Find your true north: Defining your company’s purpose

In the bustling world of business, it’s far too easy to get caught up in the chase for profit, market share, and the next big idea. But here’s a cheeky little secret: beneath all the balance sheets and quarterly reports lies something far more important—your company’s core purpose. This isn’t just about making money or creating jobs (although those things are very important too, so please do keep doing them). It’s about the reason your business exists, your true north, the guiding star that keeps your team inspired even when the going gets tough.

You might think it would be easy to articulate your company’s purpose but it isn’t as simple as it sounds – and then there’s always the challenge of ensuring that every employee knows and buys into what that purpose is.

As a result of my many conversations with confused CEOs and leadership teams, I’ve developed a tool I use to help businesses uncover and articulate this core purpose. Today, I’m going to share how it works. Think of it as your personal compass—a way to ensure that, no matter how wild the ride, you always know where you’re headed.

What on earth Is a core purpose?

Before we dive into the nitty-gritty, let’s clarify what I mean by “core purpose.” In simple terms, your core purpose is the reason your company exists beyond just making a quick buck. It’s the higher calling that goes beyond profit margins and job creation. It’s the enduring fire that drives your organisation, a spark that should inspire change and innovation, while remaining steadfast over time.

A well-defined core purpose has a couple of key attributes:

• It’s higher than profit: While profits keep the lights on, your core purpose taps into something deeper—like service to others, a quest for knowledge, the pursuit of beauty and excellence, or even a burning desire to change the world.
• It doesn’t change, but it inspires change: Your core purpose is the constant in a sea of variables. It’s your company’s fixed point, even as products, markets, and strategies evolve.

Having a clear core purpose isn’t just fluff. It engages your team emotionally, fuels their determination, and gives everyone a sense of belonging and direction. After all, if your employees know that they’re contributing to something meaningful, they’re much more likely to weather the storms that come their way.

For example, at Monkhouse & Company our purpose is to unlock the transformative potential of entrepreneurship. We don’t simply exist to churn out profit; we believe if we can help leaders to scale their organisations, we can transform businesses into engines of economic growth and job creation. Imagine this: if we help 200 UK firms scale to 250+ employees, those firms could create 300,000 jobs and generate an astounding £52 billion in turnover (a bold claim drawn from the 2014 Scale Up Report by Sherry Coutu). Now that’s a purpose with some serious bite!

The power of a descriptive statement

Now that we’re on the same page about what a core purpose is, let’s talk about how to pinpoint it. One of the first steps is crafting a descriptive statement—a succinct summary of what your company does today. But here’s the twist: this statement isn’t just about your day-to-day operations. It’s about understanding the impact of what you do. So, ask yourself:

• What does your company do today?
• What difference does it make?
• What is important about it?

Answering these questions forces you to step back and look at the bigger picture. It’s like holding up a mirror to your organisation and asking, “What is it that really matters here?” This reflective exercise isn’t merely academic—it’s a practical way to build a narrative that resonates with your team, your customers, and your stakeholders.

At Monkhouse & Company, for instance, our descriptive statement goes hand-in-hand with our core values. Our purpose is underpinned by a commitment to loyalty, learning, and adventure. Loyalty means treating both team members and clients with unwavering commitment and trust. Learning highlights our belief in continuous growth, innovation, and a never-settle attitude. And adventure? Well, that’s our nod to taking risks and embracing new, energising experiences. These aren’t just daydreams to us —they’re the building blocks of a purpose that drives action.

The four types of core purpose

One of the most enlightening parts of the tool I mentioned is how it breaks down core purpose into four distinct types. Each type represents a different way your company can impact the world, and recognising which one (or ones) resonate with your organisation can be a real game-changer. Let’s have a look:

1. Service to others

This type of core purpose is all about making a positive difference in people’s lives. It’s not just about selling a product or service—it’s about uplifting your community or your customers in some meaningful way. Whether you’re in healthcare, education, or even retail, asking “How do we serve others?” can turn your business into a force for good.

Imagine a company that isn’t just selling gadgets but is committed to bridging the digital divide. That’s service to others in action—using your resources and know-how to improve lives.

2. Search for knowledge and truth

For some organisations, the drive to understand the world is paramount. This type of purpose is prevalent in industries such as research, technology, and education. It’s about the relentless pursuit of knowledge, innovation, and the truth—regardless of how many challenges you might face along the way.

Think of those companies that are constantly pushing the boundaries of what’s known, exploring uncharted territories, and inspiring others to think outside the box. Their core purpose isn’t just to exist, but to evolve and enlighten.

3. Pursuit of beauty and excellence

There’s something undeniably uplifting about striving for excellence and celebrating beauty—whether in design, service, or performance. Companies with this core purpose are driven by the desire to create something that isn’t merely functional but is a cut above the rest. They obsess over the details, aiming to offer an experience that dazzles and delights.

Picture a boutique hotel that doesn’t just offer a bed for the night, but a carefully crafted ambience that transports you into a world of elegance and comfort. That’s the pursuit of beauty and excellence at work.

4. Desire to change the world

This is perhaps the most ambitious type of core purpose. It’s about having a vision that transcends ordinary business goals—a burning desire to disrupt, transform, or even revolutionise the status quo. Companies with this purpose are driven by bold, sometimes audacious, goals that aim to leave a lasting impact on the world.

Consider organisations that challenge traditional industries, introduce innovative business models, or champion social causes. Their core purpose isn’t just to operate—they’re here to change the world, one brilliant idea at a time.

How to apply this tool to your organisation: A step-by-step guide

Alright, enough theorising—let’s roll up our sleeves and get down to the brass tacks. Here’s a practical, step-by-step guide to applying this tool to your business. And here’s the twist: there’s no one-shot answer that you’ll nail inside a couple of hours. Instead, the tool encourages you to revisit and refine your answers in an iterative process. After each step, take a moment to ask yourself: “What difference does this make?” and “What’s important about it?” Then, with those fresh insights, ask again—what difference does it make, and why does it matter? This repeated cycle of reflection helps distil your thoughts until you’re left with a clear, compelling core purpose that truly resonates with your organisation.

1. Hold a reality check
   Gather your leadership team and set aside time for a candid review of your current state. Look at the facts—both the wins and the challenges. Discuss what your company does today and the impact it’s having. Then, pause and reflect: what difference does recognising these realities make? Why is it important to be brutally honest about where you stand? Let those questions simmer, then come back to the discussion with fresh perspectives.

2. Dive into the ‘Why’
   Revisit the origins of your business. Think back to that spark of inspiration that led to your company’s birth. What was the founder’s passion? What values drove you to start this journey? As you explore these questions, ask again: what difference does this historical insight make? And what’s important about those founding principles? Repeat this reflection to ensure you capture the essence accurately.

3. Map out your core purpose attributes
   Using the tool, break down your core purpose into its key attributes. Identify what elevates your purpose above mere profit and job creation. Focus on aspects like emotional engagement and the ability to inspire change. Once you’ve mapped these attributes, pause and reflect: what difference do these attributes make for your business? What is so crucial about each one? Allow this iterative process to refine your understanding further.

4. Choose your core purpose type(s)
   Decide whether your company’s core purpose centres on service to others, a search for knowledge, the pursuit of beauty and excellence, or a desire to change the world. It’s perfectly acceptable if your business spans more than one category. As you deliberate, again ask: what difference does each type make in the way you operate? And what’s truly important about aligning with one (or more) of these types? Repeating these questions helps you to pinpoint the most authentic fit.

5. Craft your core purpose statement
   Now, bring it all together in a succinct, no-nonsense statement. This isn’t your typical mission statement overloaded with buzzwords; it’s a clear declaration of why your organisation exists. Write it out, then step back and ask yourself: what difference does this statement make in uniting your team? What’s important about every word in it? Refine the statement as many times as needed until it feels both inspiring and grounded in reality.

6. Communicate and embed your core purpose
   Finally, it’s time to shout your core purpose from the rooftops—or at least share it widely within your organisation. Display it in your office, integrate it into strategic planning, and ensure every leader embodies it in daily decisions. Once again, reflect: what difference does this communication make for your team’s morale and alignment? What’s important about having a shared, unwavering purpose? Repeat the cycle if needed to ensure that your core purpose is not just a statement, but a living, breathing part of your company culture.

By repeating these reflective questions—”What difference does it make?” and “What’s important about it?”—at every stage, you’re ensuring that your insights are thoroughly distilled. This iterative process transforms a one-off exercise into a dynamic, evolving journey towards a purpose-driven organisation. Not only will this clarity steer you through challenging times, but it will also inspire every member of your team to rally behind a shared vision.

Real-world application: Why it matters

Let’s be honest—talking about core purpose might sound a bit woo-woo at first. But here’s the thing: businesses that have a clear, well-communicated purpose tend to perform better in the long run. They inspire loyalty in their employees, build trust with their customers, and navigate tough times with a clearer sense of direction.

At Monkhouse & Company, we see these principles in action every day—not just in our own journey, but also through the success stories of our customers. Consider Sapphire, clients of ours who design and install balconies. Their guiding principle of “Innovation to prosper the community” has seen them carry out incredible work for charities, raising money for charities like Mind, Wiltshire Search & Rescue, Cardiac Risk in the Young and Prostate Cancer UK.

It’s not just about raising funds either – Sapphire staff volunteer their time with Rapid Relief Team (RRT), an organisation that offers catering assistance to charities and governmental organisations confronting some of humankind’s greatest challenges, including natural disasters and in conflict zones.

Then there’s OnTruck, a fantastic logistics organisation we work with. You’d think their core purpose would be about great customer service, or reliability, or speed, wouldn’t you?

Well, this is where interrogating what you do and why you do it can have deeply satisfying results. Underpinning everything that OnTruck does is actually the core purpose of building “A world without waste” by revolutionising supply chains and minimising environmental impact.

These inspiring examples underscore the fact that a well-defined core purpose isn’t just a feel-good statement—it’s a strategic asset. When your purpose is clear, it directs your strategy, shapes your culture, and empowers every member of your organisation to contribute to something larger than themselves.

Defining purpose: Over to you

So, there you have it—a friendly, no-nonsense guide to defining your company’s core purpose, with a dash of inspiration from our own journey at Monkhouse & Company and the remarkable successes of our clients. Remember, this isn’t about crafting the perfect mission statement on your first go. It’s about embarking on a journey of discovery, both for you as a leader and for your entire team.

Embrace the process with a bit of humour, a dose of honesty, and the understanding that your core purpose is what will ultimately set you apart in a crowded marketplace. When times get tough—and they will—a clear sense of purpose will help you through, keeping your team aligned and focused on the long-term vision.

So, why not clear some time in your diary, gather your key people, give me a call, and let’s start asking those big questions? After all, every great journey begins with a single step. And trust me, once you see the impact of a purpose-driven approach—not only in the resilience of your team but in the very success of your business—you’ll wonder how you ever managed without it.

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Written by business coach and leadership coaching expert Dominic Monkhouse. Contact him to schedule a call here. You can order your free copy of his book, Mind Your F**king Business here.