Purpose is one of the most powerful tools organizations have to support strategy. A good purpose places a stake in the ground, declaring what the organization values. It provides flexibility and allows the organization to respond to shifts in the market and customer preferences.

Powerful Purpose Statements

Here’s an example of one powerful purpose:

To transform lives through inspired learning.

This statement is great because it provides both boundaries and flexibility. On the boundaries side, it clearly states that “learning” is the field in which the organization (University of Texas) plays. At the same time, it provides flexibility in how the University provides inspired learning.

Ah, the good old days. The world was a more stable, predictable place. Companies knew their competitors: Coke had to crush Pepsi. Adidas sought to outdo Puma. Avis vied against Hertz. McDonald’s obsessed about its feud with Burger King.

Amidst this environment, strategy tools proliferated. Your company probably still uses the SWOT Analysis, which was developed in the 1960s.

Perhaps you also use Boston Consulting Group’s popular Growth Share Matrix from the 1970s.

And many rely on Porter’s Five Forces, which debuted in the Harvard Business Review in 1979.

All three of these tools—and many more—were conceived before the internet, before the rise of globalization, and before the rise of mega businesses like Amazon and Tencent.