What is a mission statement? What makes a mission statement effective? How do you become mission-driven? These were just a few of the questions that the microfinance institution in Moldova found themselves asking as they began the Balanced Scorecard process.

The first post in this series discussed the process an organization must go through on the way to creating and sustaining meaningful change. After this organization came to the conclusion that change was necessary, the journey began by taking a look at the existing mission statement.

Immediately, those within the microfinance institution came to the stark realization that they had no mission. In fact, what they thought was a mission, was better described as a loose set of thoughts about the future. There was no final goal, no overarching theme, just an ineffective paragraph-yes, I said paragraph- that they considered to be their mission. As you can imagine, for an organization in a former Soviet-occupied state, this concept of developing a mission statement and becoming mission-driven was quite foreign.

What is a mission statement?

A mission statement is more than simply having a framed piece of paper on the wall. A mission is something that everyone in the organization understands and works towards on a daily basis. It encapsulates the reason why the organization exists. Without a clear mission statement, there is a high probability that the organization will drift all over the place and never accomplish anything meaningful. It serves in establishing a clear vision that provides both guidance and motivation for all actions and behaviors within the organization.

What makes a mission statement effective?

First and foremost, an effective mission statement must be agreed upon and adopted by the leaders within the organization. If those at the top are not willing to get on board with the mission, you will have a tough time getting anyone else to buy-in as well. Once the leaders commit to the mission, it must be effectively communicated down the line to the rest of the staff. Everyone, at all levels of the organization, needs to understand the mission and what it means to them individually.

Once the mission is understood at all levels, there needs to be a collective commitment towards reaching that mission. It needs to become part of the daily actions for each individual within the organization. If this is done properly, each member, regardless of level, will recognize and understand how their daily tasks contribute to achieving the mission.

How do we continue on the path to becoming mission-driven?

As the microfinance institution began to realize the benefits that came from a powerful mission statement, they became increasingly excited about becoming a more mission-driven organization. The mission statement serves as the focal point for aligning the operations and resources. This is the first step in becoming a mission-driven organization. In part 3 of this series, we will continue to follow the microfinance institution as they draft a strategy map, objectives, measures, and initiatives on their quest to becoming mission-driven.