UBA056 - The importance of purpose

Beyond the profit paradigm

“What we do now echoes in eternity.” Marcus Aurelius

As individuals, I believe we should all strive to make the world a better place in one way or another. So why shouldn’t organisations do the same?

Having a clear and compelling purpose is more important than ever. Purpose takes organisations well beyond the profit paradigm - it’s about defining what a company stands for and the impact it aims to have on the world. A deep-seated sense of purpose not only guides strategic decisions but also resonates with employees, customers and other stakeholders, creating a strong, authentic connections.

Purpose as a Slogan

In the rush to appear purpose-driven, many companies have fallen into the trap of reducing their purpose to a catchy slogan. This superficial approach can be damaging for that organisation but it also undermines the concept of a purposeful brand. Over time, purpose has unfortunately succumbed to trends and superficial branding efforts, which has in turn diluted its significance and authenticity.

Authentic purpose requires honesty, introspection, commitment and action. It cannot be fabricated or imposed from the top down; it must be integrated into the daily lives of everyone in the organisation.

What is Purpose?

Purpose is the fundamental reason an organisation exists, beyond just making a profit. It defines the impact an organisation is seeking to have on the world and serves as a North Star for all of its actions and decisions.

One thing worth noting is that, technically, being purposeful doesn’t actually mean ‘doing good’ - it means having a clear, defined intention.

Over time, I have discovered that my own personal purpose is to ensure organisations benefit humanity and our planet. And so of course, I do champion the idea that organisations of any kind should be designed for good. So while technically purpose doesn’t mean ‘doing good,’ if you work with me on brand strategy, I will definitely push your organisation in that direction.

A Personal Journey

My interest in ethical companies has always been there. From a young age, I remember being frustrated by the culturally accepted idea of a successful business leader, often involving a dominant approach, and sometimes tactical or unethical practices. I adopted this way of working in a very general way for some time, but after 2012, when I moved to Frome, I began working on our company values and purpose and realised just how crucially important they are.

I attended Do Lectures which kickstarted a lot of thoughts for me, but it was only when I read Nikos Mourkogiannis’s book Purpose: The Starting Point of Great Companies that I truly understood how deep purpose needs to go. Mourkogiannis’s insights helped me see that purpose is the foundation upon which successful companies are built, providing a moral and ethical compass that drives everything from strategy to day-to-day operations.

Developing Purpose Alongside Mission

While purpose is about the broader ‘why’ behind a company’s existence, mission statements typically focus on the ‘what’ and ‘how’. If a purpose is too wordy, it can accidentally become overly ‘mission-y’ and can lose its profound significance.

Developing purpose and mission together in a structured approach helps me keep the purpose word count low. Here’s an outline of my approach to purpose discovery:

STEP 1 - Audience and Marketplace Immersion

Begin by immersing yourself in the existing audience and marketplace. This involves understanding current customer needs, preferences, and behaviours, as well as analysing peers and market trends. This immersion helps create a context for the brand and identifies gaps and opportunities in the market.

STEP 2 - Define Core Beliefs

With a clear understanding of the market landscape, the next step is to define the core beliefs that underpin your organisation. These beliefs should reflect the fundamental principles that guide your actions and decisions, providing a foundation upon which both purpose and mission can be built.

STEP 3 - Craft Purpose and Mission Together

Once the core beliefs are established, the purpose and mission can be developed in tandem. This ensures alignment and coherence, with the mission evolving over time to remain relevant while the purpose remains steadfast.

Evolutionary Purpose

If you have a well established purpose then you could consider taking it to the next level. Teal organisation theory, as described by Frederic Laloux in Reinventing Organizations, introduces the concept of evolutionary purpose. In Teal organisations, purpose is seen as a living, evolving element that adapts over time. Instead of being fixed, evolutionary purpose evolves as the organisation learns and grows, responding to changes in the environment and the needs of stakeholders and members. I won’t go into too much detail here but if this sounds interesting then please do read Frederic Laloux’s inspirational book.

Purpose and Employee Alignment

Purpose-driven companies often see a natural alignment between their values and those of their employees. When purposes align, employees are more engaged, motivated, and committed. Conversely, when there’s a misalignment between the organisation and an individual, it can lead to disengagement or even a parting of ways. It’s important to view this process as organic rather than a failure of the employee or the organisation. As people grow and evolve, their personal purposes may simply change, which leads them to seek new opportunities that better align with their own evolved purpose.

Conclusion

Purpose is more than a guiding principle; it’s right there in the centre of the soul of a company. By deeply embedding purpose, organisations can inspire their teams and build lasting connections with their stakeholders, but more importantly, if we can embrace this concept for all organisations then together we could create a huge positive impact on our world.

Written by Russell