The right Mission Statement can save a business
Deep into the 21st century, many organizations struggle with their identity even though most of them have written a Mission Statement. This document should guide them to do the right thing. Unfortunately, a Mission Statement can look like all others and many of them are merely empty words holding a place on a wall.
There is one Mission Statement, however, that stood the extreme test. The first twenty words more than likely saved the company.
Usually a person can expect one defining moment in their lifetime. James Burke experienced two within six years of each other. When he was a marketing executive at Johnson & Johnson, he had an overriding sense the company was straying from its core values, which were embodied in their credo established several generations before. In one particularly heated meeting he boldly proclaimed to the executive team, “Either we live by our credo or we tear it from the wall.” In other words it meant something to him. He wanted it to mean something to the entire company, as well.
In a matter of six short years, they would truly need it.
There credo began with “We believe our first responsibility is to the doctors, nurses, patient, mothers and fathers who use our product and services”. Twenty very strong and powerful words that would be tested in October 1982.
Seven people in the Chicago area died after ingesting Tylenol capsules laced with cyanide. When this was discovered, J& J faced a huge dilemma. What to do? As the CEO, James Burke knew what do to. Their credo was clear. He ordered all Tylenol products removed from store shelves, all products recalled and even all holders of partially used products to be given full refunds. At the time, this move created a loss of $100 million, a tidy sum by any standard. Their market share plunged eighty one percent when this was announced. To the business world it seemed J&J was committing corporate suicide. After all, their products had been tampered with on the retail side. The manufacturing side of the supply chain was sound. It was simply not their fault products were compromised.
However, as it turned out, this incident became a textbook example of crisis management, spawned by James Burke’s belief in their corporate credo, their guiding principles. J&J did the right thing even at a tremendous loss. Eventually its market share rebounded and even exceeded the place it previously held. This is a prime example of upholding the core values of the organization. This is also an illustration of the real power of an organization’s mission, vision and values, which make up the Mission Statement.
As for Mr. Burke, he was awarded the Presidential Medal of Freedom and has been cited by Fortune Magazine as one of the ten best CEO’s…of all time.
How many times to do we witness corporate values compromised? Sadly, it’s far too often. Our history is rife with examples of organizations making the wrong call to protect its capital investment, or riding the storm out knowing full well stories and news events usually fade from the public’s memory. However, James Burke took no chances because in his company the correct core values were instilled.
When organizations take the time to develop the right Mission Statement, Vision and Values, most decisions become clear. There is no need to reinvent the wheel, parse words or try to spin outcomes.
Doing the right thing actually becomes easy.
Twenty words saved one American company. How does your Mission Statement, Vision and Values stack up to this?