Defining PURPOSE lies at the heart of Strategy.
PUPOSE lies at the heart of Strategy. Purpose is the overarching aspiration of a company – the Compass, the North Star.
The pupose of a business is to perform a job that helps resolving a customer problem. Every job has a functional, emotional and meaning dimension. The latter is what is determined bey the WHY – the PURPOSE. It determines Mission, Culture and naturally STRATEGY. Connecting Strategy, Mission and Purpose forms the basis of any meaningful outcome and direction.
By defining Purpose the decision maker seeks to align what the organization as a whole wants to achieve, given its larger business context, with what the people who work for it also want to achieve every day.
More importantly Purpose creates a level of trust and shared identity which encourages the customer to buy from the business rather from the competition. Purpose answers a fundamental question: What human need do we fulfill in in the market and in society?
A well defined Purpose is the foundation for winning customers and hence Business STRATEGY!
Purpose needs to be authentic, embedded in the company’s Strategy and shared with people, customers and society. Hence, it is determined by four elements:
- Is it sufficiently formulated? Strategy needs to start with a clear and compelling Purpose Statement which anyone can understand easily, is practicable and ready to be communicated.
- Is it authentic? Will it come from the bottom of the heart? Is it truly meant that way? Is it aligned with business culture and policies?
- Does it inspire? Will the Purpose resonate with employees and motivates them to love to come to work?
- How deeply is it integrated? Will the Purpose Statement guide core business decisions and ways of working throughout the organisation?