Simply because (unlike ‘traditional’ fundamental management objectives) it is firmly based on common sense – the most powerful management tool. All other performance indicators which tried to serve as FBMO – net income, free cash flow, stock price and financial value – are in reality not objectives at all, but rather means for achieving the only true and natural FBMO – building a happy company which will make happy all of its key stakeholders.
The same is true for the proverbial ‘mission’ of an organization. In reality, all organization have the same mission – to make happy all of its key stakeholders. In other words, to satisfy aggregate needs – financial, functional and emotional – of its stakeholders (or, which is essentially the same thing, create the maximum amount of aggregate value for them).
The ‘mission’ presented in a corporate ‘mission statement’ suffers from the same problem as the abovementioned performance indicators – it is not an objective at all, but rather the specific means for achieving the only true and natural FBMO – building a happy company which will make happy all of its key stakeholders. In other words, this mission statement presents the most appropriate means for achieving the fundamental business objective which (hopefully) provides the best fit for the corporate declaration of corporate identity (of which I will talk in my next posting).
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