Mission & ObjectivesEnterprise Strategy/AW/01b

Arj Wignaraja

Mission Statement Defined

CIMA Official Terminology: MISSION

The fundamental objective(s) of an entity expressed in general terms.

CIMA Official Terminology: MISSION STATEMENT

A published statement, apparently of the entity’s fundamental objective(s). This may or may not summarise the true mission of the entity.

1. Specific

Lynch’s 4 Criteria for Judging the Effectiveness of a Mission Statement

2. Distinctive

3. Realistic

4. Flexible

“To discover, develop and deliver innovative medicines that help patients prevail over serious diseases.”

Mission Statements: Some Examples

“Our goal …is to be the most respected global financial services company. Like any other public company, we're obligated to deliver profits and growth to our shareholders. Of equal importance is to deliver those profits and generate growth responsibly.”

“We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.”

“We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.”

“To bring Inspiration and innovation to every athlete in the world.”

Strategic Objectives Defined

STRATEGIC OBJECTIVE

A mission is an open-ended statement of the firm's purposes and strategies. Strategic objectives translate the mission into strategic milestones for the business strategy to reach.

Strategic Objectives Need to be SMART

S

M

A

R

T

The Goal Structure – Hierarchy of Objectives in the Organisation

STRATEGIC OBJECTIVES

TACTICAL OBJECTIVES

OPERATIONAL OBJECTIVES

GROUP AND INDIVIDUAL PERFORMANCE TARGETS

Translated into a small number of

reached by following strategies communicated to management as numerous

which in turn are implemented and reviewed through setting a large number of

which may be communicated to managers and staff responsible through their

MISSION STATEMENTS

Strategic Objectives: Examples

Attribute Measure

Sales Volume ‘000s of units

Share of Market % of volume

Asset Base of firm Net Assets

Attribute Measure

Customer Satisfaction

Repeat purchases

Defects No. per ‘000

Consistency Adoption of standards

Attribute Measure

Peer Group Respect

Industry awards received

Speed to Market Development time

Successful New Products

% of sales from new products

Attribute Measure

Non-Discrimination

Workforce composition

Environmental Pollution

Cubic meters of waste

Safety Reported incidents

GROWTH QUALITY

INNOVATION SOCIAL RESPONSIBILITY

Objectives Perform 5 Functions — PRIME

P. Planning

R. Responsibility

I. Integration

M. Motivation

E. Evaluation