Desmidt's Argument Regarding The Relevance Of Mission Statements

The mission statement is the corner stone of strategic planning. Broad and simple in nature, mission statements provide clear direction for members of an organization and establishes the foundation for a firm’s values and ethics. To explain Desmidt’s (2016) argument regarding the relevance of mission statements: these statements are effective internal communication tools that can be leveraged to influence the beliefs, assumptions of an organization’s core, perennial and distinctive features (p. 897). An organization’s mission statement will remain constant: however, the corporate strategy may shift after implementation as a result of the evaluation of its effectiveness. Enterprise risk management is greatly influenced by business strategy.
Mission statements are the foundation in which vision statement are created. While vision statements focus on future progression, mission statements detail what will be done in the present to achieve the desired future outcomes. A firm’s mission statement governs the delegation of responsibility and authority. While change is necessary in business, people may be resistant due to fear of the unknown. However, if proposed changes align with the organization’s mission, team members are more likely to accept change as a necessary element to accomplish the mission. Mission statement also aid on the facilitation of evaluating and improving organizational and employee performance. A clear mission statement is key in establishing performance standards and metrics. Mission statements also shape organizational strategy, which serve as a plan of execution to the mission.
AMAG Pharmaceuticals is a specialty drug manufacturer that is committed to putting patients and their families at the center of everything the organization does. Understanding the needs of patients and the providers who serve them shapes the organization’s approach to delivering therapeutics and comprehensive support. The company strives to apply a disciplined, diligent approach to growth that delivers value for all (AMAG Pharmaceuticals, 2016, para.
The foundation of an effective risk management system is to establish achievable objectives, keeping in mind the barriers to success. Risk management processes must align with a firm’s mission, vision, organizational culture objectives, as well its growth and development initiatives. To save time and resources a firm’s chosen approach to risk management should be kept as simple as possible. Firms should periodically review, update and modifying their established strategic plan. Essentially this process is about building on a company’s established risk management processes. Internal controls should be developed based on risk assessment outcomes to enable managers to achieve the goals and objectives detailed in the firm’s mission statement. An adequate framework must be established to evolve the business model. The implementation plan should be clear and concise. Mechanisms for monitoring and reporting should be put in place to ensure that the board receive continuous feedback on potential risks and internal control. Newly discovered risks should be escalated and resolved quickly and effectively. The responsibilities and accountabilities of managers and auditors across the business as it relates to risk management should be clear. Communication and training from the top-down communication are also