Most companies’ CEOs, executives, and managers spend long hours behind closed doors to steer and advance the ship. Many complicated graphs, presentations, and a thick pile of papers are employed to invent the competitive advantage that will make them different and unique. They want to unravel the secret recipe that will transform their business to be a market leader. They use competitor, market and SWOT analyses, six sigma, balanced scorecards, PESTs, and many complicated financial models to try and stay ahead of their competitors. They are looking for the competitive advantage that guarantees a defeat for their enemies, namely their competitors
The problem is that business owners missed the most important single factor that gave birth to the company when they discuss its survival and thriving strategy. It is the purpose of the business and the cause of its existence.
Most companies look for a market opportunity and pour money into seizing their share. This is how most companies start. Money is the purpose. As the company begins to decline financially, they resort to their complicated charts and graphs to adjust and stay afloat. As they struggle to identify what caused the sudden decline, they engage in relentless attempts to explain the causes and suggest remedies.
Leadership matters when leaders articulate the purpose to identify the challenge, solve it, create value for all, educate people, leverage the impact, inspire change, and nurture needs. Creating a purpose that does not include all of that is just an abstract statement that serves no purpose at all.