I believe businesses often fail for three reasons: Lack of enough capital, customer irrelevance, and not having the right people. Each of these reasons can be overcome with Purposeful Leadership.
NOT ENOUGH CAPITAL. Having enough capital is a common concern for most businesses. One way of addressing this problem is to consider capital as a constraint; that is, to develop a strategy based on operating within certain capital limitations. Here is where Purposeful Leadership can be very helpful. If the people you need are inspired by what you are up to, your cost of acquiring the resources they control will be far less. In other words, it’s all about leveraging the resources you can afford. For example this means having more productive employees, suppliers giving you better selling terms, and customers paying you more quickly. Also clarity of Purpose means less distractions and less mistakes. It’s not that businesses don’t have enough capital. It’s that they tend to waste too much of the capital they have.
CUSTOMER IRRELEVANCE. If you are wondering why sales are not meeting your expectations, consider that your customers might not be inspired about your Purpose or that your Purpose is not reflected in the products or services you are providing them. Are those products or services creating real value to your customers in support of your commitment to them? Purposeful Leadership demands that your customers be inspired by and experience the difference you are making in their world. Aligning your Purpose with your Customer Brand Promise will assure continued sales growth.
NOT HAVING THE RIGHT PEOPLE. People (whether contracted or employed) are your most important resource. Successful businesses need to find ways to recruit and retain the right people, to have them engaged and empowered to do the right thing and to have them work as a team to accomplish the same goal. Purposeful leadership accomplishes all three. People want to work for companies where they can feel they are making a difference and be fulfilled at their work. Inspired and fulfilled people don’t leave. But it’s not enough to be inspired and fulfilled. People also need clarify and focus to be empowered to innovate and act independently and work towards a common goal. A single common Purpose that is meaningful and important can provide all of that.
Can you see how Purposeful Leadership can address these three issues in your business? What other issues can Purposeful Leadership address?