What’s Your Company’s Internal Compass?

by | Mar 6, 2017 | Business, Marketing

One of the hardest questions we ask in our discovery workshops is also one of the simplest and most fundamental: “Why does your company exist?”

You’d think most CEOs would have a ready (and passionate) response to that question, but most don’t. When asked that question, they usually keep their composure, but if you watch closely, you’ll sense their discomfort. They get a little squirmy. They often give a half-hearted response about service, quality, integrity, or other filler words, or they jokingly say that the company’s purpose is to make a lot of money (which it’s not).

We ask that question because we need them to feel uncomfortable. It helps them realize they’re not paying enough attention to the basic things that matter most, and it’s time to rediscover their company’s roots.

Your company exists because of its purpose. Its real purpose. It’s deeper than financial goals, target markets, or strategic plans. It goes beyond your business model and even what category you’re in.

Take Google as an example. If their goal were simply to be the best search engine, they probably would have done a pretty good job and stopped there. However, their deep-down purpose is to “organize the world’s information,” and they’ve applied that purpose in areas as diverse as geography, web analytics, email, genetics, books, blogs, news, images, finances, academics, calendars, videos, coupons, 3D modeling, voice over IP, video chat, health records, social networking, patents, RSS feeds, shopping, and software development.

In every area they touch, they’ve innovated in ways that really do help organize the world’s information, and our lives are improved through their efforts in ways they wouldn’t be if Google were merely focused on improving the quality of their search engine.

A company’s purpose should a timeless statement about the change they’re trying to make in the world. It shouldn’t be tied to any particular industry or approach. In 50 or 100 years, it should be as clear and relevant as it is today—and provide as challenging and energizing a goal.

Purpose provides an internal compass that guides companies forward in a consistent and efficient direction, while reminding them there’s a larger vision for the future. Having a clearly-defined purpose helps companies dream big and move fast. It’s the unchanging soul of a business. It’s the reason it even exists in the first place.

Tags:
Marketing Fundamentals 2: Target Audience

Marketing Fundamentals 2: Target Audience

https://www.youtube.com/watch?v=qwd2zDI5QvY We're talking about the three layers of marketing, and how you want to start at the bottom by helping your target audience solve a real problem with your unique product. Then, you want to design your customer experience...

Marketing Fundamentals 1: Overview

Marketing Fundamentals 1: Overview

https://youtu.be/xpiC3c1WD7Y Entrepreneurs start out with a lot of misconceptions about how business really works, and that's understandable because nobody really ever teaches them. Marketing, in particular, is one of the least understood concepts by business owners....

This is Marketing in the Real World

This is Marketing in the Real World

I’m trying to teach businesses how marketing works in the real world. I've been involved in some kind of marketing at pretty much every point for the last quarter of a century—which kind of makes me contemplate my own mortality, but whatever. For about half that time,...

Using Content Marketing in a B2B Setting

Using Content Marketing in a B2B Setting

Content marketing is a way of marketing that focuses on creating and sharing valuable content with your audience. The goal is to educate and engage your audience, so they'll want to buy your products or services. It can be used in a number of ways, but for B2B...

Don’t Let Your Marketing Get Lost in the Numbers

Don’t Let Your Marketing Get Lost in the Numbers

Measuring marketing isn’t easy, and there are plenty of challenges you’ll face when attempting to measure the effectiveness of marketing strategies and tactics. Some of the biggest challenges include:The difficulty of isolating the impact of marketing efforts:...

What’s the Difference Between Sales and Marketing?

What’s the Difference Between Sales and Marketing?

There are a few reasons people can get confused about the difference between sales and marketing. One is that the words "sales" and "marketing" are often used interchangeably, and many people may not fully understand the distinct roles and responsibilities of each....

When Does Skim Pricing Make Sense?

When Does Skim Pricing Make Sense?

Skim pricing is a pricing strategy in which a company sets a high initial price for a product or service, and then gradually lowers the price over time. This strategy is often used when introducing a new product or when there is a high level of demand for a product or...

Marketing Truths No One Will Admit

Marketing Truths No One Will Admit

In a recent thread on /r/marketing, the question was asked, "What is something no one in marketing will admit, but is definitely true?" While some of the answers in the thread were obviously snarky or pessimistic, there were also several answers that held a lot of...

The Product Design Pyramid

The Product Design Pyramid

If you make it to the top, you'll have one of the best and most delightful products in your market The product design and user experience design industries are full of vague phrases like "delightful experiences" without a lot of specifics about how to get there. Many...