Continuing from part 1:
Nick on defining what purpose is:
The point is that you need to know why do we exist? What is the world we want to live in that our company is going to help create?
Nick’s definition of mission:
And then who do we serve? What are we here to do today and then the next year? And who are our people and what are we doing for them?
Nick’s definition of strategy:
And then how do we do it?
On the relationship of these three:
And these things tie together. And if they don’t support each other from purpose to mission to strategy, then you have a problem.
Nick continues on to share the 5 ways to help connect purpose, mission, and strategy. Here are the first two tips:
- Find your true north, but be flexible.
- Build a goal hierarchy.
On how purpose matters in building resilient companies:
The minute you fail at one of those low level goals, you’re more likely to give up if that’s not connected to the broader purpose. … So when we’re talking about building resilient companies, and companies with grit, the connection between the top level purpose and everything underneath has to be strong.
An example Nick mentions is Coinbase. Their mission is: create an open financial system for the world. Their strategy is: be the most trusted, and the easiest to use. If the employees is working on one of those two things, the employee is doing the right thing.
Nick comments on this:
That’s so simple and so clear. And in any company, you could be working on a thousand different things, but we are going to be the most trusted and the most easy to use.
The third tip:
Learning to say no.
The fourth tip:
What would you do? (differently from your competitors)
The final tip:
Make it tangible.
Again, here’s the link to the video. Lot of great examples of startups and how they link the purpose, mission, and strategy together.