Business
Who Exactly Is In Charge Of Creating An Organisation’s Purpose?
Global Banking & Finance Review®
Company
By Thom Dennis, CEO of Serenity in Leadership
Much like the values embedded in a mission statement, a company’s purpose can quickly be forgotten or is often seen as an add-on or a tick box exercise, rather than an integral part of a business’s reason for existing. If leaders manage change and people, and managers focus on complex planning, dealing with performance and evaluations, who is looking after the purpose of an organisation?
Purpose is a thought-out, conscious reason for being, behaving, and evolving. In the lifestyle arena, purpose might be viewed as being best developed organically, but businesses are increasingly looking to understand and adopt their purpose, values and mindset with their people, customers and community, with wellness at the forefront. However, a McKinsey survey found that 82% of US companies affirmed the importance of purpose, but only 42 percent reported that their company’s stated purpose had much effect. The inference is that whilst companies know that there is value in having a clear purpose they lack the conviction, authenticity and energy to ensure that what they do and how the company is directed are in line with a fundamental purpose.
So who is responsible for purpose? Everyone, but it starts with leaders. In the next decade, good leaders will not be measured by their financial achievements (only), but by the businesses’ success at developing core values, making a difference, and giving employees and customers meaning and support to achieve their aims.
Leadership and Purpose
To develop purpose and to be truly innovative, leaders must opt for collaborations with many different people who have varying perspectives. Purpose is about co-creation, not leadership vision and followership. However, when there is a lot of uncertainty and ambiguity, leaders need to be doing well at managing themselves, their business, work relationships and networks, and their teams who will be looking closely at how they are experiencing that leadership. Leaders show they care through purpose. Equally, they need introspective self-awareness and emotional understanding because you can’t be authentically present to others if you are not for yourself.
Data about purpose
There are reams of data to support the importance of purpose in business. A study in Psychosomatic Medicine (ScienceDaily) found when people have a greater sense of purpose, they have less incidence of cardiovascular disease and lower mortality. A study published by Harvard Business Review (hbr.org) found when companies had a clearly articulated purpose that was widely understood in the organisation they had better growth than companies that hadn’t developed or leveraged their purpose. We also know that when leaders demonstrate clear purpose, vision, commitment, and strong morals, their people are happier and more fulfilled, and productive. Leaders should be a conduit to someone else’s success.
How can we create a purpose-driven culture?
Organizational purpose refers to the fundamental reason for a company's existence, guiding its actions and decisions while aligning with its values and goals.
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled, ensuring accountability and transparency.
Employee engagement is the emotional commitment that employees have to their organization, which influences their level of effort and performance.
Business culture encompasses the shared values, beliefs, and behaviors that shape how employees interact and work together within an organization.
Leadership is the act of guiding and influencing a group towards achieving goals, often characterized by vision, motivation, and effective communication.
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