Do you know why some businesses achieve more than their counterparts? Do you know why no two businesses are ever
the same? Do you know why certain businesses behave in a certain way that sets them apart from others?
The secret is found in their DNA.
In biology, the DNA which stands for DeoxyriboNucleic Acid contains the genetic instructions for every living organism. The DNA determines what kind of life is the organism being formed to live. In essence, the DNA contains the programming language [source code] for the organism. Suppose organisms were some hardware, the DNA would be the software. Meaning, it is what basically determines how the hardware functions. Without a DNA, organisms are bound to malfunction.
What Is The DNA Of Your Business?
Your business is also an organism and needs a DNA to efficiently and effectively function. The DNA of a business determines what kind of a company it will be, the basis of its operations and its outcomes. It gives the broad picture of what the business will look like, what will guide its actions and what type of goals it will seek to achieve. They represent the soul of the business, what enables the company to function as a unique living entity.
The 5 Essential Components For Creating The DNA Of A Business
Below are what constitute the DNA of a business;
“Why do we exist as a business?”
“What need or needs are being met by this business?”
The purpose of a business is the creation of customers through the provision of innovative products/services that best meets their needs and solves their problems.
Every business exists for the sake of the customer. It is your responsibility as an entrepreneur to clarify what your business exists to create for the customer it has chosen to serve. Businesses in the same industry or serving the same class of customers generally have a common purpose peculiar to that industry.
For example, all automobile companies manufacture cars with a general purpose of conveying people and things from one location to another. However, the purpose of each automobile company as a matter of principle and practice should be operationally unique from that of the industry.
For example, Volvo’s purpose as an automobile company is to manufacture automobiles that will guarantee the safety of the lives and property on board. BMW states that it’s in business to manufacture ‘the ultimate driving machine’. They chose the creation of fast automobiles as their purpose. Volkswagen declares ‘small is beautiful’ as their unique selling proposition [USP] expressing their business purpose of creating cute and beautiful looking automobiles, etc.
This is important because customers don’t all want the same kind of solution even though they may have similar needs or problems. Variety they say is the spice of life; that is what innovation means. Give your customers a reason beyond the obvious to come to you!
“What do we want to achieve using this business as a tool?”
“How far do we want to go in pursuit of our purpose as a business?”
The vision refers to the extent at which the business hopes to fulfill its purpose. It’s usually a definite picture of a preferable future. An image of what the company would be like when it must have fully fulfilled its reason for existing [purpose]. In other words, vision is the end result of fulfilling purpose. It’s measurable either quantitatively [size, position, number etc.] or qualitatively [brand loyalty, innovation, overall impact or contribution made, magnitude of problem solved etc.]
“How do we intend to succeed in this business?”
“How and what must we primarily focus on as a business to be the No.1 choice of our target customers?”
The mission is the primary task of the business. Mission is the translation of the purpose and vision into specific operational strategies. It focuses on how the business can best fulfill its purpose and achieves its vision within the estimated timeline. Mission breaks down the long term vision and purpose into smaller actionable steps that can be implemented daily in the business. Mission is how the business as a tool functions.
“What principles, standards and tenets must we hold to be true and never compromise as a business?”
“How must we collectively think and behave as a business in order to fulfill our purpose, achieve our vision and execute our mission?”
Values refer to the highest standards of behaviour and thinking expected of every member of a business. Values are the root system that holds and nourishes the business as it grows and interacts with its environment. They constitute the essential and enduring virtues of a business which governs the relationship of the business with itself and with the outside world.
“Who are we as a business to the general public?”
“What is our promise to those we intend to serve?”
“How do we want to be perceived by our target customers?”
Brand is the perceived image of the business by the outside world. It refers to the psychological association the public have towards your business. Brand is what the public holds you accountable for, it’s what they expect of your business as a tool that meets a particular need.
The goal of every entrepreneur should be the creation of a living entity [business] capable of producing specific results. These five core elements make it possible for the entrepreneur to achieve this goal. They constitute the invisible thread that binds everyone and everything inside the business together in a cult like manner.
Does your business have a DNA?
If yes, kindly share with us how you’ve been able to put each of these 5 components of a business DNA to use in your business.
If no, how has reading this unusual article helped you to see the need to create one for your business?
Are there any other components you feel should be included in the creation of a DNA for a business?