During a recent conversation with a group of CEOs, it became evident that the labels 'purpose' and 'vision' are being interchangeably used. This can make it difficult for them to be properly embedded in an organization, as leadership and staff lack clarity of direction.
Your vision should paint a picture of a future that doesn't exist and inspire people to create it. A purpose is constant; it connects what your business does to what the world needs. It's the reason your company exists and a touchstone that your leadership and staff can always come back to. Your purpose doesn't really need to change over time once you've got it. But your individual goals, ambitions, and objectives should change as your strategy adjusts to market circumstances. Vision is enabled by purpose.
Keep your language deliberately clear. In our business, we believe every organization should have the following:
- Purpose – capturing why you exist and connecting what you do to what the world needs.
- Ambition – setting a measurable goal for what you want to achieve.
- Strategy – explaining how you will achieve your ambition and fulfil your purpose.
- Values – a guide for how you behave and treat people.
When all of these are properly embedded in an organization, they work together to make up your vision framework.
Why purpose should guide your vision
A properly embedded purpose informs strategic decision-making, corporate culture and employee actions, which helps businesses achieve their vision. Purpose gives people an emotional anchor to the business, and vision helps companies and employees strategically align themselves toward reaching the business objectives. In a way, purpose can never be reached – it’s unattainable and constant. But your vision can change when you meet your business objectives.
Often, it's easy for businesses to give employees an ambition or strategy to aim for, but the emotional connection that people have with the business needs to be driven by purpose. And that's why it should be embedded in your processes, culture, and decision-making. When business decisions become purpose-driven, you’re also generating shareholder value – it’s not a fight between profit and purpose anymore; you’re delivering both.
Your vision should paint a picture of a future that doesn't exist and inspire people to create it. A purpose is constant; it connects what your business does to what the world needs.
Global organizations that are dealing with multiple cultures or sub-businesses that do things differently in every region can face trickier challenges. Your purpose should translate across the different cultures and regions, but your vision can be more tailored according to the business.
A purpose challenges, motivates, and engages staff to reach your vision. Both together give your business clarity, direction, and focus.
How vision and purpose ignite your culture
No employee or leader has ever jumped out of bed in the morning because they’re excited to maximize shareholder returns. When purpose is embraced throughout the organization, it gives employees something much more tangible to strive for because it’s easier to form an emotional connection to a purpose, rather than to a set of objectives.
Having clarity of your purpose creates certainty in an uncertain world – to have a constant guiding light that people can come back to, and that can also help guide their decisions, is incredibly helpful and fulfilling.
However difficult and however many challenges a business might face, it’s crucial to be clear about what you stand for and make sure you follow this every day, otherwise people won't join you on the journey. And without the right people striving to reach the same goal, you will never reach your vision.
To learn more about how purpose can help your business performance, we will be releasing the FTSE Report: Purpose Matters on the 20th of March, which, for the first time, evidences the positive correlation between performance and purpose through analysis of the FTSE 350. We will launch of the report via LinkedIn Live on Wednesday the 20th of March at 11:30 AM, so please do join us to find out why FTSE 350 companies with a purpose statement perform better – join the event here.
