The Frame

In a previous post (https://ventrek.com/latest-news/what-is-entrepreneurial-strategy/) we outlined the definition of entrepreneurial strategy: it is the allocation of resources towards activities that lead to a desired outcome. The “desired outcome” is what we call a “5-Year Mission”. This is not to be confused with a vision statement or core purpose which is the why your company exists. Rather, the 5-Year Mission is a concrete, tangible goal that the company will achieve – it is not a vague statement. In the book, “Built to Last” by Jim Collins and Jerry Porras (https://www.jimcollins.com/article_topics/articles/building-companies.html#articletop), they label this a BHAG – Big Hairy Audacious Goal. Here is how they describe it…

entrepreneurial strategy flow

entrepreneurial strategy flow

“A true BHAG is clear and compelling, serves as a unifying focal point of effort, and acts as a catalyst for team spirit. It has a clear finish line, so the organization can know when it has achieved the goal; people like to shoot for finish lines. A BHAG engages people – it reaches out and grabs them. It is tangible, energizing and highly focused. People get it right away; it takes little or no explanation.”

They found that the great companies build a 5-Year Mission – it’s partly what separates good companies from great companies and, as an entrepreneur, it is critical you build one. Here’s our recommended steps…

 

Creating a 5-Mission

The very first thing to remember is this is somewhat of a creative process – creating, not predicting, the future. We have seen time and time again with Ventrek clients that once this statement is created, it is unbelievable how many times it actually comes true. The statement cannot by analyzed if it’s the “right one” any more than Shakespeare wondering if he wrote the right Hamlet. You just have to trust the process, trust in your mission statement and then execute, execute, execute. When creating it, please keep in mind that there are criteria to follow and we provided a checklist to help you.

 

Begin with a blank piece of paper and let you mind be free to brainstorm. Don’t edit. Don’t question. Just let the ideas flow. Use the following prompts and write down anything that pops into your head…

  1. Close your eyes and imagine yourself at that future date: write down that date. It should be about 5 years from today.
  2. Look back at your Core Purpose: what is one mountain we can climb to reach toward this?
  3. Look back at your Core Competency: what does it mean to really leverage this?
  4. What do you want to achieve as a company 5 years from now?checklist for building a 5-year mission
  5. What would really inspire our troops to achieve?
  6. What does the company look like in 5 years?
  7. What target did we reach?
  8. Is there an organization that we aspire to be like (role model)?

Once you get this big long list of ideas generated, it’s time to refine your statement down to one or two sentences, tops. Less is more! To help, have a look at some real world 5-year mission statements…

  • To re-invent XYZ Corp as a successful, well-managed company in a modern facility, where leadership team members are free to step away from the business for a month as needed.
  • Stabilize, Grow & Diversify to achieve $x revenue + x% EBITDA with 100% of Employees sharing in the profit, based on performance
  • Provide opportunities to 500 children with exceptionalities through specialized therapies.
  • We are the industry’s most recognizable and trusted brand synonymous with the best talent. We invest in our employees and communities and operate 75 trucks across Canada.
  • We will achieve $xm in revenue by providing excellent customer service through innovative, secure and efficient IT solutions.
  • We will achieve a 25% increase in revenue with a disciplined focus on improving profitability. This will be driven by leveraging our strong sales-focused culture, optimizing our supply chain, investing in purposeful R&D, and developing our greatest strength—our people. Where all elements of our business are focused on solving our customers problems.
  • We rank among the top recognized CG certified MSSPs in Canada and a presence in the US, with $xm revenue, x% EBITDA, and delivering high quality, advanced Cybersecurity, AI, and DOD/CMMC solutions.
  • To perform 100K full eye exams per year, creating the opportunity for life changing experiences. We will achieve this through profitable growth, clinic expansion, professionalization, and imaginuity, while maximizing potential and recognizing the unique needs of our team.
  • To be the most trusted and sought-after multi-family office recognized for delivering comprehensive, exceptional and solution-oriented value to enterprising families with streamlined processes in place that allow us to scale to 3x revenue.
  • We are the #1 medical education skill development platform for English speaking medical schools in North America.
  • We are the most recognized and respected employee-owned Lethbridge based construction organization. Our focus is on building a strong value driven culture, construction diversification, and commitment to our relationships and community involvement. We will achieve $xm in revenue and a net income of x%.
  • We are a resilient $x growth-oriented company with x% CFROA while creating opportunities for our employees and driving value for our customers
  • Investment in technology creates a repeatable approach to building homes delivering an EBITDA of $x per year with leadership engagement and profit sharing.

All of these mission statements are from real companies. Each has it’s own flavour and style which fits their respective cultures. Your goal is to create your mission statement similar to these – very tangible and you should definitely be able to say “complete” in 5 years (or less!). So, take your time, refine, refine, refine until you are very happy with your statement. It needs to last five years! Of course, we recommend doing this exercise with your leadership team.

Next Steps

Once you’ve finalized your 5-Year Mission, we strongly encourage you to share with the entire company on a regular basis. We recommend Town Halls either monthly or quarterly where this is shared with everyone in the company. In our experience, the more your team knows and understands your Mission, the more they participate in helping you achieve it. We also recommend creating visuals around the office, or virtually, proudly displaying your 5-Year Mission.