Every company needs a reason for existing, something to forever work towards, a guiding light and a standard to measure everything it’s doing – both for internal and external success and scaling. As Simon Sinek remarked, “People don’t buy what you do; people buy why you do it.”
I define this as a company’s DNA: its reason for its existence and the guiding principles by which the company lives out its “why.” A company’s DNA consists of two elements: core values and core purpose.
Let’s examine why establishing your company DNA is essential for the process of scaling your business.
Company DNA: Core Values and Core Purpose
Core Values
Core values aren’t aspirations – they are your guiding principles, beliefs, and fundamental driving forces informing how a business operates and behaves. Although a business is always evolving, core values stay constant and provide unwavering guidance for making sound decisions, regardless of department, development stage, or individual personalities.
Core values unify your company around a set of shared approaches to delivering your mission.
Core Purpose
Hubert Joly, the former chairman and CEO of Best Buy, defines a company’s purpose as “the ultimate goal of the business, the essential reason why it exists, and how it contributes to the common good.”
A company's purpose defines the unique motivation behind its founding and ongoing operations. It’s not reliant on trends, changes in culture, or technology. It provides insight into the company’s culture and aligns employees toward a shared objective. It’s the way of life in a company – an experience rather than a goal or finish line to cross.
How does a company’s purpose differ from its mission or vision? If the purpose is the “why” behind a company’s existence, then its vision is the “where” the company aims to go in the future and its mission is the “what” the company does to achieve its vision and fulfill its purpose.
The Role of Your Company’s DNA in Scaling Your Business
Attracting and Retaining Talent
Central to business growth and scaling is assembling and managing a team that not only possesses the requisite skills but also shares and resonates with the company's purpose and values.
McKinsey & Company’s 2022 research found that 82% of employees feel an organization’s purpose is important, and 70% say their work defines their sense of purpose. When it comes to attracting employees, a clearly defined company purpose is necessary. To retain employees, living out and following through on your company’s purpose is essential.
Core values play a role in helping business owners and leaders live out the company purpose, as core values are the “how” a company operates based on its mission, purpose, and vision. For example, if your core values are integrity, teamwork, and innovation and you make decisions guided by these values, the resulting company culture will be both supportive and forward-thinking, where employees feel motivated to contribute their best, collaborate effectively, and pursue innovative solutions with a strong ethical foundation.
Building Brand Identity and Customer Loyalty
A recognizable brand identity differentiates a company from its competitors and resonates with its target audience. These two aspects are necessary for growth and scaling. A brand identity is effective when it reflects the company's DNA – purpose and core values – through visual elements like a logo and color scheme, as well as through its messaging.
As a company grows, it develops a loyal customer base who become promoters of the company. Why do customers return to a company, or devote their loyalty in the first place?
Consumers are increasingly drawn to companies that resonate with their values and beliefs, when they feel that their purpose contributes to a greater cause beyond the product or service itself. In fact, a 2022 study found that 82% of shoppers prefer a consumer brand’s values to align with their own.
Clear purpose and values – and acting on them – builds brand recognition, loyalty, and trust, which in turn allow your company to grow and have an impact on your target audience.
Examples of Company DNA’s Impact on Scaling
The following businesses are just a few examples of how a commitment to meaningful goals and responsible practices can drive innovation, build brand loyalty, and pave the way for sustainable scaling.
Warby Parker scaled successfully by integrating its purpose of making quality eyewear affordable and accessible while promoting social good. Their “Buy a Pair, Give a Pair” program ensures that for every pair of glasses sold, another pair is distributed to someone in need. This dual focus on affordable pricing and social impact has strengthened their brand and fueled rapid growth.
Tesla’s growth is largely attributed to its mission to accelerate the world’s transition to sustainable energy. The company’s purpose-driven focus on innovation in electric vehicles and renewable energy solutions aligns with its core values of sustainability and technological advancement. This commitment has positioned Tesla as a leader in the automotive and energy sectors, driving rapid scaling and widespread adoption of its products.
Whole Foods Market scaled by adhering to its core values of quality, sustainability, and community engagement. The company's commitment to providing natural and organic products while supporting local farmers and environmentally friendly practices has resonated with health-conscious consumers. This purpose-driven focus on high-quality, responsibly sourced products has enabled Whole Foods to expand its footprint and become a leading retailer in the organic and natural food sector.
How have your company's purpose and values supported your internal and external growth strategies and goals? If you’re interested in developing or refreshing your company DNA, check out my free guide www.themeredithgrace.com/resources.
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