One of the hottest topics in business and branding has been on the role of Purpose (or the reason why we're doing what we're doing).
I'm not going to rehash old arguments for and against purpose. Purpose is widely recognized and understood by business leaders. It’s just contested and unevenly practiced.
The more enlightening question to ask is: how can Purpose work as a springboard for growth?
But first, let's be clear about terms. When we say Purpose, we mean it as a company-wide concept. An intentional narrative. Not a line for a communications campaign.
And while almost all companies say they have a Purpose. The real test is putting it into practice. Embedding it in the culture and operations of the business so that everyone understands it and acts on it. And activating it across the activities of the organization to unlock new opportunities and create new value.
We find there are seven ways that purpose consistently drives growth.
1. Focus: At its most basic, Purpose is directional. It tells an organisation what it needs to aim towards and what it needs to prioritize. This has particular value when organizations need to choose where they focus their time and resources. Purpose serves as a decision filter for what gets a green light and what doesn't. It makes it easier to say no to things that might dilute the brand or detract from the product roadmap. This is helpful when the organization is investing in multiple initiatives, such as product launches, marketing campaigns to create a cumulative impact.
2. Innovation: Purpose touches on how the organization makes a positive impact in people’s lives. This creates a distinct angle for product and service development that is more likely to satisfy users and accrue to the brand. Purpose creates linkage between the product and the brand. It describes the goal of the organization beyond any individual function or format. It becomes inspiration for creating new products and services -- encouraging product teams to think about how to fulfill the organization’s promise to the world, and how to do it across the spectrum of the customer experience.
3. Alliances: Purpose helps an organisation attract external partners and suppliers who want the organisation to succeed. This convening ability is a business advantage. When alignment or contribution to Purpose goals are part of the criteria for a partner relationship, it scales impact.
4. Impact: Purpose inherently broadens horizons. A small company can see its role in a bigger category. This often opens up a bigger addressable market. It also creates ambition in the organization, now there is more to play for. For a bigger company, broader horizons lead to bigger opportunities that the organization would not see with a narrowly-defined business role. Purpose-powered organizations have a clearer understanding of their impact, and their leveraged power. The better they understand their impact, the more they are able to create it.
5. Talent: Purpose plays a direct role in attracting the best talent to organizations. Aligning the ambitions of employees with the ambitions of the organisation and retaining them through the ups and downs of the business cycle. People want to work in organizations with good values and ambitions. Here, Purpose has top and bottom line benefits to an organization - motivating employees beyond money alone.
6. Demand: Purpose serves as a preference driver for marketing. Customers value the organization for what it does, beyond what it sells. Whether through pricing power or penetration, putting Purpose into practice unlocks incremental revenue. At its strongest, the relationship goes beyond transactional, and customers become advocates.
7. Longevity: Purpose enables organizations to overcome hardships because it propels them to do the right thing, right now. The future-facing nature of Purpose makes organizations more intentional about planning for what’s next. Continuing to recheck Purpose against today's market conditions actually extends the life and vitality of organizations. It helps them reinvent and remain relevant for longer.
How well is your organisation doing on each of these drivers?
If you need help to uncover and define purpose and put it into practice in your organisation, let's talk.
