The Ashridge model is the result of a research project conducted by Andrew Campbell and Sally Yeung. The Ashridge model provides a framework for creating a company mission statement. The project – which ran for two years – involved Campbell and Yeung interviewing 53 successful companies to give structure to the ideal mission statement. At the time, there was some degree of confusion around mission statements and what they should encompass or achieve.
Understanding the Ashridge model?
The Ashridge model is the result of a research project conducted by Andrew Campbell and Sally Yeung.
The project – which ran for two years – involved Campbell and Yeung interviewing 53 successful companies to give structure to the ideal mission statement. At the time, there was some degree of confusion around mission statements and what they should encompass or achieve.
Campbell and Yeung’s findings resulted in a framework that would later become known as the Ashridge model. In the next section, this article will discuss the model and its four, linked elements.
The four elements of the Ashridge model
Four elements guide the crafting of a well-rounded mission statement.
1 – Purpose
Why does the company exist? Some businesses find this question difficult to answer and avoid it altogether.
In very general terms, Campbell and Yeung believe that organizations fall into three different categories:
Shareholder benefit – in these organizations, a strategy that maximizes shareholder returns is preferred.
Shareholder satisfaction – these companies tend to act responsibly toward shareholders, customers, employees, and the environment without excelling. They may do this for altruistic reasons or to be seen to be doing the right thing.
Higher ideal organizations – or those who prioritize following a higher, sometimes moral purpose over satisfying shareholders. Typically, this purpose involves some sort of social, ethical, or environmental change.
2 – Strategy
Strategy determines future actions, aligns the organization toward a common goal, and should define how the company intends to beat the competition.
As a result, a mission statement should reflect organizational strategy. It should also reflect the current position the business finds itself in.
3 – Values
Values determine behaviors and beliefs which in turn influence company culture.
In successful companies, there is a strong correlation between company values and employee values. Thus, the mission statement should reinforce these values and reflect wider employee sentiment.
4 – Behavioural standards
Behavioral standards describe the acting out of company values or strategy by employees in a real-world setting. Indeed, purpose and strategy are empty intellectual thoughts unless they are consistently displayed with action.
Again, the mission statement should support or reinforce these values. This is particularly important for brand image since consumers want to see businesses embodying the values they preach.
For example, cosmetic retailer The Body Shop strives to produce cosmetics that do not harm animals or the environment. This environmental consciousness extends to its physical stores, with the company revolutionizing the now common two-bin system for waste and recycling. More importantly, The Body Shop employees receive training on environmental stewardship and embody the mission statement values customers expect.
Benefits of the Ashridge model
Some of the benefits of using the Ashridge model include:
Value objectivity – given that organizational values need to be aligned with employee values, the model allows any incompatibility to be analyzed and measured. This brings much-needed objectivity to complex and less tangible cultural and human resource issues. What’s more, a business that understands where value discrepancies lie can then go about fixing them.
Reinforcement and clarification – the model also demands that strategy and values resonate and reinforce each other. Campbell and Yeung note that finding compatible values is simple, but analyzing their impact on strategy is more difficult. With an emphasis on behavioral standards, the model can bridge this gap by measuring the degree of resonance between strategy and values. When the relationship between both factors is understood, employees are less likely to have a cavalier attitude toward the company mission and act accordingly.
Key takeaways:
The Ashridge model is a framework for creating a company mission statement. It was created by researchers Andrew Campbell and Sally Yeung after interviewing 53 companies with successful mission statements.
The Ashridge model defines four elements of a sound mission statement: purpose, value, strategy, and behavioral standards.
The Ashridge model brings objectivity to sometimes complex cultural or human resource issues. It also provides clarity on the behavior required of the organization to underpin its mission.
Adidas’ mission is “To be the best sports brand in the world.” Adidas AG is a German multinational initially founded in 1924 by Adolf Dassler who developed spiked running shoes out of his mother’s house. Today, the company is the largest sportswear producer in Europe and the second largest globally behind rival Nike.
Tesla’s vision is to “create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles,” while its mission is “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” Tesla used a transitional business model as its ecosystem grows.
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”
Apple’s mission is “to bring the best user experience to its customers through its innovative hardware, software, and services.” And in a manifesto dated 2019 Tim Cook set the vision specified as “We believe that we are on the face of the earth to make great products and that’s not changing.”
Netflix’s core mission, strategy, and vision are that of “improving its members’ experience by expanding the streaming content with a focus on a programming mix of content that delights members and attracts new members.”
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.”
Starbucks highlights its mission as “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” And its vision is to “treat people like family, and they will be loyal and give their all.”
Microsoft’s mission is to empower every person and every organization on the planet to achieve more. With over $110 billion in revenues in 2018, Office Products and Windows are still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.
Walmart’smission can be summarized as “helping people around the world save money and live better – anytime and anywhere – in retail stores and through eCommerce.” While its vision is to “make every day easier for busy families.” Walmart defines “busy families” as the bull’s eye of its business strategy.
Nike vision is “to bring inspiration and innovation to every athlete in the world.” While its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.”
Google mission statement is to “organize the world’s information and make it universally accessible and useful.” Its vision statement is to “provide an important service to the world-instantly delivering relevant information on virtually any topic.” In 2019, Sundar Pichai emphasized a renewed mission to allow people “to get things done!”
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
