Tuesday, June 18, 2013

Fair Warning - A Mission Statement Is Not A Strategy



Fair Warning - A Mission Statement Is Not A Strategy


Smart Business Thinking by Jim Whelan


A nonprofit CEO contacted us at Smart Business Thinking to ask if a mission statement didn’t suffice for the organization’s strategy. An interesting question and we can se why it would seem to make sense. To consider the question, let's look at the essential elements of a mission statement and a strategy.

What is a Mission Statement?
A mission statement is an affirmation of the organization’s core reason for being. Such as:
• We provide supplemental groceries to those who cannot afford all the food they need.
• We provide free, high-quality medical care to low-income, uninsured adults.
• We provide quality homes for low- and moderate-income families.

What is a strategy?
A strategy is a thought-out plan to achieve the mission. It sets the strategic and broad policy directions.

Here’s an example where this strategy works toward the mission – “We provide quality homes for low- and moderate-income families.”

Our strategy is to produce, preserve, manage, advocate for and finance affordable rental and owner-occupied housing. We provide housing services to low- and moderate-income families and individuals. As an extension of our rental housing program, we offer educational services to strengthen our residents’ economic and social stability.

That strategy clearly advances the organization’s mission.

There can be a mission and not have a strategy. There cannot be a strategy without a mission. Without a goal what can you plan for?

Bottom Line?
To answer the question – No, the Mission Statement cannot be a surrogate for a Strategy Statement. The Mission Statement is an affirmation of why the organization exists. Strategy is a high level plan of actions to effectively address the mission.

Jim Whelan, experienced executive, coaches business owners on Strategic Business Choices, Written Goals, Value and Mission Statements that actually Improve Results.
With Jim’s coaching, New, Small, and Troubled Businesses develop Operational Plans, Future Contingencies Focused on Outcomes and an Exit Strategy.

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