Why do I need a purpose?
An authentic purpose transcends the mere transactional nature of business. A company's purpose answers the question Why do we exist? If a business remains true to its purpose it provides a compass, guiding decisions and actions, fostering trust, and ensuring long-term, sustainable success.
Attracting talent
Employees, often seek more than just a paycheck from their jobs. They want to be part of something meaningful. A company with a clear purpose can attract and retain talent by offering a sense of contribution and fulfillment
Improving employee engagement
The younger generations more than ever want to be connected to purpose. Dan Pink’s work around intrinsic motivation uncovers the surprising truth about what motivates us. People are motivated by more than money. Take money off the table, you must pay fairly and well but if you want to see your people truly flourish and achieve over and above you need to give them purpose, mastery and autonomy. Purpose, something to work for that is bigger than themselves and more meaningful than simply making money.
Direction and decision making
A clear purpose provides a framework for strategic decisions, ensuring that actions align with the company's core principles. It offers guidance during challenging times and can help resolve dilemmas that might arise.
Attracting customers - brand differentiation
In a crowded market, a compelling purpose can differentiate a company from its competitors. It can be a unique selling proposition that resonates with customers.
Customer loyalty
Customers want to feel a connection to your business, your brand and what you stand for. Customers today are more socially and environmentally conscious than ever before, and they are increasingly looking to do business with companies that align with their values. Living your purpose will keep your customers loyal.
Business performance
Purpose-driven businesses outperform other businesses. Jim Collins extensive research documented in Good to Great showed us that purpose-driven businesses that reference and make decisions supported by their Purpose outperform the competition.
So being clear about your Purpose and communicating that to your stakeholders simply makes good business sense. Quality Check
Test your purpose statement with the following questions:
- Is it inspiring?
- Would people care?
- Would it attract people to come to work with you?
- Would customers be attracted to the business?
Examples
The Body Shop
The Body Shop exists to fight for a fairer, more beautiful world.
Canva
Empowering the world to design
Crusoe Cloud
Aligning the future of computing with the future of the climate.
Interesting resources
📚 Why do I need a purpose statement (image)
State of the Global Workplace - Gallup
Drive: The Surprising Truth About What Motivates Us - Dan Pink
Good to Great - Jim Collins
Owners' why