The reason that social or business entrepreneurs get up in the morning is to change the world, or at least that part of it that they have claimed as their own and to which they bring the skill and passion able to do so.
This article from Harvard Business looks at that.
An excerpt.
“I recently sat down with my BlackBerry voice recorder and Mats Lederhausen to ask him to share his philosophy of "purpose bigger than product." Mats is a great entrepreneur and also had one of the most successful careers at McDonald's where he was a driving force for its turnaround. He currently runs his private investment vehicle Be-Cause and is a Special Partner at our firm, Cue Ball.
“What is your philosophy of "purpose bigger than product" all about?
“At its core, it is about being real and idea-driven. Trust is perhaps the most important currency in business, and big ideas may be the only true source of competitive advantage. Lack of trust is a form of tax. And that tax rate has increased in the past number of years. Customers simply don't trust institutions as much today. Particularly large businesses. The main reason is that we now live in an "information everywhere" and more transparent world. Every customer has a camera in their cell phone, a Facebook in their pocket and Twitter at their fingertips. This means we hear and see evidence of businesses not walking their talk. Their products don't match their promise. In order to regain this trust you must simply make sure that all your products, your merchandising, your advertising, your people and the totality of your touch points with consumers sing from the same hymn. And that hymn is what I call purpose. Some people call it vision. Others call it focus. It is the same thing. It is source of your promise. It answers the question: Why are you here?
“Talk a little more on the notion of "big ideas."
“I often talk about "altitude creates attitude". When you meet people that have a big idea it is almost impossible to be unaffected. It is like a perfume. You can smell it miles away. I firmly believe that the source of human energy and creativity can be found in the distance between where we are and where we'd like to be. It is that creative dissonance that is the entrepreneurial rocket fuel. If human beings could have walked everywhere on the planet I don't believe we would have invented trains, planes and automobiles. So, if you really want to build great companies you need big ideas.
“Certainly, not all big ideas may be viable in all incarnations. What about the reality of these ideas?
“Of course they have to be believable. They can't be pipedreams. Or as John Naisbitt once said: You can't get so far ahead of the parade that no one knows you're in it.
“From an execution perspective, you have to think big, start small, and scale fast. You can't think big and start big, that's almost impossible. You need miniature versions of your grand idea so you can validate its parts, and then iterate and tweak constantly. There's nothing wrong with having a really big idea and launching only aspects of that idea. Rome wasn't built in a day. Take Chipotle, for example. Steve Ells had a very big idea about food, but he didn't start by executing 100% of his vision; he gradually did what he could towards that theme.
“It is also important to remember that your purpose is not what you "tell" customers, but what you do. The best way to disappoint everyone is to over-promise and under-deliver. Therefore you must be humble AND committed at the same time. In fact, customers are more forgiving when you make mistakes if those mistakes are honest efforts in trying to improve towards a known and worthwhile direction.”
