Purpose Statement: How to Write a Purpose Statement

A purpose statement defines a company’s purpose through the lens of how its products or services affect people’s lives. In this sense, its target audience is mainly team members and customers (or potential customers) outside of the company. Purpose statements are common across many industries, from health care to air travel to food.

A company’s purpose statement often goes hand-in-hand with, but is nonetheless distinct from, a company’s mission statement, values statement, and vision statement. Together, these statements define a company’s internal culture or core values, its ideal full potential, and how it plans to reach that potential. While all of these statements help define how and why a company operates, only the purpose statement focuses explicitly on a company’s value to customers and employees.

There are numerous reasons why a purpose statement can be useful to a company’s daily operations, including:

1. 1. Fosters clear communication: When a company has a specific audience’s needs in mind, it can more effectively speak to that audience in external communications and tailor promotions that speak to those needs.
2. 2. Fills a niche: Creating a purpose statement allows a company to claim a niche in the marketplace, especially in contrast to competitors that offer similar products. A purpose statement helps direct employees’ energy toward a particular company’s mission and attracts customers who resonate with the purpose statement.
3. 3. Gives employees clarity: If employees can identify with and refer to a clearly articulated statement of what they’re helping to produce and for whom, they can more effectively focus on their work. What’s more, having a clear commitment to a customer can contribute to overall well-being and the sense that employees are working with a set of core values in mind.

Writing an effective purpose statement boils down to devising the best way of articulating what your business does for its customers. Here are some methods to consider:

1. 1. Survey both employees and customers. Employees from different parts of the business will have different takes on what they contribute to the customer experience; consider as many perspectives as possible as you write your purpose statement. Similarly, asking existing customers what they get—or don’t get—out of their relationship with the business can help guide your statement.
2. 2. Identify the purpose of the products and services. Compile whatever products and services the company provides and spend some time thinking holistically about the purpose of each one. In other words, consider both the immediate purpose of the product and the greater enjoyment or fulfillment a customer may get from it.
3. 3. Write, test, and revise. Write a few rough drafts and run them by employees from different parts of the company. See which aspects people respond to and incorporate those into the next draft. After you settle on a statement that sums up the company’s value to customers, revisit and change it as necessary as its purpose evolves.

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