1. Purpose and Company Statement

Welcome! It’s great to see you here for another class. In this module, we’ll discuss product vision, explain why it is fundamental, and how it leads to product strategy. We will also connect it to the company’s purpose, helping you create better products that have a greater impact on both your company and customers.

I’m Claudia Mardegan, and I’ll be your instructor. With over 16 years of experience in product, technology, and development, I’ve worked in various roles—from developer and designer to product manager. I’ve worked with companies like RecargaPay, Truckpad (one of the most innovative startups in Silicon Valley in 2014), RaiaDrogasil (the largest pharmaceutical company in Brazil), and others like Beleza na Web, one of the largest beauty e-commerce companies in Latin America.

Class Overview

This class is divided into three parts:

1. How to connect the company’s purpose through a Company Statement.
2. Product Vision and Product Statement.
3. Planning: Breaking down the strategy into actionable steps for the product.

The Importance of Purpose, Mission, and Values

Purpose, mission, and values are the foundation for inspiring teams, positioning companies in the market, and driving business results. A clear and well-defined purpose is the starting point for a company’s success.

In his book Built to Last, Jim Collins emphasizes that while profitability is essential for a company’s survival, it should not be the ultimate goal for visionary companies. Profit should be a consequence, not the objective. Just as oxygen is necessary for survival but not the purpose of life, profit should support the company’s larger mission.

The Power of Purpose

A well-defined purpose drives both the company’s strategy and the engagement of its employees. Employees who feel aligned with a company’s purpose are more motivated and committed, leading to better results and customer loyalty. Purpose connects the organization’s mission with greater societal causes, leading to long-term success.

For example, at RaiaDrogasil, the focus was on bringing health to people, rather than just making money. This alignment with purpose increased employee dedication, resulting in better performance and customer loyalty.

Purpose-driven companies motivate employees to contribute to a greater cause, and customers notice the impact in the products and services they receive. This often leads to customers becoming fans of the brand, helping to spread its message organically.

Defining Your Purpose

To define your company’s purpose, you can use the Ikigai framework, which aligns passion, mission, vocation, and profession. Ask yourself questions like:

• What motivates me to get out of bed each day?
• How would I like to contribute to making the world a better place?
• How can my business make a difference in people’s lives?

Answering these questions will help you remain true to your original vision for the company and avoid being distracted by the many challenges and opportunities that arise over the years.

Mission Statement (Company Statement)

A Company Statement (or mission statement) explains the reason why a company exists. Unfortunately, over the years, mission and vision statements have often become bureaucratic and uninspiring, reduced to phrases displayed on walls but rarely reflected in day-to-day operations. A true mission statement, however, is closely linked to the value proposition and the benefits the company provides to its customers.

A strong mission statement should:

• Be clear and concise.
• Involve multiple stakeholders in its creation.
• Define the company’s competitive advantage.
• Be easy to remember and part of daily operations.

When employees can clearly articulate the company’s mission, it helps guide decisions and ensures alignment with the company’s long-term vision.

Examples of Mission Statements

Let’s look at some examples of mission statements from well-known companies:

• Google: "To organize the world’s information and make it universally accessible and useful."
• Lego: "To inspire and develop the builders of tomorrow."
• Apple: "To bring the best user experience to its customers through its innovative hardware, software, and services."
• Meta (updated in 2022): "To give people the power to build community and bring the world closer together."
• Tesla: "To accelerate the world’s transition to sustainable energy."
• RaiaDrogasil (Brazil): "People taking care of people."

These mission statements reflect each company's core purpose and are designed to inspire and guide their teams.

Vision Statement

A vision statement defines the company’s long-term goals and should be used to guide strategic decisions and set measurable objectives. Vision statements can be divided into short-term, medium-term, and long-term goals, often referred to as horizons 1, 2, and 3.

For example, a company’s short-term vision might focus on immediate changes that align with its long-term ambition, while its long-term vision might aim to revolutionize its industry or make a significant impact on society.

At RaiaDrogasil, for instance, the long-term vision is to become a digital company focused on building a new kind of pharmacy and an integrated health platform. The short-term goals focus on omnichannel strategies, while the long-term goals include transforming physical stores into health centers and expanding the company's range of health and wellness products.

Conclusion

In summary, connecting your product vision to your company’s purpose is critical to creating a strong and cohesive strategy. By aligning your mission and vision with long-term goals, you can inspire employees, engage customers, and drive better business outcomes.

Understanding how to connect purpose to daily operations and decisions ensures that your team remains focused on delivering value, both for the company and for the people it serves.