All organizations need a statement of why they exist. Often referred to as a mission, it should set out clearly what the organization aims to achieve. For example:

'To help people maintain independence and dignity in their own homes and communities, particularly in later life.'
WRVS (UK charity)

'Vision
To be the standard against which others are measured

Mission
To make aspirational quality accessible to all

Values
Quality value, service, innovation and trust'
Marks and Spencer

The mission sets the overall direction and all activities should contribute towards the mission. For example it would mean that if the WRVS had an opportunity to become involved in supporting drug-dependent teenagers they wouldn't consider diversifying into that area as it would be completely contrary to their mission. Likewise, Marks and Spencer would dismiss opportunities for lowering quality with price.

Once the overall direction is set, it is then the role of the various operating businesses or units to contribute towards the corporate mission and objectives.

Figure 3.1: Team alignment

An aligned organization makes sure that the contribution of all the objectives set throughout the organization will mean that the overall corporate objectives are met. At its simplest level, supposing an organization with four operating companies has a corporate objective of increasing turnover by 5%. The objectives for each of the companies collectively must give an average increase of 5%.