The Fourth Corporate Statement: Strategic Identity
The punch list for starting a company always includes vision, mission and value statements that express the intent and underlying beliefs of the organization. Rarely does it include a strategic identity defining what makes the company distinct in the market – but it should. Here’s why.
Whereas the first three statements reflect the entrepreneurial spirit of the founders to build something, they do not address how the company will differentiate itself competitively. That is the job of the strategic identity and it is a major reason the identity needs to be a part of the corporate strategy from day one.
In my work, I often get involved with companies who are at a crossroads about their identity. They have outgrown the original focus, merged with other entities, expanded into new markets, or otherwise made changes that cloud the picture of who they are.
Occasionally, the identity development process provides so much clarity of purpose, the company subsequently writes or rewrites its vision and mission statements so everything points in the same direction. That is a clear sign the strategic identity needs to be the fourth mandatory corporate statement for managing a business and creating a strong culture.
The four essential corporate statements
Most of us are familiar with vision, mission and value statements, but it can be a little unclear how yet another corporate statement – the strategic identity – might fit in. So here is a brief description of each type of statement and how it relates to the identity:
Vision Statement
The most effective vision statement presents a description of the world as it would exist if the organization were to succeed in achieving its grandest aspirations. It is inspirational, clear, memorable and concise. And it helps give the company meaning and purpose.
Mission Statement
Mission statements can be duller than a prehistoric kitchen knife if you let them. It’s no wonder they rarely make a public appearance once written. But, at its best, a mission statement is an effective expression of an organization’s reason for existence and provides the support for the company identity.
Value Statements
The values are principles that define how employees will conduct business as they pursue the vision and execute the mission. Companies that actively promote, discuss and reinforce their values internally create a culture that can deliver consistent value to the market.
Identity Statement
The strategic identity defines the organization’s distinction in the market – its competitive edge. It is the only one of the four statements that is driven by market needs and competitive differentiation, so having it is critical to the success of the organization.
Case study: Ruby
Ruby Receptionists provides live receptionist and chat services to more than 10,000 small businesses across the country. The $50 million company is widely admired for its financial success and passionate culture.
The company started with a strong sense of purpose from the very beginning thanks to a CEO who was passionate about helping small businesses grow. Here are how their four corporate statements inspire Ruby’s purpose and identity:
Ruby Vision
Ruby’s vision is to build a business-hold brand known for being the key ingredient for differentiation and acceleration to all small businesses.
Ruby Mission
We work to create real, meaningful, personal connections in today’s increasingly technology-focused, virtual world.
Ruby Values
Foster happiness
Practice WOWism
Create community
Lead through innovation
Thrive through growth
Ruby Identity
The Ruby brand identity is “Make Meaningful Connections” that cultivate great relationships, from first impressions to lasting loyalty. This identity combines the vision, mission and values into a position the company can take to market.
A strategic identity is essential
By adding the strategic identity as the fourth essential corporate statement, organizations will not only be able to define what drives them but will also be able to pinpoint what will help them win. After all, isn’t that why you are in business?
Free Guide: Introduction to IDentity
The value of your identity goes far beyond eye-catching marketing.