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The Mission Statement/Organizational Performance Linkage

It may be asking too much to associate mission statements directly with organizational performance as previous research has strived to do (Atrill, Omran, and Pointon 2005). A more reasonable approach in future research may be to associate mission statements with customer satisfaction, and then customer satisfaction could be associated with organizational performance (Lou, Wieseke, and Homburg 2012.  An exemplary mission statement written from a marketing perspective could help mobilize sales representatives and employees to provide exemplary customer service, which should lead to heightened customer satisfaction, which in turn could be expected to lead to greater customer loyalty. Some extant research has examined the impact of customer satisfaction and loyalty on various measures of organizational performance and reported positive relationships (Jyoti and Sharma 2012).

Although the mission statement association directly with organizational performance is weak, various articles do show a strong link between customer satisfaction and organizational performance (Devasagayarm, Stark, and Valestin 2013; Luo, Wieseke, and Homburg 2011). Prior research has reported a positive relationship between customer satisfaction and loyalty on various measures of organizational performance (Jyoti and Sharma 2012). Additional mediating variables in the relationship between mission statements and organizational performance could be customer service and customer loyalty (Dagger and David 2012).
If written from a marketing (or customer) perspective, ”missions may accomplish their mission” (Smith, et. al. 2001), be more than “smoke and mirrors” (Bartkus, Glassman, and McAfee 2000), “contribute to customer satisfaction” (Devasagayam, Stark, and Valestin 2013), be more than the “bland leading the bland” (Davies and Glaister (1997, p. 594), and “positively impact organizational performance” (Peyrefitte and David 2006).

Mission Components Written From A Marketing Perspective

Table 1 provides an example of how the nine recommended mission statement components could be written from a customer or marketing perspective. The business featured in Table 1 is a hypothetical charter fishing company. For that business, the customers are “outdoor enthusiasts” (rather than simply having the word customers or consumers. Regarding the “products” component, a mission statement should reveal the “intrinsic value” or “utility” that the firm’s products and/or services provide to customers, and do so in a thoughtful manner; the charter fishing company provides “memories for a lifetime.” For the charter fishing company, the “self-concept” component is covered saying: “for customer enjoyment and safety, we provide the most experienced staff in the industry.”

Table 1 – Mission Statement Components Written From A Marketing Perspective
1. Customers—Our customers are outdoor enthusiasts seeking fishing excitement and adventure.
2. Products or services—We provide fast, clean boats, all the bait and tackle needed, and friendly first mates to create memories for a lifetime.
3. Markets—Our fleet of fast, clean vessels operate all along the Florida Gulf Coast.
4. Technology—Our vessels are equipped with the very latest safety and fish finding equipment to insure that customers comfortably are “catching rather than just fishing.”
5. Concern for survival, growth, and profitability—Our prices are as low as possible to provide customers great value in conjunction with high employee morale and a reasonable return for our owners.
6. Philosophy—We assure customers the upmost courtesy and care as our motto on every vessel is to follow the Golden Rule.
7. Self-concept—For customer enjoyment and safety, we provide the most experienced staff in the industry.
8. Concern for public image—Our vessels use emission-friendly engines; we strive to bring repeat tourists to all communities where we operate.
9. Concern for employees—Our on-the-water and off-the-water employees are “on a mission” to help customers have a great time.
References

1. Atrill, Peter, Mohammed Omran, and John Pointon (2005), “Company Mission Statements and Financial Performance,” Corporate Ownership & Control, 2(3), 28-35.
2. Bartkus, Barbara, Myron Glassman, and R. Bruce McAfee (2000), “Mission Statements: Are They Smoke and Mirrors?” Business Horizons, 43(6), 23.
3. Dagger, Tracey and Meredith E. David (2012), “Uncovering the Real Effect of Switching Costs on the Satisfaction-Loyalty Association: The Critical Role of Involvement and Relationship Benefits,” European Journal of Marketing, 46(3/4), 447-468.
4. Davies, Stuart W. and Keith W. Glaister (1997), “Business School Mission Statements – The Bland Leading the Bland?” Long Range Planning, 30(4). 594-604.
5. Devasagayam, Raj, Nicholas R. Stark, and Laura S. Valestin (2013), “Examining the Linearity of Customer Satisfaction: Return on Satisfaction as an Alternative,” Business Perspectives and Research, (January-June), 1-8.
6. Jyoti, Jeevan and Jyoti Sharma (2012), “Impact of Market Orientation on Business Performance: Role of Employee Satisfaction and Customer Satisfaction,” Vision, 16(4), 297–313.
7. Luo, Xueming, Jan Wieseke, and Christian Homburg (2012), “Incentivizing CEOs to Build Customer- and Employee-Firm Relations for Higher Customer Satisfaction and Firm Value,” Journal of the Academy of Marketing Science, 40, 745–758.
8. Peyrefitte, Joe and Forest R. David (2006), “A Content Analysis of the Mission Statements of United States Firms in Four Industries,” International Journal of Management, (June), 296-301.
9. Smith, Mark, Ronald B. Heady, Paula P. Carson, Kerry D. Carson (2001), “Do Missions Accomplish Their Missions?
An Exploratory Analysis of Mission Statement Content and Organizational Longevity,” The Journal of Applied Management and Entrepreneurship, 6(1), 75-96.
10. Valentin, Ericka K. (1996), “The Marketing Concept and the Conceptualization of Market Strategy,” Journal of Marketing Theory and Practice, (Fall), 16-26.

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