On our blog, we discuss many facets of leadership to help you develop your skills and forge a pathway to success. One tool often discussed in theory but rarely put into practice is Purpose. While a large percentage of executives (almost 90%!) acknowledge that objective-driven business practices lead to success, a much smaller number have managed to implement them in their organizations.
It can be tempting to push aside these greater philosophical questions in favor of chasing results, but that can hurt you in the long run. Recent studies in business and psychology have shown that leaders with purpose not only get things done, but they also do faster and more efficiently. We should reframe leadership for impact, focusing on who and what we are developing for the future.
In short, we need to talk about purpose.
What is Purpose?
Before we break down the dynamics of developing purpose effectively, we should first understand what it is. Purpose can seem like a nebulous term. As we mentioned, it can be a struggle to focus on philosophy with so much else on the line. When we talk about purpose in a business context, we’ll use the Harvard Business Review’s definition: “an aspirational reason for being which inspires and provides a call to action for an organization and its partners and stakeholders and provides benefit to local and global society.”
Ultimately, that lengthy description boils down to one singular thing – “Why?” Purpose is the reason something exists. It is the meaning behind actions, initiatives, and goals. Successful leadership requires intent because meaning informs the simplest “how-to” side of any organization. You need a solid foundation that starts with “Here’s why we’re here” to bring others to your cause.
Why Purpose Matters
When you start looking, you can see how a purpose-driven design is an important (if not vital) tool to utilize in any business venture. Harvard Business Review researched the importance of purpose in an organization. They concluded that businesses fall into three discrete categories when it comes to incorporating purpose into their models:
- Prioritizers. These are companies that already have a clearly stated and understood purpose. Around 39 percent of companies fall into the category.
- Developers. The second group was comprised of companies that don’t yet have a clearly stated or understood purpose but are working to develop one. This is the largest group, with 48 percent of companies.
- Laggards. These companies have not thought about purpose and have done zero development to address the culture of their business. Harvard found that 58% of Prioritizers experienced growth, compared to 51% of Developers and only 42% of Laggards. However, these results are particularly important when we look at the financial aspect. Forty- two percent of Laggards also reported a drop in revenue over the three years covered in the study. On the other hand, only 15% of Prioritizers reported the same. According to a separate study from Korn Ferry, those results are similar. Their research found that companies that directed employee’s focus toward the organization’s purpose had triple the annual
growth rates for their industry. Additionally, employees working for those companies experienced higher satisfaction and eagerness in their jobs.
The takeaway is simple – “Companies with a strong sense of purpose are able to transform and innovate better.” Becoming a Prioritizer (to use Harvard’s terminology) brings a distinct advantage to any organization. A clearly articulated, well-implemented purpose eliminates ambiguity and becomes a rallying point for your organization.
Purpose goes beyond the boardroom or the salesfloor. It is also a key factor in your physical well-being. In one 2019 study, researchers concluded that having a strong life purpose – or “a self-organizing life aim that stimulates goals” – led to longer, healthier lives. The researchers found that those without purpose were far more likely to die younger and specifically suffer from cardiovascular diseases across wealth distribution, gender, race, or education level. Turns out, Purpose really can make the difference between life and death.
Utilizing Purpose in Your Leadership Style
Knowing how an organization’s purpose (or lack thereof) can affect your bottom line, it is incredibly important to begin developing your sense of purpose in life and work. More than that, you must be able to share that with your organization and the public.
Ask Yourself the Hard Questions.
If you want purpose, you must start from within. In John Baldoni’s Lead With Purpose, he outlines three basic questions you need to answer:
You might also like
What is your vision?
What is your mission?
What are your values?
Each answer should inform how you approach and conquer your goals. It also ties closely in with our second tip.
Start with Communication. To lead, you must be able to communicate. Your team needs to know your goals, your purpose, and your expectations. You must be clear on each of these so that others in your organization can share your drive and rally around a single, united purpose. You need to share your vision with those around you not just once but frequently to help them maintain the same motivation even when you find yourself in challenging situations.
Create a Mission Statement. Every organization needs a succinct, clear mission statement. It doesn’t need to be lengthy, overtly flowery, or complex. Some of the best mission statements are little more than a single sentence. Take your time to integrate your “why” with your “how”, and you’ll find that your values become apparent.
Don’t mistake goals for purpose. Goals should be ever-changing as you grow and change. Purpose, on the other hand, is sustainable. Your purpose should drive to complete your goals, not the other way around!
Commit! With a solid foundation and actionable purpose, you’ll be able to do the most important thing a leader can do – demonstrate purpose through your behavior. Ultimately, it’s up to you.
Leading with purpose is key to success. Not only does it affect your potential revenue, but you’ll also attract better talent, retain your current employees at a higher rate, and better connect with your customer base. With the right purpose-centric goals, you can change your style from passive leadership to being a designer of the future.
