The Core DNA of your Strategy
The operating context of a business changes. People come and go. New technologies disrupt. Strategies adapt. Products and services are introduced, evolve, thrive and become obsolete. The most enduring, successful companies over the long term have some things that never change. Their core DNA. Why they do what they do, how they do it and what they are trying to achieve. In other words, their purpose, values and envisioned future.
Purpose
Why does the business do what it does? What is the ultimate outcome of the activities of the business?
A clear and compelling purpose inspires and brings meaning to work. It guides and inspires possibilities.
Maximising shareholder value is not a purpose, it is a hygiene factor. Business must be profitable in the long term, otherwise they will not exist.
The purpose is deeper than profit. It is the why. For example, Disney’s purpose is the make people happy. 3M’s purpose is to solve unsolved problems innovatively. Both make a profit while they do it.
To get to the core purpose of your business, first describe what the business does. Then ask, why? Once you have that answer, ask… why? Be prepared to ask why up to five times. The final answer will be your underlying core purpose.
Another way to think about it is… what would be lost if the business didn’t exist? Why should the business continue to exist?
Values
How does the business do what is does?
Values are thing the business holds as core and are unwavering. They are lived authentically. They are deeply held and never compromised. Often they differentiate you from others.
The list of potential values is endless. The key is to identify the ones that are important to how you conduct your business. There will likely only be a few that are core, 3, 4 or 5 are most likely. If you have more than that, you have too many.
Once you have your core values, let them live and breathe. Values are most powerfully embedded when people and teams create their own meaning of what the values mean to them and what that looks like day-to-day. Values define the culture and attract, engage and retain people that align with them.
Most importantly, leaders must live the values authentically and consistently. Nothing undermines or demotivates more than the behaviour of a leader that contradicts the organisations values.
Painting a Picture of the Future
An envisioned future articulates what the business trying to achieve.
Think big. Be bold. Envision a future that is big enough to be excited by and motivate. Create a picture of the future that engages and inspires. Don’t be trapped by capturing the envisioned future in a single sentence with lots of comma’s – it is a story, not a statement.
One way this can be done is to complete the sentence “Imagine a future when…”. What would the business look like in 5 or 10 years’ time? What will it feel like to be part of the business? What would an article in the newspaper say about the business? What would the headline read?
Write your own headline.
In summary
Why a business does what it does, how they do it and what they are trying to achieve in the future is the core DNA of a business.
These core elements are a magnet to attract people that align to the purpose, values and vision of the organisation. They provide people in the business clarity and focus. They define the culture. They are lived every day and guide decision-making.
Need help defining your core DNA? Talk to us today.