The two dirty secrets about company purpose.
Purpose lets your team know that they matter and tells them why what they do at your company is meaningful beyond their paycheck.
Defining organizational purpose has become a corporate imperative that pressures business leaders into tasking their marketing or communications departments with creating lofty words so that everyone can check off the purpose, mission and vision boxes and move on with the realities of daily business.
Most executives know that a company’s purpose is its WHY, as in, WHY do we do what we do? But if asked to consider the importance of being a purpose-driven company, many leaders won’t admit it, but internally, they come to this conclusion: “I don’t care whether or not we have a purpose. I’m here to make money for myself, and for my company. Nothing else really matters.”
The FIRST dirty secret about purpose is that there’s little perceived value in developing one.
Organizations often feel obligated to manufacture a purpose statement in order to ‘look good and socially prudent’ to customers and the world at large. It’s common for business leaders to host intensive meetings where they rack their brains yet fail to come up with a purpose that feels authentic. And when their marketing or communications teams create a pretty statement, it feels contrived and lacks buy-in.
Purpose is a fuzzy area that’s tough to navigate. But it IS worth it. Your organization must understand its value in order to fully embrace clarifying, articulating and acting upon a meaningful purpose.
Purpose is, in essence, a deeply held belief that you are important, and that what you do makes a positive difference. Psychologically, people need to feel that their lives are meaningful. When people live with a sense of purpose, they are healthier, happier and more alluring to others because they’re guided by the positive energy that who they are and what they do matters.
So then, why is it valuable for an organization to clarify its purpose?
Because organizations are run by people. And within the context of work, employees are happier, more motivated and more loyal when they are joined in a common purpose that lets everyone know that they matter and that what they do is meaningful beyond their paycheck. Customers pick up on this energy and it infuses them with the same passion and devotion—after all, who wouldn’t want to support an organization that is up to big things to make the world better, aside from just making a profit?
An authentic and acted-upon purpose can be a powerful catalyst for business success that also makes a difference. It guides short and long-term business decisions. It is the richness and realness that makes your brand personality more appealing. It’s a competitive differentiator. And it inspires enthusiasm, loyalty and devotion. All of which guide your organization toward leaving a meaningful legacy. And doesn’t that feel much more satisfying than simply making money?
A Harvard Business Review study uncovered that when companies had a clearly articulated purpose that was commonly understood throughout the organization, they experienced stronger growth when compared to companies that hadn’t clarified or acted upon their purpose. 52% of purpose-driven companies experienced over 10% growth compared with 42% of non-purpose-driven companies. Purpose-driven companies benefitted from greater global expansion (66% compared with 48%), more product launches (56% compared with 33%) and success in major transformation efforts (52% compared with 16%).
Clarifying, articulating and acting upon a meaningful purpose is a critical part of your organization’s brand strategy. Why? Because purpose allows you to gain and maintain better control of your brand. Today’s prolific online social media, product reviews and complaint forums have made it easier than ever for customers to tarnish your brand. Purpose-driven companies enjoy stronger customer loyalty which makes it easier to counteract bad press. They’re more likely to stick by you in tough times.
The SECOND dirty secret about purpose is that once you’ve clarified it, it’s too difficult for most organizations to effectively leverage it without outside help.
The three basic steps to become a purpose-driven company are:
1) Clarify and define your purpose
2) Articulate it internally and externally
3) Take actions that continuously maintain your purpose
The majority of businesses will never clarify a meaningful purpose, so if you achieve that, you’re way ahead of the competition. But once an organization does clarify its purpose (step one), it typically experiences a significant gap between its desire to articulate it and act upon it and its ability to do so. At step two, articulation, there are often breakdowns in communicating it throughout the organization. And at step three, taking actions, the real failure occurs. Most organizations don’t know how to actually use their purpose in the strategic and tactical activities that are required to bring it to life.
Actually living your purpose requires leadership alignment; objectives and metrics; education and training and ongoing management. It’s a never-ending job that requires skill, time and resources. That’s why so few organizations actually utilize their purpose. Then it just becomes a statement on a wall plaque.
This is where partnering with a branding agency can help. Purpose is a crucial brand pillar, and an experienced partner can help you design a long-term strategic and tactical plan that will drive your purpose throughout the organization, continually cultivate it and cause it to flourish rather than die on the vine. Read more about why purpose is important.
Does your organization have a clear purpose? If so, how has it helped your business? If not, what are your thoughts about why you should or shouldn’t develop one? Tell us how purpose impacts your business!
