Well before we get to the compelling case - what actually is a Purpose Led Organisation? A Purpose Led Organisation focuses beyond financial goals – it aims to make a positive contribution for the community within which it operates – be that literally a small village where its based or covering the full globe... and it can do this in lots of ways – focussing on climate impact, sponsorship of local sports teams, providing education, supporting charities by providing services at lower rates or donating employee time, providing employment opportunities for those who may otherwise struggle to get that break, ensuring employees get access to great training to progress their development and career opportunities. Its not a definitive list and there are many more examples!
Nike is a household name, whose purpose is to “Bring inspiration and innovation to every athlete in the world”. How do they do that, beyond selling sportswear at a profit? Recent examples are donating 32,000 pairs of Air Zoom Pulse shoes to healthcare workers in US and Europe, innovating to support production of 360,000 units of vital PPE, and committing $30m to COVID response efforts - they are maintaining awareness of the challenges of their communities and using their purpose to create actions that can make a positive impact.
I think we can all appreciate and admire the philanthropy of such companies – but can we all afford to be one? And if we do good in our own time – can that not be enough? Can we keep the focus to profit in the workplace, because that provides us with the personal means to do good in our time and in our own way?
Well……firstly, given how long we spend at work, I think there is a huge, missed opportunity if we don't utilise some of that time in contributing to making a difference. Secondly, it’s been proven that employees within a purpose led organisation are more motivated, leading to higher retention, higher effort and higher innovation. But thirdly, there is a rather compelling case for commercial benefit…in fact, you could be missing out on valuable commercial benefit if you are ignoring this! Let’s consider the following: -
1. 66% of consumers would switch to a new product or service from a purpose led organisation
2. Purpose led organisations enjoy 30% higher levels of innovation
3. 2 out of 3 consumers pay more for products from a brand committed to positive social impact (well - which eggs do you choose at the supermarket - free-range or the cheapest ones?)
Why do people choose you? What drives that decision - and what could drive that decision? What lights the fire of enthusiasm within your employee to make them want to do more? Being Purpose Led can be the answer. If you had more consumers choosing you, even willing to pay extra, if employees were bringing additional passion to how they innovate, what commercial impact would that have for the company? If people felt like their contributions were making a bigger difference, what would that do to motivation and discretionary effort in the workplace? People like to feel that they are making a difference. If you were leading a Purpose Led Company, what would that do to your morale and motivation?
Incidentally – it’s fine to have profitability as a driver, being financially viable hasn’t gone out of style! It is a key requisite for being in business and being purpose led is not a licence to abandon that. But being purpose led is taking a view wider than that - really considering all groups for whom you create value – shareholders, employees, customers, and stakeholders – and challenging yourself to excel in the value created. Profits then come as a by-product of company operations as opposed to the sole reason to exist.
Interested in joining the growing numbers of Purpose Led Businesses? Here are some top tips to get started:-
1. Define the purpose – don’t make it War and Peace, a simple one sentence that everyone in the organisation can relate to is perfect – this becomes the “true north”, the direction of travel, the filter you apply to decisions you make.
2. Leadership leads the way – don’t just talk the talk, you need to show it in your actions - walk the walk. Don’t commit to the theory, commit to the change.
3. Two-way communication is key – communicate what you are doing differently and why. Be curious - ask colleagues what the company purpose means to them, and how they bring it to life. Invest time in listening sessions to allow people to share their thoughts and ideas
4. Provide autonomy – empower your employees to act, providing flexibility within a framework to make it easy to move from idea to implementation, removing unnecessary blockers.
5. Measure what you treasure – set bold goals, keep them visible and hold yourself to account. Individual contribution towards purpose should form a key part of performance appraisal and bonus discussions.
6. Keep it alive – Purpose is not a “one and done” ambition – you don’t achieve it and move on; you live it in what you do. The actions that you take throughout the year may differ, and different focuses may come into play in different years - but the purpose stays the true north, creating that passion and answering that all important question – why do we do what we do.
I am passionate about purpose, because I have seen first-hand the impact it can have when it lives and breathes in the workplace. I have watched colleagues take bold actions, contribute brilliant ideas, bring passion to their job. I'd like to think I have also been that colleague! Are you ready to light that spark? I would love to help you – so please, if you want to give your Business some Purpose, do get in touch!
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