Business Growth Strategies Needs Purpose More Than Mission And Vision
WHY STRATEGY NEEDS PURPOSE MORE THAN MISSION AND VISION - STREAMLINING THE STRATEGY PLANNING PROCESS
ABSTRACT
Moving from Vision and Mission to Purpose-led strategy provides a more meaningful approach aligned with all stakeholders. Implementing business growth strategies within a rolling three-year quarterly plan leads to a more realistic, practical, and evolving roadmap that caters to a changing environment.
Prem Chand – Principal, MD, ananda advisory
STREAMLINING THE STRATEGY PROCESS
Organizations need to move from a Vision and Mission-based planning process to a Purpose-led plan that aligns better with stakeholders. Furthermore, integrating business growth strategies into a three-year quarterly rolling plan allows for a more dynamic and evolving approach, as opposed to the static annual plans that many organizations spend countless hours preparing.
Businesses invest a significant amount of time in Strategy Planning. It is a crucial element of any successful business as it sets the roadmap for success and enables a company to prioritize its resources effectively, aligning them with its purpose and long-term business growth strategies.
Traditional strategy planning often centers on crafting the perfect mission and vision statements. While these can be inspiring, they are often vague and time-consuming to develop.
A more effective approach is to focus on an organization’s core identity: its purpose and values.
The Limitations of Mission and Vision
While mission and vision statements provide a directional compass, they can be:
- Too Broad: Generic statements about “being the best” or “changing the world” lack specificity and are difficult to translate into actionable plans.
- Static: The business landscape is constantly evolving. Inflexible mission and vision statements may not adapt to changing realities.
- Disengaged: Employees may find them lofty and unrelatable, leading to a disconnect between the statements and daily work.
Here’s why purpose and values are more valuable than
mission and vision in strategic planning:
- Stronger employee and stakeholder engagement:
A clear purpose connects employees to the organization’s bigger picture, fostering a sense of ownership. - Clearer Strategic Direction: Purpose and values act as a filter for decision-making, ensuring strategies align with long-term goals.
- Greater Adaptability: A well-defined purpose can guide strategic adjustments as circumstances change, while values ensure these changes stay true to the organization’s core identity.
So how do you refocus your strategic planning on purpose
and values?
- Start with Purpose: Engage in discussions with stakeholders to define the organization’s core reason for being. What positive impact do you want to create in the world?
- Develop Values: Identify a set of core values that reflect your organization’s character and how you operate. These values should be clear, concise, and consistently applied.
- Actionable Strategies: Evaluate all strategic initiatives through the lens of purpose and values. Do they contribute to your desired impact? Are they aligned with your core principles and business growth strategies?
Moving from Annual Planning to a Rolling 3-Year Plan
- Quarterly Reviews: Annual planning can be a time-consuming process that often results in a static document that quickly becomes outdated in today’s fast-paced business environment.
A more agile approach is to develop a rolling 3-year plan with a focus on quarterly reviews. This method offers several advantages:
- Increased Focus on the Present: By breaking down the strategic plan into 12 quarterly chunks, organizations can prioritize immediate goals and actions without getting bogged down in distant future considerations.
- Enhanced Adaptability: Quarterly reviews allow for course correction as needed. Emerging trends, market changes, and unforeseen circumstances can be addressed more effectively with a flexible planning approach.
- Improved Employee Engagement: Regular reviews throughout the year keep employees informed, engaged, and focused on achieving the most relevant strategic objectives.
By prioritizing purpose and values and incorporating business growth strategies into a rolling 3-year plan with quarterly reviews, organizations can develop a more focused, adaptable, and employee-driven strategy.