Yesterday, I introduced a framework of six questions that I believe every business needs to be able to coherently and consistently answer. “Why does this business exist” is the first on the list, and I believe the most important.
When you define your business by why you do what you do rather than by what you sell, everything else starts to fall into place. When team members understand the why, they naturally will make decisions aligned with the why, even in the face of significant ambiguity and uncertainty. When customers understand your why, those that select you will be loyal and will more highly value your products and services.
When you don’t understand your why, everything can quickly fall apart. Decisions become hard, take too long, and involve too many people. Customers are fickle, willing to switch for the smallest reason. Employees feel little attachment to their jobs.