The reason the company was formed and the rules that hold it together. Purpose helps to define where the company will compete, who it's ideal customer is, what products it will sell, and type of people it will hire. It lays out the values of the company, and it's long range North Star (BHAG). All of this gets accomplished much more effectively if you have a plan. For owners, the purpose of the business also includes your reason for being in business and a definition of the reward you seek for the risks of starting and running the business.
How would you rank each of the following statements about your organization on a scale of 0 to 10?
- Our core values are alive in our organization.
- We have a specific long term goal (10+ years) that inspires us.
- Our people are engaged because they are clear on our company purpose and believe that our purpose is important.