I was talking with a CEO during one of the stock market’s recent wild fluctuations.  As he reflected on what is happening in the broader economy and what it will take for any business to succeed over the next 10 years, he noted two things:

1. The overall capacity in his industry has shrunk.  If demand rises quickly back to previous levels, the industry won’t be able to react quickly enough.
2. Since the “pie” itself is smaller, it’s critical that businesses figure out how to get a bigger piece of it.  In order to do that, he focused on the need to position your company well, finding agreement within your organization about how you are different — or should be different — than your competition.

Some businesses may wait for a “rising tide to lift all boats” — those broader economic conditions that will improve conditions for everyone.  On the other hand, is it wise to bet that conditions will improve substantially soon?  You may want to follow the advice of this CEO and truly distinguish your organization in some way.

What is unique about your organization?  If there is nothing truly unique, what are you the best at?  And does this characteristic generate loyalty from your clients and customers?

Why should a company invest time and money in clarifying and articulating its identity?

Companies invest in developing products, services, and in new product launches.  There are metrics that attempt to correlate the relationship between marketing investment and return on that investment.  But what about your identity – what you stand for as a company? Can we measure the value of understanding who you are as an organization?

This week, I read an article by Dan Pink on this very subject.  He focuses on purpose (only one element of a company’s identity), and he sheds light on the research of Adam Grant at the University of Pennsylvania’s Wharton School.  It’s a small study and it might not be convincing to everyone, but it demonstrates the effectiveness of employees connecting to a purpose. Studies like this begin to quantify the importance of organizational identity.  It’s a great article and worth the time.

I was reading another post by Michael Hyatt this morning, and it struck a cord with what we do at Dialect and why I wanted to start the company.  Michael was asked a simple question in an interview: “Which is most important – mission, core values, or vision?”

Michael answered that they are all equally important and interconnected.  They are distinguishable but inseparable.  You can read the post here.

Then the comments came rolling in.  One comment on Michael’s post says that he has heard that values are defined first.  Another person was more animated about the need for values to come first.

In my experience, leaders start from many places.  We’ve done work with companies were the leader sees purpose as being the glue for everything else.  In other situations, we’ve had leaders emphasize shared values and the strategy.  In other situations we’ve seen leaders who start with strategy and return later to what it will look like when they get there (vision) and what beliefs and behaviors will be necessary to accomplish it (values).

What do you start with at your company?

In his book, Start with Why, Simon Sinek challenges us to ask Why?  Sinek has a background in marketing, and proposes that most people know what they do and how they do it.  But if you ask them why they do it, they often don’t have an answer.  Sinek wants to “inspire people to be inspired” by finding their why.

His thinking is simple, straightforward, and powerful.  It resonates with my experience and from a personal perspective, it can be hard to keep the why in mind when dealing with the challenges of business and life.

We recently talked to a large company that has merged two divisions.  The company leaders are asking the question, How are we better together?  I believe their how is Simon’s why.

When is the last time you’ve really looked at your why?