There has been much written about organisational purpose. There are many books, blogs and web-based articles on the subject and within organisations, there are still people who are sceptical and consider organisational purpose to be just a fad. This section is designed to explain what a purpose statement is, how it differs from mission and vision statements and how organisations can develop an inspirational purpose statement that will focus employee understanding on why the organisation exists.
A well-written purpose statement will help people feel part of something bigger than themselves. When people share this common purpose, they tend to be more motivated and satisfied with the organisation, their careers- and that has to be a good thing.
This section will help you produce a purpose statement that will inspire your employees and give them a reason to be motivated at work each day.
Writing a purpose statement can be done in a one-day workshop. (See Workshop Agenda)
If you are running the workshop, you should allow half a day to collect relevant background information, available within the organisation. Culture Firm consultants are available to help, should you need it.
A purpose statement is created to help attract, engage and retain employees. It will help build teamwork, a great organisational culture, and it will focus employees so they will be more motivated and then productive. The purpose is central to the culture of the organization, it defines how the organisation fits into society.
An inspiring purpose will unite employees, shareholders, board members, suppliers and customers in a way that is much more pervasive than one lone leader trying to inspire from the front. It answers the question “Why is this work important?”
The value of purpose can be illustrated by the following old Roman parable.
One day a traveller, walking along a lane, came across 3 stonecutters working in a quarry. Each was busy cutting a block of stone. Interested to find out what they were working on, he asked the first stonecutter what he was doing. “I am cutting a stone!” Still, no wiser the traveller turned to the second stonecutter and asked him what he was doing. “I am cutting this block of stone to make sure that it’s square, and its dimensions are uniform so that it will fit exactly in its place in a wall.” A bit closer to finding out what the stonecutters were working on but still unclear, the traveller turned to the third stonecutter. He seemed to be the happiest of the three and when asked what he was doing replied: “I am building a cathedral.”
Whether you think you’re just earning a living, doing the best at your job, or leaving a legacy, this story demonstrates that there is great value in having a purpose.
All three stonecutters were doing the same thing, but each gave a very different answer. Each knew how to do his job, but the third stonecutter knew not just how and what to do but knew why he was doing it. That made him proud and able to enjoy his job.
The purpose is not just a feel-good notion. It affects profitability as well. Research shows that companies connected to their purpose end up being 10-18 times more profitable than those companies that focus solely on profits.
Write the purpose statement after you have written the vision and mission statements and defined the company values. Like vision and values, the purpose statement is written for the long term and is not designed to be changed frequently.
DEFINITION
The Oxford Dictionary definition of purpose is “the reason for which something is done or created or for which something exists.” The purpose is the end to which mission, vision and values are directed. It is not uncommon for people to get purpose, vision and mission mixed up.
The purpose is about WHY you do what you do. It is your reason for being. It is the fundamental reason why your organisation exists. It is the organisation’s raison d’etre.
Vision is about WHERE you are going.
Mission is about HOW you get there.
Values define WHO you are.
EXAMPLES
Retail
Walmart: Save money, live better
B2B
ING: Empowering people to stay a step ahead in life and business
Merk: To alleviate pain and suffering
Hewlett-Packard: Our purpose is to make technical contributions for the advancement and welfare of humanity.
B2C
Kellogg: Nourishing families so they can flourish and thrive.
IAG: To help people manage risk and recover from the hardship of unexpected loss.
Southwest Airlines: To connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.
Disney: Using our imagination to bring happiness to millions
McLaren: To win
Sony: Our purpose is to experience the joy of advancing and applying technology for the benefit of the public
All these example Purpose Statements explain WHY the company exists.
Purpose gets your organisation motivated to move towards its goals.
A purpose statement should be motivating and short enough so that people can remember it. It should also be broad enough to be relevant in a future world that is different to today. The products and services of the organisation may change but the purpose always remains the same.
“Purpose is the difference between good and great, between honorable success and legendary performances, between fifteen minutes of fame and a legacy”
Nikos Mourkogiannis
Author of Purpose: The stating point for companies.
Simon Sinek describes how to find your company purpose. He defines purpose as your “Why”.
Watch this TED talk by Simon Sinek.
RESOURCES
DOWNLOAD WORKSHOP AGENDA TO GET STARTED
See the workshop exercise below, this exercise should take a day to complete and will require executives from all relevant departments; finance, marketing, sales, human resources, product, operations etc.
The workshop notes contain the agenda to conduct a one-day session with your team. Notes from the library will help. If you prefer to use a Culture Firm endorsed consultant click here.
DOWNLOAD TEST NOTES TO EVALUATE WORKSHOP
After you have written your purpose, test it with the questions in the workshop notes. If you answer “No” to any question then you will need to revise your Purpose accordingly.
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