“I Can See Clearly Now …” – Your Vision and Purpose
In my previous blog, “Business Clarity: The Most Ambiguous of Business Topics” I introduced 9 critical business characteristics where clarity is important to business success. Today I’ll dive a little deeper into the first 2 characteristics I referenced: Vision and Purpose, and Target Market and Customer Understanding.
Let’s start with Vision and Purpose. While these 2 words seem simple enough, they are typically developed in conjunction with Mission Statements and Core Value definitions in order to provide a comprehensive, clear and relatable, description of your company to external investors, customers, as well as internal leadership, management and staff.
Vision:
Similar to how an “Executive Summary” is placed at the beginning of a report a clear Vision is typically memorialized at the beginning of a company’s Strategic Plan. This Vision Statement should align with the aspirations of the business owners, and it is the goal that drives the overall efforts of the business. It should encapsulate a description of what the business should be in the next 5 – 7 years. All of the decisions regarding company Objectives, Goals, and Strategies are designed to achieve that, Vision. Therefore, it is presented first in the Strategic Plan to describe the intended destination. To get a sense of how it impacts the operation of your business read my blog, “Is Your Company Vison Functional”.
A clear vision is most effectively described once clarity has been achieved on the other 8 characteristics. Therefore, like the “Executive Summary” of a report it should be completed last. Here is an example of a well written Vision Statement.
Eco-Friendly Apparel Brand – “Our vision is to lead the fashion industry towards a sustainable future by producing high-quality, eco-conscious apparel. We aim to inspire positive change through innovative materials, ethical practices, and a commitment to environmental preservation. By 2030, we will become the go-to brand for consumers who care about the planet without compromising on style.”
We’ll come back to this after we cover the other characteristics. To better understand the value of your Vision Statement read, “Why You Need a Corporate Vision Statement” by Carla Groenewegen.
Purpose:
Your Purpose Statement describes why your business exists and establishes a firm connection with your customers, employees, and investors. It differs for a Mission Statement in that it answers the question of why you do what you do as opposed to the Mission Statement that answers the how and what your business does. Both perspectives are important and should be incorporated into company plans. There are some advantages to combining them but here we’ll focus on defining your Purpose. Consider the following 5 areas of focus to help you achieve clarity on your business Purpose.
1. Consider your “Why” – This goes beyond selling products and services. It generally is found in the owner’s motivation and beliefs when the business started and answers the questions, “Why did you start THIS business and not do something else? What problems are you solving? And how does the business make a difference in the market or world?
2. Keep Your Purpose Statement Simple and Clear – Uninformed readers will read your Purpose Statement. Therefore, it should be easy to understand while it describes the essence of your business and its importance.
3. Make it Authentic – It should connect with people, be genuine and represent the humanity of the business. It should resonate with the reader.
4. Align it With Your Values and Long Term Vision – It should fit in with you culture and values and be sustainable over time, even as your business changes. Therefore, it needs to support your vision, guide decision making, and inspire your team.
5. Consider the Audience – When defining and writing your Purpose Statement consider who might be interested in knowing this. Generally, your customers, employees, and investors are the primary audience, so make sure it will resonate with them.
By way of example, the Purpose Statement for Airbnb, a hospitality service, is “To help create a world where anyone can belong anywhere.” Airbnb has described an environment of inclusivity, belonging, and connection. This statement emotionally resonates with the reader and describes a welcoming environment. It is aspirational and can support the future direction of the company.
For another perspective on the value of and the process of developing your Purpose Statement read “How to Develop Your Company’s Purpose Statement” by WGU.
While Vision and Purpose Statements reflect the expectations of the business owners involving other stakeholders in the business in the development and/or review can be helpful in refining them into a quality result.
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