Staying True to Your Core Purpose: What Peter Drucker, Jim Collins, and We Have in Common

When asked for help, the late great management guru Peter Drucker asked two basic questions. The first was "what business are you in?" In Good to Great, Jim Collins distinguishes between what a company needs to preserve - its core purpose and values, and what a company needs to change to stimulate progress. In our consulting work, we invite clients to complete this simple sentence: We are in business to ___________________ . These three approaches have in common the importance of identifying your core purpose, adhering to it, and distinguishing it from the strategies and practices you employ to achieve your core purpose.

The classic example of confusing purpose and practices goes choo-choo. Fifty years ago, railroad execs thought they were in the business of trains. Had they realized they were really in the transportation business, they would likely be leaders in the industry today. As Theodore Levitt tells the story in the timeless HBR article Marketing Myopia, railroad executives were product-oriented, not customer-oriented.

It is easy to sway from one's core purpose: I saw this laboratory's office sign on their building in Atlanta on a recent business trip. Lots of lab services. And bonus, passports too! 

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Ready to stay true to your core purpose? Then answer these three questions:

  1. What business are you in?
  2. Why are you in this business?
  3. What is your core purpose?

Next then is linking your answers to the two central marketing questions - the "dynamic duo" as it were.

  1. Who are your customers?
  2. Why should they choose you?

Let me know how it goes for you!

Why Companies Lose Their Marketing Mojo: The Cash Flow Condundrum

One key reason why companies that know and value marketing lose their way is money. Cash flow to be more specific.

We know several good organizations that fully intend to take the long view and honor their marketing plan, but instead capitulate to pressure to meet their quarterly numbers instead. Even if doing so means heavy discounting, losing focus, and breaking promises.

It is not evil. It is not mean-spirited. It is a combination of fear and reality. Fear of underperforming, looking bad, layoffs, and going belly-up. And the reality of needing enough money in the bank to pay the bills and keep the ship afloat. It is a condundrum because short-term revenue needs are very real, but the costs to the organization of fulfilling those needs creates a vicious and depressing cycle of running a "near-sighted" business.

What's the solution? One is a marketing plan that has well thought out contingencies for addressing short-term growth needs, and then cultivating the necessary relationships even when business is soaring. That requires discipline and commitment. The result is that business leaders can put their attention back on the business (instead of in the business) where in belongs.

Dilbert, Social Media, & Electronic ADD

Scott Adams (Dilbert's creator) funnily (is that a word??) depicts the distractability that comes with the territory of today's online resources. Check it out.

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Do we really get more done with today's technology? As my friend and colleague, the late great Bob Topor said, "Never mistake activity for progress."

E-mail, social media, and the participation enabled by web 2.0 technologies present numerous marketing opportunities for engagement. Let's not overlook the counter-opportunities - that is, online tools to reduce distraction and keep people focused. The ROI pitch? Productivity and progress.

Marketing, the "Dashboard," and the Politics of Research

Marketing sometimes struggles to establish measurable objectives and prove ROI. As a consulting firm, we believe strongly in accountability and help clients develop tools to foster marketing accountability. Like a "dashboard." Which is meant to be an at-a-glance summary of how you're doing on your metrics and what needs immediate attention. I think a good, simple dashboard is a very valuable way to know where you are, and where you're going. And it can help overcome internal politicking and posturing by serving as an accepted frame of reference.

Dogbert however begs to differ...

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Actually, Dogbert and I agree on this point. A dashboard is only good if you use it. So use it!

(and thank you to our client for sharing this and being able to laugh about it!)