Is It Time to Update Your Company’s Mission Statement?

As your business grows and changes, it’s totally normal for your company’s purpose, goals, and target markets to evolve, too. When this happens, you might need to refresh your mission statement to keep it in line with where your business is headed and to inspire clients, employees, and investors. A great mission statement gives everyone who interacts with your business a clear picture of what you’re all about and what you’re aiming to achieve.

In this article, we’ll outline the difference between vision statements and mission statements. Plus, we’ll talk about when and how to tweak your mission statement as your business evolves. By the end, you’ll know how to craft a mission statement that truly reflects your brand’s purpose and how to communicate it effectively to your stakeholders.

First, What’s the Difference Between a Mission Statement and a Vision Statement?

This post is all about mission statements, but as your business evolves, it might be a good idea to take a look at your vision statement too. While your core values will likely stay the same, both your mission and vision statements might need a little refresh from time to time. But before making any changes, it’s important to understand the difference between the two.

Vision Statement

Think of a vision statement as your company’s destination—it’s a snapshot of what you want your business to become in the future. It doesn’t necessarily lay out a strategic plan, but it does paint a picture of where you’re headed.

Just as a lighthouse guides ships safely toward their destination by providing a clear and steady point of reference, a vision statement guides your business toward its long-term goals. It illuminates the path ahead, offering direction and inspiration as your company navigates through the challenges and changes of the business landscape.

A strong vision statement keeps everyone—employees, clients, and stakeholders—focused on the bigger picture and aligned with where the company is headed in the future. It helps ensure that all efforts are moving toward that shared destination, even when the journey gets tough or the waters become rough.

Mission Statement

On the other hand, a mission statement is all about the here and now. It succinctly describes what your company does, who you serve, and where you’re currently at in your journey. It’s more focused on the present and explains how you’re working toward the future outlined in your vision statement. A strong mission statement keeps your business on course, ensuring that all decisions and actions are aligned with your core values and long-term goals.

What Does a Great Mission Statement Look Like?

But what makes a great mission statement? According to Daniel J. Myers in a paper originally printed in New York Nonprofits, a well-written mission statement is “short and focused.”

However, a strong mission statement “should also be broad and overarching enough to encompass organizational purposes for many years.” You can always go back and edit. Still, anticipating how your company might change limits the need to alter your mission statement again in the near future.

The best mission statements—whether describing a company or nonprofit organization—”address opportunities; inspire commitment [and are] positive, exciting and inspirational.” Perhaps most important, the right mission statement is succinct, accurate and to-the-point.

As Myers puts it, an effective mission statement “is valid and fits with the abilities of the organization; and keeps the organization focussed.”

Why They Matter

Both vision and mission statements are important for internal and external marketing, but they serve slightly different purposes. Your mission statement is typically aimed at clients or customers, helping them understand what you do. Meanwhile, your vision statement is usually directed at your employees and shareholders, motivating and inspiring them with your long-term goals.

When to Update Your Mission Statement

As your business evolves, it’s crucial to keep your mission statement up to date to avoid confusion or miscommunication. An outdated mission statement can lead to misunderstandings with clients, employees, and investors. Not sure if it’s the right time? Below are a few scenarios that might resemble your current situation. If one does, it’s time!

1. You’re Seeking Funding: If you’re looking to attract investors or apply for grants, having a clear and accurate mission statement is essential. It’s a key element of any business plan and helps communicate your business’s intent to potential investors.
2. Your Business Has Evolved: If you sit down to rewrite your mission statement and realize it hardly resembles your current operations, target market, or core values, it’s definitely time for an update.
3. You’ve Expanded or Added Services: Whether you’ve opened a new location or added new services, your mission statement should reflect these changes to accurately represent your business.
4. Industry Changes: If your industry is undergoing significant changes, such as new technology or updated regulations, your mission statement might need a refresh to stay relevant.
5. Your Company’s Focus Has Shifted: If the reason you started your company is no longer the primary focus of your business, it’s time to adapt your mission statement to reflect your current goals.
6. You Want to Attract New Talent: An accurate mission statement can help attract and retain the right employees, especially in a competitive job market. It should clearly reflect your company’s purpose and appeal to potential hires.
7. There’s Confusion Amongst Clients or Employees: If you’re noticing confusion from clients or employees about your company’s mission or direction, it’s time to update your mission statement to ensure everyone is on the same page.
8. You Want to Clarify Your Company’s Trajectory: If you’re making changes to your business’s direction, updating your mission statement can help reassure employees and shareholders by clearly stating your intended path forward. Writing for Harvard Business Review, Morgan Galbraith acknowledges that change can be “unstable, stressful, and risky.” However, expressing “a clear meaning or purpose behind the change will strengthen your case.”
9. Your Mission Statement Doesn’t Stand Out: If your mission statement isn’t setting your company apart from others in your industry, it’s time for a rewrite. A strong mission statement should attract and inspire both clients and employees.

How to Update Your Mission Statement

Once you’ve decided it’s time for a change, the next step is to figure out how to update your mission statement effectively. Start by identifying the reason behind the rewrite. Are you trying to attract new employees, clarify your company’s direction, or simply reflect changes in your business? Once you’ve pinpointed the why, involve your team in the process. Survey your employees or host a meeting to brainstorm a new mission statement that resonates with everyone.

As your company grows, you may find that your mission changes. This is perfectly okay! Just make sure that those changes find their way into your marketing. Your marketing strategy and your mission should always align.

Melissa Grove, Design-Dash Co-Founder, COO, Laura U Design Collective

When drafting your new mission statement, keep it specific to your industry and use language that will resonate with your clients and stakeholders. Avoid jargon that might confuse or alienate your audience. And while your mission statement should hint at the future, it should primarily focus on your current offerings. Your vision statement, on the other hand, can describe your future goals in an inspiring but attainable way.

Pro Tip from Patagonia

Make sure your mission statement is flexible enough to allow for future growth. This way, you won’t have to rewrite it every time you expand into a new market or add a new service. Patagonia’s mission statement is a great example—it’s broad enough to encompass new ventures while still staying true to the company’s core purpose.

As “More than a mission statement” from McKinsey Quarterly explains, Patagonia’s mission statement is a great example of this approach. Patagonia’s mission used to be “’build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.'” A few years ago, the company updated its mission statement.

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Patagonia’s mission statement now notes that the company’s primary goal is “to save our home planet.” This statement “gives Patagonia the impetus to expand into multiple new businesses” as long as those businesses help “save our home planet.” Their all-encompassing yet perfectly accurate mission statement provides the wiggle room needed to explore new avenues while staying sustainable and meaningful.

Final Thoughts: Sharing Your Updated Mission Statement

After you’ve crafted your new mission statement, it’s time to communicate it to everyone involved—shareholders, employees, clients, and future customers. We recommend doing this through formal meetings and both internal and external marketing materials.

Present the new mission statement at an all-team meeting, and make sure to leave plenty of time for questions. Keep the message positive and actionable, and clearly explain any similarities or differences between the old and new statements.

Remember, no business evolves without a few growing pains, so be prepared for some bumps along the way as you roll out your updated mission.