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Mission Statement

In this day and age many people feel that Mission Statements have become irrelevant. With the speed of decisions and change that occurs so quickly, many Executives say that Mission Statements are too confining, they lack the fluidity that is necessary to compete in a fast paced world and are window dressing that have no value.

To those people, I simply ask them to “think again.” Mission Statements, if crafted correctly, are the cornerstone to an effective strategy. Mission Statements that are short, memorable and uniting can help all team members within an organization stay true to why that company exists.

So what is a good Mission Statement? Here are some of the qualities that I have found in Great Mission’s:

1. The statement is short. Less than 10 words and easy to remember
2. The statement answers the question, “Why does our company exist?”
3. It is used to make big decisions. So when someone in a meeting says, “Hold on, we are too in weeds, let’s step back and look at the big picture.” The Mission Statement can be referenced to provide clarity of direction and decision making
4. The Mission Statement is genuine and “lived.” Meaning that the culture of the company is inline with “it’s essence.” So when a Googler thinks about a new product or service - they can test it against - “Does this, Do No Evil?” And if it does no evil then it is in alignment.
5. The company should be on a Mission not just have a well written, verbose Mission Statement. So when Merck sets out to preserve and improve human life - that is a Mission that people can support.
6. It should be communicated often and should be easy to find within any office of the company
7. It should appear in all annual reports and strategic communications
8. It should be used in the hiring process to help identify candidates that can aid in it’s accomplishment
9. It should stand the test of time (20 years is a good length). If you can look at your Mission Statement and say 20 years from today we will still be focused on that “end” - then you have a solid foundation
10. It should be a worthwhile aim. Mission Statements that lack passion, importance and relevance to employees, clients and shareholders aren’t worth the effort it takes to create and communicate them

With these qualities stated, here are some tips to create a great Mission.

1. Ask your team this question - Why do we exist? Challenge them to think about this from an employee, client, shareholder and the general public at large standpoint.
2. Capture consistent themes that convey passion. For example, “To save lives;” “To share knowledge;” “To educate;” “To enhance;” “To simplify;” “To enrich.” These are all very brief ideas that convey a worthy effort.
3. Have your team (executive team) rank the top 3 themes and find the one that stands above all else.
4. Challenge them to consider if this ideal will be relevant 20 years from now
5. Once you have narrowed it down - have someone document it in 10 words or less.
6. Take some time to let it marinate and come back to it to see if it is correct
7. Once you are committed to it - then share it with the entire organization. Put it on your web site, your office walls, people’s desks, screen-savers, etc. I’ve even heard of companies that start meetings with a reading of their Mission Statement.
8. Use it to make decisions
9. Annually challenge your team to question where they are falling short of achievement toward it’s end
10. Live it

Here are some examples of great Mission Statement:

Disney - To make people happy
Google - To do no evil
Merck - To preserve and improve human life
Mary Kay - to give unlimited opportunity to women

To learn more about Mission Statements - here are some resources for you to review.

How To

The Growth Connection

Jim Collins (download the .pdf from this page)

My Strategic Plan

If you have a great Mission Statement - please send it to us.

It’s time to put a wrap on our conversation about target accounts. It is important to emphasize here that lacking specific criteria for choosing the right client can be a death sentence for early stage companies.

Not all clients are a good fit for your company. It is your responsibility as a leader to choose wisely and thoughtfully about with whom you do business. Here are some questions you should ask yourself when analyzing your client base:

• Are all of our clients profitable? If you don’t know, find out. For those that are not, put a plan into place to make them profitable. If that cannot be accomplished, or if they are unwilling to become profitable - it’s gut check time…I say walk away.
• Which of our clients are not paying in agreement with our terms? Then do the same analysis as above
• Are any of our clients putting such pressure and demands on us that it is negatively impacting the rest of our base? Then ask - is it worth it?
• Are any of our clients too big or too small for us to effectively service? Some symptoms of this are, 1) unrealistic demands from the larger companies, 2) services requirements that are outside your capabilities (again, usually larger companies, 3) support agents upset about the amount of time it takes to service accounts vs. what they are paying (could be either too small or too big of clients)…etc. Once a reasonable service range is established then do not extend beyond that range

With these answers in hand, you are now able to build a target client description that will allow you to focus. This focus will save you time (in service, marketing and sales), money (in service, marketing and sales) and headaches (from staff and personally). So, let’s now take a look at an example of a well-documented target account.

Target Account for “Well-Run Inc.”

Employee Size - Privately Held (25-250)
Revenue Range - ($3M - $100M)
Contact within Account - CEO
Geography - Greater San Francisco Area
Payment Terms - ACH or Credit Card
Contract Value Range - $10 - $100,000 / year
SIC Codes Serviced - Major group (47,60-67, 70-89)
Unique Conditions -

• Strong Management Team
• B+ Better D&B rating
• 50% of staff uses computers
• Windows Environment (non-Mac)
• Internal IT Department
• Willing to work within Scope
• Consistently Meets Delivery Schedule or adjusts timelines when they do not
• Willing to attend quarterly review meeting
• Will refer you to others

For those of you in the professional service industry, this description probably sounds like a dream…and in some ways you are right. But there are companies that closely match this description. There may not be 1,000’s but there are at least a few hundred given the geography (Greater San Francisco Area) I’m sure.

And wouldn’t your company be more predictable, easier to run and more enjoyable if you were able working with them verses the alternative?
Comments?

Here are some additional resources for you to review:

Wikipedia on Target Market

Entrepreneur Magazine

Duct Tape Marketing

All Business

In my last post, I shared suggestions on how to create a target client profile. Now that you have a draft it is time to share it with you management team as well as others within your company. The purpose of this step is to get feedback to make sure that what you think makes a great client is inline with their view.

Your managers should now take what you have put together and run it by their team to gather feedback. One of the mistakes that I see leaders make is coming to the incorrect conclusion that their view of the world is entirely correct. The best source of insight into clients are those that connect with them on an every day basis.

It wouldn’t hurt to run a couple of brainstorming sessions with the internal teams who are interact with your clients everyday. You can ask them the same questions I posed in my last post to see if they answer similarly.

Once you have consensus on the important components of a great client it is time to finalize this part of the plan. In the next post, I will share with you an example target client profile for you to use.

Think Fast. Visualize your very best client. Got em?

Now jot down some specific things that make them the best or answer these questions:

• What is their annual revenue?
• What industry are they in?
• Why are they so good? (is it because they pay on time, buy all of your services, understand your shortfalls, bring you to the table when making big decisions, etc.) Write as many of these down as you can
• What is that client’s demographics/psychographics makes them so attractive?
• Where are they located?
• How many employees do they have?

Once you feel like you have a good working description save it. Come back a few days later and make sure that it still seems correct.

Next you will want to share it with your management team. We will talk about that next.

In my last post, I shared some examples of companies that established a strategy that was so clear, it could be recognized by sharing just two simple themes.

Now it is your turn. To create your first theme - write down the industry in which you compete. Think carefully about this to ensure that you accurately capture it. For example, if you a marketing company that designs web sites, handles SEO programs, designs logo’s, etc. - you could say that you are in the marketing services industry or the web advertising industry or the design industry. Whatever it is that you decide, make sure that the term/terms that you use describe the entire industry that you serve.

Next write down some words that describe how you are different than all of your competitors. Be very specific. If you provide superior quality - try to answer “how” you do that. If you are innovative - how do you innovate - through design, technology, products…again the more specific the better.

Finally put the two together - it should look like this:

Inexpensive Retailer - the industry is retail, their difference is that they are inexpensive and the company would be? Wal-Mart

Designed Technology - the industry is technology, the difference is design - the company, Apple

I made up these two examples so they may not be dead-on…let’s here what you put together, send me your comments…

When Seth Godin puts out a book, I buy at least one copy. So when Meatball Sundae was released…of course I got it. As a long time reader of Seth’s work, IMHO, his best works are still The Dip and Purple Cow.

Meatball Sundae’s premise is that if you are not incorporating marketing in the entire design of your product or service - then (as an analogy) - it is like placing desert toppings on a bowl of meatballs. The two just won’t fit.

Looking at it another way - if you have a boring brand no amount of New Marketing will pretty it up - so don’t waste your money.

Before we get into my take on the book, you should know that he put a 3-page executive summary right at the beginning - read it first to see if you like the subject matter - nice touch, give the reader a taste to see if they want more.

Observations:

• If you are new to the world of blogs, social networking, youtube and Web 2.0 then this book is a great resource. Consider it crib-notes for the world of New Marketing - a term Seth’s references frequently in the book
• If you have a product or service that would not fair well if it was transparent to the world - then you need to get cracking - the trends are not in your favor
• Seth shares 14 trends, here are my favorites; #2 Amplification of the Voice of the Consumer and Independent Authorities, #3 The Need for Authentic Stories, #5 The Long Tail, #12 The Shift from “How Many” to “Who”
• The case studies at the end are a great read for what to do and what not to do

In summary, Seth gives us all the points to consider for the future of marketing. It’s more of a call to action based on what is happening…voices are getting heard faster and they carry more power; authentic relationships matter (so BS will not fly anymore)…it’s the age of the individual.

“Online Auctions”, “Fast Oil-Changes”, “Low-Fare Airline”

Now name the companies that these phrases describe.

Ebay

Jiffy-Lube

Southwest Airlines

As an organization, if you can simplify your company’s strategy (or difference) into two words or two themes just think how powerful that is to help you make decisions.

Herb Kelleher the former CEO of Southwest Airlines once was asked about how he ran the company so well. The abbreviated version is - “It’s simple, we are THE low-fare airline - after that all decisions are easy.” For the extended version, check out this excerpt from the well written book Made to Stick.

In part 3, we will build your two-themed Strategic Position

In a few months, Execution Revolution, will hit the shelves. This is the new book from Gary Harpst, founder of Six Disciplines (disclosure - for those of you who don’t know, I am the President of Six Disciplines Tampa - we help companies hit their goals more consistently).

The early buzz is that this book will be a hit. Ads are already up in the print editions of Fast Company, Inc. Magazine. There maybe more that I haven’t seen yet too.

We will be giving our readers the chance to win the book on our site, but if you want to get a preview, here is where you can learn more about it on Amazon.com.

Please share a comment on this post or send me an email and I will try to hook you up when we get them.

In my sessions with CEO’s, we often talk about their strategy. Most leaders love to talk about strategy because this is the area of their business that allows them to dream of a limitless future.

Many envision a large company with hundreds of happy team members, customers who sing their praises and a personally shortened work week because things are working so smoothly.

Others talk about a world where they have no employees, thousands of clients that require limited support and a highly profitable online resource or product.

Whatever their dreams are is not significant because what they are describing ISN’T strategy. At best these are their plans.

Strategy is what makes you different than everyone else. We’ll talk more about this - but for now, when someone asks you “What is your Strategy?” - you should frame your answer in terms of what makes you unique within your industry.

Most public speakers are average and that is being kind. They probably think they are good - if not great - but they wouldn’t admit greatness though, so as to not seem arrogant. I once was one of them too (the unaware) …then I got the punch in the gut I needed, when I worked with a challenging speech coach. Now I am a “B-” with no illusions that becoming an “A” will be easy.

If you want to be a good public speaker, you must invest the time. Research your topic, paint pictures, share emotions not facts, tell stories don’t pontificate, remember it’s about them not you. Also realize that you will likely never be a top 1%’er.

Steve Jobs must have invested countless hours in preparation over the years to get this good - and he is not just good - he is awesome!

Watch this clip and learn some of his tips - it is worth the 7 minutes.

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