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Can you\u00a0recall why your firm was originally founded and why\u00a0it got its first customers? Is that purpose still the guiding principle? Or has your company evolved and found its true place in the world\u00a0over the years? In any case, understanding your company\u2019s purpose is\u00a0essential to your strategy. It is the magnetic north\u00a0of your strategic journey.<\/p>\n A good purpose statement places the customer in the center. A company exists because there is a problem or need that customers have, and the company has a solution that the customer prefers. The company has something unique that it can\u00a0utilize for the customers\u2019 benefit. Statements like \u201cWe are an engineering company\u201d or \u201cWe are a design and build firm\u201d do not say anything about your purpose. As Cynthia Montgomery writes in The Strategist: Be the Leader Your Business Needs<\/a>, the acid\u00a0test of a purpose is this: Will it give you a difference that matters in your industry?<\/p>\n Having a clear picture of the company\u2019s purpose it essential. It established meaning for today. It is also the starting point of strategic planning.<\/p>\n A purpose gives answers to these key questions:<\/p>\n Consider the following characteristics when defining your company\u2019s purpose:<\/p>\n A good purpose is ennobling and inspiring. It<\/strong> makes a firm\u2019s endeavors noble or dignified. It is inspiring to all stakeholders. It communicates on an emotional level, which is essential to most individuals. People crave meaning in life and work.<\/p>\n A good purpose says what you do<\/strong> (and what you don\u2019t); it puts a stake in the ground.<\/p>\n A good purpose sets your company apart and makes you distinct.<\/strong> The difference may arise from many sources: innovation, business models, deep insights about specific client needs, technologies, management, and so on. Try to imagine how your customers see or will see the difference.<\/p>\n Most importantly, a good purpose sets the stage for profitable and growing business.<\/strong><\/p>\n Here are examples of purpose\/mission statements of selected Fortune 500 and Inc 500 companies. Not all of these are great examples, but give you an idea of the many ways you can express a\u00a0company\u2019s purpose.<\/p>\n \u201cOur purpose is to enable individuals and businesses to manage financial risk. We provide insurance products and services tailored to meet the specific and ever-changing financial risk exposures facing our customers. We build value for our investors through the strength of our customers\u2019 satisfaction and by consistently producing superior operating results.\u201d<\/p>\n \u2013 American Financial Group, INC<\/em><\/p>\n \u201cUse our pioneering spirit to responsibly deliver energy to the world.\u201d<\/p>\n \u2013 ConocoPhillips<\/em><\/p>\n \u201cWe will be the easiest pharmacy retailer for customers to use.\u201d<\/p>\n \u2013 CVS Corporation<\/em><\/p>\n \u201cDole Food Company, Inc. is committed to supplying the consumer and our customers with the finest, high-quality products and to leading the industry in nutrition research and education. Dole supports these goals with a corporate philosophy of adhering to the highest ethical conduct in all its business dealings, treatment of its employees, and social and environmental policies.\u201d<\/p>\n \u2013 Dole Food Company<\/em><\/p>\n \u201cFor Our Customers A compelling place to shop. . . by providing convenience and low prices<\/p>\n For Our Associates A compelling place to work. . . by providing exceptional opportunities and rewards for achievement<\/p>\n For Our Investors A compelling place to invest. . . by providing outstanding returns\u201d<\/p>\n \u2013 Family Dollar Store<\/em><\/p>\n \u201cWe are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.\u201d<\/p>\n \u2013 Ford Motor Company<\/em><\/p>\n \u201cOur goal is to achieve customer satisfaction through excellence in design, supply chain management, manufacturing and repair solutions. Through our culture, our drive and the expertise of each individual employee, we are uniquely positioned to provide best-in-class services to a global customer base.\u201d<\/p>\n \u2013 Jabil Circuit<\/em><\/p>\n \u201cTo help companies better connect with their customers online by managing and measuring each customer\u2019s experience with the company producing actionable information and results.\u201d<\/p>\n \u2013 Customer Feedback Solutions<\/em><\/p>\n \u201cEnlightened, Inc. is a full-service Information Technology (IT) consulting firm that helps our clients solve complex business problems by leveraging technology. We are committed to being the best through our professionalism and by keeping the interests of our clients first. We strive to ensure our services are a cost effective alternative.\u201d<\/p>\n \u2013 Enlightened<\/em><\/p>\n \u201cTo bring inspiration and innovation to every athlete in the world.\u201d<\/p>\n \u2013 Nike<\/em><\/p>\n \u201cThe BMW Group is the only manufacturer of automobiles and motorcycles worldwide that concentrates entirely on premium standards and outstanding quality for all its brands and across all relevant segments.\u201d<\/p>\n \u2013 BMW<\/em><\/p>\n \u201cGoogle\u2019s mission is to organize the world\u2019s information and make it universally accessible and useful.\u201d<\/p>\n \u2013 Google<\/em><\/p>\n Cynthia Montgomery states in The Strategist<\/a> that strategy and leadership must be reunited at the highest level of an organization. The CEO, according to Montgomery, should be the guardian of organizational purpose. It is the CEO who must\u00a0make sure that the purpose is clearly stated, and everyone in the organization knows and understands it.<\/p>\n<\/div>\nWhat is a company\u2019s purpose statement?<\/h2>\n
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What makes an effective purpose?<\/h2>\n
Examples of purpose statements<\/h2>\n
Who\u2019s responsible for\u00a0the purpose?<\/h2>\n