When defining a company’s mission, it’s essential to answer a set of strategic questions that clarify purpose, customers, value, and future direction.
Peter Drucker emphasized these five questions as foundational for any organization’s mission statement. His insights are detailed in works such as:
“Management: Tasks, Responsibilities, Practices” (1973)
“The Five Most Important Questions You Will Ever Ask About Your Organization” (1993).
Here is a detailed explanation of each question and what Drucker means by them:
1. What is our business?
This question addresses the core purpose of the organization.
It’s not just about the products or services offered, but about the fundamental problem the company solves for its customers.
Drucker’s insight: See the business from the customer’s perspective.
For example, a railroad company should think of itself not as a train operator, but as a provider of transportation for people and goods.
Failure to understand this led to losing out to airlines and trucking companies.
2. Who is our customer?
This question goes beyond demographics and identifies whose needs the organization satisfies.
Sometimes the customer is not the payer, but the beneficiary.
For instance, in education, the customer might be the student or the parent; in healthcare, it could be the patient or the insurer.
Understanding who truly benefits and values your offerings is crucial.
3. What does the customer value?
This requires empathy and research.
Organizations often assume they know what customers want — but that’s not always true.
Customer value can be:
Convenience
Speed
Quality
Status
Safety
Emotional fulfillment
Drucker emphasizes: Managers must ask customers directly — it cannot be guessed.
4. What will our business be?
This question focuses on the future, considering market, technological, social, and economic trends.
It calls for strategic foresight and adaptability.
Companies must anticipate changes and prepare to evolve with shifting customer needs and environments.
5. What should our business be?
This question addresses the organization’s deeper mission and societal role.
It invites reflection on:
Ethics
Long-term contribution
The kind of impact the company wants to make beyond profits
This can lead to redefinition of business focus and sustainable success.
Summary:
These questions are not mere formalities — they require deep reflection on the organization’s role in serving customers.
Drucker views business fundamentally as a form of service.
Clear, consistent answers to these questions form the foundation of a meaningful and effective mission statement.
Without clarity on these points, a business risks operating without direction or purpose.