September 03, 2014
We hear more and more that organizations must have a compelling “purpose” — but what
does that mean? Aren’t there already a host of labels out there that describe organizational
direction? Do we need yet another?
I think we do, and I’ve pulled together a typology of sorts to help distinguish all these
terms from one another.
A vision statement says what the organization wishes to be like in some years’ time. It’s
usually drawn up by senior management, in an effort to take the thinking beyond day-to
day activity in a clear, memorable way. For instance, the Swedish company Ericsson (a global provider of communications equipment, software, and services) defines its vision as
being “the prime driver in an all-communicating world.”
There’s also the mission, which describes what business the organization is in (and what
it isn’t) both now and projecting into the future. Its aim is to provide focus for
management and staff. A consulting firm might define its mission by the type of work it
does, the clients it caters to, and the level of service it provides. For example: “We’re in the business of providing high-standard assistance on performance assessment to middle to
senior managers in medium-to-large firms in the finance industry.”
Values describe the desired culture. As Coca-Cola puts it, they serve as a behavioral
compass. Coke’s values include having the courage to shape a better future, leveraging
collective genius, being real, and being accountable and committed.
If values provide the compass, principles give employees a set of directions. The global
logistics and mail service company TNT Express illustrates the difference in its use of both
terms. TNT United Kingdom, the European market leader, lists “customer care” among
nine key principles, describing it as follows: “Always listening to and building first-class
relationships with our customers to help us provide excellent standards of service and
client satisfaction.” TNT’s Australian branch takes a different approach: Rather than outline detailed principles, it highlights four high-level “core values,” including: “We are
passionate about our customers.” Note the lighter touch, the broader stroke.
So how does purpose differ from all the above, which emphasize how the organization
should view and conduct itself?
Greg Ellis, former CEO and managing director of REA Group, said his company’s purpose
was “to make the property process simple, efficient, and stress free for people buying and
selling a property.” This takes outward focus to a whole new level, not just emphasizing
the importance of serving customers or understanding their needs but also putting
managers and employees in customers’ shoes. It says, “This is what we’re doing for someone else.” And it’s motivational, because it connects with the heart as well as the head.
Indeed, Ellis called it the company’s “philosophical heartbeat.”
For other examples of purpose, look at the financial services company ING (“Empowering
people to stay a step ahead in life and in business”), the Kellogg food company
(“Nourishing families so they can flourish and thrive”) and the insurance company IAG (“To help people manage risk and recover from the hardship of unexpected loss”).
If you’re crafting a purpose statement, my advice is this: To inspire your staff to do good work for you, find a way to express the organization’s impact on the lives of customers,
clients, students, patients — whomever you’re trying to serve. Make them feel it.
Graham Kenny, CEO of Strategic Factors, is a recognized expert in strategy who helps
managers, executives, and boards create successful organizations in the private, public, and
not-for-profit sectors. You can connect to or follow him on LinkedIn.
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9 months ago
Dr. Kenny - Your article was referred to me by one of our marketing professionals when I asked if mission and
purpose are the same. Coming from a military and field operations background, I have a hard time seeing purpose as anything other than mission. Do you have any empirical analysis/evidence to support the proposed
definition difference between mission and purpose?
Respectfully,
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