Purpose vs Vision vs Mission Statements (#53)
Organizations routinely have statements that describe their purpose, vision, and mission. Although these all may make sense in the c-suite, when they filter down to the lower levels they can cause confusion within the team on the difference between each of them. It helps to remember the definitions:
Purpose Statement — the why for your company or your organization.
Vision Statement — what your organization will look like in the future. It provides the direction and focus over the next several years so that the organization can achieve the vision.
Mission Statement — what the organization does and who it does the work for.
RaceTrac Petroleum is a third-generation, family-owned company, headquartered in Atlanta, that owns and operates more than 670 convenience stores across the southeast United States. Their revenue was estimated at $11B in 2019. They have all three statements.
Purpose — To make people’s lives simpler and more enjoyable.
Vision — Become the convenience store of choice.
Mission Statement — Place our people first, ensure open honest communications, and always provide tasty food, competitive prices and friendly service.
RaceTrac Service Station
I am, of course, partial to the purpose statement, since it plays such an important role in the leader’s intent (https://www.thefivecoatconsultinggroup.com/the-coronavirus-crisis/d-day ) and shaping the corporate culture (https://www.thefivecoatconsultinggroup.com/the-coronavirus-crisis/superb-culture ). It takes some tough intellectual thought for you and your team to develop a powerful, impactful purpose statement. There are three questions to think about as you and your team define your purpose:
Why is your company in business?
Who are the primary beneficiaries of the company’s work?
What is unique about your company and provides a competitive advantage?
Here are some corporate purpose statements to help you think about crafting your own powerful purpose statement:
IBM — Building a smarter planet
Starbucks — To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time.
Southwest — To connect people to what's important in their lives through friendly, reliable, and low-cost air travel.
Whole Foods — Our purpose is to nourish people and the planet.
Netflix — Make great films with great people.
Bayer Crop Science — Science for a better life.
Apple — Disrupt the status quo.
Put the intellectual energy into developing or improving your purpose statement while making sure it is different from your vision and mission statements. Then go on the offense and make sure your company lives up to its lofty goals.