What is the company's mission, and why is it important?
This week, I wanted to share one of the most fundamental cornerstones of any leadership practice: a company's mission.
People sometimes call it a vision, which is a bit more cloudy and too broad. Others think the mission is the purpose, which is closer to the point. The mission is much more precise than other popular terms.
When do you need to define your company's mission?
You need a company mission when you have a somewhat solidified product-market fit with your business. Why not earlier? Why not later?
Because before that stage, your only asset is your idea which turned into a prototype or vaguely working product. You still need validation. Before product/market fit, many companies change their product completely or amend it to fit the market needs. But when the proof is evident, the structure starts to solidify.
Why do you need the mission?
It is pretty simple. If you want to scale, you need a mission. It helps you to:
recruit people to your team;
enlist stakeholders and partners for your company;
differentiate yourself from your competitors.
What's in the mission?
The mission has three critical elements.
The why. It defines the company from the problem/solution point of view. You are on the market to solve a problem. Your mission is to reach a state where that problem is solved. That is called the end state.
The what. It defines the sequence of actions to get to the desired end state. These are not tasks but high-level actions, much like a product roadmap.
The who. It defines the decision-makers and their role in getting the company from initial- to end-state. Not an organization chart. More like a list of areas of influence.
Why don't we have the "how" on the list? Because how the company work towards its mission is up to the team. It is their autonomous decision on what they are working on - until they work towards the mission accomplishment.
#TLDR
You need to define the company's mission once the company has a somewhat solid product-market fit, not before.
The mission is your company's flag that enlists others to participate in your journey. By missing out on defining your mission, you will risk your growth.
The company's mission describes the central problem the company solves and how its product/service is solving that problem. It also describes the end state when the problem is solved.
The mission also defines the leading influencers who help others to perform a sequence of tasks to get to the desired end state of the mission.
The main benefit of the mission is helping alignment of team members on what the company wants to achieve.
Alignment is the most complex challenge for any remote leader.
I hope I helped you understand how to define a mission and why it is crucial.
Peter