“Purpose” has become somewhat of a popular buzz word recently – but it is not simply a millennial fad. Despite its recent popularity, it is true that an organizations purpose is at the core of who a company is and what it stands for. Profit is not the only measure of success and does not solely define an organization. When you think about your favourite brands or organizations, why do you support them? Do you support them because they are profitable or because their purpose resonates with you? Purpose-driven organizations can build stronger connections with all stakeholders that go beyond a relationship that is simply transactional. In this week’s blog post we are looking at the power of purpose-driven organizations.
Purpose Changes Culture
Every organization has a purpose for its existence. However, they may not have that purpose ingrained in their culture or even be clear on what that purpose is. The difference between an organization that simply manages resources and an organization that mobilizes them, is its purpose. It affects everything from hiring to deciding where to best invest profits. When an organizations purpose is aligned with its culture, everything becomes elevated. The focus is put on something greater. This in turn allows all stakeholders to connect and care about organization on a deeper level.
Purpose Drives Success
The book “Corporate Culture and Performance” by Harvard Business School professors John Kotter and James Heskett showed that over a 10-year period a purpose-driven organization would outperform an organization that was not in stock price by a factor of 12. When purpose is lacking or missing, it is much more difficult for leaders to motivate employees and put an organization on the road to success. When purpose is present, organizations and their leaders have the ability to create a greater value both internally and externally. Let us take Google – an organization that is often used as a strong example as purpose-driven. While Google might have a very perk-driven work environment – its clear purpose; “to organize the worlds information and make it universally accessible and useful” is a significant key to its success. Anything Google creates and develops brings the organization closer and closer to achieving its purpose.
Simply put, purpose is the reason why you do what you do – it has always been the driver behind the world’s greatest companies. A well-defined purpose has the ability to transform culture and be the driver of success for any organization.
“Profit isn’t a purpose. It’s a result. To have purpose means the things we do are of real value to others.” |
Simon Sinek (Author, Motivational Speaker and Organizational Consultant)