When we reflect on the word "purpose" it evokes thoughts of an intention, a reason for being or doing or existing, a sense of resolve. As business owners we each need to be intentional about our businesses. The purpose should be at the core of what we do and why we do it. It is the single thread that should follow through all our decisions and decision-making processes in our businesses.
How do we ensure that the purpose remains at the core of the business? One way is having the purpose formalised in a Business Purpose Statement. The purpose statement helps us as business owners to define and measure what actions are keeping us on track versus what actions might take us away from the "why" or reasons our businesses exist. As we grow our businesses, the purpose statement is a northern star, connecting the business to our customers, future and current employees, suppliers, wider community and other stakeholders. To give the purpose statement authenticity and credibility, it needs to have concrete and measurable commitments.
Purpose Statements can evolve over time. The purpose statement of Decision Monday today is: "Levelling the playing field for small business owners having better access to market research and interpretation of data and insight." I can see it one day broadening, but the ethos of "levelling the playing field" will remain the same. How am I currently using the purpose statement to measure the actions in my business today? I consider this from different aspects.
McKinsey put forward a framework called The 5Ps for larger organisations that also has relevance for smaller organisations:
Portfolio strategy and products - are the products and services I offer and the strategy I use to serve my customers linked to my purpose of "levelling the playing field"?
People and culture - less relevant for me as a one-person agency. This aspect looks at whether employees are guided to an understanding of what they are all there to accomplish.
Processes and systems - am I adapting and are my business' operations and processes meeting targets that can be linked to the purpose?
Performance metrics - can I identify ways to measure progress, so the attainment of the purpose is more tangible?
Positions and engagement - are my communications, external relationships, engagements and collaborations delivering and demonstrating the purpose?
When you consider your own business, are the actions in your business keeping you on track for fulfilling the purpose? What do you need to course-correct today in order
to keep the business aligned with the "why"/ the reason your business exists?
Final note: sometimes the words "purpose" and "mission" can be used interchangeably. There is, however, a noticeable difference: the purpose supplies the "why", while the mission tells us the "how we will get there".
* To read the McKinsey The 5 Ps Framework on the McKinsey website, please click here.
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