The Power of Purpose

78% of Americans believe that companies can and should do more than make money. That means that they want to work for and buy from companies with purpose, mission, and values.

Most companies share what they do, but we are inspired by why and want to know more. To be successful, you have to be able to speak to cause, purpose, and mission.

Purpose in day-to-day operations

I’ve spoken a lot about how small business owners need to assume the role of CEO . That includes many dimensions, from being a “preacher” who can enthusiastically articulate purpose to making sure that the company is moving in the right direction. That’s where purpose comes in! Purpose should guide all thinking, decisions, and behavior and most importantly, purpose is a direction, not a destination.

Value added

Purpose isn’t about soft skills or window dressing. It’s about authentically identifying what matters and doing business to that aim. And purpose is very good for business.

Companies that are aligned with a compelling purpose and clear about communicating it win market share faster than their competitors , grow 28x faster than the national average, improve customer satisfaction and loyalty, and increase the life span of their employees! When we feel like we are contributing to the world, we live longer.

One in five workers plans on quitting their jobs in 2022 (source )?and given that 59% of employees report not knowing what their company stands for that’s no big surprise. It is essential that small business owners can answer the why of what they are doing. What is your mission? Vision? Purpose? People, especially workers in 2022, want to feel connected, and valuable and know what they are contributing.

I greatly believe in what Sir Anthony Jay said,

“A corporation, like a state, needs a faith. Most people gain comfort from the feeling that they are in some way doing good, helping mankind, leaving the world a better place, serving a noble idea, and a corporation which enables its employees to feel that they are doing all those things by virtue of their job is clearly on to a good thing.”

What it is

Purpose isn’t about money. A great and worthy purpose creates a better world, advances humankind, and is sincere, authentic, inspiring, and beautiful. When done correctly, purpose “is a verb”.

A purpose should motivate action and be a source of inspiration. The power of purpose is when it can truly guide the decisions and actions of a company. If something isn’t aligned with your purpose, no matter how attractive or lucrative, then you shouldn’t do it.

Examples

Patagonia is in business to save the whole planet and just transferred the company to two trusts that will distribute all profits to do just that. Their vision statement is that “a love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet.” It’s one of the few companies that have thousands of applicants every single day to work there, in large part because of its inspiring and authentic purpose, and truly stands out in a context where most businesses are in the crisis of a labor shortage.

Moving Forward Small Business is another example of an inspiring purpose. It “bridges the gap between what a small business has and what they need to play big and guarantees that they have a fighting chance to make it beyond the first five years”.

My purpose is to positively impact the world by raising the level of leadership effectiveness.

What’s yours?

?How to Find Your Purpose

Identifying your purpose comes from existential questioning and deep reflection.

• How can we change the world?
• How do we contribute to a better world?
• What do our values insist we do?
• In service of what?

And after every response, ask so what? and do that until you reach the point of articulating your reason for existing.

Understanding what is what

Purpose is the compelling reason your company exists and is “a pronouncement of a future state that will bring about through its coordinated action. Some people call it a Noble Cause (discussed here ), a great and worthy purpose, or your "why". It is bigger than what one person can do alone, no matter how many people are offering support; it requires people’s best efforts and passions.”

Mission is what your company does and whom are you serving

Vision is what you want to achieve in the long term

Values are broadly the philosophies and principles that determine our behavior and the beliefs that we demonstrate through our decisions and actions and should be limited to three to five values. More specifically, a core value is “a principle without which life wouldn’t be worth living.” I discussed core values as important for successful strategies (here ) and will go into more detail about these in the next newsletter.

Everyone should know what the purpose, mission, vision, and core values of your company are. You should hire, reward, evaluate, and fire employees based on these criteria.?