We kick off our series of B2B tips with advice for both experienced and aspiring organizational leaders. CEOs hold a variety of responsibilities which differ depending on the business type, size, mission and more. When it comes to leading and managing a successful business, what better place to start than with the Chief Executive Officer?
In 2018Â AIS, an independently operated and wholly-owned subsidiary of Mercury Casualty Company, celebrated 50 years of successful business in the insurance industry. The CEO of AIS, Mark Ribisi, offers this advice for finding a company’s purpose, and also why clearly stating your companyâ€™s purpose to all stakeholders is important to being a successful business.
First,Â consider the core organization labels. What do they mean and why are these labels important in describing organizational direction?
Becoming A Successful Business
The vision articulates the â€œpreferred futureâ€ written in the present tense with enough detail to paint a clear picture. It also provides a framework for the future specifically enough to identify the strategic gaps that must be addressed to make the vision become reality.
A vision statementÂ expresses what the organization wishes to be like in the future. Because of this, itâ€™s usually drawn up by senior management in an effort to take the thinking beyond day-to-day activity in a clear, memorable way. For instance, AIS and Mercury General Company define their vision as a goal. The vision states the desire â€œto be a leading provider for consumers and businesses seeking competitively priced value-driven insurance products that deliver peace of mind.â€
The mission is defined as the central purpose of the companyâ€™s existence. A mission statement should certainly be simple enough to be understood by all the stakeholders. Likewise, it should answer the question: Who are we and what should we be? The mission is the means or method to achieving your vision.
A mission statementÂ expresses the central purpose of the organization. It also describes what we do and the desired outcome for our customers. Furthermore, its aim is to provide focus for management and staff. Mercuryâ€™s mission statement is clear on what we do and our central purpose. It states, â€œWe encourage people to reduce risks and help them put their lives back together after unexpected events.â€
Core Values describe the desiredÂ culture. Therefore, these values serve as a behavioral compass. For instance, our core values include:
- Service Excellence
- Process Simplicity
- Product Value
All actions of employees should be centered onÂ an organization’s coreÂ values. If values provide the compass, then principles give employees a set of directions.
Organizational culture is a dynamic system of shared values, principles, philosophies, expectations, experiences, behaviors and norms. Because of all it entails, it defines what’s important to an organization.Â Organizational cultureÂ also influences decision making, methods of communication, structure, priorities, formality, and execution.
“It is about making a difference for the customers you serve.”
So, how does purpose differ from all the above, which emphasizes how the organization should view and conduct itself?
The purpose should be the driver behind all you doâ€“as an individual, employee or organization. Your greater â€œwhyâ€ and reason for being should go beyond being the largest or best or offering the greatest service. It is about making a difference for the customers you serve.
For other examples of purpose, look at:
- Amazon: â€œTo be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online.â€
- Starbucks: â€œTo inspire and nurture the human spiritâ€“one person, one cup and one neighborhood at a time.”
- Allstate: â€œWe help customers realize their hopes and dreams by providing the best products and services to protect them from lifeâ€™s uncertainties and prepare them for the future.â€
If youâ€™re creating a purpose statement, it should inspire your staff to do good work for you. It should also find a way to express the organizationâ€™s impact on the lives of customers, clients, students, patients or whomever youâ€™re trying to serve. Make all stakeholders feel it.