Identity, Purpose and Vision in Strategy Development

I describe the GRADO (Growing Adaptive Organizations) approach in a series of articles.?For an introduction, read my slide sets on Building Blocks Overview and how we want to Grow Conceptual Understanding of the approach.

Introduction

To define and understand its identity, an organization needs an intention and purpose- the core of its identity. Identity starts even before vision, it is something that stays, something like the good cause the company stands for.

This deliberately has a moral undertone: it should be infectious, inspire people, and give them a sense of direction and a backbone of values.

Building on that, you can talk about a vision that clarifies the direction to be taken.

Intent, purpose and the "Start with Why".

Using an example of two product presentations (described by Simon Sinek, in this case, Microsoft Zune and Apple iPod) by Microsoft and Apple, it becomes clear how the existence of an intention becomes visible:

• At the Microsoft Zune presentation, the majority of presenters devoted a good portion of their presentations to how they would beat Apple.?
• At the Apple event, 100 percent of the presenters spent 100 percent of their time talking about how Apple is trying to help teachers teach and students learn.

Microsoft had chosen a metric ("beat Apple at music players"), but it didn't offer them any help on how to proceed with the next product. And just as "after the game is before the game" is true, so is "after each product comes the next. Only a consistent perspective gives a continuous long-term orientation.

Apple had that north star, that end-to-end orientation: to create the best user experience for their customers. And that gave them an advantage and the resilience to act properly under changing demands.

While it describes the different working modes very well, this comparison is a snapshot from a few years ago and, from today's perspective, unfair to Microsoft today under Satya Nadella. In an interview with Ranjay Gulati, he describes his idea: "In our context, technologies will come and. Strategies will come and go. But how you invent and anchor yourself - you need this strap [holding you in place] which is a sense of purpose." In addition, it should be noted that in its early days (under Bill Gates), Microsoft certainly ascribed itself a purpose: "information at your fingertips," i.e., making information easily available to everyone at all times.

What is a valid Purpose?

A Purpose or common cause is a basic idea that "animates" the organization. We borrowed this idea from Simon Sinek's "the good cause". It is another developed idea of "Start with Why". But: it is not the same as the WHY.?

A WHY comes from the past. It is an origin story. It is a statement of who we are - the sum of our values and beliefs. A just cause is about the future.

A just cause must be:

• for something - affirmative and optimistic -
• inclusive - open to all who wish to contribute -
• service-oriented - for the primary benefit of others - thereby building a loyal base of employees and customers (and investors) who will remain loyal to the organization through thick and thin.
• resilient - can withstand political, technological, and cultural changes -.
• idealistic - big, bold, and ultimately unattainable - attainable is a vision that also plays an important role.

Perhaps the definition becomes a bit clearer when illuminated with some counterexamples. What does not qualify as a good thing is

• Moon shots, i.e., goals that are difficult to achieve
• "To be the best," i.e., to measure up to the competition
• Growth per se
• Social responsibility, i.e., things the company does in addition to its primary goal

Vision

But vision is different from purpose. The purpose is similar to a direction, a general heading. Vision is a specific destination, a picture of a desired future. Purpose is abstract. Vision is concrete. Purpose is "advancing man's capability to explore the heavens". Vision is "a man on the moon by the end of 1960s." Purpose is "the best I can be, excellence." Vision is breaking four minutes in the mile.

Peter Senge, 1995

If anything general can be said about vision, it should include

• Create a vision based on the needs of your users, not assumptions and the bottom line (although of course, that will matter at some point). Think long-term.?
• Find your north star. In most cases, it will be the answer to the questions, "How can we best serve potential users with unique, valuable, and actionable content?" and "What unmet needs or unanswered questions might they have?"

You will try (or have tried) many different strategies, and some have been more successful than others, but what is even more important than trial and error is the process to review and adjust the vision.

• Is the vision consistent with our identity, our purpose?
• Does the vision put customer value first?
• Is the vision engaging for employees, customers, and public perception? Can it evoke emotions that release additional energy?

The Business Value of Purpose

Purpose comes in different colors, shapes, and degrees of authenticity and there is a strong tendency to integrate Purpose into strategy. This is suggested by the increasing scrutiny in social media. It is most evident in the threats posed by their absence, as evidenced by the crash of Facebook or, currently, Twitter.

Ranjay Gulati, in his book "Deep Purpose," identifies four levers by which a strong purpose can improve an organization's performance:

• Directional: deep purpose serves as a "North Star" and helps you channel innovation
• Relational: deep purpose helps you sustain credibility and trust with ecosystem partners and establish long-term relationships
• Reputational: Deep Purpose helps you build affinity, loyalty, and trust with customers
• Motivational: Deep Purpose elevates work, allowing you to motivate and inspire employees

Closing

When we talk about strategy in such a context, we come to both more clarity and better integration and consistency with the implementation of the action systems of an organization.

In a previous post I also described some classic strategy approaches and mentioned elements that make up a good strategy for me.?

Readings

• Simon Sinek: The Infinite Game. Penguin Books 2019 - for the comparison between Microsoft and Apple
• Ranjay Gulati: Deep Purpose. Harper Business 2022 -?for the levers on how purpose affects performance and the citation of an interview with Satya Nadella, CEO of Microsoft
• Using Patterns to Drive a Transformation toward Agility - Practical Insights from Large Companies on infoq.com
• Travel reports in GRADO