the organiza-tions in which they invest. Tobacco companies have never lacked forshareholders—as long as their financial performance has been aboveaverage. It is true that some investors will buy shares only in “sociallyresponsible” businesses, although that term itself has different meaningsfor different people. Other investors place their money with companies140CHAPTER6DEFININGFUTUREDIRECTIONOFTHEORGANIZATIONRole of Social Obligation in Mission StatementsA major argument in the debate about the future of the U.S. healthcare system concerns the obligations of health care-related businessesand organizations to meet societal needs for clinical treatment ofphysical and mental suffering. The issue has become even moresalient with the widespread movement of for-profit businesses intothe health care industry. There is no better place than the missionstatement for an organization to explain how it intends to balance thedesire of shareholders for maximum financial performance againstthe demand for this basic human necessity, often under dire circum-stances and with no assurance of an ability to pay. Few attempt it.How a health care organization cares for the sick and uninsuredis just one of a number of “social policies” that it must wrestle with.Other social policies may concern the religious beliefs of patientsand employees, and medical treatment at the end of life. How anorganization handles these policies directly affects its customers,products and services, technology, profitability, self-concept, publicimage, reputation, and brand identity. It is not easy to ignore theseissues, especially with so much attention being focused on thedelivery of health care.Not-for-profit organizations and public agencies do not face thesame stark challenge as for-profit businesses in the health careindustry. Their mission statements can express an unreserved com-mitment to providing health care for all. In practical terms, however,they still must deal with the financial realities of that commitment.One way of approaching this issue is to define the social obliga-tion, whatever it is, in terms of the potential costs and benefits to theorganization. Many of them will be subjective and unquantifiable.They still provide a rational basis for examining the tradeoffs thathave to be made. For instance, the mission statement of a commu-nity health center may include a phrase promising to “within thelimits of fiscal responsibility, meet the health care needs of everyonewho visits the health center.”34160_CH06_Final.qxd 3/31/08 10:18 AM Page 140
Aanlyze the mission, vision, and value statements for a health care organization of your choosing. (Mission statements may sometimes be labeled as "purpose." If there are multiple statements for your organization, please use the one designated as a "mission" statement.) Be sure to address the following:
State the mission and vision of the organization.
Critique the mission and value from the selected organization as a starting point for strategic planning and plan development, utilizing the criteria listed in Chapter 6 of the textbook. Does the mission have characteristics of a good mission statement according to the textbook? Does the vision have characteristics of a good vision statement according to the textbook?
Identify the major organizational resources needed to accomplish the mission and vision. (Competency 1:3)
Identify strategies to effectively manage resources to fulfil the organization's mission. (Competency 1:4)
Describe the substance of an organization's strategic objectives and the contribution they make to the strategic planning process.
Explanation / Answer
The main objective of a mission statement should be to provide a brief justification of the business's main motive for existing and its long-term objectives. It must aim to provide some fundamental characteristics of the business functions and lay down in broad terms the target market.
A mission statement should aim to illustrate the most fundamental perception of its existence which in clear terms should indicate the business vision and philosophies, uniqueness, quality, distinctive features and quality image demonstrating the prospective goals to be attained.
A good mission statement should always aim for elevated standards and towards attaining realistic goals and should not be unfeasible and impractical. It should be reasonable and attainable and stakeholders and employees observing the statement must find it trustworthy and convincing. However practicability and reliability of a statement to great extent depends on the resources made accessible to work towards a mission.
It should provide a crystal clear objective concerning about its policies and objectives and methods to be adopted to lead it to an appropriate action. A mission statement along with the business plan should aim to point out the most significant aspects of the policies and approach to be assumed and implemented.
Thus it should aim to specify how business goals proposed in the mission statement can be attained successfully and indicate the extensive business strategies and techniques to be acknowledged and executed to attain the objectives successfully.