(Time to read this Blog article is about 70 seconds)
Many businesses confuse ‘Purpose’ with ‘Vision’. Here’s an example of what I’m talking about. ChocoSol Traders is a small, artisanal chocolate production and marketing company based in Toronto that’s committed to fair and ethical business practices. Their Vision Statement, found on their website is…
‘To create an ecologically and socially just food system through chocolate, coffee, maize, and conviviality.’
I think that’s a Statement of Purpose…not a Vision Statement. Why, you may ask, does this stuff even mater? It matters because as business owners, leaders and managers our 1st job is ‘clarity’ …and if we’re not clear about the purpose of our business and what we commit to become (our Vision), we haven’t done our most important job. Sadly, many businesses never give much thought to why they exist.
Clarity of ‘Purpose’ and Vision’ also matters on the bottom line. An 11-year survey of 207 public companies showed that businesses committed to a clear purpose averaged 571% higher gains in earnings than businesses that had no clear purpose. Are you in business ‘on purpose’…or are you just making it up as you go along?
I’ve worked with business around the world on this important stuff for over 20 years and here’s what I’ve figured out.
- Your ‘Statement of Purpose’ will be a clear, 5-point statement of why you’re in business, including your commitments to all stakeholders. It will include:
- Your customer purpose,
- Your employee purpose,
- Your investor purpose,
- Your ‘community’ purpose…and,
- Your environmental I’ve talked about being clear about your ‘WHY’ for years and now Simon Sinek’s book ‘Start With Why’ is a #1 best seller. Check it out.
- Your ‘Vision Statement’, on the other hand, will be a clear, specific and measurable statement of what your business commits to become in 3 to 5 years. It will consist of 5 points on one piece of paper that will inform, focus, challenge and inspire you and everyone on your Team, from top to bottom. It will get everyone ‘singing from the same hymn sheet’, to quote my Grandma Cooper.
– For help in creating your clear ‘Statement of Purpose’, click here to download our Biz Tool #B-2, no charge.
– For step-by-step help in creating your clear, specific and measurable 3 to 5-year ‘Vision Statement’, you can purchase our 34 page ‘Vision Critical Guide’ as a downloadable PDF for just $24 at donaldcooper.com.
So, what will you do to be ‘on purpose’ in your business? All businesses sell stuff. Great businesses operate with clarity and purpose that engages and inspires everyone on the team.
Note: To enquire about Donald’s business speaking and coaching for your company or industry Association, contact us at firstname.lastname@example.org.