What actually is a purpose statement and does a small business or SME really need one? A very concise purpose of a purpose statement is that it defines why a business is in existence, what it stands for, what it intends to accomplish, and/or benefits it seeks to provide to its various stakeholders. To a certain extent, a purpose statement personifies the business. Sometimes, a purpose statement is confused with a vision statement that describes where the business wants to be in the future. Occasionally, these statements are combined.
Now, knowing what a purpose statement is and its purpose, can a purpose statement help a small business achieve its goals? The answer is a clear and emphatic, yes, if handled correctly.
Live the Purpose
The caveat is that a purpose statement cannot simply be prepared, read, or distributed to all employees, saved on a computer or filed away, and never looked at again. When this is the case, the purpose statement serves no worthwhile purpose. Purpose statements have to be “lived” by everyone in the company – small business or large enterprise. All employees – top-down and bottom-up – should practically have the purpose statement memorized, so anyone can recite it or paraphrase it without having to give much thought to what it contains. Everyone should know how their individual jobs contribute to achieving the company’s purpose. Owners and managers must exhibit their commitment by continuously demonstrating that they along with all employees use the purpose statement as a guide that helps achieve goals and objectives.
Display the Statement
A company’s purpose statement should be prominently displayed. Everyone needs to see it – employees and customers. The display keeps employees on track thinking every day about the vital role they play in achieving the company’s ultimate purpose. Displaying a purpose statement in a reception area or owner’s office is not nearly as effective as displaying it in areas where employees normally gather – work areas, break rooms, conference rooms, warehouse, manufacturing floor, etc. If employees are expected to live by the purpose statement, then displaying the statement is a constant reminder of their “purpose.”
When customers, one of the most important stakeholders, see a purpose statement prominently displayed, it lets them know what the business is trying to achieve. A purpose statement that is correctly crafted advises customers what the business intends to specifically deliver to them. This might be a product or service, a level of quality or pricing, customer satisfaction, etc. – whatever it is that the business seeks to provide to its customers. Customers then know what to expect for the money spent.
Get the Point Across
A purpose statement does not have to be lengthy and complex. In fact, getting the point across to the intended targets is the most important aspect of a purpose statement. Can employees and customers remember it? Do they understand it? Is the company achieving its purpose? A purpose statement as simple as, “To be highly successful by pleasing one customer at a time,” might be all that is necessary. Imagine the effect of this purpose statement on customers and overall business profit if all employees in a company had this as their daily objective?
In summary, a displayed purpose statement is a constant reminder to employees and customers of the company’s purpose. When expectations are established and met, customers become satisfied, and satisfied customers return to purchase again. Yes, a purpose statement can definitely help a small business achieve its goals.
