During the last few weeks I have been tasked with reviewing our mission statement to ensure it still accurately reflects the vision and values of the company.
The last time we looked at our mission statement was a couple of years ago and, with the many changes that have taken place within the mortgage market, it seemed a reasonable time to undertake this exercise.
Mission statements are even more important for organisations that work in a ‘Treating Customers Fairly’ (TCF) environment, because they clarify for customers and employees precisely what the business is all about.
A futile exercise?
Many firms have a mission statement and many are predictable. For example, ‘Our mission is to be the most successful company in our market’ or ‘Our mission is to sell the best products supported by excellent service’.
Surely every company wants to be successful, and sell the best products supported by excellent service? It’s what you have to do to stay in business and make a profit these days. The truth is the majority of corporate mission statements are meaningless and have been dreamt up to adorn the inside covers of annual reports and accounts.
So, are mission statements worth the wall space they occupy, or are they a futile exercise in corporate propaganda?
Actually, they can be of great value, if they are produced properly. Unfortunately, few mission statements actually reflect the true character of the business for which they have been written, or take into consideration the views of the staff who work for the organisation.
If you are going to produce a mission statement, which is a worthwhile exercise for any company regardless of its size, then it is actually worth considering three key statements: a mission, a vision and a set of values. Mission, vision and values statements should accurately summarise a companies persona: what it does, what it stands for and how it wants to be perceived in the markets in which it operates.
Let me define what mission, vision and values statements are:
Mission statement – this is a statement about what a company does. It should be descriptive and factual. It should not make ‘claims’ about the quality of the service or contain statements about future ambitions.
Vision statement – this should summarise how an organisation wants to be perceived by groups that are important to it (i.e. its customers). Although the statement will express ‘desire’ it should be realistic – not every company can be the largest, or most profitable.
Values statement – this should encapsulate the values the company wants to live by. It needs to be embraced by staff and genuinely reflect the beliefs of the business.
Top down or bottom up?
The challenge, when drafting mission, vision and values statements, is deciding whether they should be developed from the ‘top down’ or ‘bottom up’ – should management impose them on staff, or involve staff in the process?
The easy solution is the ‘top down’ approach. Not only is it quick, but it’s also safe because staff views do not have to be evaluated and either accepted or rejected. The flaw in this is that a company is only as good as its people and if its people’s views are ignored, the statements cannot hope to reflect the true nature and character of the business.
The ideal solution is to involve staff. If they feel they’ve had input, they’ll be far more willing to live by the mantra.
Mission statement
Here’s an example of a mission statement for a mortgage advice business.
(Remember, the sole purpose of a mission statement is to specify what a company does).
Our mission is to provide clients with an independent mortgage advice service, which includes:
Understanding their specific financial needs and finding the most suitable product from every mortgage available in the market.
Recommendations about appropriate products which should be considered along with the mortgage.
A guarantee that no fee will be charged until and unless the client is entirely happy with the recommendation being given.
The option to pay a fee or elect for us to be paid via commission.
A guarantee that clients will always deal with the same adviser, who will take personal responsibility for all their mortgage arrangements.
The option for clients to be kept up-to-date with progress on a weekly basis via the phone, e-mail or text.
Hopefully, you get the idea. This states what the company does and this company is clearly focussed on giving its clients a slick mortgage broking service.
The next step is to develop a vision statement.
Vision statement
‘Our vision is to be recognised by our clients as their most valued and trusted financial adviser, by providing them with financial solutions which precisely meet their requirements.’
Let’s take a look at this statement. Firstly it is specific: the company wants to be its clients first port of call for mortgage advice; ahead of the bank, building society or other adviser. Secondly, the company can measure its progress towards realising its vision; it could undertake research among clients to see if it is their preferred source of advice, and whether they believe it provides advice that meets their needs.
Values statement
The third task is to produce a values statement.
Company Values
We will:
Have an open and honest relationship with everyone we deal with.
Provide a service which is efficient and represents value for money.
Be willing to acknowledge our mistakes and do everything possible to rectify them as quickly as possible.
Embrace change, be innovative and never fear failure.
Have a positive working environment based on mutual respect and a supportive team spirit.
Recognise and reward success and provide security through prosperity.
Provide a challenging and rewarding place to work, in which everyone takes pride in their own and the company’s achievements.
Always behave in a socially and ethically responsible manner.
Again, these are specific and can be precisely measured. They provide a blueprint for the type of behaviour you expect from staff throughout the firm.
If you take the time to produce mission, vision and values statements properly, they do provide a useful summary of what a company is all about. However, do involve staff and ensure they live by the values of the company.
