This strategic direction, or mission statement, is important in establishing what a company will do and the things that the company won’t do. In this video tutorial, accounting professor Kay Stice analyzes good and bad examples of mission statements. He explains that a good mission statement is specific and clear in order to identify what types of activities a company will focus on.
- An important aspect of running a company…is a general agreement among the ownership team…and the top managers about the company's…strategic direction.…This strategic direction or mission statement…is important in establishing both…those things that the company will do…and those things that the company won't do.…For example, history is riddled with companies…and other organizations that have experienced…difficulties as their efforts have become unfocused.…They are like a little child splashing around…in a pond trying to catch all of the fish…and ending up catching none of the fish.…
Now here's the mission statement of McDonald's.…Our brand mission is to be our customers'…favorite place and way to eat.…Now in my opinion this is a great…mission statement.…This McDonald's mission statement suggests…that McDonald's has decided, at least for now,…not to extend it's powerful brand name…into a broad array of goods and services.…Now McDonald's has a world-wide reputation…for consistency and value.…So, would people buy McDonald's gasoline?…
In this course, accounting professors Jim and Kay Stice explain what KPIs your business should consider in a balanced scorecard, from financial goals to employee and customer satisfaction. They describe how to craft a clear mission statement that complements your KPIs, and how to tie performance to incentives. Plus, get a look at KPIs in action, as Jim and Kay break down a case study examining a trucking company's balanced scorecard.
- The importance of KPIs and measuring performance
- Financial goals and measure
- Customer needs and satisfaction
- Employee growth
- Creating an effective mission statement
- Linking measurements and rewards
- Examining a KPI case study