Mission Statements, Corporate Projects, and Functional Objectives

Mission Statement

• A qualitative written description of what the business intends to do.
• Example: Amazon's mission statement is to be "Earth's most customer-centric company."
• Often interchangeable with other terms like:
  • Aims
  • Core values
  • Vision
  • Purpose
• Broad definition of business intent.

Corporate Objectives

• Also known as business objectives.
• Driven by the mission statement and support it.
• Define the overall objectives of the business, such as:
  • Profit maximization
  • Revenue maximization
  • Growth
  • Survival (particularly for startups)
• Written in a SMART fashion:
  • Specific
  • Measurable
  • Agreed upon by stakeholders
  • Realistic
  • Time-frame defined
• Can sometimes overlap with the term "strategies" for long-term planning.

Functional Objectives

• Derived from corporate objectives, focused on department-level goals.
• Also known as departmental objectives.
• Define goals for specific departments like:
  • Marketing
  • Operations
  • Finance
  • HR
• More detailed and tailored to department needs.
• Often written in a SMART fashion.

Importance of Hierarchical Structure

• Helps measure success: Specific functional objectives can define success more precisely than a broad mission statement.
• Coordination between managers and employees: Establishes an underpinning system for everyone to work within.
• Provides focus and direction: Employees and managers know how their specific roles contribute to broader organizational goals.

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