Why Mission Statements Fall Short

Originally published in James Magazine

Many companies spend time crafting mission statements meant to inspire, align teams, and shape company culture. Yet, more often than not, these statements fail to deliver real impact.

Take Alpharetta-based ChoicePoint, for example. Their mission—“To be the most admired information company worldwide”—sounds impressive. But in light of their struggles with identity theft, it rings hollow. At least they didn’t go so far as to call themselves “trusted.”

But instead of singling out one company, let’s look at why mission statements often miss the mark.

The Process Problem

The biggest issue with mission statements isn’t the words themselves—it’s how they’re created. Here’s how it typically goes:

1. A CEO, frustrated by low morale, decides it’s time to “rally the troops” with a new mission statement.

2. A team (often internal leaders or outside consultants) is tasked with defining the company’s vision (what it aspires to be) and its mission (how it will get there).

3. They conduct some research—surveys, focus groups, employee interviews—to gauge sentiment.

4. A few key phrases are drafted, word-smithed to death, and finalized by a small leadership group.

5. The CEO announces, “We have a mission! Put it on the website, send out an email, and let’s move forward!”

6. The mission statement is officially launched—and promptly ignored.

Despite good intentions, the mission statement never takes hold. And the reasons why aren’t always obvious.

What Stronger Companies Do Instead

When Lou Gerstner took over IBM in 1993, he famously said, “The last thing we need here is another vision.” IBM was drowning in process, bureaucracy, and disconnected agendas. Employees had lost sight of what the company actually was, let alone what it could be.

Instead of drafting a new mission statement, Gerstner led an effort to create focus. After months of discussions, IBM coined the term “e-commerce”—a simple, relevant phrase that aligned employees, communicated direction, and positioned the company for one of the greatest corporate turnarounds in history.

Most companies can’t buy their way into a new industry like IBM, but that’s not the point. What IBM did was focus on what they were and what they weren’t, instead of crafting vague aspirations that meant nothing in practice.

The Problem with Generic Statements

Many companies fall into the trap of writing mission statements that sound impressive but lack real meaning.

For example:

• Boeing: “People Working Together as a Global Enterprise for Aerospace Leadership.”

  • Remove “aerospace” and this could describe any multinational company.

• Countless law and accounting firms: “To be the biggest law firm in the world.”

  • A big goal, but is it unique or meaningful? Not really.

By contrast, McKinsey & Co., one of the world’s most respected consulting firms, built their mission around attracting “the best and the brightest.” Over time, this evolved from a slogan into a deeply ingrained principle that still defines their hiring and business strategy today.

Making Mission Statements Meaningful

If your company is developing a mission statement, ask yourself:

• Is it specific? Generic statements inspire no one.

• Is it unique? If you replace your industry with another, does the statement still apply? If so, it’s too broad.

• Does it guide real action? Words are meaningless without follow-through.

And most importantly: Does leadership actually believe in it? If anyone involved says, “It’s just a mission statement. No one really cares,”—then don’t bother.

But if you genuinely want to unify your organization, ensure the mission speaks to employees, customers, and stakeholders in a way that’s relevant and actionable. Then, live by it. Update only when absolutely necessary.

A mission statement alone won’t make a company great. But when it reflects real values, guides meaningful action, and earns trust over time, it can create powerful momentum.