The No. 1 Responsibility CEOs have: Setting the Mission, Vision, Purpose and Values… and then doing the hard part: Embedding them into the culture!

As a Strategy & Transformation Consultant, I was always fascinated by that level above strategy, which describes, permeates, shapes and directs the organization as a whole.

Here a quick recap and clear distinction of what we’re talking about:

➡ Mission: "What Business are we in?"
Describes the rough business model and the benefits  for the customers (and not just specific products or technology)

→ Example Mattel: “Create innovative products and experiences that inspire, entertain and develop children to play”

➡ Vision: "Where are we going?"
Articulates a clear, desired and inspiring end state that doesn’t yet exist and is not easy to attain

→ Example Nike in the 70’s: “Crush Adidas”

➡ Purpose: "Why do we exist?"
Describes the contribution to society and therefore the organization‘s deeper meaning for existence (raison d’être) beyond itself and its profit ambition

→ Example World Bank: “Bridge the economic divide between rich and poor countries”

➡ Values: "What do we stand for?"
Sets guardrails, guidelines & boundaries: what the organization stands for and by which principles it’s ideally guided

→ Example Intel: “Fearless, Inclusion, Customer obsessed, One Intel, Truth & Transparency”, etc.

➡ Culture: "How do we operate?"
Describes how Vision, Mission, Purpose and Values actually manifest in beliefs and behaviours in terms of leadership and cooperation, decisions on hiring, promotion and reward systems, workplace design, etc.

→ Example Cisco: “We focus on employee satisfaction, internal collaboration, training & growth, low pressure related to productivity & performance, a learning environment, customer service & satisfaction”

Internally Mission, Vision, Purpose & Values:

✅ Align Strategy
✅ Create Identity
✅ Guide Behavior
✅ Create Cohesion
✅ Ethical Conduct
✅ Decision-making

Externally they:

✅ Drive Performance
✅ Build Trust
✅ Enhance Reputation
✅ Engage Stakeholders
✅ Support Social Responsibility
✅ Sustain Long-term Success

The causality of success from truly lived guiding principles has been repeatedly proven over the years.

E.g. Deloitte, based on several studies, highlights that purpose-driven companies can achieve higher market share gains and grow three times faster on average than their competitors, while also achieving higher workforce and customer satisfaction (Deloitte Insights October 2019 “Purpose is everything”).

Mission-driven companies exhibit 30% higher levels of innovation and 40% higher levels of workforce retention compared to their competitors (Deloitte Insights January 2015 “Becoming irresistible: A new model for employee engagement”)

The vast majority of companies nowadays have these statements in place.

💡 The crucial question though remains: Is the majority actually walking the talk or are these statements just décor?