Organizational Purpose

At the most fundamental level, an organization’s success (and impact/influence) is dictated by how clear their purpose is, how compelling their purpose is, and how aligned their people’s behavior is with that purpose.

And don’t confuse FUNCTION with PURPOSE.?

The FUNCTION of a chair is to provide a place to sit.

The PURPOSE of a chair is to provide comfort.

Purpose has a much deeper meaning.

Ultimately, an organization's purpose is the reason for its existence. It’s WHY we’re here and WHY we do what we do (and who we do it for). It defines the aspirations for making a difference in the world. It is the overarching North Star that guides decision-making, shapes corporate culture, and inspires team members to make a maximum contribution.

Having a clear and compelling organizational purpose is essential for any business looking to make a difference (cough, cough – and turn a profit) in today's fast-paced, ever-changing consumer environment.

Here are 5 reasons why:

1. Makes decision-making more fluid: A strong organizational purpose helps leaders and team members make quality decisions by providing a clear sense of direction. It helps them prioritize what really matters. It helps them understand how their work contributes to the organization's vision and mission, which increases motivation, morale, cohesion, and engagement.

2. Attracts and retains top talent: People want to work for organizations that have a purpose beyond making money. They want to be part of something bigger than themselves. A clear organizational purpose attracts top talent (in any industry) who feel aligned with their core values and want to contribute and have a positive impact. It also helps retain team members by providing a sense of meaning and fulfillment in their work.

3. Improves reputation and credibility: An organization with a strong purpose is more likely to be perceived as trustworthy and ethical. It is more likely to build strong relationships with customers/clients, suppliers/manufacturers, and partners/affiliates. This leads to improved reputation and credibility, which is essential for attracting new business and building long-term success.

4. Enhances performance: A strong organizational purpose enhances collective performance by increasing team member motivation, morale, cohesion, and engagement… which drastically increases productivity. When team members understand how their work contributes to the organization's goals, they have much higher buy-in, believe-in, and commitment.

5. Delivers social impact: The goal of a strong organizational purpose is to make a positive impact on the world. It is the driving force behind the organization's social impact. A strong organizational purpose helps businesses deliver meaningful impact to the communities they serve, and the world at large.

Having a clear and compelling organizational purpose is essential for clarifying decision-making, attracting (and retaining) top talent, fortifying reputation and credibility, enhancing performance, and delivering social impact. Organizations that have a strong sense of purpose make a more profound, sustainable, and meaningful impact.