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In our last article, we unpacked the meaning of purpose in the scope of an individual. It was highlighted that purpose is your why and the conviction for you to do what you do.
Now, the very same can be said for businesses. It is no contention that in order to successfully run a business, profit is needed. The confusion that sometimes exists is that the purpose driven businesses are not profit driven businesses, however, this is not at all the case. The urge for purpose in business is not an attempt to replace profit.
It is of no use if a business is striving to remain relevant by its own efforts alone. The customers and stakeholders of businesses help keep them afloat. Without solid support from various channels, businesses might find it hard to survive over time. So why is purpose such a pivotal aspect of relevance and longevity?
As Simon Sinek put it in his very famous TED talk, ‘people do not buy what you do, they buy why you do it’.
Individuals start businesses for various reasons, having different goals as they progress but the glue that shapes the outflow of strategy and actions to achieve these goals, is the actual purpose of that business. Therefore, if you want customers to patronise your business, more than what you do, why you do it should be a paramount treasure.
So what then is purpose in business?
Purpose in business is seen as the overall goal for being in business which encompasses more than just profit, but it is the ultimate goal of a business and the essential reason why it exists.
Purpose transcends monetary goals. It is the reason the business operates and the impact of its operations in the world and the common good. Many business leaders may see purpose as important but not urgent but here is why it should be urgent:
Why is Knowing and Operating in your Business’ Purpose Urgent?
1 – For the Survival and success of the business
More than business owners realise, purpose is central to growth. The hope of business owners is growth for their business, but beyond chasing growth with an eagle-eyed vision on finances, if more businesses understood that being purpose-driven catalyses growth at a faster rate than not, the world just might be a much better place. According to a Forbes article, 52% of purpose-driven companies experience over 10% more growth compared to companies who weren’t. Other benefits include global expansion, more product launches and success in major transformation efforts.
If the leaders of a business are not clear on their own purpose and their whys, it would be difficult to align seamlessly with like-minded individuals for the benefit and growth of the business involved.
2- The growth of the ‘Great Reflection’
The future of the workplace and its dynamics are changing rapidly. More than before, people are increasingly realising their personal purpose and are choosing to walk in it. This means questioning their role and involvement in their current job roles, then migrating if need be, to where they feel more fulfilled. Employees want to be a part of a corporate culture that aligns with their purpose, passion, morals and values. This reflection of employees heightens the urgency for businesses to know and understand their purpose as it is key in attracting and retaining the right kind of workforce.
3- Increasing awareness and demands for corporate social responsibility (CSR) and sustainability
The world is moving from a self-centred point of view to a more inclusive, environmental, and socially conscious perspective. This is what sustainability in business is all about. Businesses are now more than ever, endowed with the responsibility to also give back to the society and environment within which they operate. It is growingly frowned upon when businesses are perceived to not play their part in society. Beyond this, the government, customers, society, communities are sensitive to the dealings of businesses and as the paradigm shifts even further into sustainability it is imperative that businesses move along with it.
How do you identify your company’s purpose and walk in it?
Hubert Joly gives an uncomplicated and straightforward tip to identifying your business’ purpose:
Source: Creating a Meaningful Corporate Purpose, by Hubert Joly
This is a great place to start.
1 – Ask yourself: what does the world need?
What change and what gap is your business seeking to fill? What defect is it trying to correct? What service are you hoping to provide that isn’t already provided – at least in the manner and capacity you are looking to provide it in?
When you are able to answer these questions, you are one step closer to uncovering your business’ purpose.
2 – Weigh the strengths of the business.
It is much harder trying to solve a problem you do not have the capacity to undertake. So, undertake an internal analysis on the business. Identify the strengths and weaknesses and capitalise on the strengths and capabilities of the business.
It is wiser to work your way up your purpose. Start from what the business has and build strength over time. Set achievable goals and objectives aligned with the purpose of the business and move to higher ones as the business progresses in strength and capabilities. This way, you have an eagle-eyed vision of where the business is headed and this helps you continually stay within the business purpose.
3 – How the company can create economic value.
After having an idea of your purpose and the impact you seek to create. The next step is figuring out how you can convince people to see the value in what you do and be willing to pay for it.
Making sure that your business is profitable, also contributes to being sustainable – being around for the long-term, providing value to customers, partners and society.
4- Make sure the employees at the business are aligned with the purpose of the business.
Last but not the least, the employees within the business play a pivotal role in ensuring the business walks profitably in its purpose. Earlier in the article, it was highlighted that the world is witnessing people being more and more conscious of their purpose and their role in the workplace. Carry out a purpose evaluation for employees. Find out what is important to them and how that marries with what is important with the business.
The role of leadership in identifying and carrying out a business’ purpose cannot be circumvented. Businesses are a web of the output of an individual or various individuals. Becoming a purpose-driven business starts with being a purpose-driven leader. This is a topic for another day.
But for now, apply this understanding of purpose in business, know your why and take your business to the next level – not only making profits, but purposeful profits.
At the Purpose Club, we are here to help you uncover your purpose and build strategies that help you go from purpose to impact.
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