“Why does this business exist for its customers?” This is one of the most important questions a company can ask itself. In his article, The Power of Purpose, Nick Hughes states that the answer can be found when a business owner clearly understands and believes in the purpose of his or her business. Only then can they achieve true success. Hughes states that this “power of purpose” enables companies to succeed by providing a guide to every action and decision through something called a “core purpose statement.”
Put simply, the core purpose statement is a brief explanation of why a business exists for its customers – an expression of what the company does. Why a company exists, however, is not to make money. That is the result. Why a company exists answers questions such as “why was the business started?” and “how is it different from the competition?” and most importantly, “what does it do for customers?” A core purpose statement brings clear focus to a company’s core values, spelling them out so that everyone – from managers to part-timers – is on the same page.
By focusing on a company’s values rather than its products, the core purpose statement should last for many years, regardless of changes in the economy, trends or politics. As an example, Nike’s core purpose statement is: to bring inspiration and innovation to every athlete in the world.
When developed correctly, core purpose statements act as a powerful tool for businesses. They are a concise way of recalling and reinforcing the specific values that have made a company what it is today. When each and every employee lives the core purpose statement, the company will develop an edge, a head start on success that their customers will thank them for.