Cloud accounting platform Xero announced its refreshed FY25-27 strategy, Winning on Purpose, in February 2024. CEO Sukhinder Singh Cassidy shares how the strategy is simple, focused, and purpose driven with key objectives to:
- Create winning solutions for our customers: by delivering great customer experiences
- Live our purpose consistently: by making strategy choices consistent with our purpose
- Purposefully allocate capital: by focusing on the highest value opportunities
In this piece, Sukhinder also reflects on Xero’s approach to investor relations as a more mature global business and the value of being listed on ASX, highlighting the importance of robust corporate governance and the benefits it brings to the business’s operations and investor base.
Alexandra Cain, editor, Listed@ASX: Xero is pursuing a ‘winning on purpose’ strategy. What do investors want to know about it?
Sukhinder Singh Cassidy, CEO, Xero: Winning on purpose is the theme for our FY25-27 strategy, it talks about doing three things really well. The first is winning for the benefit of customers, because if we don’t win for them, winning for winning’s sake is not particularly exciting. At Xero, we like being customer-first in our winning mindset.
Second, we talk about winning on purpose, making sure our purpose is felt in the business every day. A good example is the Beautiful Business Fund, an initiative we launched to foster our support for small businesses and not-for-profits. This is an opportunity for us to see, feel and support our 4.2 million small business subscribers by backing them with funds to achieve their ambitions.
The third aspect to winning on purpose is being purposeful allocators of capital. Part of how companies win is by being very focused and our strategy clearly defines the key markets we are in and the jobs we do for our customers as the holy grail of how we operate as a business. Our three largest geographies, the US, UK, Australia, are our three most strategic markets and the three most important jobs our small businesses and their advisers and accountants care about are accounting, payroll and payments.
Our investors expect our capital, product resources, marketing resources and M&A efforts to align with our winning in purpose approach.
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