Vision statement, company values, principles — we’ve heard a host of labels that describe a company’s organisational direction. And perhaps the most common (and often confused) terms out there are Mission Statement and Brand Purpose.
What is a mission statement? What is a brand purpose?
Let’s describe each one below.
What is a Mission Statement?
Harvard Business Review defines a mission statement as something that describes what business the organisation is in (and what it isn’t) both now and projecting into the future. In short, it’s what your company does.
A mission statement’s focus is internal. It serves as an inspiration and motivation to your employees. Its goal is to give your employees direction on what they should do at work every day.
For example, a company’s mission statement may sound like this:
“We are in the business of providing high-quality accommodation in Tasmania so our guests can enjoy a pleasant stay.”
A good mission statement distils what your business does in a couple of short sentences and supports a more important and powerful statement — your brand purpose.
What is a Brand Purpose?
Your brand purpose is your WHY. It’s the reason why you and your employees wake up every morning to go to work. Unlike a mission statement, a brand purpose is externally focused. It’s your company’s accountability to the world.
Take a look at our brand purpose statement:
“To provoke people to think differently so that they can achieve more than they imagined.” – Identity Branding & Marketing
Isn’t this “WHY” worth waking up for every morning?
Specific Differences Between a Mission Statement a Brand Purpose
Table derived from Harvard Business Review.
Benefits of a Brand Purpose
A brand purpose is not just a flashy slogan. It’s an intrinsic motivator that drives values, gives direction, and fuels energy from within. It impacts the lives of your customers, your employees, and the community as a whole. Below are 3 key benefits of having a company purpose.
Enjoy Higher Profits
Companies with a clear purpose outperform the market by a ratio of 15:1. They enjoy 400% increase in revenues, 700% higher job growth, and 1200% higher stock value according to this infographic.
In his book “Grow”, Procter and Gamble CMO Jim Stengel shows that 50 highest-performing businesses are purpose-driven.
Become More Competitive
It’s easier and faster to change when you have a purpose. This is true in life and in business. Having a clear brand purpose gives your company a competitive edge. Transformation is easier because employees have something to aspire to. And as a result, the organisation stays agile and reacts fast to market changes.
Attract and Retain Top Talent
Why would a top graduate work for NASA when Elon Musk’s SpaceX is out there trying to make humans an interplanetary species? Why would a bright millennial work at an insurance company when he can go to Google to help organise the world’s information?
Today’s generation of workers value purpose more than growth or profit. They look for work that makes them feel important. Purpose-driven companies enjoy the benefit of hiring and retaining top talent.
How It All Fits Together
Image derived from Harvard Business Review.
Your Brand Purposes is your “why” — the reason why the company exists in the first place. This goes beyond profits and stock value.
Your Vision is your “where” – your destination. This is what you want your brand to achieve in X number of years.
Your Mission is your “what” – the steps you want to take in order to achieve your company’s vision.
Your Values is your “how” – the behaviour you want to install among your employees in order to get to your direction. This is where company cultures come in play.
Think Beyond Your Mission Statement
Your mission statement may change as the market changes or as you achieve your goals. A brand purpose, on the other hand, remains intact. Why? Because it is your True North. A clear brand purpose serves as your immovable guide in developing your company’s vision, mission, value, and execution.
Make your brand purpose fuzzy and everything in your company will be fuzzy. Make your brand purpose clear and everything you’re doing in your business will be clear as day no matter where the industry shifts to.
Because everything in your business revolves around your brand purpose, it is crucial that you get this right. Don’t know how to find your brand purpose? Get in touch with us and we’ll show you how.