What's The Point of Purpose Anyway?

What's The Point of Purpose Anyway?

Is company purpose an antiquated idea? What is it, really, and who cares?

Your purpose is a motto describing why your company exists. It should have real meaning and resonance, authentically reflect your values/character and be actionable.

It's not passé to have a purpose that people connect to, and in fact, in our noisy and overwhelming modern world, it's more important than ever.

A good purpose is powerful because:

  • it inspires loyalty and provides a sense of security,
  • it orients and attracts (both talent and customers),
  • it serves as a guide during decision-making,
  • it helps everyone row in the same direction.

Sadly, only 28% of those surveyed in a recent PwC study feel connected to their company’s purpose!

Why should companies care?

  • 90% of companies with a clear purpose show growth and profits at or above the industry average.
  • In these companies, 63% of employees say that they’re motivated vs. only 31% at other companies.
  • Employees that are aligned with their company's purpose, brand and culture perform higher on key business performance metrics than those that feel less aligned.
  • When customers are aligned with a brand promise, they spend twice as much on that brand (47% wallet share) as customers who aren't aligned with it (23%).

Whose “problem” is it to assure alignment with purpose?

  • A company’s leaders need to model their commitment to the purpose, with every action.
  • Companies should help employees clearly see how their roles connect with purpose.
  • Employees also need to know, and be reminded often, that their contributions are meaningful!
  • Leaders and HR: keep up an open dialogue about it with your people. Get feedback and keep improving your policies.

It’s the company’s responsibility to foster this alignment. Yes, it’s an ongoing commitment, and worth it!

To sum up, a meaningful purpose, which people can align with, is highly relevant and necessary in today's business world. (And yes, top leaders need to love it and live it!)