#4 Purpose vs Vision vs Mission

Creating a shared sense of purpose can be transformational—not just for how well you implement ESG, but also for linking positive impact with financial performance.

The first step is to understand how purpose differs from vision and mission.

3 min read

There are huge advantages enjoyed by companies that are truly purpose-led:

• they grow 5x faster than their peers

• their customers are 23% more valuable

• they have 30% higher rates of innovation

• their staff are 4x more engaged and motivated

This is referred to as 'Purposeful Advantage'.

We'll take a closer look at this in newsletter #6, and include some practical examples and case studies of how to realise these advantages.

But first, let's look at what purpose means and how it differs to vision and mission.

Purpose

Purpose is your 'why'. 

Why does the company exist? 

Making sales or a profit is not the answer here!

Purpose is the intersection of two important things:

• what you can be the best in the world at (commercial activities)

• how you can make the world a better place (impact initiatives)

Vision

Vision is an optimistic picture of the future you are trying to create. 

What could the world look like if you fulfil your purpose?

If purpose is your why, vision is the where.  It is the destination.

What about Profit?

Simon Sinek ties these things together nicely with the metaphor of a car journey:

The car is the company.

Purpose is the reason you are setting off on the journey

Vision is the destination.

The role of profits in all this?  That is the fuel that keeps the car going.

Mission

Mission is how you are currently going about the realisation of your purpose and vision.

Or to continue the road trip metaphor, it is a checkpoint along the way; the next big milestone of the journey.

It usually takes the form of an ambitious medium-term objective; a goal that you can quantify and objectively reach.

Mission will be updated every few years, whereas purpose is timeless.

Inspire, Align, and Boost Performance

As you can see, Purpose, Vision and Mission all have distinct but complementary roles.

You do not necessarily need to have them all - but understanding their unique functions and defining the Why, Where, and How of your business can be incredibly powerful.

When well-crafted, these elements can inspire your team, align their efforts with the company’s true priorities, and create a platform for success.

This is the foundation for creating positive impact and ensuring it is linked with financial performance.

Next steps

1. Assess Your Current Statements

   Review any existing statements your company has, whether they are labeled as vision, mission, or otherwise. Determine if they clearly articulate the purpose (why you exist), vision (where you are going), and mission (how you will get there).

2. Engage Your Team

   Hold discussions with your team to understand their perspective on the company’s purpose, vision, and mission. Find out if they feel inspired by these statements and if they see a clear alignment between these concepts and their daily work.

3. Align and Revise

   Based on your assessment and team feedback, refine your statements to ensure they are inspiring and create alignment. Ensure that the revised statements clearly address the why, where, and how of your company’s goals.

A sneak peek at next week...

In the next newsletter, we’ll explore how to craft an effective purpose statement using a framework developed by Harvard Business Review.

We’ll break down the five key elements you need to include to ensure your purpose is both inspiring and actionable.

More on this next week...

The journey towards a better way of doing business

We are on the cusp of a new paradigm of responsible business, and helping impactful companies pair purpose with profit will accelerate the shift.

I believe this holds the key to solving many of our greatest challenges and inspiring positive change throughout society.

If you can think of two or three others that would find this newsletter helpful, I'd be really grateful if you share it with them.

Thanks for your support.