Many Australian SMEs invest heavily in defining their market positioning – that is, how they want customers to perceive them relative to competitors. However, the impact extends far beyond attracting sales. A clearly articulated and consistently communicated position is absolutely critical for employee alignment, and ultimately, for achieving sustainable growth.

We often see businesses treat positioning as purely an external exercise. They craft a tagline and some key messages, then expect those to magically resonate with both customers *and* staff. This is a missed opportunity. When employees don’t understand *why* their business exists beyond simply making a profit, or how their role contributes to the bigger picture, engagement suffers. And disengaged employees directly impact customer experience and innovation.

Here’s how strong positioning impacts employee alignment:

• Provides a North Star: A well-defined position gives everyone a shared understanding of the company’s purpose. It answers the question, “What are we striving to be?” This clarity helps employees make decisions that are consistent with the overall strategy, even without direct supervision.
• Fuels Internal Advocacy: Employees are your best brand ambassadors. If they genuinely believe in what the business stands for – and understand *how* it’s different – they’re far more likely to speak positively about it to friends, family, and potential recruits.
• Attracts the Right Talent: A strong position attracts individuals who share your values and are excited by your vision. This reduces recruitment costs and improves employee retention. Think about it – people want to work for businesses they admire.
• Simplifies Prioritisation: When faced with competing demands, a clear position helps employees prioritise tasks that directly support the company’s core offering and target customer. This focus improves efficiency and reduces wasted effort.

The businesses that thrive in the coming years will be those that embed their positioning into every aspect of the organisation, starting with their people. Don’t just tell your team *what* you do; tell them *why* you do it, and how their contribution makes a difference. To get started, we recommend revisiting your positioning statement and then facilitating workshops with your team to explore how it translates into day-to-day actions. This isn’t about creating a marketing campaign; it’s about building a shared sense of purpose that drives performance.