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How Purpose Drives Culture

by Maita Beltran, Senior Consultant at Management Strategies

June 16, 2022

NOTE: This is the first article in a three-part series on Organizational Purpose: How purpose drives 1) Culture, 2) Strategy, and 3) Teams.

To put some context into this opening line, reflect on what makes your business thrive and remember what you sow, so shall you reap. What exactly are you planting? What fuels you to get up every day? Is it solely to reap money, or is it the joyful anticipation and excitement of enhancing not just your life but everyone else connected to your business?

In the Gallup article titled, “Just How Purpose-Driven Is Your Organizational Culture?” the writer challenges the reader with the question: “When your organization succeeds, does the world also flourish?”

Stakeholders want to believe that the organizations they purchase from and invest in are helping the world thrive through their products and services. It’s not enough to say and do the right things. Organizations must embody a business model that makes the world better.

This seismic shift in societal expectations demands an equally seismic response from leaders. To win today and exist tomorrow, leaders must rethink why their organization exists and make purpose the core of their growth strategy.

Leaders are increasingly aware of the need to embrace a “net-positive” approach to business. In an article called “The Net Positive Manifesto” published by Harvard Business Review, Paul Polman and Andrew Winston describe a net-positive company as one that “improves wellbeing for everyone it impacts and at all scales.” This includes every product, operation, region, country, and stakeholder–employees, suppliers, communities, customers, even future generations, and the planet itself.

Many leaders assume their purpose already captures the hearts of global stakeholders. However, Gallup data suggest otherwise:

Only 27% of employees strongly agree that their organization always delivers on its promises to customers.

Less than half of B2B customers (46%) strongly believe that the companies they do business with always deliver on their promises.

Only four in 10 employees strongly agree that the mission or purpose of their organization makes them feel their job is essential.

The key to thriving in all areas of our business? Quit the lip service and nice-to-hear promises that we dish out to hungry hearts and ears.

Instead, we need to BE the Purpose that we want to inspire others with. This might show up in that extra push, that inch of time, that small dose of empathy and oneness that might help someone stay on track with why our business exists.

The same Gallup article also states that a purpose-driven culture makes money through its purpose: The better the organization (i.e., the greater its market penetration), the better the world is.

When a work culture rallies behind a shared purpose, that purpose is reflected from the inside out in stakeholder experiences. A purpose-driven culture walks the talk. They prove to customers, employees, suppliers, and communities that you are who you say you are. It earns brand credibility and stakeholder loyalty.

An article from Miner Agency titled “What is a Purpose-Driven Culture?” lists the following to cultivate and fully embed a purpose-driven culture in your organization:

  1. Identify and develop purpose amongst your employees.
    • This will increase employee engagement by making them part of the greater good. Establishing a purpose-driven culture can provide greater clarity in setting goals, prioritizing initiatives, and decision making. When employees have a heightened awareness of their role in the company and their specific impacts, they develop pride in their work and are more likely to work harder.A purpose-driven culture can also help recruitment and employee retention. This is because identifying a purpose will lead to a more fulfilling career.
  2. Listen to your employees.
    • Ask them: What do they feel their purpose is? Do they feel like their job has a greater sense? Taking this initial survey with your employees can help you develop a better strategy for identifying and communicating your purpose. It is essential to keep the company’s goal realistic, authentic, and aspirational. It should be easily identifiable–something employees can engage with every day. The identified purpose should be at the heart of the company’s long and short-term goals.
      Leadership must be fully engaged and committed to communicating their employees’ role in the company’s greater purpose in order to be successful. This means leaders at the top and mid-level managers must internalize the business’ culture to help base employees see how their daily tasks are vital to success and impact.
  3. Successful implementation of a purpose-driven culture requires consistency.
    • Start conversations and decision-making around the core purpose and goals. Consistency and authenticity are required to make employees believe in the business’s purpose, which turns into believing in their sense within the organization. Compassion and understanding of the whole person are crucial to making the purpose personal and identifiable. Workers are more likely to contribute a more significant effort if their purpose aligns with their values and sense of fulfillment.
  4. A purpose-driven culture compels owners and executives to see employees as normal humans with unique needs and strengths.
    • It can be easy for business owners and upper-level leadership to lose sight of their employees as more than a means to produce labor.
      This humanization of employees also helps strengthen employee wellness because leadership will better understand their challenges. In return, this can more effectively bring in solutions. This approach to developing a purpose-driven culture provides fulfillment to employees and brings positive energy to the workplace that benefits everyone involved.
To summarize, purpose-driven culture rakes in more than just profits. It is a holistic approach to doing good business to make everybody involved happier.

So keep your eye on the Purpose. Put meaning into why your business exists. Lastly, follow your Purpose, and the Profits will follow.

May the Purpose be with you. Live long and Purposeful.

Need help finding your Purpose and how to integrate it into your life and organization fully? Let us help you. Start by checking out our upcoming events schedule or get in touch with us by emailing us at info.ph@mgtstrat-asia.com(Philippines) or info.my@mgtstrat-asia.com (Malaysia).

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