As is true for an organization as a whole, a mission statement for a project gives it a sense of purpose and direction. It is a broad statement, from which all subsequent planning can proceed. It can be developed using a very formal procedure or can be informally stated.

The mission statement should be used to set goals and objectives, to make decisions, and to determine what goods and services the organization should be providing, whether it be a project group or overall company.

The mission statement should answer the following three questions:

1. What do we do?
   
2. For whom do we do it?
   
3. How do we go about it?
   

The project mission is the utmost critical factor for a project’s success. The mission statement should signify the initial clarity of goals and a general direction. This is so, because without a clear understanding of its mission, a project team is like an airplane without a rudder. It will go wherever the winds blow, but not necessarily where it is intended to go. Finally, the mission statements serve as a source of motivation and de-motivation for the workforce.