Strategic Planning in the Small Business

Unit

3

HO 3-3 (continued)

Some readv.rs may

tend to write off

or de-emphasize

this portion of the

planning process

by

telling

themselves that they

already know where

the firm is headed.

The two steps

discussed

in this chapter

are among

the most important

in he strategic

planning process.

The basic

mission and

its accompanying

strategic postures

p: ovide focus for the

firm. Without

a mission

statement,

the company

may flounder

about, headed in

no particular direction.

Without

a

formalized

strategic posture,

the firm may attempt

to build a strategy

which is not

well grounded

and

has little basis for

specific actions.

This chapter begins

with the importance

uf a written

mission statement.

A discussion of

the

specific

mrts and uses

of the mission statement

follows.

Once the mission

is determined, the

next action needed

is to develop

the strategic posture

which is the vaal

link between the

mission

of the business

and the strategy it

pursues.

THE

MISSION STATEMENT

This mission

statement

is a copr'ise statement

of the general

nature and direction

of the

company.

By carefully delineating

the underlying

aim, scope, and

direction of the business,

the

mission statement

becomes an outline

of what the

company will do

and what it will

be.

Although the mission

statement is purposely

broad, it

must offer a clear

word-picture of

the

firm.

Often, a, elaborate

sounding, sweeping

compilation of

platitudes is offered

as a mission

statement.

Such efforts

fail to provide the

necessary precision

and scope to

be used as

meaningful

planning tools. The

owner or manager

should ask the question,

"What separates

us

from

other similar companies?"

The answer,

in the form of

a mission statement,

stresses the

uniqueness

that is the

basis for a definitive

corporate strategy.

THE

VALUE OF THE

MISSION STATEMENT

A written mission

statement is

valuable for two

reasons. The first

is that it is a tool

for

communication

both

inside and outside

the firm. The financial

community,

key customers, and

suppliers will

be interested in

the direction the company

is moving.

But perhaps more important

is the internal

communication.

Often, employees

complain that

they never know

what is

happening;

they don't know

what management's

plans are

nor how they, the

employees, fit

within those plans.

Consequently,

it is difficult for

them to be committed

and motivated.

The

mission

statement gives

them those motivational

plans.

The

second major reason

is that once the mission

is printed and

publicized the owner

or manager

of

the firm has made

a strong statement

of commitment.

If one believes

in a concept or

philosophy

strong enough

to put it in writing,

then everyone

affected can expect

adherence to

the concept by that

person. This is

somewhat analogous

to New Year's

resolutions except

with

higher stakes. If a

person makes resolutions

but tells no

one, then no particular

incentive for

keeping

them exists.

However, if they

are written down,

pondered, and then

typed up, posted

on

the refrigerator, communicated

to friends,

and maybe

even wagered upon,

then the public

commitment
to these New
Year's' resolutions
means that they
cannot be broken
without losing

face. In the same

way, the written

mission statement

commits the manager

to the stated strategy

and philosophy,
and it may
result in equal commitment
by others
involved with
the business.

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