The power of purpose in your business strategy

At one of our client's strategy retreats, we witnessed a challenge that many executive leaders in organizations face: a lack of alignment on their purpose. The company had been around for decades, and over time, its purpose had evolved. 

We’ve observed this pattern in companies such as Tesla and Netflix. Tesla’s initial purpose was "To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles." But as the company grew and expanded into solar energy, battery technology, and more, their purpose evolved to "Accelerating the world’s transition to sustainable energy." This change wasn’t just about cars anymore—it reflected a broader ambition for impact across industries.

Netflix’s evolution followed a similar path. Initially, their purpose was simple: to make DVD rentals more convenient through mail service, inspired by founder Reed Hastings’ frustration with a late fee on a rental. But as the world shifted and embraced digital technology, their purpose evolved to “To entertain the world.” They shifted from DVD rentals to streaming and eventually producing original content. Today, Netflix is a global leader in entertainment.

However, when it came to our client, not everyone on the leadership team and board of directors was on the same page about what that purpose had become. Without this alignment, it became nearly impossible for them to clarify their North Star and make decisions regarding their strategic priorities. A clear purpose is the foundation for every decision and action that follows.

Defining your purpose

We’ve worked with many leadership teams to define their purpose, and they often acknowledge how challenging and critical the process is. They recognize that it could take months of deliberate thought and discussion to truly align on their company’s purpose. However, there are steps you can take as a leader to help both you and your team embrace uncertainty and ambiguity, rather than rushing to solutions. Here are 4 actionable steps to help you define a clear purpose:

1. Slow down and dedicate time to deeply explore your purpose and North Star.

Allow your executive team the space to imagine and visualize the future they want to create. It’s completely okay to sit in ambiguity rather than rushing to find a quick answer. You'll be grateful for taking the time to arrive at the real answers, rather than settling for a solution that won’t hold up through the strategic process.

2. An objective facilitator and coach to guide your leadership team through ideation exercises is invaluable.

It can be difficult to do the thinking all on your own. A skilled strategy coach will challenge your thinking, reflect back incoherence, and hold you accountable to digging deeper and gaining clarity in ways you might never have imagined on your own.

When we’re facilitating purpose and vivid vision exercises with our clients, leadership teams often require a great deal of coaching to make their purpose specific and tangible. We help them move beyond broad and vague statements like “Have the best company culture,” and define a purpose that’s unique to their organization.

3. Tell stories about a time you felt proud to be part of the team.

This is one of the many exercises we use when working with leadership teams. Pay attention to the details that evoke pride or cause the hairs on your arms to stand up as you tell stories about those moments. There's something in those stories that can reveal your purpose.

4. Gather stakeholder insights.

Listening to stakeholders' stories about the impact your organization has had on them can also help uncover your purpose. These insights can be gathered through surveys, interviews, and focus groups.

Is your purpose powerful?

Once your organization has defined its purpose, how can you tell if it’s impactful and inspiring enough to drive a successful strategy? The purpose is specific and unique to your organization.

Consider the difference between “Feed the world” and “Every grain to market.” Many companies in the food industry claim to help feed the world, but what is your unique contribution? One company, for example, stands out by developing technology to monitor, manage, and maintain grain. While they play a part in feeding the world, their unique role is ensuring every grain reaches the market to become part of the food system.

Remember, purpose is about external impact, not about having the best company culture or meeting internal metrics like revenue targets. Those are critical elements of how your organization operates and achieves its purpose, but they are not the purpose itself.

A good test of a clear purpose is if you can easily see what you need to improve within your organization to achieve it. If it’s too broad, it’s really hard to see what needs to develop to get there and how to start.

Get clear

A clear purpose resonates with people beyond your organization, and compels them to become customers, supporters, employees, or engaged stakeholders. It connects with them in a way that drives action and loyalty. It’s also one of the first steps in building trust with your stakeholders. Without clarity, stakeholders can’t tell if your organization is truly living up to its purpose or acting with integrity. Clarity creates trust, while a lack of it can erode it.

At Incito, we’re passionate about helping executive leaders get clear and align on their organizational purpose, so they can develop a meaningful, impactful, and sustainable strategy. If you want a skilled coach to challenge your thinking, reflect back incoherence, and hold you accountable to digging deeper and achieving clarity—let’s talk about strategy development.