Mission statements can be good value if they’re taken seriously

MISSION statements and values can often be cliched, overarching notions of the company’s purpose and objectives.

Organisations’ mission statements and values can often be cliched, overarching notions of the company’s purpose and objectives. They assume that everyone shares the same definitions of broad terms such as loyalty, ­accountability, customer relationships, teamwork, decision making and so on.

Instead of clarifying and clearly articulating how mission statements and values translate to their jobs, senior executives share these values with their staff, expecting to see them in action. The result is often poor behaviour and misalignment that is detrimental to organisational performance.

A recent Leading Teams survey of more than 500 Australian employees showed 40 per cent didn’t know their company mission statement and values. Of those who did know, one in 10 thought the mission statement and values were meaningless and irrelevant, and two in five believed they were general enough to apply to any company.

A significant issue with mission statements and values is that leadership teams do not take the time to define specifically what they mean when they use words like accountability or customer relationships. In the absence of clear communication of values, employee motivation declines, mainly because they do not understand the relationship between their job and the organisation’s overall objectives. In contrast, when leaders explain the company’s purpose through their vision and intentions as well as their behaviours, they effectively align employee energy and commitment.

An inspiring mission statement that is specific, relevant and motivating, engages employees. At its core, the senior management team’s job is to create and communicate the organisation’s reason for being. Managers must also be able to express a strong purpose for individual teams or business units. Engaging employees in the process is the best way of ensuring they will buy into the purpose and understand their role in fulfilling the collective goals.

Merivale is a great example of a success story. It has experienced record results at the top and bottom line, creating further opportunity for growth largely due to a positive shift in the mindset of its employees. Merivale recognised the need to change the company’s culture and established a senior leadership team to recognise and reward behaviours that would drive the business forward. This team also challenges the senior management on how the organisation’s values translate into the performance of its business units.

By addressing issues that connect the organisation’s overall purpose with team and employee performance, Merivale has seen significant changes. There is now a clear process for internal promotions, talented people can now see their career path, and attrition at high levels has slowed.

Staff will always have a greater sense of connection to their workplace when there is a clearly defined strategy around the company’s purpose and accepted behaviours. Knowing what the organisation stands for enables staff to be more engaged and promotes conversations around behaviour and performance, which builds relationships. The stronger the relationship, particularly under pressure, the better teams can work through issues and emerge better, stronger and more unified.

Garie Dooley is a partner at Leading Teams.