The X-by-Y-Because-of-Z Mission Statement
A mission statement with three measurable economic objectives, a deadline, and a why.
- Difficulty
- Easy
- Time to result
- ~weeks to results
- Steps
- 4
- Confidence
- 95%
Miller replaces vague mission statements with a formula: We will accomplish X by Y because of Z. X is three measurable economic objectives, the three ways the business makes the most money, each with a number. Y is a two-to-three-year deadline that creates urgency. Z is the customer-centric reason the business exists. The result is memorable, aligns the whole team, and becomes an instant filter: initiatives that don't serve the three objectives get killed. It also functions as a live scoreboard so everyone knows in real time whether the company is winning or losing.
Origin
Miller built the formula while professionalizing his own operation. His real mission statement at Business Made Simple, 500 certified coaches, 900 certified marketing guides, and 18,000 people on the online platform by January 1, 2024, because every small business owner deserves an education in growing their business, illustrates the template.
Core principles
- 01A great mission statement follows the formula: We will accomplish X by Y because of Z.
- 02X is three measurable economic objectives; the human brain can prioritize at most three or four things.
- 03Y is a deadline of two to three years to create urgency; small businesses have the luxury of rewriting it.
- 04Z is customer-centric: the problem you solve and why the business exists.
- 05A stated set of economic objectives becomes a real-time filter and scoreboard for the whole team.
How to run it
- 1
Define X: three economic objectives
Identify the three ways your business makes the most money and attach a specific number to each. Three because the brain cannot prioritize more than three or four things.
Pro tip Most businesses find 80% of revenue comes from 20% of products and audience; those can usually be captured in three objectives.
Watch out Do not exceed three or four; five priorities will not be focused on.
- 2
Define Y: the deadline
Set a two-year (up to three-year) deadline to create a sense of urgency around the objectives.
Pro tip Rewrite the statement every two or three years by adjusting X and Y; it is a luxury only small businesses have.
Watch out Anything beyond three years fails to motivate anyone.
- 3
Define Z: the customer-centric why
State the problem your customer has and how you solve it, giving the mission a reason that lands emotionally.
- 4
Make it memorable and repeat it
Keep the statement short enough for every team member to know by heart, and restate the three objectives in every all-staff and department meeting.
Pro tip If you've forgotten the mission statement, you've forgotten the mission.
In the wild
Miller's own statement: 500 certified coaches, 900 certified marketing guides, and 18,000 people inside the online platform by January 1, 2024, because every small business owner deserves an education in growing their business.
→ Every member of his team can recite it, and it keeps the whole company pulling toward three measurable targets.
The day after writing their three economic objectives, Miller's team was five minutes into discussing an initiative when someone pointed out it had nothing to do with the objectives.
→ The room agreed they were wasting time and dropped it, creating immediate forward thrust.
Common mistakes
Writing vague, fluffy missions
Directional, unmeasurable statements give the team no scoreboard, so no one knows whether they are ahead, behind, or flying toward the ground.
Copying corporate mission-statement style
Corporate statements written by lawyers for shareholders have no deadlines and no numbers; small businesses should exploit their freedom to be specific and time-bound.
Is it for you?
Best for
Small business owners without lawyers or shareholders who can freely set concrete, measurable missions.
Not ideal for
Large corporations whose mission statements are written by lawyers for shareholders.
From the transcript
“We will accomplish X by Y because of Z.”
“I give you three because the human brain has a limitation and it's usually three priorities.”
“If you've forgotten the mission statement, you've forgotten the mission.”
From the episode
Donald Miller: How To Make Your First Million, 6 Steps To Grow Your Small Business in 2023
Donald Miller