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!

Strategic incrementalism

I was talking today with a very smart colleague who runs a large health department. He is one of the best leaders I know. As he was bemoaning the impending budget cuts here in California, he also exerted optimism. He knows that great leadership shines in tough times. That means be honest, but not hopeless. Even with furloughs and layoffs, in a well-led organization, there is still reason for optimism. This reminds me of one of my favorite sayings: It is what it is.

In light of a worldwide recession and a worldwide pandemic and in an industry (in this case public health) repeatedly hammered by budget cuts, there may only be room right now for incremental gains. However, these gains need not be anywhere there is a foothold. They can and should be tied to your fundamental purpose. As Jim Collins says, "preserve the core." And at the same time stimulate progress. 

So whether the gains are about protection or growth, and even if they are very small, they should be both strategically planned and celebrated. So whenever you have a good small win, remember you're practicing the art of strategic incrementalism.