Chapter 8 – Expressing organisational purpose (mission statements)

Question 1

Name the elements of an organisational purpose

Answer 1

• Vision
• Mission
• Objectives

Question 2

What is a vision?

Answer 2

Bennis and Nanus (1985): vision is a mental image of a possible and desirable future state of the organisation. It is concerned with what the organisation aspires to be

Lynch (2015): vision is a challenging and imaginative picture of the future roles and objectives of an organisation, significantly going beyond its current environment and competitive position

Question 3

What is a mission statement?

Answer 3

A mission statement aims to provide employees and stakeholders with clarity about the overall purpose and rationale of the organisation. It is therefore to do with building understanding and confidence about how the strategy of the organisation relates to the purpose.

Argenti (1989) suggests that mission statements are more to do with the image of the company the directors wish to portray

Question 4

Maccoby (2017) discusses the need for an organisation’s mission to be emotionally driven as this will give the mission an underlying drive and commitment from the core players. What are the six core aspects of human emotion that need to be considered ? DRIMPS

Answer 4

1. Dignity: the need to feel a part of the whole and recognise our individual role
2. Relatedness: the human need to interact and work with others
3. Information: the desire to understand and learn
4. Mastery: the requirement to feel in control of at least part of what we do
5. Play: the drive to explore and innovate
6. Survival: the basic human instinct of defence of oneself and one’s group

Question 5

According to Lynch, what are the five core traits that sit within a mission statement?

Answer 5

1. The nature of the business
2. A focus on the perceived needs of the customer or consumer
3. The values and beliefs of the organisation
4. An element of sustainable competitive advantage
5. The reasons for our existence

Question 6

Campbell et al devised the Ashbridge model and identified four elements of a mission statement - what are they? PSVS

Answer 6

1. Purpose – why the business exists
2. Strategy and scope – what business and how, the competitive position and USP
3. Values – what management believe in
4. Standards and behaviours – the rules that guide how the business operates

Question 7

How can you make an objective meaningful?

Answer 7

Make it SMART

• S – specific, special, significant, seismic
• M – measurable, meaningful, motivational, massive
• A – attainable, achievable, acceptable, action-based, accelerating
• R – realistic, relevant, rational, rewarding
• T – timely, traceable, testing and transforming

Question 8

What is triple bottom line?

Answer 8

The increasing importance of stakeholders and sustainability has led to the development of ‘triple bottom line’. This suggests that an organisation should be looking at three core areas of a strategic objective:
1) Profit - financial performance
2) People - addition of value to stakeholders
3) Planet - the impact of the organisation upon the economy, environment and society