Purpose, mission, vision, values. The business world is full of buzzwords. They’re bandied around board rooms and used on corporate websites. But what do they actually mean?
Ask ten different business leaders for their definition of purpose, mission, vision, and values, and you’ll get ten different answers. If you’re feeling particularly masochistic, you may want to inquire how these statements actually fit in with the day to day running of their company. Blank faces all round.
Let’s break it down, shall we.
This is a simple statement that acts as a bold affirmation as to why your company exists. Why do you do what you do? This is your reason for being (beyond making a profit). Your purpose sets out why your idea or technology matters, and what impact you have on the lives of your customers.
It’s the bigger picture and the foundation for the rest of your communications. What are you on the planet to accomplish? This should be a big, broad, and scary statement. When you say it, you should feel proud, you should smile. It should be a constant driver.
Your purpose is how you get people to connect with your brand. Communicate your purpose and your target audience will buy into it. When they buy into your purpose, they’ll buy into what you stand for. When they buy into what you stand for and why you do what you do, then they’ll buy from you.
This should be the passion that fuels everything you do. It’s not something that will be ticked off a list when it’s done. It’s the reason you get out of bed in the morning. This statement sets out why your company matters and what impact you have on the lives of your customers.
One way of doing this is to think about what your business does and ask “why” over and over until it can’t be broken down anymore!
Your mission is what your company actually does and how it does it (it may also outline who your primary clients are and what you deliver to those clients). Your mission should be short and easy to memorize. It should be specific, clearly explain what you do, and outline how you differ from your competitors.
A lot of companies think their mission statement is the opportunity for them to show off how well they speak “business”. Let’s have a look at FedEx’s mission, for example:
FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served [… it continues for a while more…]
Wow – there’s a mission and a half. Now, while the FedEx mission is technically ‘correct’ (in the fact it covers what a mission statement should) – it’s not very digestible.
Your mission is your internal driver. This is a statement that gets all your employees working in the same direction. It provides a focus for your management and staff. It helps them understand why they come into work every day. If your employees are clear in the role they play in the business it’ll have an impact on their morale and productivity. Happy and busy employees lead to a thriving company.
This is what your company is aspiring to be. It’s not what you are now, but where you want to go.
Your vision is a picture of what success looks like. It acts as a guide to drive decisions and set goals. Your vision is what the world looks like if you fulfill your purpose.
Your vision is bigger than the bottom line or headcount. It should be expansive and might not even be a world you live to see. It’s aspirational. It doesn’t get rewritten when you reach your revenue goals. Ask yourself, if you could wave a magic wand, what would the world look like?
Your vision is also an important internal statement. If your employees don’t understand where the company is going (and don’t recognize their role in this journey) then they won’t be compelled to work towards that vision. A clear vision will help you, your employees, and your customers unite around a common future.
Your values describe the culture and ethos of your company. They are your behavioural compass. A set of principles that guide an organization’s internal conduct, as well as its relationship with the external world. Values shouldn’t be built on consensus (how many HR meetings and townhalls have you been in trying to brainstorm company values? What was the result of those meetings? Exactly.)
They are your promise to your employees and outside world on how you intend to act. Your values need to be authentic, clear, and reflected in the way your company does business. Your values need to be unique to you and the business (stop using integrity, courage, and innovation, please). They also need to be more than just word – they have to link to behaviour and ways of working.
Look at the Tesco values:
For each value they have a description of what that means.
For your values to be authentic, they don’t have to sound like some cheesy caption in a Hallmark card. They just need to be clear and be reflected in the way your company does business.
Your values aren’t just window dressing. Values that have a purpose lead to action. They need to be integrated into every facet of your business – from how you hire and fire, to how your reward your staff, to the kind of clients or suppliers you work with. From their first day to their last, all your employees should be reminded that the company’s core values guide the way they work and every decision the company makes. By building your company around your values, you’ll attract customers who hold similar beliefs, energise your employees, and encourage transparent and aligned decision-making.
How often does your company talk about its purpose or mission? What about its values? Do your executives mention them at every internal townhall? Or during press interviews? Chances are, you’re not talking about what you believe in enough.
And if you’re not telling your story, who’s telling it for you?
In order to really create change and resonate with the outside world, a business has to show, not just tell. Through everything it does, a company needs to show what it stands for. Does your company do that?
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