INTRODUCTION
Aggressive growth often implies change and requires that an organization do things differently. That may mean, operating differently within a new organizational structure that combines previously siloed products into a new integrated offering or developing/acquiring new lines of business that expand product offerings, channel types, and supply chains. Either way, achieving aggressive growth requires that people are motivated by something that is worth the change being asked of them. Existential Planning provides the deep motivation and inspiration people need to face large-scale change. It is the secret sauce that aligns an organization behind aggressive growth targets for the short, mid and long-term. But what exactly is Existential Planning?
Existential Planning is a process by which you define the WHY of your business by answering three essential questions:
1. “Why do we exist as a business?”
2. “What legacy (impact) do we seek to leave behind?”
3. “What are we not willing to sacrifice to get there?”
Most business leaders are familiar with the basics of planning. It may be the financial planning of future revenue and profit targets or business planning that includes defining key performance indicators and the strategies and tactics required to attain them. These forms of planning define WHAT needs to be achieved, however, they do not integrate WHY those goals and plans are relevant for the business beyond making a profit.
When seeking aggressive growth targets that require changes to how an organization operates, it become necessary to motivate people to drive changes that will make a meaningful difference beyond just making a profit. Anyone can forecast growth and any business can grow in any given year. However, a sustainable business that will grow, thrive and prosper for years and even generations to come must be clear in its purpose beyond profit and its role and impact in society. This is where Existential Planning comes in. Existential Planning defines the WHY of your business which in turn reveals the soul of your business and brand.
Existential Planning is about exploring and defining a business purpose beyond making a profit. In addition to defining a clear and compelling purpose, Existential Planning articulates measurable future impact in ways that matter beyond profit in the form of a legacy to be left behind. Existential Planning provides a vision for the business’ future, clarifying why and to what end the business exists for, how it delivers value, and what values and norms it is not willing to sacrifice on its journey to its desired future.
By exploring and answering the questions of “Why we exist?”, “What legacy do we seek to leave behind?” and “What are we not willing to sacrifice to get there?”, your business defines essential boundaries and guidelines for future decision making in areas such as resource allocation, strategic direction, innovation, research and development.
Moreover, your business will have an anchor in a compelling, meaningful value proposition that motivates and inspires people to drive change beyond the achievement of numbers on a spreadsheet. It makes the real work more meaningful which empowers people to take on change.
There are three tools that facilitate the exploration of why and to what end your business exists. They are Purpose, Legacy and Values. Let’s take a deeper look at each of these.
1. PURPOSE
Purpose in business is a clear and compelling statement that answers
“Why do you exist?” beyond making a profit.” Purpose should reflect a deep underlying passion that is larger than any one person’s self-interest. Here are a few examples of corporate statements of purpose that answer the question, “Why they exist”:
Coca-Cola: “Refresh the world. Make a difference.”
This statement clearly identifies the business realm of Coca-Cola as anything that refreshes the world while making a difference. This allows for an almost infinite extension of their beverage offering into new beverages that go beyond their traditional carbonated refreshment line. In fact, today Coca-Cola is one of the world’s largest manufacturers and distributors of water. With this purpose, it is also clear what businesses Coca-Cola will not engage in. For example, any product that is not perceived as “making a difference” in the world today as defined by contemporary generations will not be invested in. Coca-Cola uses the statement, “Make a difference” to define what’s relevant for the brand at any point in time and this allows the brand to reflect changing times, tastes and generations.
General Mills: “To make food the world loves.”
With this statement General Mills clearly stakes its claim in the food industry. Their focus is on creating foods people love verses foods that are nourishing or healthy, another clear guideline put forth by their purpose. As such, brand extensions into things like cosmetics, pharmaceuticals, or clothing will likely never be in alignment with their purpose. And like Coca-Cola, “food the world loves” allows for the changing perceptions of new, up and coming generations.
Target: “To help all families discover the joy of everyday life.”
One visit to a Target store and this purpose becomes clear. They have a clear focus on providing the categories of products used in our daily lives. From paper towels to clothing to hardware to home essentials, Target stays true to its purpose. Every new product that is considered by Target for introduction into its stores must comply with “helping all families discover the joy of everyday life”. By using the words “everyday life” they also imply affordability verses high-end luxury.
Wells Fargo: “To help our customers succeed financially”.
Very simply stated, Wells Fargo is in the financial services business. That may sound obvious, but keep in mind that Wells Fargo was born transporting gold from the Philadelphia Mint and "express" mail delivery that was faster and less expensive than U.S. Mail. Today, their purpose clearly puts them in the consumer banking and lending business with wealth management and investment services that help their customers succeed financially. By using the word “customer” they also point to their retail focus verses something different in the financial services world such as private banking wherein substituting the word “client” would have delineated a higher-end, not so retail focus.
Purpose serves as the compass that guides all your strategic choices. Each high-level decision about what you offer and to whom you offer it should align with your business purpose.
2. LEGACY
Different than purpose, a legacy defines three important aspects of the impact you would like to leave behind. First, legacy defines what you want your business or team to be remembered for. Second, it defines the specific areas and types of impact you want to have on others. (Impact should be stated in both quantitative and qualitative terms. Quantitative statements of impact are measurable. Qualitative impacts are descriptive.) Third, defining legacy clarifies what’s imperative meaning the values your business and team cannot live without as you and your team fulfills the business’ purpose.
3. VALUES
Once purpose and legacy have been defined, your business is clear about why and to what end it exists for. But like anything in life, there are things we are not willing to do to achieve our dreams. We call these “things”, values.
Our business character is defined by the way in which we consciously choose to live the values we have selected. Simply put, values are whatever matters to us. They are beliefs or ideals we aspire to. Values serve to set a standard for how we behave. We choose values and that’s why they are always based in beliefs that matter to us. As such, values are principles that help us differentiate between right and wrong while providing general guidance for individual behavior. Common examples of values are honesty, kindness, fairness and generosity.
By consciously choosing the values a business wants to operate by, we are choosing what behaviors we will not sacrifice on our way to achieving our goals. We are defining the character of our business.
This understanding is essential to sustainable success. You can sacrifice your values to obtain goals once or maybe even twice, however, the ongoing sacrifice of values will mean going against what matters to you and your organization which is not sustainable.
CONCLUSION
Defining your business and/or team purpose, legacy and values anchor operations and growth in compelling and meaningful ways for employees. Different than traditional planning where the focus is on defining financial goals and tactical action plans, Existential Planning clarifies the “WHY” you are business and the purpose you serve beyond making a profit. It inspires and motivate people and teams to act with a natural commitment to make a difference. They are no longer only following and complying with rules. Their work becomes more meaningful to them as they are guided by a vision of their role in something meaningful to their own sense of self and identity while at the same time being bigger than themselves. As such, their participation becomes self-actualizing. The result of Existential Planning will connect your people with the soul of your business and brand.
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