Investors and employees alike want to know what a company stands for and how it’s going to make money. Purpose statements such as BMW’s “We are number one — we inspire people on the move” give employees a sense of direction, just as an understanding of a company’s business model gives investors essential information about the company’s prospects and trajectory.
The Power of Defining What Your Company Isn’t
Speaking in negative terms can have positive outcomes.
January 27, 2020
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Summary.
It can be useful to define your company by what it is not. Financial cooperatives, for example, were able to communicate their trustworthiness during the financial crisis with their “we are not a bank” message. During a qualitative, longitudinal study of a German company, author Madeleine Rauch and her colleagues looked at how the founders’ determination not to be a “corporation” helped to define the firm. It allowed employees to hold onto their sense of identity in the course of numerous strategic pivots.
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HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.