Note: This article is part of a series of How to Develop a Strategic Plan. For additional articles in this series, please refer to the end of the article.
Running a growing business requires more than just tactical decision-making. Many CEOs find themselves caught in day-to-day operations, missing the bigger picture that drives sustainable growth. That’s where understanding your core business purpose becomes essential.
What Is a Core Business Purpose?
A core business purpose isn’t just a mission statement that collects dust on your office wall. It’s the fundamental reason your organization exists—the “big why” behind everything you do.
Think of it as the north star that guides every strategic decision across your company. When clearly defined, this purpose creates alignment, inspires teams, and provides direction during challenging times.
Most successful businesses operate with a core purpose that’s simple, concise, and memorable. It cuts through complexity and connects with both employees and customers on an emotional level.
Why Core Purpose Matters
CEOs leading companies with 11+ employees face unique challenges. As organizations grow, maintaining alignment becomes increasingly difficult. Teams expand, communication gets complicated, and the original vision that drove initial success can fade.
A well-defined core purpose solves these problems by:
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- Creating natural alignment across departments
- Inspiring intrinsic motivation in team members
- Serving as a filter for strategic decisions
- Attracting ideal customers who share your values
- Setting your company apart in a crowded market
When integrated into the 3HAG Strategic Framework, your core purpose becomes the foundation for sustainable growth.
The Step-by-Step Process to Define Your Core Purpose
Finding your company’s true purpose isn’t a quick exercise. It requires thoughtful reflection and collaborative input. Here’s how to “gut it out” in your initial session:
Step 1: Gather Your Leadership Team
Schedule a dedicated session with your key leaders. This isn’t something to rush through during a regular meeting. Set aside 2-3 hours where everyone can focus without distractions.
Step 2: Ask the Fundamental Question
Begin by posing this essential question to your team: “Why does this organization exist?”
If you’re the founder, share your original motivation for starting the company. This often contains clues to your core purpose. If the company has evolved since founding, acknowledge this while still exploring those initial sparks.
Step 3: Individual Brainstorming
Provide each leader with a pad of sticky notes and a marker. Ask everyone to write down their individual answers to the core purpose question before any group discussion begins.
This silent generation of ideas ensures diverse perspectives and prevents groupthink. Encourage team members to be honest rather than giving what they think are “correct” answers.
Step 4: Share and Group Responses
Have each leader share their answers aloud, then post their sticky notes on a whiteboard. As responses are shared, group similar answers together to identify common themes.
This visual clustering often reveals surprising patterns about how your leadership team views the company’s reason for being.
Step 5: Discuss and Refine
After all leaders have presented their ideas, examine the grouped responses and engage in a thoughtful discussion. This collaborative dialogue allows for exploring different viewpoints and refining initial concepts.
Don’t rush this step—the best insights often emerge through respectful debate and questioning assumptions.
Step 6: Draft Your Initial Core Purpose
From this discussion, draft an initial formulation of your core purpose. It doesn’t need to be perfect—this is just version 1.0.
You might ask a volunteer to take photos of the sticky notes and draft a statement for review at your next meeting.
Tips for Creating a Powerful Core Purpose
Keep It Short and Memorable
Your core purpose should be easy to remember and repeat. Aim for something that can be stated in ten words or fewer. If employees can’t recall it easily, it won’t guide daily decisions.
Make It Emotionally Engaging
Great purpose statements connect on an emotional level. They speak to something fundamentally human that resonates with both employees and customers.
Ensure It’s Authentic
Don’t borrow someone else’s purpose or create something that sounds good but doesn’t reflect your company’s true identity. Authenticity creates credibility.
Focus on Why, Not What or How
Your core purpose explains why you exist, not what products you make or how you deliver services. Those elements may change over time, but your purpose remains constant.
Test It Against Key Decisions
A strong core purpose helps make difficult choices clear. When evaluating major opportunities or challenges, ask whether each option aligns with your purpose.
Examples from Well-Known Organizations
Looking at remarkable companies can provide inspiration for developing your own core purpose:
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- Disney: “To make people happy”
- Starbucks: “To inspire and nurture the human spirit”
- 3M: “To solve unsolved problems innovatively”
- Nike: “To bring inspiration and innovation to every athlete in the world”
Notice how none of these mention products, services, or business models. They focus purely on the fundamental reason these organizations exist.
Integrating Core Purpose with the 3HAG Strategic Framework
Your core purpose serves as the foundation of the 3HAG Strategic Framework. Before defining your 3-Year Highly Achievable Goal, you need clarity on why your business exists.
Think of it as building a house—you’d never start with the roof. Your core purpose, along with your core values, forms the foundation upon which all other strategic elements rest.
Only after establishing this foundation should you move on to developing your 3HAG and other strategic components. Skipping this foundational work creates strategic instability that will eventually undermine your growth.
Final Thoughts
Defining your core business purpose isn’t a luxury or a feel-good exercise—it’s a strategic necessity for CEOs leading growing companies.
The process might feel challenging initially, but remember that the best approaches often require “gutting it out” through multiple iterations. Schedule your first core purpose session, gather your leadership team, and begin the journey.
The clarity and alignment you’ll gain will transform how your company operates, making future strategic work significantly more effective.
What inspires you and your team to come to work every day? The answer to that question contains the seeds of your core business purpose—and ultimately, your strategic success.
Next Steps
- How to Define Your Core Business Purpose: The Foundation of Strategic Success 👈 (You are here)
- How to Uncover Your Business Core Values: What are They and Why They Matter
- How to Create a BHAG (Big Hairy Audacious Goal)
See Also
How to Develop a Strategic Plan: Building Your Cultural Foundation First
Notes
The 3HAG™ framework is described in Shannon’s book: 3HAG Way: The Strategic Execution System that ensures your strategy is not a Wild-Ass-Guess!
3HAG™ is a trademark of Shannon Byrne Susko, Founder & CEO of Metronomics
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