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Example Mission Statements & Why They are Great
By Jenna Sedmak - January 15, 2017
SME Strategy is a strategy consulting company that specializes in aligning teams around their vision, mission, values, goals and action plans. Learn more about how we can help you and your team create a strategic plan with our strategic planning and implementation services.
Have you ever wondered what it is that makes a mission statement great? The key is to keep it simple: Outline what it is your organization wants to do (the problem you are solving), but don't be vague. Your mission statement should be attainable, but also inspirational.
Why is a mission statement so important? One of the biggest reasons is that it represents the common purpose for the organization. Each member of the team will have a unique background, belief structure, and expertise. Not every team member will be the same. In fact, organizations thrive with team diversity, as long as the team understands what the common purpose of the organization is (i.e. the vision, mission & goals). By clearly outlining your company mission statement, you are communicating to your team, your customers, and the world what your organization aims to achieve.
Here are some of our favourite mission statements:
- Patagonia: " Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis". Why it’s a good mission statement: Patagonia aims to create products that truly last. By creating environmentally responsible, durable products, they follow through on their mission. Patagonia actually aims to decrease their annual sales, as outlined in a New Yorker article, " Patagonia’s Anti Growth Strategy ". Because they have such a strong mission statement that supports many emerging societal values, they can create a strong brand awareness and a loyal customer base, by having a great product without contributing to the fast fashion crisis.
- SpaceX: " SpaceX designs, manufactures and launches advanced rockets and spacecraft. The company was founded in 2002 to revolutionize space technology, with the ultimate goal of enabling people to live on other planets". Why it’s a good mission statement: Elon Musk, CEO and founder of SpaceX aims high. With this lofty end goal of enabling people to live on other planets, Musk paves the way for truly innovative thinking when it comes to space travel. SpaceX has already had some huge achievements, including launching, returning, and vertically landing a rocket. There were many failures before and after this attempt, but failure is a side effect of innovation, and often the road to success. By having such a clear mission statement, SpaceX is sure to be a global leader in modern space exploration.
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- Spotify: " Give people access to all the music they want all the time - in a completely legal & accessible way". Why it’s a good mission statement: They aim to solve a two-sided problem. First, musicians and producers want to end piracy and be fairly compensated for their work. Second, the listener wants and expects to easily access affordable music in the digital age. By bridging this gap and finding an alternative to downloading, Spotify offers tiered services. Music can be accessed for free, but with occasional ad interruption so artists can still get paid, or with a premium account that affordably priced, without ads. Solving problems in the marketplace is one way that startups become successful multi-national companies. By having a strong mission statement and understanding their end goal, Spotify has been able to attract an enormous user base of 100 million users, with 40 million of those being paying subscribers, and growing!
- Slack: " Where work* happens". *Whatever work means for you, Slack brings all the pieces and people you need together so you can actually get things done. Why it’s a good mission statement: Slack is another great example of a tech company solving a problem that others have tried in the past. There are a lot of great communication tools out there, but Slack truly does bring pieces and people together, which in turn, helps teams get things done. If you’ve never used slack before, we highly recommend it. Often working in different cities, we at SME Strategy love using this tool as a way to bring our people together over distances.
- BBC: " To enrich people's lives with programmes and services that inform, educate and entertain". Why it’s a good mission statement: Many people look to the BBC as a a reliable source of news and education. This shows that they follow their mission to inform, educate, and entertain. While no outlet can be totally free of bias, the BBC stays true to their mission by offering local news, world news, radio programs, and both entertainment and documentary television series
- WestJet: " To enrich the lives of everyone in WestJet's world by providing safe, friendly and affordable air travel". Why it’s a good mission statement: WestJet’s mission statement outlines three clear objectives that they continually follow through on. Originally a niche airline in Western Canada, WestJet solved a problem for the average person traveling by staying true to their mission. Since then, WestJet has expanded throughout North America and offers safe, friendly and affordable air travel not only domestically, but also to London, and through codeshare agreements, many other countries as well.
- Google: " Google’s mission is to organize the world’s information and make it universally accessible and useful". Why it’s a good mission statement: In the past 30 years, internet has gone from something that was used only in national defense, to a tool for governments and large organizations, to something only developed cities had, to something most people can now hold in the palm of their hand. Seven years after the world wide web went live, in 1998, Google entered the scene. Google’s mission statement is clear - information should be accessible to everyone, and so far they are doing a good job of helping this happen.
- Ikea: " To create a better everyday life for the many people". Why it’s a good mission statement: Ikea furniture (although sometimes hard to put together!) offers unique solutions for a variety of living arrangements. Both affordable and with simple yet elegant design, Ikea creates furniture and accessories for all sorts of unique spaces to make them more comfortable to live in. They really do reach out to the “many people”.
- SME Strategy : " Our mission is to provide managers and leaders the tools, frameworks, and expertise to help them create and execute on their strategic plans successfully". Why it’s a good mission statement: We stand by our mission statement. Our first priority is to help other organizations succeed. In order to succeed, a strong strategy needs to be in place. By creating tools and resources and facilitating strategic planning sessions, we live our mission statement on a daily basis.
Strong mission statements are just one part of a strong strategic plan. If you're looking for more information about strategic plans, missions, visions and goals, here is a great list of Example Strategic Plans from around the world.
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3 Problem statement examples and steps to write your own
We’ve all encountered problems on the job. After all, that’s what a lot of work is about. Solving meaningful problems to help improve something.
Developing a problem statement that provides a brief description of an issue you want to solve is an important early step in problem-solving .
It sounds deceptively simple. But creating an effective problem statement isn’t that easy, even for a genius like Albert Einstein. Given one hour to work on a problem, he’d spend 55 minutes thinking about the problem and five minutes finding solutions. (Or so the story goes.)
Einstein was probably exaggerating to make a point. But considering his success in solving complex problems, we think he was on to something.
As humans, we’re wired to jump past the problem and go directly to the solution stage. In emergencies, this behavior can be lifesaving, as in leaping out of the way of a speeding car. But when dealing with longer-range issues in the workplace, this can lead to bad decisions or half-baked solutions.
That’s where problem statements come in handy. They help to meaningfully outline objectives to reach effective solutions. Knowing how to develop a great problem statement is also a valuable tool for honing your management skills .
But what exactly is a problem statement, when should you use one, and how do you go about writing one? In this article, we'll answer those questions and give you some tips for writing effective problem statements. Then you'll be ready to take on more challenges large and small.
What is a problem statement?
First, let’s start by defining a problem statement.
A problem statement is a short, clear explanation of an issue or challenge that sums up what you want to change. It helps you, team members, and other stakeholders to focus on the problem, why it’s important, and who it impacts.
A good problem statement should create awareness and stimulate creative thinking . It should not identify a solution or create a bias toward a specific strategy.
Taking time to work on a problem statement is a great way to short-circuit the tendency to rush to solutions. It helps to make sure you’re focusing on the right problem and have a well-informed understanding of the root causes. The process can also help you take a more proactive than reactive approach to problem-solving . This can help position you and your team to avoid getting stuck in constant fire-fighting mode. That way, you can take advantage of more growth opportunities.
When to use a problem statement
The best time to create a problem statement is before you start thinking of solutions. If you catch yourself or your team rushing to the solution stage when you’re first discussing a problem, hit the brakes. Go back and work on the statement of the problem to make sure everyone understands and agrees on what the real problem is.
Here are some common situations where writing problem statements might come in handy:
- Writing an executive summary for a project proposal or research project
- Collaborating on a cross-functional project with several team members
- Defining the customer issue that a proposed product or service aims to solve
- Using design thinking to improve user experience
- Tackling a problem that previous actions failed to solve
How to identify a problem statement
Like the unseen body of an iceberg, the root cause of a specific problem isn’t always obvious. So when developing a problem statement, how do you go about identifying the true, underlying problem?
These two steps will help you uncover the root cause of a problem :
- Collect information from the research and previous experience with the problem
- Talk to multiple stakeholders who are impacted by the problem
People often perceive problems differently. Interviewing stakeholders will help you understand the problem from diverse points of view. It can also help you develop some case studies to illustrate the problem.
Combining these insights with research data will help you identify root causes more accurately. In turn, this methodology will help you craft a problem statement that will lead to more viable solutions.
What are problem statements used for?
You can use problem statements for a variety of purposes. For an organization, it might be solving customer and employee issues. For the government, it could be improving public health. For individuals, it can mean enhancing their own personal well-being . Generally, problem statements can be used to:
- Identify opportunities for improvement
- Focus on the right problems or issues to launch more successful initiatives – a common challenge in leadership
- Help you communicate a problem to others who need to be involved in finding a solution
- Serve as the basis for developing an action plan or goals that need to be accomplished to help solve the problem
- Stimulate thinking outside the box and other types of creative brainstorming techniques
3 examples of problem statements
When you want to be sure you understand a concept or tool, it helps to see an example. There can also be some differences in opinion about what a problem statement should look like. For instance, some frameworks include a proposed solution as part of the problem statement. But if the goal is to stimulate fresh ideas, it’s better not to suggest a solution within the problem statement.
In our experience, an effective problem statement is brief, preferably one sentence. It’s also specific and descriptive without being prescriptive.
Here are three problem statement examples. While these examples represent three types of problems or goals, keep in mind that there can be many other types of problem statements.
Example Problem Statement 1: The Status Quo Problem Statement
Example:
The average customer service on-hold time for Example company exceeds five minutes during both its busy and slow seasons.
This can be used to describe a current pain point within an organization that may need to be addressed. Note that the statement specifies that the issue occurs during the company’s slow time as well as the busy season. This is helpful in performing the root cause analysis and determining how this problem can be solved.
The average customer service on-hold time for Example company exceeds five minutes during both its busy and slow seasons. The company is currently understaffed and customer service representatives are overwhelmed.
Background:
Example company is facing a significant challenge in managing their customer service on-hold times. In the past, the company had been known for its efficient and timely customer service, but due to a combination of factors, including understaffing and increased customer demand, the on-hold times have exceeded five minutes consistently. This has resulted in frustration and dissatisfaction among customers, negatively impacting the company's reputation and customer loyalty.
Reducing the on-hold times for customer service callers is crucial for Example company. Prolonged waiting times have a detrimental effect on customer satisfaction and loyalty, leading to potential customer churn and loss of revenue. Additionally, the company's declining reputation in terms of customer service can have a lasting impact on its competitive position in the market. Addressing this problem is of utmost importance to improve customer experience and maintain a positive brand image.
Objectives:
The primary objective of this project is to reduce the on-hold times for customer service callers at Example company. The specific objectives include:
- Analyzing the current customer service workflow and identifying bottlenecks contributing to increased on-hold times.
- Assessing the staffing levels and resource allocation to determine the extent of understaffing and its impact on customer service.
- Developing strategies and implementing measures to optimize the customer service workflow and reduce on-hold times.
- Monitoring and evaluating the effectiveness of the implemented measures through key performance indicators (KPIs) such as average on-hold time, customer satisfaction ratings, and customer feedback.
- Establishing a sustainable approach to maintain reduced on-hold times, taking into account both busy and slow seasons, through proper resource planning, training, and process improvements.
Example Problem Statement 2: The Destination Problem Statement
Leaders at Example company want to increase net revenue for its premium product line of widgets by 5% for the next fiscal year.
This approach can be used to describe where an organization wants to be in the future. This type of problem statement is useful for launching initiatives to help an organization achieve its desired state.
Like creating SMART goals , you want to be as specific as possible. Note that the statement specifies “net revenue” instead of “gross revenue." This will help keep options open for potential actions. It also makes it clear that merely increasing sales is not an acceptable solution if higher marketing costs offset the net gains.
Leaders at Example company aim to increase net revenue for its premium product line of widgets by 5% for the next fiscal year. However, the company currently lacks the necessary teams to tackle this objective effectively. To achieve this growth target, the company needs to expand its marketing and PR teams, as well as its product development teams, to prepare for scaling.
Example company faces the challenge of generating a 5% increase in net revenue for its premium product line of widgets in the upcoming fiscal year. Currently, the company lacks the required workforce to drive this growth. Without adequate staff in the marketing, PR, and product development departments, the company's ability to effectively promote, position, and innovate its premium product line will be hindered. To achieve this kind of growth, it is essential that Example company expands teams, enhances capabilities, and strategically taps into the existing pool of loyal customers.
Increasing net revenue for the premium product line is crucial for Example company's overall business success. Failure to achieve the targeted growth rate can lead to missed revenue opportunities and stagnation in the market. By expanding the marketing and PR teams, Example company can strengthen its brand presence, effectively communicate the value proposition of its premium product line, and attract new customers.
Additionally, expanding the product development teams will enable the company to introduce new features and innovations, further enticing existing and potential customers. Therefore, addressing the workforce shortage and investing in the necessary resources are vital for achieving the revenue growth objective.
The primary objective of this project is to increase net revenue for Example company's premium product line of widgets by 5% in the next fiscal year. The specific objectives include:
- Assessing the current workforce and identifying the gaps in the marketing, PR, and product development teams.
- Expanding the marketing and PR teams by hiring skilled professionals who can effectively promote the premium product line and engage with the target audience.
- Strengthening the product development teams by recruiting qualified individuals who can drive innovation, enhance product features, and meet customer demands.
- Developing a comprehensive marketing and PR strategy to effectively communicate the value proposition of the premium product line and attract new customers.
- Leveraging the existing base of loyal customers to increase repeat purchases, referrals, and brand advocacy.
- Allocating sufficient resources, both time and manpower, to support the expansion and scaling efforts required to achieve the ambitious revenue growth target.
- Monitoring and analyzing key performance indicators (KPIs) such as net revenue, customer acquisition, customer retention, and customer satisfaction to measure the success of the growth initiatives.
- Establishing a sustainable plan to maintain the increased revenue growth beyond the next fiscal year by implementing strategies for continuous improvement and adaptation to market dynamics.
Example Problem Statement 3 The Stakeholder Problem Statement
In the last three quarterly employee engagement surveys , less than 30% of employees at Eample company stated that they feel valued by the company. This represents a 20% decline compared to the same period in the year prior.
This strategy can be used to describe how a specific stakeholder group views the organization. It can be useful for exploring issues and potential solutions that impact specific groups of people.
Note the statement makes it clear that the issue has been present in multiple surveys and it's significantly worse than the previous year. When researching root causes, the HR team will want to zero in on factors that changed since the previous year.
In the last three quarterly employee engagement surveys, less than 30% of employees at the Example company stated that they feel valued by the company. This indicates a significant decline of 20% compared to the same period in the previous year.
The company aspires to reduce this percentage further to under 10%. However, achieving this goal would require filling specialized roles and implementing substantial cultural changes within the organization.
Example company is facing a pressing issue regarding employee engagement and perceived value within the company. Over the past year, there has been a notable decline in the percentage of employees who feel valued. This decline is evident in the results of the quarterly employee engagement surveys, which consistently show less than 30% of employees reporting a sense of value by the company.
This decline of 20% compared to the previous year's data signifies a concerning trend. To address this problem effectively, Example company needs to undertake significant measures that go beyond superficial changes and necessitate filling specialized roles and transforming the company culture.
Employee engagement and a sense of value are crucial for organizational success. When employees feel valued, they tend to be more productive, committed, and motivated. Conversely, a lack of perceived value can lead to decreased morale, increased turnover rates, and diminished overall performance.
By addressing the decline in employees feeling valued, Example company can improve employee satisfaction, retention, and ultimately, overall productivity. Achieving the desired reduction to under 10% is essential to restore a positive work environment and build a culture of appreciation and respect.
The primary objective of this project is to increase the percentage of employees who feel valued by Example company, aiming to reduce it to under 10%. The specific objectives include:
- Conducting a comprehensive analysis of the factors contributing to the decline in employees feeling valued, including organizational policies, communication practices, leadership styles, and cultural norms.
- Identifying and filling specialized roles, such as employee engagement specialists or culture change agents, who can provide expertise and guidance in fostering a culture of value and appreciation.
- Developing a holistic employee engagement strategy that encompasses various initiatives, including training programs, recognition programs, feedback mechanisms, and communication channels, to enhance employee value perception.
- Implementing cultural changes within the organization that align with the values of appreciation, respect, and recognition, while fostering an environment where employees feel valued.
- Communicating the importance of employee value and engagement throughout all levels of the organization, including leadership teams, managers, and supervisors, to ensure consistent messaging and support.
- Monitoring progress through regular employee surveys, feedback sessions, and key performance indicators (KPIs) related to employee satisfaction, turnover rates, and overall engagement levels.
- Providing ongoing support, resources, and training to managers and supervisors to enable them to effectively recognize and appreciate their teams and foster a culture of value within their respective departments.
- Establishing a sustainable framework for maintaining high employee value perception in the long term, including regular evaluation and adaptation of employee engagement initiatives to address evolving needs and expectations.
What are the 5 components of a problem statement?
In developing a problem statement, it helps to think like a journalist by focusing on the five Ws: who, what, when, where, and why or how. Keep in mind that every statement may not explicitly include each component. But asking these questions is a good way to make sure you’re covering the key elements:
- Who: Who are the stakeholders that are affected by the problem?
- What: What is the current state, desired state, or unmet need?
- When: When is the issue occurring or what is the timeframe involved?
- Where: Where is the problem occurring? For example, is it in a specific department, location, or region?
- Why: Why is this important or worth solving? How is the problem impacting your customers, employees, other stakeholders, or the organization? What is the magnitude of the problem? How large is the gap between the current and desired state?
How do you write a problem statement?
There are many frameworks designed to help people write a problem statement. One example is outlined in the book, The Conclusion Trap: Four Steps to Better Decisions, ” by Daniel Markovitz. A faculty member at the Lean Enterprise Institute, the author uses many case studies from his work as a business consultant.
To simplify the process, we’ve broken it down into three steps:
1. Gather data and observe
Use data from research and reports, as well as facts from direct observation to answer the five Ws: who, what, when, where, and why.
Whenever possible, get out in the field and talk directly with stakeholders impacted by the problem. Get a firsthand look at the work environment and equipment. This may mean spending time on the production floor asking employees questions about their work and challenges. Or taking customer service calls to learn more about customer pain points and problems your employees may be grappling with.
2. Frame the problem properly
A well-framed problem will help you avoid cognitive bias and open avenues for discussion. It will also encourage the exploration of more options.
A good way to test a problem statement for bias is to ask questions like these:
3. Keep asking why (and check in on the progress)
When it comes to problem-solving, stay curious. Lean on your growth mindset to keep asking why — and check in on the progress.
Asking why until you’re satisfied that you’ve uncovered the root cause of the problem will help you avoid ineffective band-aid solutions.
What to avoid when writing a problem statement
When crafting a problem statement, it's essential to communicate the issue clearly and effectively. A well-formulated problem statement sets the stage for understanding and addressing the challenge at hand. However, there are common pitfalls that can undermine its clarity and purpose. Here's what you should avoid:
- Vagueness : Be specific about the problem and its context.
- Complexity : Keep the language simple and direct.
- Overgeneralization : Avoid broad statements that don’t address specific issues.
- Assumptions : Don’t presume solutions or causes without evidence.
- Jargon : Use clear, accessible language that can be understood by all stakeholders.
Refining your problem statements
When solving any sort of problem, there’s likely a slew of questions that might arise for you. In order to holistically understand the root cause of the problem at hand, your workforce needs to stay curious.
An effective problem statement creates the space you and your team need to explore, gain insight, and get buy-in before taking action.
If you have embarked on a proposed solution, it’s also important to understand that solutions are malleable. There may be no single best solution. Solutions can change and adapt as external factors change, too. It’s more important than ever that organizations stay agile . This means that interactive check-ins are critical to solving tough problems. By keeping a good pulse on your course of action, you’ll be better equipped to pivot when the time comes to change.
BetterUp can help. With access to virtual coaching , your people can get personalized support to help solve tough problems of the future.
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Madeline Miles
Madeline is a writer, communicator, and storyteller who is passionate about using words to help drive positive change. She holds a bachelor's in English Creative Writing and Communication Studies and lives in Denver, Colorado. In her spare time, she's usually somewhere outside (preferably in the mountains) — and enjoys poetry and fiction.
What is lateral thinking? 7 techniques to encourage creative ideas
27 problem-solving strategies to turn challenges on their head, how to get inspired: 15 ideas to help you reach your potential, how to answer “what motivates you” in a job interview, how motivation works in the brain: exploring the science, motivation and inspiration: examples in life and work, strategic plan vs. work plan: what's the difference, motivation vs. inspiration: the perfect combination for success, 19 ways to get motivated, writing a value statement: your guide to keeping your team aligned, how to write an executive summary in 10 steps, what’s a project scope, and how do you write one, contingency planning: 4 steps to prepare for the unexpected, big brother is here, but there’s a better way to improve employee productivity, how to write a resume summary that works + examples, what is a career statement, and should you write one, how to craft an impactful company mission statement, stay connected with betterup, get our newsletter, event invites, plus product insights and research..
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How to write a problem statement: a step-by-step guide
Many great business ideas begin with a crucial problem that needed solving. While product teams and designers may be eager to build solutions, it pays to not rush your product out the door. If you’ve ever heard the phrase “Give me six hours to chop down a tree and I will spend the first four sharpening the axe,” you might understand why.
Instead of immediately switching into solution-mode, there’s value in taking time to understand a problem from all angles. One of the best ways to properly diagnose and solve problems is to write a problem statement.
In this article, we explain what problem statements are, how to write one, and share a few examples.
What is a problem statement?
Problem statements summarize a challenge you want to resolve, its causes, who it impacts, and why that’s important. They often read like a concise overview managers can share with stakeholders and their teams.
Why are problem statements important?
Problem statements help you share details about a challenge facing your team. Instead of rushing to a solution, writing a problem statement enables you to reflect on the challenge and plan your response.
The high-level perspective a problem statement offers lets teams focus on the factors they need to change. Managers also use this top-down vantage to oversee their teams as they work out solutions.
When to use a problem statement
Any time you face a challenge is an opportunity to write a problem statement. You can write a problem statement to improve operations in different contexts. For example, you might use a problem statement to:
- Refine project proposals: Managers write project proposals to solve user issues. Problem statements inform these proposals, shaping their goals, plans, and approaches.
- Develop your product offering: Many startups build their business model on solving a long-standing problem. Problem statements help clarify a company’s mission and core product design .
- Clarify the outcome of solving a problem: Problem statements point out the long-term benefits of solving the issue, which can help you put the problem into context for stakeholders and secure necessary resources.
- Collaborate with multiple teams: You can rally teams around a common goal if you frame it as a shared problem. Collaboration ensures you examine the problem and reach solutions from all possible angles.
- Improve the user experience: Problem statements can identify pain points and ways to enhance a product. When teams act on problem statements, this can improve UX.
What are the elements of a problem statement?
You can break problem statements into a few core elements. While the format of a problem statement is flexible, aim to include the following:
- Gap: the challenge, issue, or pain point you currently face
- Orientation: a description of when and where you found the problem and the trend it creates or follows
- Impact: a measure of your problem’s consequences in cost, time, quality, environment, or personal experience
- Importance: why this problem matters to your organization and customers
How to write a problem statement
Now that you understand the elements of a problem statement, you can write your own in five key steps.
1. Identify the problem
Start by pointing out an issue and gathering data. Put yourself in the support or production environment where the problem arises and try to experience it firsthand. When gathering data, look for trends or overarching themes—they may help you find the root cause of your problem later.
After seeing the problem for yourself, interview others who know about it. Start with employees who run into the problem or offer support for it. In some cases, they may have a design brief with more information on the issue. Beyond that, customer testimonials and stakeholder interviews can lay out the full scope of your problem.
2. Put the problem into context
Describe how the problem impacts customers and stakeholders. Avoid personal bias and focus on developing a clear perspective. This approach helps prioritize the issue and explain why you need to solve it. If customers can't reach the benefits of your product because of an issue, that's a high-priority concern. If you’ve ever conducted design research , this process should feel similar.
You can put a problem into context by asking:
- Does the problem lead to a reputational, financial, or logistical cost?
- Is the main issue a symptom of a greater challenge?
- Has your team already tried to solve this problem? Why didn’t past solutions work?
- What do you and your team definitely know about the current problem?
3. Find the root cause
Ask yourself "why" questions about the problem to find its origin point. Your initial assumptions about a problem might stand in the way, so as you learn more about the issue, don’t be afraid to change how you look at it. You'll get closer to the root cause as you reframe your understanding around these discoveries.
If you need help uncovering the root cause or challenging your initial assumptions, these templates can help:
- The 5 whys template helps you get to the root cause of a problem.
- Reverse brainstorming templates reverse the way you frame problems to find new solutions.
- A DMAIC template lets you define, measure, analyze, improve, and control a problem.
- Mind map templates allow for brainstorming causes, effects, and solutions in a shared space.
4. Describe your ideal outcome
Now that you understand the problem, think about your ideal outcome. Whether you're solving a problem with your product or an internal process, remember to avoid scenarios where you put a Band-Aid on the issue. Even if you can avoid specific symptoms in the short term, letting a core problem go unsolved can lead to other setbacks later.
In some cases, you can describe safeguards that let a process work as intended. You can also write an alternative process that avoids the issue altogether. This ideal outcome will inform your goals and objectives in the next step.
5. Propose a solution and outline its benefits
Finally, your problem statement should include solutions to the problem. Including more than one solution gives stakeholders and your team options for deciding your approach. Note the benefits of each solution, highlighting why it stands a chance of working or how it can save on time and costs.
To ensure you arrive at the best solution, be sure to:
- Ask your team if the proposed solution matches their understanding of the problem.
- Consider more than one solution. Sometimes, you can choose between multiple options or apply more than one solution at once.
- Include long-term financial, intangible, and operational benefits the solution provides.
- Consider whether your solution has blind spots or causes changes that could lead to more issues.
Problem statement examples
Now that you know how to write problem statements, here are some examples.
Example 1: Support ticket wait times
Suppose you’re a support manager at a midsize SaaS company. Ideally, you want to respond to every support request within a few hours. However, your team can’t reach turnaround times fast enough to meet customer expectations. Start by breaking down the elements of your problem statement:
- Gap: Customers have long wait times for their support tickets to get a response.
- Orientation: This problem began in the last few months and has only worsened.
- Impact: Customers aren't happy with their quality of service, and your teams feel burnt out from trying to keep up.
- Importance: Retaining customers with support is essential for sustaining your business.
Now that we’ve laid out the details, we can format it as a problem statement:
- Identify the problem: You have high support ticket turnaround times. Gather data by tracking how the time has lengthened in the past few months and talking to customers about inconsistencies in wait times.
- Put it into context: Customers upset about their wait could switch to competitors. You initially assumed it was seasonal demand rising, but wait times haven’t tapered off, which could cause reputational and financial problems.
- Find the root cause: You initially assumed demand had increased. Support tickets have remained steady, but your AI support designed to solve minor problems has had fewer tickets. This lack of AI support has your teams stretched thin.
- Describe your ideal outcome: AI support should be able to handle more advanced queries. This way, your service teams can focus solely on tickets too advanced for AI.
- Propose a solution: Choose between assigning devs to revamp your AI or investing in a new solution to handle tickets. You can also consider reworking support agents' workflows to focus more on direct customer contact.
Example 2: New feature development
Assume you're a project manager at a tech company. You offer a platform that tracks goals and finds inefficiencies in your programmer's workflows. Your leadership wants to release a tool that lets customers estimate the amount of money earned for each workflow issue they correct. However, you aren't sure you have the resources to implement the feature.
- Gap: You need to create a payoff calculator, but you may not have the necessary resources.
- Orientation: The problem began when you received the assignment. The more time you spend researching the new tool , the less time you have to implement it.
- Impact: Failure to get this feature off the ground will give competitors who offer this tool an advantage.
- Importance: You need this feature to stand out from competitors and for lead generation.
With this information, you can turn it into a problem statement:
- Identify the problem: Your team doesn’t have the resources to design and implement a new feature. Start by interviewing stakeholders and employees who have worked on tools like this—they can explain the issues and solutions that go into adding this feature.
- Put it into context: Not implementing this feature would give competitors an edge and potentially push customers interested in payoff calculators away from your product.
- Find the root cause: Your team currently isn't tracking the necessary metrics to use in an ROI calculator. Your team also doesn't have enough experience with the kind of tool to build it from scratch.
- Describe your ideal outcome: Your devs add the calculator to your platform. This feature draws in new customers interested in the tool and helps current ones make the switch.
- Propose a solution: Your devs learn more about the feature’s framework and add the ability to track ROI-centric metrics. From there, you can create a project roadmap to get this feature added to the platform in a few months.
Problem statement template
Ready to start writing your own problem statement? Try our problem statement template below.
Get your team on the same page to solve problems faster
Project managers used to putting out fires can tell you how much of their job comes down to problem-solving. But before working on solutions, you need to organize your team around a clear problem statement. Find actionable, collaborative solutions by rallying everyone around a shared understanding of a problem.
Once you square away your problem statement, check out our library of over 300 templates . With FigJam, your team can plan and strategize around every step of your project. The right online whiteboard helps you exchange feedback and loop in other teams to find solutions faster.
Go to next section
60 Vision and Mission Statements for Teams
Chris Drew (PhD)
Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]
Learn about our Editorial Process
A mission statement elucidates the purpose and primary goals of your team. It explains to the team members, stakeholders, and management why we invest our time and effort working together daily.
For mission statements, you might want to ask:
- What are the three to five fundamental reasons why the team has been created?
- What is unique about your team’s approach or philosophy that informs your views on teamwork?
A vision statement portrays the future ambitions you have for the team. For vision statements, you might want to ask:
- What do you aim to accomplish by the end of the project or year?
- What type of skills do we aspire to develop as a team?
Of course, both overlap a lot and look similar, but it’s good to know the difference, at the very least to ensure you include mission and vision elements in your statement.
Let’s explore some samples.
Mission Statements for Teams
1. teams at school and university.
- Team Unity: “Our mission is to foster a harmonious team spirit, enhancing connections and improving interrelation skills.”
- Academic Excellence: “Our collective mission is to strive for academic success and constant growth in our subjects of study.”
- Community Service: “We aim to engage in community service initiatives, developing altruism and promoting social responsibility among members.”
- Peer Support: “Our mission is to encourage mutual support, ensuring every team member feels included and valued.”
- Skill Enhancement: “We are committed to enhancing our teamwork capabilities, leadership skills, and problem-solving tactics.”
- Sportsmanship: “We aim to exemplify sportsmanship, fostering integrity, respect, and fairness in the field of play.”
- Creativity and Innovation: “We strive to stimulate creativity and innovation, providing a platform for every member to share ideas and solutions.”
- Diversity and Inclusion : “Our mission is to embrace diversity and ensure all members feel included and respected, regardless of their backgrounds.”
- Fun and Engagement: “Our mandate is to ensure an engaging, fun-filled, and dynamic environment that inspires learning and growth.”
- Sustainability Advocacy: “We are committed to promoting sustainable practices among team members and creating environmental awareness in our school.”
See Also: Mission Statements for Classrooms
2. Teams in the Workplace
- Team Collaboration: “Our mission is to foster a collaborative environment that promotes problem-solving and innovative thinking.”
- Customer-Centric Approach: “We pledge to put our customers first, constantly striving to surpass their expectations through our services.”
- Continual Improvement: “Our objective is to ensure continual improvement and embrace a mindset of ongoing learning and development.”
- Productive Environment: “We aim to cultivate a productive and efficient workplace, maximizing the potential of each team member.”
- Ethical Conduct: “Our mission is to uphold the highest standards of ethical conduct in everything we do.”
- Inclusion and Diversity: “Our ambition is to promote an inclusive and diverse workplace where every voice is heard and respected.”
- Quality Assurance: “We are committed to delivering superior quality in all our endeavors, aiming for excellence in our field.”
- Technological Integration: “Our mission is to leverage technology in our tasks, leading to improved efficiency and accuracy.”
- Business Growth: “We strive to foster business growth by meeting targets, improving customer relationships, and increasing brand loyalty.”
- Health and Safety: “Our commitment is to maintain a healthy and safe work environment, mitigating any potential hazards to our team members.”
3. Not-for-Profit Teams
- Community Focus: “Our mission is to create a better community by providing valuable resources and assistance to those in need.”
- Advocacy: “We strive to advocate for the rights and well-being of vulnerable individuals and communities.”
- Volunteerism: “Our purpose is to foster a spirit of volunteerism, inspiring individuals to contribute to societal change.”
- Access to Education: “Our mission is to put all our efforts into providing quality education to every child, regardless of their circumstances.”
- Sustainability: “We aim to promote sustainable practices and environmental awareness within our community and beyond.”
- Health Improvement: “Our commitment is to improve health outcomes in our community through education, services, and support.”
- Cultural Diversity: “Our objective is to promote cultural diversity, inclusion, and mutual respect within our community.”
- Poverty Reduction: “We strive to reduce poverty by providing necessary resources, support, and opportunities to individuals in need.”
- Human Rights: “Our mission is to uphold and promote human rights and social justice on every possible front.”
- Animal Welfare: “Our primary duty is to protect and promote the welfare of animals, advocating for their rights and humane treatment.”
See Also: Mission Statements for Non-Profits
Vision Statements for Teams
Now, let’s move onto your vision statement. Remember, vision statements are about where you’re going – what do you want to achieve as a team? They’re going to be future-oriented statements that talk about your aspirations.
- Innovative Thinkers: “We envision our team as a hothouse of innovative thinking and problem-solving, bringing forth game-changing ideas.”
- High Achievers: “Our vision is to achieve the highest standards in our chosen field, becoming a benchmark for others.”
- United Team: “We aspire to stand as a united team where every member’s thoughts and ideas are valued, fostering an inclusive environment.”
- Self-Development: “We aim at individual growth along with team progress, honing personal skills and capacities for our future.”
- Community Impact: “We envision our team making a significant positive impact on our school and local community.”
- Resilient Players: “Our goal is to develop a resilient team that focuses not just on winning, but also on bouncing back from losses.”
- Life Long Learners: “We aspire to evolve into lifelong learners, using every challenge as an opportunity to learn and grow.”
- Skilled Champions: “Our vision is to harness our skills, pushing the boundaries of our potential and becoming champions in our area.”
- Embodiment of Fair Play: “We aim to become a team that stands as an embodiment of fair play and good sportsmanship.”
- Social Awareness: “We aspire to be more than just a team, spreading awareness among our peers about critical social issues.”
See Also: Vision Statements for Universities
- Leadership Excellence: “We aspire to establish ourselves as leaders in our field, driving change and setting industry standards.”
- Customer-Centric Success: “Our vision is to be the most customer-centric team, creating unparalleled experiences for our clients.”
- Innovation and Creativity: “We foresee ourselves transforming the industry through innovative practices and creative problem-solving.”
- Inspiring Collaboration: “We envision fostering an environment of collaboration that inspires shared successes across our organization.”
- High-Performance Team: “Our vision is to become a high-performance team, delivering quality and excellence in every task.”
- Transparent Communication: “We aspire to practice genuine transparency in communication, strengthening trust and integrity within our team.”
- Ethical Vanguard: “Our vision is to be a benchmark for ethical business practices in our industry.”
- Diverse and Inclusive: “We aspire to epitomize diversity and inclusivity, promoting an environment where everyone’s voice is heard.”
- Sustainable Practices: “We envisage ourselves as a team that champions sustainability, making conscientious choices for a healthier environment.”
- Work-Life Harmony: “We aim to create a culture that encourages a balanced work-life harmony, looking after our team’s well-being.”
- Empowering Community: “We envision a world where every community member is empowered and has access to necessary resources.”
- Respect for All: “Our vision is of a society that respects and protects the rights of all its citizens, including the most vulnerable.”
- Universal Volunteerism: “We aspire to nurture a society where volunteerism becomes a universal norm, with everyone contributing to their communities.”
- Education for All: “Our vision is a world where every child, regardless of circumstances, has access to quality education.”
- Sustainable Future: “We look forward to a society that values and effectively practices sustainable habits for a healthier planet.”
- Healthy Communities: “We envision communities where individuals have access to quality healthcare and lead healthy, productive lives.”
- Celebrating Diversity: “We aspire to live in a world that celebrates cultural diversity, fostering mutual respect and inclusion.”
- Poverty-Free World: “We envision a world free from poverty, where everyone has access to opportunities and resources.”
- Freedom and Justice: “Our vision is a society where human rights are upheld and social justice is a reality for all.”
- Safe Haven for Animals: “We dream of a world where all animals are treated with kindness and live their lives free from harm or mistreatment.”
Tips for Writing your Vision and Mission Statements
While developing mission and vision statements for your team, reflect on the key values that anchor your team culture and work style, as well as your organization as a whole. These will consequently shape your mission and vision.
Consider, for example, what your company’s or schools’ mission statement is, and make sure your team statement has synergy with the overarching aim of your institution.
Furthermore, consider your team’s approach to work, team goals , decision-making style, and the personal values that each member contributes.
For instance, if you’re part of a team that embraces an agile work methodology, you’d likely incorporate concepts like “flexibility” and “iteration” into your mission. If your team champions a democratic decision-making style, you’d possibly weave ideas like “collaborative decision-making” into your vision.
Core values and philosophies that may resonate with you as a team include:
- Open Communication
- Collaboration
- Inclusivity
- Accountability
- Continuous Improvement
- Transparency
- Adaptability
- Recognition
- Sustainability
- Customer Focus
- Responsibility
- Goal setting
Before you Go
Explore some of our other mission statement guides:
- Mission Statements for Resumes
- Personal Mission Statements
- Mission Statements for Churches
- Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd-2/ 10 Reasons you’re Perpetually Single
- Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd-2/ 20 Montessori Toddler Bedrooms (Design Inspiration)
- Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd-2/ 21 Montessori Homeschool Setups
- Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd-2/ 101 Hidden Talents Examples
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By Jill Babcock Leaders Staff
Jill Babcock
Personal Development Writer
Jillian Babcock is a personal development writer for Leaders Media. Previously, she was a senior content writer at Ancient Nutrition,...
Learn about our editorial policy
Updated Apr 21, 2023
Reviewed by Hannah L. Miller
Hannah L. Miller
Senior Editor
Hannah L. Miller, MA, is the senior editor for Leaders Media. Since graduating with her Master of Arts in 2015,...
Why Your Company Needs a Mission Statement + Examples and Tips
What is a mission statement purpose and benefits, how to write a mission statement , 21 examples of the best mission statements, mission statement vs. vision statement, mission statement faqs, ways to make your mission statement stronger.
Increased motivation, engagement, loyalty, and performance—these are all qualities leaders are tasked with inspiring, boosting, and maintaining within their companies. Yet, many businesses underperform and wind up failing. According to the U.S. Bureau of Labor Statistics, less than 50% of startups survive through their fifth year. There’s reason to believe that one of the issues standing in their way is the lack of a clear, well-defined mission statement, which is needed to guide a company and its people.
Research done by McKinsey & Company and the University of Minnesota found that companies with a clear and concise mission statement are more likely to outperform their competitors . Similarly, Harvard Business Review reports that companies with a clearly defined and communicated mission statement have higher levels of employee engagement and loyalty. Additionally, 63% of employees at companies with solid mission statements report being motivated, versus 31% at other companies.
Every business and organization should have a well-crafted mission statement, considering it answers the question , “What do we do?” When you have a great mission statement that leads your organization, it serves as a guiding light that:
- Clarifies the business’s purpose and goals.
- Allows employees to understand how their work contributes to the organization’s success.
- Helps customers, investors, and other stakeholders understand what the company does.
- Describes why the company exists.
- Explains how the business is different from competitors.
In this article, learn how companies and entrepreneurs can develop mission statements that effectively guide their organizations and teams so they can increase their impact and success.
Key Takeaways
- A mission statement communicates an organization’s core values, defines its target audience, and outlines its primary products, services, and activities.
- Crafting one is an important step for shaping organizational identity and business culture and for guiding strategic decision-making.
- A business’s mission statement should first be established when the organization is founded or undergoes a significant change in its purpose or direction.
- It can then be updated as needed and treated like a “living document.”
- In order to be most useful, a mission statement should be specific, measurable, achievable, relevant, and time-bound (SMART).
- The best mission statements are concise, clear, realistic, easy to understand, and aligned with the organization’s overall strategy and objectives.
“A mission statement defines what an organization is, why it exists, its reason for being.” Peter Drucker
A mission statement is a concise statement that describes the fundamental purpose and values of an organization. A company’s mission statement provides a clear, compelling, and memorable description of the reason for the business’s existence , as well as its objectives. Additionally, it aligns employees’ actions and behaviors with the company’s goals. It can also differentiate the organization from its competitors to build a strong brand identity. In other words, it explains why a customer should buy or work with a specific company over others that are similar.
A well-crafted mission statement should answer several important questions about an organization, such as:
- What does the organization do?
- Who does it serve?
- How does it serve them?
- What are the organization’s core values and principles?
- What makes this company unique and valuable?
- What is the organization’s vision for the future?
“A mission statement should be a living, breathing thing that everyone in your organization can embody and strive towards.” SIMON SINEK
Crafting a powerful mission statement into a concise message starts by answering a few basic questions: “Who?” “What?” “Why?” “How?”
A mission statement should be concise and easy to understand yet comprehensive enough to capture the essence of the organization’s purpose and goals. It should also be aligned with the organization’s overall strategy and key objectives.
Elements to Include in a Mission Statement
- What problem is being solved: The mission statement should clearly state the organization’s purpose, offerings, products, and the problems it’s trying to solve for its customers.
- Values: It should reflect the organization’s core values and principles.
- Customers/target audience: It should identify the target audience or customers that the organization serves.
- Unique selling proposition: The mission statement should explain what sets the organization apart from its competitors.
- Goals/objectives: It should outline the organization’s goals and objectives, which should be specific, measurable, achievable, relevant, and time-bound (SMART).
- Culture: The mission statement should reflect the corporate culture (the shared values and beliefs that exist within a business) and the personality of the organization.
- Vision: It should express the organization’s vision for the future.
Keeping in mind that mission statements should be concise (typically 40 words or less), you don’t necessarily have to address every element mentioned above in your statement. Overall, try to touch upon at least 2–3 of the points, especially those most important to the company’s goals.
To understand the components that make up a good mission statement, it helps to look at some examples from companies that do it right. Below are 21 mission statement examples taken from various companies and organizations:
1. Google: “To organize the world’s information and make it universally accessible and useful.”
Why it’s good: It identifies the service provided, its unique offerings, and is concise.
2. Amazon: “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.”
Why it’s good: It states the unique services provided, mentions the target audience, and explains how it operates.
3. Starbucks: “To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.”
Why it’s good: It’s unique, memorable, enduring, and inclusive.
4. Nike: “To bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)”
Why it’s good: It inspires, mentions the target audience, and is motivational and memorable.
5. Disney: “To entertain, inform, and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds, and innovative technologies that make ours the world’s premier entertainment company.”
Why it’s good: It’s specific, explains the products and services offered, addresses the target audience, and differentiates the brand.
6. Walmart: “To save people money so they can live better.”
Why it’s good: It’s to the point, clear, and understandable.
7. LinkedIn: “To connect the world’s professionals to make them more productive and successful.”
Why it’s good: It’s clear, states the main objectives, and addresses the audience.
8. FedEx: “To enable global commerce through our extensive portfolio of e-commerce, transportation, and business solutions.”
Why it’s good: It’s specific, clear, and states the services offered.
9. IBM: “To be essential to our clients’ success by providing world-class solutions and services that leverage industry and business process expertise, and our global scale, while demonstrating a commitment to sustainability.”
Why it’s good: It’s specific, it mentions the target audience, and it differentiates the company from other brands.
10. Airbnb: “To create a world where anyone can belong anywhere.”
11. Tesla: “To accelerate the world’s transition to sustainable energy.”
12. Ford: “To drive human progress through freedom of movement.”
Why it’s good: It’s concise, it explains key objectives, and it’s motivating and enduring.
13. Etsy: “To keep commerce human, and we’re committed to using the power of business to strengthen communities and empower people.”
Why it’s good: It explains the service provided, mentions the audience, and is enduring.
14. Procter & Gamble: “To provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.”
Why it’s good: It’s rooted in the company’s values, it’s enduring, and it elevates the brand.
15. The New York Times: “To enhance society by creating, collecting, and distributing high-quality news and information.”
Why it’s good: It’s specific, clear, action-oriented, and timeless.
16. The American Red Cross: “To prevent and alleviate human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors.”
Why it’s good: It states the objectives, mentions the target audience, and is rooted in the organization’s values.
17. Teach for America: “To enlist, develop, and mobilize as many as possible of our nation’s most promising future leaders to grow and strengthen the movement for educational equity and excellence.”
Why it’s good: It’s clear, understandable, motivating, and enduring.
18. Amnesty International: “To conduct research and generate action to prevent and end grave abuses of human rights, and to demand justice for those whose rights have been violated.”
Why it’s good: It’s specific, action-oriented, rooted in core values, and understandable.
19. The Nature Conservancy: “To conserve the lands and waters on which all life depends.”
Why it’s good: It’s concise, action-oriented, and rooted in core values.
20. The World Wildlife Fund: “To conserve nature and reduce the most pressing threats to the diversity of life on Earth.”
21. Doctors Without Borders : “To provide independent, impartial assistance to those in need, irrespective of race, religion, gender, or political affiliation.”
Why it’s good: It’s rooted in core values, explains the target audience, and is memorable and timeless.
“Your mission statement becomes your constitution, the solid expression of your vision and values. It becomes the criterion by which you measure everything else in your life.” Stephen Covey
A mission statement describes what an organization currently does , while a vision statement describes where it wants to go in the future. Both are important for setting the direction of an organization, but they serve different purposes.
Here’s the main difference between the two:
- A mission statement outlines an organization’s purpose and objectives. It is typically short, concise, and focused on the present , with the goal of explaining what a company currently does.
- A vision statement, on the other hand, is a statement of an organization’s aspirations for the future. It is typically more inspirational than a mission statement and sometimes longer, although studies suggest that successful companies usually have overall concise vision statements . The vision statement answers the question, “Where do we want to be?” It also outlines the organization’s long-term goals, its desired future state, and its ideal outcomes.
Here is an example of a mission statement vs. vision statement from the same company:
- Mission: “To provide energy solutions that reduce the world’s carbon footprint.”
- Vision: “Our vision is to be the world’s leading provider of sustainable energy solutions, empowering individuals and businesses to reduce their carbon footprint and create a cleaner, more sustainable future for all.”
How can you write an effective mission statement?
A mission statement should be concise and focused. Get to the point explaining what your company offers, for who, and why. Focus on doing this in just 1–2 sentences, if possible, while also including what makes your company unique.
What makes a mission statement bad?
Avoid certain things when writing a mission statement, such as making it far too long, unrealistic, or unrelated to your company’s values. You don’t want to include information that is irrelevant to the organization’s purpose and values, or that’s too misleading.
Keep these tips in mind when writing a mission statement:
- Specific financial goals or performance targets, which should be included in the organization’s strategic plan and financial projections instead.
- Technical details, jargon, or specific industry terms that may be difficult for non-experts to understand.
- Generic or cliched language that is overused or doesn’t convey a clear sense of the organization’s purpose.
- Buzzwords or words that are open to interpretation.
- Superfluous information that’s not relevant, such as the company’s history, its founders, or its location.
- Promotional language that is too self-aggrandizing.
When determining the difference between a bad and good mission statement, ask yourself:
- Could someone easily recite this back?
- How will the target audience respond?
- Does this statement inspire or elicit a positive emotional response?
- Are the company goals and core values clearly expressed?
- Is this mission realistically achievable?
Can a mission statement change?
Yes, they can. While you don’t want to constantly change your mission statement, it’s acceptable and even expected for it to change as the business grows, develops, and has new needs and goals.
A company may also need to revise or update its mission statement over time to reflect changes in the market, customer needs, or the company’s goals and objectives. For example, if a company expands into new markets or introduces new products or services, its mission statement may need to be updated to reflect these changes.
It is also important to note that a mission statement is not a one-time task, but an ongoing process. A company should regularly review its mission statement to ensure that it still accurately reflects the company’s purpose, values, and goals, and to make updates or revisions as needed.
Overall, a good mission statement should be considered a living document that evolves with the company.
A strong mission statement should be a powerful and memorable statement that concisely communicates the essence of the organization’s purpose. To help make a mission statement more actionable, keep these tips in mind:
- Get clear on your vision, values, and purpose first: These must be established so that the right information is being conveyed. To gather input, schedule a brainstorming meeting with key players on staff. Ask the team what they believe the company mission is or should be. Create a list of the messages employees convey.
- What voids are being filled by the organization?
- Why is the company valuable to others?
- What collective goals does the business work together on?
- Why should customers care?
- Be memorable and authentic: Reflect on the true values of the company and not just its aspirations. Think of what makes the company different from others and include information to represent its uniqueness.
- Be relevant but timeless: A strong mission statement should be relevant to the organization’s target and also timeless and enduring. It should reflect the reason that the organization was originally founded, even if the organization evolves and changes over time.
- Communicate within the organization: Start by communicating the company mission with employees before sharing it with customers. Employees need to understand the new mission statement and any transitions being made within the organization.
- Make the statement visible: To be impactful, a mission statement needs to be visible across various brand touchpoints. This includes, but is not limited to, the company’s website, product labels, social media accounts, marketing materials, and promos for community events.
Want to learn more about crafting your personal life’s vision and mission? Check out this article: “ How to Create a Vision for Your Life .”
Leaders Media has established sourcing guidelines and relies on relevant, and credible sources for the data, facts, and expert insights and analysis we reference. You can learn more about our mission, ethics, and how we cite sources in our editorial policy .
- Small Business Funding. Small business success and failure rates . Retrieved from https://www.smallbusinessfunding.com/small-business-success-and-failure-rates/
- Robbins, S.P., Coulter, M., & DeCenzo, D.A. (2017). 4.3 The Roles of Mission, Vision, and Values. In Principles of Management. University of Minnesota Libraries Publishing. Retrieved from https://open.lib.umn.edu/principlesmanagement/chapter/4-3-the-roles-of-mission-vision-and-values/
- Kaplan, R. S., & Mikes, A. (2020). More than a mission statement: How the 5Ps embed purpose to deliver value. McKinsey & Company. Retrieved from https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/more-than-a-mission-statement-how-the-5ps-embed-purpose-to-deliver-value .
- Economist. (2019, November 11). Why are we here? Harvard Business Review. Retrieved from https://hbr.org/2019/11/why-are-we-here
- Pearce, J. A., & Robinson, R. B. (2019). Vision, mission, and goals . In Strategic management (pp. 26-32). Virginia Tech Libraries. Retrieved from https://pressbooks.lib.vt.edu/strategicmanagement/chapter/2-2-vision-mission-and-goals/
- Brenner, M. (2021). Chapter 4: Strategy and strategic planning . In Strategic marketing (2nd ed.). Oregon State University Open Textbook Library. Retrieved from https://open.oregonstate.education/strategicmarketing/chapter/chapter-4-strategy-and-strategic-planning/
- Mohd Isa, N. A., Abu Bakar, N. A., & Baharuddin, A. S. (2021). C ontent analysis on vision and mission statements of selected companies in Malaysia. Journal of Technology and Operations Management , 16(1), 36-47. Retrieved from https://www.researchgate.net/publication/352092142_CONTENT_ANALYSIS_ON_VISION_AND_MISSION_STATEMENTS_OF_SELECTED_COMPANIES_IN_MALAYSIA .
- University of San Francisco. The importance of a strong mission statement in public administration . OnlineMPA.USFCA.edu. Retrieved from http://onlinempa.usfca.edu/resources/news/the-importance-of-a-strong-mission-statement-in-public-administration/ .
- SME Strategy. (2018, July 19). What is a mission statement? Why is it important? https://www.smestrategy.net/blog/what-is-a-mission-why-is-it-important .
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How To Craft A Compelling Problem Statement
mins read ⋅
December 7, 2022
The problem statement is an all-important asset to the startup. It forms the core of the business and the reason for it to exist, by laying out the real-world challenge that your business is focused on resolving .
Let’s take an example that will be familiar to us all. Here’s a problem statement for a video conferencing company through the past few years:
“The office cannot open and people are asked to stay in their homes except when they need to leave for absolute essentials like food and healthcare. This means that they cannot work in an office and collaborate as a business like they used to.”
Companies like Zoom, Microsoft (via Teams), and others benefitted from the disruption that was caused by the pandemic. They continue to thrive post-pandemic because the solutions were so adept at addressing the problem statement that the value they added to the employee’s day became intrinsic.
If you can be the first to observe a genuine pain point within the community, and pinpoint the reason that it is a problem, then you’ve got the perfect business pitch. That’s the power—and utility—of a problem statement.
So, what is a problem statement?
A good problem statement is beautiful in its simplicity. It should be a one or two sentence statement that clearly articulates a problem that you—and your business—want to address. Its purpose is to inspire creative thinking but ( and this is critical ), it is not there to describe the solution .
Getting the order right is important here: How often have you heard the phrase “that was a product looking for a problem to solve” in relation to a failed product release? That typically happens when an entrepreneur thinks they have a great idea, but haven’t thought about what their idea is specifically there for.
A problem statement ensures that the creative energy that is going into the product development is driving towards a particular end-goal, rather than the vague intention on making something of high quality, or something that sells well.
A problem statement is a top-line statement, similar to a mission or vision statement . However, it is different in its focus. A mission or vision statement helps guide the behaviour of the company. Meanwhile, a business might have multiple problem statements and each of those might have one (or more) products developed to become the solution to the statement.
If you approach innovation the right way, the problem statement becomes the standard that the product is judged by. When you’ve got everyone in the team asking “does this address the problem statement?” at each stage of development, then success is much more likely.
The seven questions behind every good problem statement
The irony with simplicity is that it’s the most difficult thing to achieve. Most people would rather write a 10,000-word essay than try to come up with just a few sentences that encapsulates a problem in its entirety.
The best way to go about formulating an effective problem statement is an old-fashioned brainstorming session. Whether you do this yourself or with some co-innovators, sit down and ask yourself these seven questions:
1) What is the problem that needs to be solved?
(People can’t work in their offices for at least a few months, and possibly indefinitely).
2) Why is that a problem?
(If people can’t work, a business isn’t likely to survive for long).
3) Where is the problem observed?
(The office location, or, more accurately, the absence of a previously existing location to do work).
4) Who is impacted?
(Everyone that works in the office, and, by extension, any customer that interacted with those people).
5) When was the problem first observed?
(The day the lockdowns were announced).
6) How is the problem observed?
(Are people in the office? If not, the problem has been observed).
7) How often is the problem observed?
(Massive scale, with just about every business being affected by lockdowns and office closures, globally).
Once you have answers to these seven questions, then you’ll be able to consolidate them down to arrive at the essence of the problem—your problem statement. With that drafted, ask yourself if it contains the following information:
Does it identify a gap (pain point), explain when, where and what that gap is speaking to, quantify the gap in terms of cost, size, quality, and so on, and explain why this gap needs to be filled?
If it has all this information, congratulations—you’ve got the material that you need to clearly draft up your problem statement!
How to write a problem statement
Mechanically, writing a problem statement once you’ve brainstormed your way through the questions above is quite simple:
1. Identify the biggest problem
It is very likely that the brainstorming session has highlighted multiple challenges in need of solutions. The biggest opportunities rest with the biggest problems, so the first task is to highlight which problem you should turn into a problem statement.
2. Spend the first part of the statement being explicit about the source of the pain
Back to our example: “The office cannot open and people are asked to stay in their homes except when they need to leave for absolute essentials like food and healthcare.”
For a problem statement to work, you need to detail the full extent of the “pain” being caused. You could write “people can’t come to work,” but this isn’t specific. There are any number of reasons that people can’t come to work (or simply don’t want to!), so in the example here a good problem statement will specify the exact reason why people can’t come in to work.
3. Make it human
Business ultimately exists in service to humanity, and to craft a compelling problem statement, it needs to relate back to the human experience somehow. “Employees can’t collaborate in the office like they are used to,” makes it clear that people are being prevented from doing something that they want to, and that therefore is a relatable, human problem to be solved.
4. Make it clear that there’s a solution
Lastly, there’s no problem coming up with a problem statement for something that doesn’t have a solution. In our example above, it’s clear that the solution is coming up with a new way to collaborate. Your problem statement shouldn’t describe the solution, but it should highlight that you know there is one.
Finally, make sure you make it brief. Not more than two sentences. You want to capture your audience’s attention and give them something immediately inspiring and motivating. The longer the problem statement the more room there is for interpretation.
Where problem statements can go wrong
There are four common mistakes that can act to undermine a problem statement. We call them “distractions” and their presence within a problem statement can lead a team to create a product or solution that addresses the distraction, rather than the actual core of the problem.
Here are the four main distractions that can negatively impact on a problem statement’s effectiveness:
If the problem statement ends up addressing a symptom, rather than the underlying problem, then the product or service developed out of it will be of limited appeal and utility. To go back to the remote work example, if the problem statement was “people are having trouble collaborating while working from home,” a “solution” might be to give them a webcam, and that’s obviously not going to address the real problem that organizations faced in this.
In other words, we’re talking about first principles thinking here. Being able to answer the question “what is the customer’s fundamental problem?” means that you’ve cut through the superficial symptoms, and key to the success of the problem statement.
There are steps between developing the problem statement and actually getting into product or solution development. Jumping those steps and including solutions within the problem statement is a recipe for disaster. The reason for this is simple: a problem statement features a number of assumptions, and until you can test those assumptions you can’t be sure that the solutions that you’re developing will address the actual problem.
Causes have no place in a problem statement, because again, this is something that is investigated once there is agreement on what the problem is. Take the working from home example that we’ve been using. It would be very easy to say that “COVID-19” is the cause for lockdowns and working from home. However, there was already a trend towards people working from home before COVID-19 first hit the headlines: the cause behind working from home was already there. COVID-19 accelerated it, but if you developed a solution for COVID-19-driven working from home, you may well miss the actual root problem, resulting in an inferior and limited product or solution.
There’s a close association between “problem” and “blame,” so it’s not unusual for blame to be thrown around during the brainstorming session. The final problem statement, however, should be blame-free, because the implication that comes with blame is that those responsible should be driving the solution.
Or to put it another way: it might be easy to blame management for not having the foresight to enable working from home before the pandemic hit. However, the solution, and the problem, is simply that people need to work from home. Who is responsible for that need is completely irrelevant to the form the solution will take.
To summarize; a problem statement itself needs to be simple, and focused on an underlying problem that currently doesn’t have a solution to users. This is the problem that you will try and solve. That’s it. Nothing more.
Problem Statement Examples
Here are some real-world examples of companies, and the problem statement that underpinned their genesis. You’ll see the common thread across them—they succinctly and clearly describe the problem they’re solving, not the product/solution that they’re selling:
Facebook : “It’s easy to find music, news, and information online, but connecting and interacting with your family and friends is inefficient and cumbersome.”
Stripe : “Ecommerce is dominating, but accepting payments online is difficult and well beyond the means of small businesses in particular.”
Canva : “For marketers and small-business owners, it’s impossible to make attractive graphics for presentations and marketing without first taking courses in professional design software.”
Robinhood : “Young professionals want to build wealth and investments, but trading commissions have placed financial barriers to mass market participation in the stock market.”
Uber : “Finding a taxi when you need it the most can be difficult. You can call and book, but only hope that it will show up on time.”
Square : “Small retailers need to have a way of accepting credit cards, as more and more customers are using cards to make payments. However, payment terminals are expensive and the barrier to entry too much for these businesses.”
Spotify : “Consumers wanted music online and in a digital format, and are willing to pirate them if there isn’t a ‘legitimate’ option to access the music this way.”
Docusign : “Businesses are shifting to paperless offices, however, contracts still need to be signed in a secure and legally-binding way.”
LinkedIn : “All the social media networks are focused on personal identity and social interactions. Business leaders want to separate their personal and social lives from their business/corporate identity.”
Google : “Finding a website that contains authoritative information is difficult as there are a lot of websites, and existing search engines weren’t great at ranking them.
YouTube : “It’s easier than ever to digitize videos and have them on your computer, but to share them you need a platform that is accessible and easy to use.”
Grammarly : “People rely on the spelling and grammar tools in Microsoft Word as an efficient way to proofread their own work. Outside of Word, however, and on social media, they’re on their own.”
Duolingo : “People have an interest in learning a second or third language. However, formal courses might not fit with their timetables and can be expensive, and tapes or audiobooks can be in scope and feedback.”
What is fascinating about all of these startups that have grown to become billion-dollar companies is that their product suites are often big and complex. At the same time, because the problem statement was so well articulated at the business’ inception, the company has been able to maintain its focus on that core capability in the subsequent years.
The Bottom Line
It’s a good idea to get good at identifying opportunities and writing problem statements that address them. If you’re starting up a business, it’s the problem statement that will help guide you in product development and establishing your company’s differentiation .
Likewise, if you’re looking to invest in companies, being able to see a robust and well-formed problem statement is important. A “me too” business, or one that seems to be relying on the unsubstantiated genius of its founder, is unlikely to succeed. An entrepreneur that has successfully identified a problem and gap in the market, and is going to attack that problem with their startup’s products and solutions, is one to get excited about.
Having a problem statement is by no means proof of the future success of the company, but what it does do is show that the company understands where its opportunity lies.
More resources
TAM, SAM & SOM: How To Calculate The Size Of Your Market
Unicorn Companies Explained: How Startups Achieve the $1 Billion Valuation
Defining Your Value Proposition For Early-Stage Startups
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