Purpose-Driven Leadership

“Purpose is the reason we work beyond financial rewards and recognition”

“No man can live the dream of another man,” with these words, Jeff Gravenhorst, the CEO of the Danish multinational ISS Facility Services initiated a worldwide program called “Find your apple.” Its aim was to create a sense of purpose among its more than 500,000 employees. Through this initiative, the company regularly invites employees to gather into small groups, where members of its maintenance, cleaning, and catering services—with the aid of trained colleagues—help each other reflect on the purpose of their work. In creating a purpose-driven company, Jeff didn’t make a speech about purpose. Instead, he let purpose speak for itself.

Today, an increasing number of successful companies around the world are experiencing a major change in the way they understand leadership. From the traditional single leader at the top model, they are moving into a paradigm whereby leadership is distributed throughout the entirety of the firm. One such example is Global Management Consultants. The reason is simple: in this new, ever-changing world, we need not only colleagues’ minds, but we also need their hearts.

What is Purpose-Driven Leadership?

Purpose-driven leaders tap into the intrinsic motivations inside themselves and those around them. Purpose-driven leaders are the most effective at advancing their own careers while making the world better. They also inspire their teams to achieve extraordinary results for reasons other than monetary gains.

Purpose crystallizes a holistic view of the business, social, and environmental landscape

Purpose-driven organizations

According to a report from EY on this topic, “Getting purpose right builds organizational resilience and, crucially, improves long-term financial performance.” So even companies behind the curve on sustainability initiatives are now realizing that they need purpose-driven leaders more than ever before.

Effective purpose-driven companies align business growth objectives with the overarching goal of furthering global well-being. According to the recent Leaders on Purpose study, leaders who do this can pinpoint the instances where business goals overlap with the advancement of social and environmental causes. This helps ensure a company’s longevity and adaptability.

Consider Citigroup CEO Michael Corbat’s comments about his company’s failure to retain female talent in senior and leadership roles. Corbat recognized that the loss of so many valuable people isn’t an HR problem; it’s a strategy problem that could derail the company’s long-term success. In response, he set a strategy to reduce this attrition and simultaneously reiterate the company’s commitment to gender equality.

It’s also useful to think of purpose agendas as the intersection of “left” and “right” brain approaches to business. For instance, empathy, creativity, and intuition—often considered right-brain skills—are obviously essential qualities to a person inclined toward integrating social impact into their values. Similarly, you’d be hard-pressed to find a CEO who didn’t prioritize left-brain attributes like strategic and logical thinking. Interestingly, a recent study showed that C-suite leaders who used a combined right-and-left brain approach to business achieved 22% higher revenue growth and 34% higher profitability growth, illustrating that it takes both emotional and rational intelligence to succeed in today’s business world.

Of course, there are many other reasons to instill a sense of purpose in your organization. Consumers, for example, are more likely to give their business to companies they perceive as ethically and socially responsible. The link between purpose and profit is undeniable; just look at how Unilever’s purpose-led brands—such as Ben & Jerry’s, Vaseline, Seventh Generation, and Dove—are growing 69% faster than their other brands are.

Branding with Purpose

Purpose does more than make a brand unique. It can shine a light on a business’s evolutionary path. At a basic level, purpose can simply express what an organization aspires to be and do. But at a more advanced level, it becomes a conscious expression of how an organization intends to evolve and transform itself. Consumer data shows that customers view purpose-driven brands as being more caring and, as a result, are more loyal to them. 

Two Types Of Purpose: Linear Vs. Transformative

Imagine a company that makes watches. This business could envision its purpose as helping people to be on time. At a more transformative level, it could frame it as helping people to achieve a more balanced life, one in which different needs are integrated more cohesively and harmoniously. The purpose will push the organization to develop strong technical assets which, in turn, will help the business achieve linear growth. In the latter, not only will purpose deepen the meaning of what the watch company does, but it will also expand the makeup and scope of the products it can deliver, and the very impact it can have on the lives of its customers.

Moreover, such a purpose, if it's a genuine reflection of how the company intends to evolve, will also nudge the organization to address inconsistencies and gaps in its own culture. After all, to progress toward its own purpose, the watch company would have to deepen its understanding of what living a balanced life means.

Now you have invested 10 minutes in reading this, at times when most people are only prepared to read headlines. So you belong to the dedicated few. Your views might be different from my observations and position, but this will all give orientation and food for thought for the community. Feel invited to share your professional views, which might be of great value for others in difficult times.