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September 27, 2013
By: Patrick Ropella
Ropella & Associates
A popular advertising campaign has celebrities and athletes smiling into the camera with a wide, white moustache on their upper lips with the headline, “Got milk?” The same question can be asked of corporate purpose. But what is it, and why is clarifying your corporate purpose so vital? What Is It? Corporate purpose is the compelling reason your organization exists. It need not be a world-changing reason. Most great organizational purposes are simple yet eloquent, powerful yet doable, profound yet basic. For example, the purpose for Rosenbluth International, the multi-billion dollar travel management company, is to always put employees first. As a leader in pharmaceuticals, Merck’s purpose is summarized with “medicine is for people—not for profits.” The company is internationally renowned for donating millions of dollars of medicines to people around the world simply to help the patient’s condition, not to generate more bottom-line dollars. How do values, mission and vision align with purpose? Values are the social principles, goals, or standards upon which you base your entire operation. These are the things your organization stands for and desires to be known for by employees, customers, vendors and all associated with your enterprise. Mission is a statement that describes the nature of your business, your core products, services and core customers. It serves as a guidebook for how your operation works and for whom. Vision represents what you believe the future should be for your company. It is your summary of your future destination, be it market position, image, financial status, reputation, service, etc. Purpose transcends values, mission and vision. A clear purpose forces employees, shareholders, vendors and even customers to look beyond the quarterly returns and measure the performance of the organization on more than short-term financial benchmarks. It pushes all involved to ask a critically important question: are we merely making money, or are we making a difference? Three Elements of Purpose There are three elements of purpose—transformation, acceleration and passion. Here’s a review of each. Transformation: By definition, transformation suggests to change the condition, nature, or function of something, to modify the very form or appearance toward a new and better end. For example, “To honor God” or “Leave no one behind” both include a sense of taking the current situation (however good or bad) and making it better. Organizational transformation occurs as leaders set in motion the resources, talent and energy necessary to move their company toward a greater place—a new level of competitive advantage, service delivery, products or process. Transformational leaders who achieve great results instigate change, driving the changes necessary to aggressively move the organization toward its ultimate purpose. They are not satisfied with merely managing change, but rather transforming their current circumstances into a more significant tomorrow. Ask yourself:
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