CRITERIA FOR

EVALUATION OF
MISSION STATEMENT
DRUCKER’S PERFORMANCE
AREAS
Peter Drucker believed that the survival of the company was at risk when
managers emphasized only the profit objective because this single
objective emphasis encourage managers to take action that will make
money today with little regard for how a profit will be made tomorrow. So,
he gave the following key areas in which managers should set their
companies’ objectives which should be reflected in the mission
statement:

1. Market Standing
2. Innovation
3. Productivity
4. Physical and Financial Resources
5. Profitability
6. Managers Performance and Development
7. Workers performance and Attitude
8. Public Responsibility
 MARKET
STANDING INNOVATION
According to Drucker, a Mission
Statement should have a mention of
where the company wants to see itself
in relation to the other companies.
Market Standing has to be measured
against the potential and against the
performance of suppliers of competing
products, whether direct or indirect.
Management should set objectives
outlining its commitment of
innovating as and when the need or
scope crops up. Innovation includes,
innovating in product or service as
well as innovation in activities needed
to supply them.
 PRODUCTIVITY
PHYSICAL AND
Management should set objectives
outlining the target levels of production.
Generally, businesses have pretty much
the same resources to work with, the
measure of productivity shows how well
resources are utilized and how much they
yield.
FINANCIAL
RESOURCES
Management should set objectives
regarding the use, acquisition, and
maintenance of capital resources as well
as the monetary resources required to
obtain and utilize those capital resources.
 PROFITABILITY
Management should set objectives that
specify the profit the company would like
to generate. Profit measures the net
effectiveness and soundness of a business’s
efforts. It is the risk premium that covers
the cost of staying in business, the risk and
the uncertainty.
MANAGERS
PERFORMANCE AND
DEVELOPMENT
To stay in business and remain profitable, a
business needs goals in respect to the direction
of its managers. The quality of managerial
performance and the rate at which managers
are developing personally. Because both of
these areas are critical to the long-term success
of an organization, emphasizing them by
establishing and striving to reach related
organizational objectives is very important.
 WORKER’S
PERFORMANCE AND
ATTITUDE
Management should set objectives that
specify rates of worker productivity as well
as desirable attitudes for workers to possess.
The quality of non-management performance
and such employee’s feelings about their
work. These areas are also crucial to long-
term organizational success. The importance
of these considerations should be stressed
through the establishment of organizational
objectives.
PUBLIC
RESPONSIBILITY
Management should set objectives that
indicate the company’s responsibilities
to its customers and society and the
extent to which the company intends to
live up to those responsibilities.
The obligation of business to help
improve the welfare of society while it
strives to reach organizational
objectives.
 BENNIS’S CORE PROBLEMS

The mission statement of a company should be such

that it overcomes the core problems confronting any
organisation to fall. As per Bennis, these core
problems can be categorized into six major
categories:

1. Integration
2. Social Influence
3. Collaboration
4. Adaptation
5. Identity
6. Revitalization
 INTEGRATION
The first problem is how to integrate individual
needs of the stakeholders and the management
goals. A good mission statement should is one
that integrates both individual as well as
business goals.
SOCIAL
INFLUENCE
Social influence as a problem included the
distribution of power and the sources of power and
authority. A mission statement should be directly or
indirectly imply that an explicit reliance on legal
rational power would not lead to negative or
unintended effects of authoritarian rule. To facilitate
problem solving and goal achievement, all
organisations must distribute power and authoriy.
COLLABORATI
ON ADAPTATION
This revolves around the problem of
producing mechanisms for the control of
conflict. The fact that the organization
is working together to complete a task or
achieve a goal should be visible from the
mission statement.
Bennis went on to say that the many leaders
that he has interviewed across four decades
are “all about optimism and possibilities.”
But Change is given in today’s economy.
Individual adaptability is absolutely critical.
You need a hardiness in attitude that allows
you to face challenges and adapt all of it in a
way that results in alignment.
 IDENTITY
Identity is how a business presents itself
to, and wants to be perceived by, its
consumers. A mission statement has a
major role in building the brand image
and the perceived identity of a company.
REVITALIZATI
ON
Revitalisation essentially revolves around
the problem of growth and decay. Self-
renewal is mandatory for businesses’
survival and it is important to grow by
learning from one’s own experiences and
embrace all the social mechanisms that
stagnate and regenerate with the process of
the business cycle.
APPLYING THE
CRITERIA
DELL’S MISSION:
To become the most successful computer company in the world at
delivering the best customer experience in markets we serve. In doing
so, Dell will meet customer expectations of highest quality, leading
technology, competitive pricing; individual and company accountability;
best in class service and support; superior corporate citizenship;
financial stability.
ACCORDING TO DRUCKER’S
PERFORMANCE AREAS
To become the most successful computer company in the world (1: Market Standing) at delivering
the best customer experience in markets we serve. In doing so , Dell will meet customer
expectations of highest quality, leading technology (2: Innovation), competitive pricing; individual
and company accountability (6: Manager’s Performance and Development), (7: Worker’s
Performance); best in class service and support; superior corporate citizenship (8: Public
Responsibility); financial stability (4: Financial Resources).
The statement lacks (3) Productivity and (5) Profitability.
PEPSICO’S MISSION:
We aspire to make PepsiCo the worlds premier consumer products
company, focused on convenient foods and beverages. We seek to
produce healthy financial rewards for investors as we provide
opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything
we do, we strive to act with honesty, openness fairness and integrity.
ACCORDING TO BENNIS’S CORE
PROBLEMS
We aspire to make PepsiCo the worlds premier consumer products company, focused on
convenient foods and beverages (5: Identity). We seek to produce healthy financial
rewards for investors as we provide opportunities for growth and enrichment to our
employees (1: Integration), our business partners (3: Collaboration) and the communities
in which we operate (2: Social Influence). And in everything we do, we strive to act with
honesty, openness, fairness and integrity.
The statement lacks (4) Adaptability and (6) Revitalization.