Putting Purpose to Work: Taking External Stakeholders on the Journey with You

‘It’s about the journey, not the destination.’?

This is, of course, a well-worn saying. But the words are surprisingly meaningful when we pause, reflect, and think about it. The saying rings true in equal measures in life and business. For companies on the path to becoming purpose-led, the saying is an encouragement to enhance stakeholder value and recognise different groups as an integral part of purpose development.?

Connecting with internal stakeholders is critical to defining company purpose - but organisations risk their purpose only living inside their office walls and not travelling further if they don’t also connect with external stakeholders and bring them along on the purpose journey. There is a clear distinction between a company purpose that exists and a company purpose that lives. Being purpose-led results in the purpose and values acting as the North Star, which informs strategic decision-making and governance, including how innovation, growth plans, and HR policies are set and managed.?

The first step to engaging external stakeholders is prioritisation – drilling down and identifying who they are and why they are important. Additionally, external stakeholders do not always remain relevant; businesses need to assess them regularly and be willing to adapt as the stakeholders’ needs and relationships with organisations changes.?

There are various benefits to doing this right. An external perspective adds context for and anchors that purpose in a real-life context and gives a sense of ownership to all those with a stake in the business. Most of the time, seeing the company through outside eyes brings a shift in thinking with internal stakeholders and a layer of buy-in that is otherwise hard to find.?

“Sounds good, but how do we go about it?”?

At Skating Panda, we work with clients who put their external stakeholders at the heart of their purpose, and here’s the approach we equip them with:??

1) Consult with an open mind.?

Go directly to external stakeholder groups – nobody knows their needs better than them. Companies often focus on communicating their purpose to ensure external stakeholders instead of using stakeholder dialogue as an exercise to listen and understand. Engaging with these groups should be approached like any other business project planning process, with strong analysis, preparation, implementation, and reporting.?

The consultation process teaches firms how to better connect with their stakeholders, how its operations affect them, and what resources and influence they can bring to bear. Companies can gain a detailed understanding by creating space for two-way communication and being open to interpreting and applying their purpose for different groups.?

2) Connect in a meaningful way.?

Connecting is critical – customers and communities will believe and trust more in things they feel a part of or are relevant and meaningful to their lives and values.?

Give customers the opportunity, through engaging with the business, to support the causes they most care about, too – whether through a point or reward system or a commitment from the company to contribute to a specific need in their community. Be present and connect them in a way that creates value and makes them feel like they are part of the company.?

3) Collaborate where possible.?

Consulting with external stakeholders will bring exciting and innovative ideas to the forefront. However, it is not up to each company to fulfil these ideas and connections individually; collaboration is key. Finding like-minded organisations can help firms deliver real value by unlocking potential, capacity, and knowledge while saving time and money.?

4) Check in to keep yourself on track.?

To ensure impact is still the focus, set targets and measure progress against them. Undergoing a proper health check on how external stakeholders perceive purpose is critical to ensure everyone is held accountable.?

Even if purpose is at the root of the strategy and action plan, it is not faultless. As such, it requires review and input regularly, especially when checking whether company activities are still creating real impact for the communities they serve.?

Be bold and authentic.?

Purpose is a shift in mindset and requires a fundamental change in relationships across all stakeholder groups. By aligning external stakeholders with purpose and purpose-led actions, building belief and commitment, we can grow more sustainable and more human companies – better equipped with the resilience and adaptability needed to face the volatility and complex challenges of the future.?

If you’re interested in embarking upon the purpose journey for your organisation, drop us a line at [email protected]??