“In the context of shifting markets, quickly aging business models, complex company politics, and conflicting pressured on the business, an increasing number of companies struggle to make a clear choice about what business they’re in.”
— The Clarity Principle
This quote is from an excellent book we encourage every leader to read: “The Clarity Principle” by Chatham Sullivan. The book explains why clearly defining the problem you solve is so critical if you want to build a high-performing organization — and the devastating consequences if you don’t.
In the book, Chatham explains what happens when leaders become confused about what business they are in and are torn between competing alternatives of what the business could be. He explains how lack of clarity in purpose and the problem you solve creates havoc on organizational and financial performance. Chatham provides an excellent example of what happens when clarity is lost …
“Even a stalwart like Walmart can lose touch with it’s problem-to-solve. From the beginning, the big box retailer’s position was “Always Low Prices.” Walmart’s purpose and identity were all about providing rock-bottom prices to people who didn’t want (or couldn’t afford) to spend more money.”
Now that is clarity.
And it drove every decision that Walmart leaders made across the organization. But then something happened. Walmart felt it was missing out on higher-margin products. The company thought it could expand their universe. So they decided to add upscale merchandise, change their purpose and the problem they solved to “Look Beyond the Basics.” This decision had a ripple affect across the business. It guided the company’s go-forward pricing strategy, branding and product line decisions. Ultimately, it negatively impacted clarity in who Walmart was and what it stood for. According to Chatham, “The strategy backfired, and after a period of self-examination, the company reclaimed its purpose.”
“Walmart’s actions show that purpose is not an empty slogan—it touches every corner of the business—and that redefining and sometimes reclaiming that purpose is a critical leadership task.”
> Has your business lost clarity of purpose?
> Is the problem you solve crystal clear to every stakeholder in the organization?
> Is it clear to your customers?
At OnMessage, we help leadership teams regain clarity. Clarity in the strategy they need to execute and clarity in the story they must share to achieve the highest level of organizational performance. Speak to one of our experts to learn how we can help your business today.
That’s Your OnMessage Minute.
