June 2011

Use organizational Purpose to unite employees

by Sheila Margolis on June 17, 2011

Purpose: Why is this Work Important?

The Purpose of an organization is the most central component of its culture. The Purpose defines why the organization exists. The Purpose is not the answer to the question “What does the organization do?” That typically focuses on products, services and customers. Instead, the Purpose is the answer to the question, “Why is the work of this company important?” This may sound like a simple question, but in its simplicity, lies tremendous significance for the organization and for each employee.

The Purpose is the cause that defines the contribution an organization makes to society through its work. Of course, businesses exist to make a profit, but they also exist to make a difference. Through their firm’s work, employees can make a difference and be part of a meaningful legacy. When an organization’s Purpose is meaningful to an employee, that person feels a connection to work that is not only rational—it’s also emotional.

Purpose Statement: Be Brief in Length and Broad in Scope

A Purpose statement is a few, crucial words that inspire and motivate employees who care about making that contribution. For example, the Purpose of a bread company might be, to nourish life. And the Purpose of an entertainment company might be, to make people happy. The Purpose statement is brief so employees can remember it and use it to guide their daily actions. Additionally, the Purpose statement is broad in scope to allow the organization to adapt over time to a changing world while keeping a constant, consistent central focus. Products and services often change, but the Purpose endures. Think of your company as a living entity; it is a vehicle for improving individual lives, and the world we live in.

Defining the Purpose: Include Everyone in the Process

When defining your company’s Purpose, be sure to include everyone in the process. Participation in the process builds commitment. Use small group discussions to come up with possible Purpose statements. Then, let everyone respond to a collection of options to see the statement that best conveys the fundamental reason why the company exists.

A Purpose statement does not have to be unique. Other organizations doing similar work may have a similar Purpose. Your Purpose should use words that are meaningful to employees and appropriate for your organization.

Purpose Statement: Screen Using the Six Criteria

Be sure your Purpose Statement meets the six Purpose criteria:

  1. It is a contribution to society—not a product or service.
  2. It answers the question: Why is this work important?
  3. It is inspirational and motivational.
  4. It uses powerful words.
  5. The statement is brief in length so employees will remember it.
  6. The statement is broad in scope to allow for future opportunities and change.

Use this worksheet for evaluating Purpose Statement Options: Organizational Purpose Statement Options To Be Evaluated

A Source of Meaning: Unite Employees with the Purpose

Take the time to unite employees around the organization’s Purpose so that work is more than daily tasks. Work should be viewed as a contribution to society and a source of meaning for each employee.

 

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Organizational alignment and Southwest Airlines

by Sheila Margolis on June 4, 2011

Organizational alignment is a beautiful thing. When the image that a company projects to consumers is consistent with both the customer experience and the values of the company, you have alignment. No mixed messages.

Think about your company:

  • What are your company values?
  • How do employees behave with each other?
  • How do employees behave with customers, suppliers/​vendors, and partners?
  • What is your company’s image?

Are they consistent? Are they aligned?

For example, if you’re a hotel that projects an image of great service, and customers rave about your service, that’s alignment. Or, if you’re a hospital that touts an image of safety, and patients observe and experience superior safety practices while staying at your hospital, you have alignment. Yes, alignment is a good thing.

So what should Southwest Airlines do? It has a reputation for delivering great service and having a fun-​​loving attitude, but Southwest also has a reputation for low fares. Yet, according to a Wall Street Journal article, the average ticket price for a Southwest flight has been climbing and in some markets, a Southwest flight is higher than its competitors. Southwest price increases have been due to fuel prices (no more fuel hedges), longer flights and new ways for pricing tickets.

Southwest currently does not charge fees for checking baggage or for changing tickets. If you compute those benefits, it might explain why a higher ticket is not really higher when you add up all the charges. But for the customer who either does not check baggage or have to pay for checked baggage (due to frequent flyer status or the credit card used) and for the person who rarely changes their flight plans, this explanation does not justify a higher ticket price.

Southwest Airlines must rethink who they are as an airline. Are they like the big airlines? Do they only differentiate themselves by their fun-​​loving attitude and service? Is that good enough?

Southwest has much to consider as they merge with AirTran, but reflecting on their organizational identity might be something at the top of the list. The organization’s identity must be clear. When you change the essence of who you are as an organization, it has an impact on your customers and your employees.

Alignment is important. Know who you are and consistently be it. Otherwise, you will have a confused identity that can negatively impact employee engagement, customer satisfaction and your reputation.

 

 

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