Why Defining Your Organization’s Purpose Matters
Why you do what you do matters.
It matters to you.
It matters to the people who work for you.
It matters to the people you serve.
It matters to the people who will one day work for you.
Half of today’s workforce would take a 15% pay cut to work for an organization with an inspiring purpose. A poll by Gallup showed that over 40% of an organization’s reputation is determined by its purpose.
Understanding and defining your organization’s why statement (sometimes called a mission or purpose statement) is essential to create a strong brand. Getting this statement right is akin to starting a journey… the direction you’re pointed in matters. And unfortunately, there are a lot of bad examples out there…
Barnes & Noble: Our mission is to operate the best omni-channel specialty retail business in America, helping both our customers and booksellers reach their aspirations, while being a credit to the communities we serve.
Home Depot: Our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices
Dell: To be the most successful computer company in the world at delivering the best customer experience in markets we serve.
What’s missing from these why statements?
It should directly connect to the transformational value you provide to your customers.
Some organizations find it overwhelming to define their why. With so many potential ideas, things quickly get murky or bland.
Try thinking categorically first. Nearly all purpose statements full under one of three categories: enabling, enriching, and transforming.
Enabling…
Enabling organizations help us grow. They empower us to live life to its fullest, boost performance, or help us make progress against a big challenge. Simply put, they enable us to win.
Some examples:
YouTube: To give everyone a voice and show them the world.
LinkedIn: To connect the world’s professionals to make them more productive and successful.
PayPal: To democratize financial services and empower people and businesses to join and thrive in the global economy.
Enriching…
Other organizations enrich our daily lives. They inspire us, connect us with others, or help us feel smarter. Whether it’s health, happiness, or pleasure; these organizations make our lives better.
Some examples:
Starbucks: To inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.
Coca-Cola: To refresh the world in mind, body, and spirit, and inspire moments of optimism.
Nike: To bring inspiration and innovation to every athlete in the world.
Transforming…
Organizations driven by transformation make change happen. They want to change the world, change their customers, or both. These why statements often cast a vision of the desired future.
Some examples:
Dove: We want to redefine beauty standards and help everyone experience beauty and body image positively.
Tesla: To accelerate the world’s transition to sustainable energy.
Airbnb: To create a world where everyone can belong, anywhere.
What’s your why?
Why does your organization exist? What are you here to do? Dig a bit to find the customer transformations that light you up the most—the answer is somewhere in there.
