Is your business fit for purpose? What does that actually mean? And how does it relate to what we do? It’s a topic that is regularly referred to in groups that deal with change. It’s a particular favourite of David J. Anderson’s, who I’ve heard mention it a number of times.
The Macmillan dictionary says, “something that is fit for purpose is good enough to do the job it was designed to do.”
It’s important to note that a business may have declared a specific purpose, but whether it is fit to fulfil that purpose is a separate question: Anderson stresses that the business decides the purpose, but the customer dictates the criteria from which fitness is gauged.
For example, a barber may state its purpose as “being the best barbers in town”. With this in mind, the barber, who is very good at being a barber, buys some good looking, comfortable and functional chairs, some of the best tools available, gets some good branding and shop front design, and opens his doors. He is, in his mind, better than the other two barbers in town.In his mind. Not in the minds of the town’s student population; he’s too expensive and isn’t open late enough. Nor is he the best barber in town in the minds of the older community; he is focused on getting customers turned around quickly rather than giving an experience and he doesn’t give discounts for the off-peak times that OAPs are used to. Nor is he the best barber in the minds of children; he doesn’t give out lollies at the end! In fact, nobody likes him because he isn’t giving them what THEY want; he’s giving them what HE considers is best. As I mentioned, fitness criteria is decided by the customer not the business. It is the criteria by which they select a supplier to fulfil their needs.
Different segments of customers want different things. If you are trying to be the best, you need to consider which segments you are targeting. It’s unlikely you are going to please everybody all of the time. In other words, you are going to need to focus on a SOME of the possible market. Considering this helps you find your niche markets. You then need to ask yourself questions about their values, such as:
- What will make them choose my product? What will turn them off?
- What will make them become a repeat customer? What will scare them away forever?
- What will cause them to recommend me to others? What will make them tell everyone to stay away?
Being able to deliver what you are promising is not enough; you need to be able to deliver what your customers need.