8.01 – Constructing a Corporate Identity
Developing Your Concept
When you have a clear idea of what you’re selling and to whom, refine this by examining the features of your product or service and the benefits it offers to customers. Features describe what a product has or is, while benefits explain what the product or service does for the customer. For example, cameras and memory sticks aren’t the end goal for customers; they want good pictures. Lastly, provide proof that you can deliver these benefits.
Having a well-defined business concept is crucial before advancing further with your business plans.
Composing Your Mission Statement
A mission statement should clearly and concisely explain what the business does. Focus on your strengths and the value you provide to your customers. The mission should be specific enough to guide your team and differentiate your business from larger competitors. It should also outline your company’s goals for the next three years and how you plan to achieve them.
Your mission statement should address the following questions:
- Who are we satisfying or delighting?
- What product or service are we offering that meets those needs?
- What are our capabilities, both in terms of skills, knowledge, and resources?
- What market opportunities exist for our product or service, and what threats exist from competitors and others?
- What do we want to achieve both now and in the future?
Example: Stitch and Story
Jen Hoang and Jennifer Lam started Stitch and Story with the mission to make knitting cool. Founded as a ‘kitchen-table start-up’ in 2012, by 2021, their online craft business had 11 full-time employees, selling materials and providing tutorials for knitting and crocheting. Their business thrived during the pandemic, as people sought activities to occupy their time at home.
A mission statement should be realistic, achievable, and brief. It should capture the essence of your business in a simple, direct sentence or two. Write down your company’s mission statement from memory, and have both your oldest and newest employees do the same. Compare the differences to refine the statement or improve employee training.
Ultimately, your mission statement reflects the unique quality of your business that attracts customers. This uniqueness is often woven into how you conduct business rather than the product itself.
You can find a variety of example mission statements at Leadership Tools.
Vision vs. Mission
A vision stretches the organization’s reach beyond its grasp. While a mission provides direction for the medium term, a vision aims for a broader, long-term goal. When a vision becomes reality, it may be time for a new challenge or a new business altogether.
Bill Gates had a vision of a computer in every home at a time when few offices had one. This vision, almost achieved today, seemed unrealistic decades ago.
Creating a vision with your team ensures their commitment. Just as markets work better with perfect information, businesses work better when everyone knows and believes in the vision.
Setting Objectives and Goals
Missions and visions are vital but need clear objectives to be effective. Objectives are major measurable tasks for the business, while operating goals are for individuals. For example, you need to know how big you want your business to be, i.e., your market share. Before setting market share and sales objectives, understand the market size.
Set near-term objectives (3-18 months) and longer-term objectives (up to three years). Key areas to set objectives include:
- Profits: Money left after all expenses
- Margins: Profit per item sold
- Return on capital employed: Profit per pound invested
- Value added per employee: Profit per employee
- Sales volume and value: Total sales and market share
Use the SMART approach for setting objectives:
- Specific: Relate to specific tasks and activities.
- Measurable: Assessable in terms of achievement.
- Attainable: Possible for the employee to achieve.
- Realistic: Within the employee’s capability.
- Timed: Achievable by a specific date
Objectives should cascade throughout the organization, interlocking so that overall business goals are achieved.
Example: BenevolentAI
BenevolentAI’s mission is to find new ways to treat disease using human intelligence and technology. Founded in 2013, the company uses AI technology to develop treatments for diseases like motor neuron disease and Parkinson’s disease. In 2020, BenevolentAI identified baricitinib as a treatment for Covid-19 symptoms, showcasing the impact of clear objectives and innovative vision.
By focusing on developing a strong concept, mission statement, vision, and clear objectives, you can construct a solid corporate identity that drives your business towards success.
