Business Philosophy Definition: Everything You Need to Know
The business philosophy definition is the set of principles and beliefs that a company is working toward to achieve success.3 min read
The business philosophy definition is the set of principles and beliefs that a company is working toward to achieve success.
A business philosophy may also be called the:
- Company vision
- Mission statement
The philosophy of any company serves as its blueprint for operation. This statement outlines the overall purpose of the business, along with its goals. A business philosophy might also list the company values that are important to the founders, executives, and employees. The philosophy of a company reflects its leaders' values, helping the business to feel more personal.
Some of the business philosophies of large companies are well-known. For example, Google has several well-known attributes in its philosophy, including:
- You can make money without doing evil.
- It is best to do one thing really, really well.
After creating the business philosophy, the next step is articulating and communicating that philosophy to the company's employees. When business owners group practices, aims, principles, and beliefs together, this group creates the philosophy. This philosophy may pertain to:
The Importance of Business Philosophy
Webster's Dictionary defines philosophy as a system of motivating or fundamental principles that serves as the basis for beliefs or actions. Those involved in the management of the company may wonder how this definition relates to success in the business world. Company managers and owners may be surprised to learn that a solid philosophy is a cornerstone to success in business. As you start to understand and develop the philosophy for your business, it becomes easier to build a productive and cohesive organization that can handle any challenges that may arise.
The idea of a business philosophy is similar to a roadmap for the company. If you were visiting a new city, it would be frustrating to try to navigate without GPS or a map. You don't know how to get to various places or how long it might take to get there. This same analogy can apply to a company without a solid business philosophy.
When the employees don't understand the values of the company or what goals they are working toward, they often feel lost when handling their daily work tasks. As a result, employees don't always work effectively or provide the best possible customer service. A business can avoid these types of issues by articulating the vision and establishing a mission statement that is clearly communicated.
Composing a Business Philosophy
A well-structured business philosophy should include the company:
- Guiding principles
The process of outlining and creating your business philosophy takes diligence and time. As you compose your philosophy, ask several key questions:
- What is the overall vision for the company?
- What is the nature of the business?
- Who are my customers?
By answering these questions, you can form the basis for your company's philosophy.
Communicating the Business Philosophy
After you complete the process of composing your philosophy, the next step is clearly communicating that message to employees. You can achieve that goal through several methods. Start by introducing the philosophy as part of the orientation process for new hires. Your business might also display the mission statement on posters and products in the office, as well as in your company logos and website. Keeping the philosophy fresh in employees' minds can help ensure that all team members remain on the same page.
Another option is to meet with each of the departments or workgroups within the organization to outline the goals and methods for achieving those goals. The departments should set their own unique goals that align with the overall goals of the company. Regardless of the method you choose to communicate your business philosophy, it's critical to make sure the communication is effective and easy to understand.
Business Philosophies to Live and Die By
One of the first philosophies to apply into your own business mission statement is: “Do not make excuses, make improvements.” When running a business, things rarely go according to plan. You might fail to launch a product on time or fail to meet your revenue projections. If something doesn't go exactly right, look for ways to improve instead of making an excuse. Most people are quick to provide excuses when things don't go as planned but doing so doesn't help in business because excuses don't solve problems. Instead, focus on problem-solving to reach your goals.
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