Purpose Framework: Defining & Documenting Organizational Purpose

Step 1: Individual Reflection on Purpose

Before crafting a purpose statement, leaders, employees, and key stakeholders should reflect on why the organization exists.

Key Questions for Reflection

• Why was this organization started? (Beyond financial success)
• What problem does the company solve, and for whom?
• What inspires people to work here? (Why does this matter?)
• What would be lost if this organization ceased to exist?
• What impact do we want to make beyond financial results?

💡 Encourage honesty. There are no wrong answers!
⏳ Time Required: 30–45 minutes

Step 2: Identify and Define Key Stakeholders

A strong purpose serves stakeholders, not just shareholders. Clearly defining who they are ensures that the organization’s impact is meaningful, sustainable, and aligned with its core values.

Stakeholder Mapping Exercise

1. List all stakeholder groups (internal & external).
2. Rank them by impact (who does the company affect most?).
3. Identify what each group needs from the company.

💡 Does our purpose align with their needs? If not, what must change?
⏳ Time Required: 45–60 minutes

Step 3: Draft the Initial Purpose Statement

Now, translate insights into a structured draft purpose statement.

Purpose Statement Formula

“We exist to [core impact] by [how we achieve it] for [who benefits].”

Examples of Strong Purpose Statements

• Patagonia → “We’re in business to save our home planet.”
• eBay → “Empowers people and communities to unlock possibilities for growth.”
• IKEA → “To create a better everyday life for the many people.”
• LinkedIn → “Create economic opportunity for every member of the global workforce.”
• Nike → “To move the world forwards through the power of sport”
• SouthWest → “Connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.”

Checklist for a Strong Purpose Statement

✅ Concise: 1–2 sentences.
✅ Timeless: Purpose doesn’t change, even if strategy does.
✅ Inspiring: Sparks motivation internally and externally.
✅ Meaningful: Focuses on impact beyond money.
✅ Environmentally Responsible: Acknowledges sustainability where relevant.

Lets analyze the examples against our checklist.

1. Patagonia → “We’re in business to save our home planet.”

✅ Strengths:

• Concise & powerful – This statement is direct, easy to understand, and impactful.
• Timeless – It aligns with Patagonia’s core business model (sustainability-focused outdoor gear) and will remain relevant.
• Inspiring – Creates an emotional and motivational connection with customers and employees.
• Sustainability-focused – Strong alignment with environmental responsibility.

🔹 Opportunities for Strengthening:

• Could specify how Patagonia contributes to saving the planet (e.g., through sustainable materials, ethical manufacturing, activism).
• Example:
  “We’re in business to save our home planet by creating sustainable, high-quality outdoor gear and advocating for environmental conservation.”

Verdict: 🌟 Excellent as-is but could be slightly more specific.

2. eBay → “Empowers people and communities to unlock possibilities for growth.”

✅ Strengths:

• Human-centered – Focuses on the people it serves rather than just the platform.
• Growth-oriented – Emphasizes opportunities rather than transactions.

🔹 Opportunities for Strengthening:

• Too vague – How does eBay empower people? Is it through entrepreneurship? Resale opportunities? Economic accessibility?
• Lacks differentiation – Many companies "empower people," so this could be refined to reflect eBay’s unique role in e-commerce.
• Example:
  “We empower individuals and businesses by enabling accessible, secure, and global commerce.”

Verdict: ✏️ Needs more specificity to clarify eBay’s unique value.

3. IKEA → “To create a better everyday life for the many people.”

✅ Strengths:

• Simple & inclusive – Speaks to a broad audience and reflects IKEA’s commitment to affordability and accessibility.
• Longevity – A purpose statement that has remained relevant across decades.
• Customer-focused – Addresses everyday life rather than just home furnishing.

🔹 Opportunities for Strengthening:

• Could explicitly connect to home furnishing to make it clearer how IKEA contributes to this better everyday life.
• Example:
  “To create a better everyday life for the many people by designing affordable, functional, and sustainable home solutions.”

Verdict: 🌟 Strong statement, but a small tweak would improve clarity.

4. LinkedIn → “Create economic opportunity for every member of the global workforce.”

✅ Strengths:

• Clear, direct, and inclusive – Defines the impact on professionals worldwide.
• Timeless – Will remain relevant regardless of industry shifts.
• Stakeholder-driven – Focuses on empowering professionals, which is LinkedIn’s core audience.

🔹 Opportunities for Strengthening:

• Could highlight how LinkedIn creates this opportunity (e.g., through networking, job access, learning tools).
• Example:
  “We create economic opportunity for every member of the global workforce by connecting professionals, businesses, and knowledge through digital networking.”

Verdict: ✅ Strong and meaningful, though a small enhancement would improve clarity.

5. Nike → “To move the world forward through the power of sport.”

✅ Strengths:

• Inspiring & action-driven – Uses movement as a metaphor for progress.
• Inclusive – Applies to all sports levels, from elite athletes to everyday fitness enthusiasts.
• Future-focused – The phrase “move the world forward” suggests progress, innovation, and breaking barriers.

🔹 Opportunities for Strengthening:

• Could emphasize inclusivity and empowerment – Nike’s brand is about making sport accessible to all, not just professionals.
• Example:
  “To move the world forward through the power of sport, inspiring everyone to push boundaries and reach their full potential.”

Verdict: 🌟 Strong but could enhance inclusivity and motivation.

6. Southwest Airlines → “Connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.”

✅ Strengths:

• Highly relevant to their business model – It captures their focus on affordable travel and customer service.
• People-centric – Focuses on the passenger experience rather than just being an airline.
• Operational clarity – The words "friendly, reliable, and low-cost" perfectly describe Southwest’s brand values.

🔹 Opportunities for Strengthening:

• Could expand on accessibility or sustainability – Given rising environmental concerns, a nod to sustainable travel would be forward-thinking.
• Example:
  “We connect people to what’s important in their lives through friendly, reliable, low-cost, and increasingly sustainable air travel.”

Verdict: ✅ Very strong, but a sustainability aspect could enhance future relevance.

Final Recommendations Summary

Key Takeaways:

• Conciseness matters, but clarity on how a company achieves its purpose adds credibility.
• Emotional connection is key—statements that inspire stakeholders foster brand loyalty and engagement.
• Sustainability is increasingly essential—future-proof statements consider their environmental and social impact.
• Inclusivity strengthens impact—a great purpose statement resonates with a broad audience rather than just a niche market.

What’s Next? Draft Your Own Purpose Statement

Now that you’ve seen how top companies define their purpose, it’s time to draft your own.

Draft an Initial Purpose Statement

• Use this formula:

“We exist to [core impact] by [how we achieve it] for [who benefits].”

• Keep it concise, inspiring, and timeless.
• Ensure it reflects your core values and stakeholder impact.
• Consider whether it differentiates your organization and aligns with your industry and mission.

Once you’ve drafted your statement, move forward to testing and refining it with feedback from key stakeholders.

⏳ Time Required: 30–45 minutes

Step 4: Test & Validate the Draft Purpose Statement

A great purpose resonates with stakeholders. Test it internally and externally.

Internal Testing: Employee & Leadership Alignment

• “Does this statement reflect why we exist?”
• “Is anything missing?”
• “Do you feel inspired by this?”

External Testing: Customer & Partner Feedback

• “Does this statement reflect how you see our company?”
• “Would you trust a company with this purpose?”

Common Adjustments Needed

• Too vague? → Make it more specific.
• Too corporate? → Use more authentic language.
• No emotional connection? → Ensure it has meaning beyond business goals.
• Neglects sustainability? → Consider environmental impact.

⏳ Time Required: 1–2 weeks for testing & feedback

Step 5: Finalize & Embed the Purpose Statement

Once refined, the final purpose statement must become a guiding force.

How to Embed Purpose in the Organization

✔ Leadership Messaging: Ensure executives use it in speeches, meetings, and hiring.
✔ Company Materials: Display it in onboarding, marketing, and internal documents.
✔ Decision-Making Framework: Use it to guide product development, hiring, and policies.
✔ Employee Training: Teach it in onboarding and leadership development programs.
✔ Recognition & Culture: Reward employees who embody the purpose.
✔ Sustainability Integration: Align operations with environmental responsibility.

Step 6: Reassess & Reaffirm Every Few Years

A company’s strategy evolves, but purpose remains enduring. However, revisiting it periodically ensures alignment with growth.

When to Reassess Purpose

• Major leadership changes
• Business model shifts
• Expansion into new industries or markets
• Significant global or industry disruptions

Annual Check-In Questions

• Does our purpose still resonate with employees & customers?
• Has our impact changed? If so, does the purpose still align?
• Is our purpose still guiding decision-making?

Final Thought: The Power of a Strong Purpose

A well-defined purpose is more than words—it’s the heartbeat of a company. It unites employees, inspires customers, and guides decisions for years to come.

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