Business leaders: Focus on building purpose, not happiness.

This is the week when most New Year’s resolutions fail, research has found. People give up on them for a wide range of reasons. But now, there’s a new movement under way: to focus on one word rather than a specific goal. The idea is that the word will guide you in making decisions throughout the year, like a true north.

For business leaders facing massive challenges, a single word might not cut it. You need to continue to guide your organizations through the pandemic and, hopefully, a financial recovery -- in addition to all the other factors and disruptions that have already been creating a challenging business environment for years.

Still, there’s a word that I encourage you to put at the top of your list of priorities, and another that you can drop off the list together. Focus on building a sense of purpose in your organization. And let go of worries about “happiness.”

High-Purpose cultures deliver rewards

As our CEO Culture Study demonstrated, businesses with High-Purpose Cultures see higher financial returns, employee retention, innovation, and competitive advantage. Leaders of these companies get higher compensation and more positive recognition. That’s the power of purpose.

As I explained in MIT Sloan Management Review:

“Companies with High-Purpose Cultures are focused equally on the needs of employees and customers. They clearly communicate internally what the organization stands for, and they work actively to engage everyone in the organization. In these companies, it is established that all operational decisions must balance the needs of employees, customers, and other stakeholders.”

Note that this does not mean companies focus on making their workers “happy.” 

Happiness is an outcome, not a goal

For millennia, philosophers have discussed and debated what happiness is. Many have cited Aristotle, who discussed “eudaimonia” as being an ultimate goal of humanity. But experts say in fact, this term should not be translated as “happiness.” Instead, according to The Encyclopedia Britannica says, the term refers to “the condition of human flourishing or of living well.” As britannica.com explains it:

“According to Aristotle, every living or human-made thing, including its parts, has a unique or characteristic function or activity that distinguishes it from all other things. The highest good of a thing consists of the good performance of its characteristic function, and the virtue or excellence of a thing consists of whatever traits or qualities enable it to perform that function well.”

In the modern era, a quote often inaccurately attributed to philosopher and poet Ralph Waldo Emerson has gained popularity. In fact, per the Quote Investigator, this popular quote comes from teacher and humorist Leo Rosten: “The purpose of life is not to be happy—but to matter, to be productive, to be useful, to have it make some difference that you lived at all.”

Having a purpose and carrying it out delivers a sense of meaning. Happiness is an outcome of that process, not the goal itself.

A happiness focus can backfire

Recent events helped drive this home. The death of Zappos founder Tony Hsieh brought renewed attention to what his leadership style had been like during his time at the company. Tony tried to make the happiness of employees (in addition to customers) a corporate goal. That plan was, unfortunately, full of pitfalls. (I worked with Tony and liked him very much. He contributed to our newsletter. I eulogized him in a letter to the Miami Herald.) 

Similar pitfalls apply to the perks that many Silicon Valley companies have offered employees, from free food and ping pong tables to some more extreme offerings. These can create a hedonic treadmill, in which people return to the same level of happiness. Giving people perks can create temporary spikes in happiness that fade quickly.Building a work culture in which they feel fulfilled and inspired to deliver their best work creates a sustained feeling of being valued. 

As executive coach Susan Peppercorn wrote in the Harvard Business Review, “If you set happiness as your primary goal, you can end up feeling the opposite. This is because happiness (like all emotions) is a fleeting state, not a permanent one. An alternative solution is to make meaning your vocational goal.”

People are driven by a sense of meaning. It connects them to their work and drives them to pursue excellence. As Gallup put it, “Advocating for purpose to be an integral part of an organization's culture defines successful leadership.” It takes management committed to culture change.

That’s what we’re all about at Gapingvoid. We help organizations transform their cultures so that people go to work each day in an environment that values and breeds High-Purpose.

This can happen right now, even if most or even all of your employees are working from home. ICYMI, see my piece published weeks ago by the London School of Economics Business Review on how semiotics drive workplace culture change during the pandemic. Virtual semiotics offer signs and symbols that reflect the culture your business wants to provide. They’re a key step in culture design. (That’s the thinking behind our virtual backgrounds.)

Resolve to pursue a sense of purpose for your team, and the good feelings will follow. Personally, I prefer to think of those good feelings as “joy,” rather than “happiness.” As I wrote just before Christmas, joy is a powerful idea. It can come from feeling that you’re tapping into your human potential. 

People should absolutely get joy from their work. Purpose is the key. And culture change is the pathway. In the year ahead, let’s build those pathways together.