"Purpose" Simplified

An organisation's mission is like its guiding light, defining not just "how we do things around here," but more importantly, "why we do them." On the other hand, the corporate mission sets the tone for the organisational culture, and for it to matter, leaders and employees must truly believe in it and live it. Many organisations, however, seem to have fallen into the trap of generic statements, catchy phrases or brand messages, etc. that may not always be perceived by stakeholders as truly authentic.

In his book "Purpose," thought leader Nikos Mourkogiannis had challenged conventional notions of leadership by asserting that the supposed dilemma between values and success is, in fact, incorrect. According to Mourkogiannis, organisations must address the imperative for purpose—a collection of values that not only shape the identity of their organisation but should also serve as a source of inspiration and motivation for employees and stakeholders.

Mourkogiannis identified three additional purposes that energise organisations: Discovery, Excellence, and Altruism. These represent the thrill of innovation, unwavering standards, and a commitment to serving others, respectively. He leads with six key points about Purpose:

1. It should be based on well established moral ideas
2. It should advance competitiveness as well as morality
3. It has to relate people to plans and it relates leaders to their colleagues or employees
4. It is never chosen in an ad hoc manner; it has to be discovered and needs serious deliberation
5. It should be a matter of life or death for the corporation. In other words, its presence transforms and its absence destroys the company.
6. It will boost profits but, will only do so if it is pursued for its own sake. It will build the brand and help assess the strategy but, it can never be just a tool.

Deep Purpose

Professor and author Ranjay Gulati recently introduced the concept of "Deep Purpose," emphasising that it's not just another management tool but a fundamental principle that reflects a company's identity. Deep purpose goes beyond (just) making money; it's about creating a meaningful rationale for why every employee comes to work.

To achieve this deep purpose, Gulati acknowledges the need for what he calls "trade-offs" in decision-making that consider various stakeholders. While he promotes achieving purpose with profit, his work is gaining traction in the business landscape and is focused on serving diverse stakeholders.

Leadership and Purpose

To craft and maintain a deep purpose, leaders must reflect on the past, understand what worked and what didn't and why. Leaders must ask practical questions about their organisations, such as whether adopting a deep purpose would impact employee performance and whether clients care about it. The choice between a generic mission like "best in class" and an inspiring one like "change the world" can shape the organisation's direction. Leaders should also consider their personal deep purpose and how it aligns with the company's reason for being. This introspection is vital for maintaining belief and passion in the mission.

Communications and Purpose

According to Gulati, storytelling is a crucial communication tool, emphasising the importance of both "poetry " (meaning, values, and purpose) alongside "plumbing" (technical or operational aspects) for the business.

It's not just about conveying the message; it's about fostering understanding, alignment, and inspiration. Only an effective communication strategy will establish a bridge between an organisation's purpose and its stakeholders, bringing to life the shared narrative that goes beyond mere words. Whether it's internal messaging that cultivates a sense of belonging for employees or external communication that showcases how the company truly acts on its commitments, the way we articulate the purpose will shape perceptions and build trust.

In conclusion, purpose is not to be used as a buzzword or some sort of "greenwashing " tool. It's the most powerful concept that will transform organisations into forces for positive change in society. Therefore, leaders must embrace it, foster a culture of storytelling, and always ask critical questions to ensure their organisation is on the right path to enhance reputation in today's era of stakeholder capitalism.

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