Business should develop “on purpose”
Tuesday, May 6th @ 9:58 PM
In business, as in life, we often overlook the most basic of things simply because the neglect causes no immediate negative impact. Taking a second look and addressing one basic need of every business can save a company frustration, confusion and loss of direction. Organizational purpose is the driving force of any company and defining and communicating that message should be at the forefront of every business owner's to-do list.
Business should develop “on purpose”
By Kevin S Smith
What is an organization’s purpose?
An organization’s purpose can best be described by answering the question “what type of company do I want mine to be”. The process through which organizations can answer this question is similar to one we, as individuals would use. For instance, when posed the question “what type of person do I want to be”, individuals may respond in terms of good parenting, teaching, giving, mentoring, supporting, etc. We would not, or should not respond in term of dollars, vehicles, houses and other material things. Just as material things should not define us as people, they should not define the purpose of an organization.
One effective way of developing an organization’s purpose has been utilized in Harvard Business School’s executive program. During this program, the following questions were asked of company executives:
- To whom would it matter if your company were no longer in business?
- Which of your customers would miss you, and why?
- How long would it take someone else to fill your void?
An organization’s purpose is the reason for their existence. It is the difference between what companies are and what they strive to become. It defines what they bring to the world and guides decisions pertaining to what they are willing (or not willing) to do to in the process.
Peter Drucker, who many believe to be the father of modern management, said it best when stating “A business is not defined by its name, statutes, or articles of incorporation. It is defined by the business mission. Only a clear definition of mission and purpose of organization makes possible clear and realistic business objectives”.
Why is purpose important?
The purpose of an organization sets the tone and direction for all activities of that organization. Without purpose, there cannot be a clear mission, objectives or strategies. As individuals, we carry out our daily activities based on the kind of person we want to be. As often as we may find ourselves off track, this purpose of being is what guides us back to center and moving forward. It is when we lose our sense of purpose that we find ourselves in depression, making poor decisions or surrounding ourselves with people who distract us from our goals. Whether it is our children, clergy, therapists or an extraordinary event that reminds us of our purpose in life, once we see it, we find ourselves back on track and in a better place.
The same is true for business. When an organization determines, defines and communicates the kind of business it wants to be, it moves with more decisiveness, determination and clarity. With a clear purpose in mind, an organization will make more productive hiring decisions, increase morale and communicate more effectively. In contrast, without a defined purpose, a company may find itself paralyzed by choice and eventually in a world never intended.
As business objectives and strategies may change with the times, it is an organization’s purpose that will remain as the foundation upon which all else is built. There are many organizations that continue to operate without a documented purpose. Many of them are doing fine by their own standards. However, the only constant in this world is change and these organizations may one day find themselves in need of guidance, wondering what happened to the business they once were or desired to be. It is then that they will be seeking again, their purpose for existence.
To the business owner
If you have not yet developed and documented you company’s purpose of mission, I hope this article has given you reason to do so. It is easy to overlook or to put off until all the proverbial fires are put out, however there is no better time than now to give purpose to your organization as it will allow your business to keep on the correct path. You will not realize the effectiveness of a defined purpose until after you have developed it, so I implore you to get started.
If you would like guidance on developing your organizational purpose or mission statement, please feel free to post on our discussion boards or contact me directly through the Keystone Business Forum.
“That business mission is so rarely given adequate thought is perhaps the most important single cause of business frustration.” - Peter Drucker
