The Purpose Dilemma

The concept of purpose has been around since the earliest days of commerce, when companies were expected to not only make a profit, but also fulfil a public service. However, over time, this notion has been lost and replaced with a singular focus on maximising shareholder value. This approach has been successful in generating profits, but has also led us to a dead-end where our consumption and way of living are not sustainable for our planet.

In recent years, the role of purpose has found renewed interest as we seek a new model that is sustainable. Many companies have taken this to heart and defined a celebrated purpose for their organisation. However, this approach has its pitfalls. According to a recent BCG study, 68% of employees say that not walking the walk when it comes to purpose has a negative impact on their perception of the company. Furthermore, 63% of younger employees want their employer to provide more opportunities for purpose in their day-to-day work.

The benefits of a truly purpose-led organisation are well-documented. Companies like Patagonia have shown that doing well while doing good is possible. A purpose-driven company has better resilience, better productivity, more motivated employees, and ultimately better performance.

So, what does it take to be a purpose-driven company? First and foremost, purpose needs to be embraced by the leadership team and provided with true commitment. Purpose in this definition is strategic and provides a sense of direction for the organisation. It also becomes the duty of the organisation's board to guide the organisation and help take decisions in line with the company's purpose.

However, embracing purpose is not enough. A company must also ensure that purpose is woven into the fabric of the organisation. It must be a part of everything a company does, from its products and services to its marketing and advertising. Purpose should be reflected in the values, behaviours, and decision-making processes of the company.

Furthermore, purpose must be authentic. It cannot be something that is simply painted on the walls of the office and forgotten. A company must live and breathe its purpose every day. This means making purpose a part of every employee's job and providing opportunities for them to live out that purpose.

Finally, purpose must be measurable. A company must be able to track and measure its progress towards achieving its purpose. This allows the company to course-correct and adjust its strategies as needed to stay on track.

In conclusion, the purpose dilemma is real. Companies that are truly purpose-driven have a competitive advantage in today's marketplace. However, simply defining a purpose is not enough. Purpose must be embraced, woven into the fabric of the organisation, authentic, and measurable. Companies that successfully navigate the purpose dilemma will be better equipped to meet the challenges of a rapidly changing world while making a positive impact on society and the planet.