We hear more and more that organizations must have a compelling “purpose,” but what does that mean? Isn’t there already a host of labels to describe organizational direction?
A vision statement says what the organization wishes to be like in some years’ time. It’s usually drawn up by senior management in an effort to take the thinking beyond day-to-day activity in a clear, memorable way. For instance, the Swedish company Ericsson (a global provider of communications equipment, software and services) defines its vision as being “the prime driver in an all-communicating world.”
There’s also the mission, which describes what business the organization is in both now and projecting into the future. Its aim is to provide focus for employees. A consulting firm might define its mission by the type of work it does, the clients it caters to and the level of service it provides. For example: “We’re in the business of providing high-standard assistance on performance assessment to middle to senior managers in medium-to-large firms in the finance industry.”
Values describe the desired culture. As Coca-Cola puts it, they serve as a behavioral compass. Coke’s values include having the courage to shape a better future, leveraging collective genius, being real, and being accountable and committed.
So how does purpose differ from these?
Greg Ellis, former CEO and managing director of REA Group, said his company’s purpose was “to make the property process simple, efficient and stress-free for people buying and selling a property.” This takes outward focus to a whole new level, not just emphasizing the importance of serving customers or understanding their needs but also putting employees in customers’ shoes. And it’s motivational, because it connects with the heart as well as the head.
For other examples of purpose, look at the financial-services company ING (“Empowering people to stay a step ahead in life and in business”), the Kellogg food company (“Nourishing families so they can flourish and thrive”) and the insurance company IAG (“To help people manage risk and recover from the hardship of unexpected loss”).
If you’re crafting a purpose statement, find a way to express the organization’s impact on the lives of customers, clients, students, patients – whomever you’re trying to serve. Make them feel it.
(Graham Kenny is the managing director of Strategic Factors, a Sydney-based consultancy, and the author of “Crack Strategy’s Code.”)
Graham Kenny
