It's not what you sell its what you stand for
Driven by purpose: the extraordinary business secret
Description
High-performing organizations have a “secret sauce” that makes them what they are – they have a purpose beyond just making more and more money. Paradoxically, when companies are engaged in trying to make the world a better place, they generally end up making more money than ever. Purpose is the real driving force behind many high-performing organizations.
Purpose deserves just as much care and attention as do the more high-profile elements of a business like strategy, execution and innovation. To achieve more as an organization, have a purpose you believe in passionately and work towards. If you get this right, your people can’t wait to get to work every morning. They will feel great about what they’re doing and will be clear about their goals. Make a difference and not only can you make history this is also a pretty cool way to live your career.
Table of contents
01Business purpose significance .
The essence of your organization's purpose is a clear declaration of the impact you aim to have in the world. It is central to your actions and future aspirations. Successful companies are driven by more than just profit; they are guided by fundamental beliefs and values that shape their efforts to improve society. These core ideologies attract customers who resonate with the company's mission, not merely the attributes of its products or services. When you are part of a company with a distinct purpose, articulated with enthusiasm and precision, there is a natural alignment in your work, shared direction with colleagues, and logical actions from management. A strong purpose amplifies business success by infusing people with energy, confidence, and a drive to innovate in meaningful ways. Leaders and employees work cohesively, and the company's narrative is filled with inspiring achievements.
In contrast, companies lacking a clear purpose beyond profit exhibit chaotic activity with limited impact. They often follow competitors rather than their own convictions, and their advertising strategies lack consistency. Purpose is not just a marketing or sales strategy; it is foundational to a company's identity, explaining the brand's existence. Jim Stengel, the former global marketing officer at Procter & Gamble, observed that the most outstanding companies and brands are those with a deep-rooted purpose beyond their functional benefits to customers.
02High-purpose organizations' pillars .
To construct a purpose-driven organization capable of reaching exceptional performance levels, it is essential for the organization to excel consistently across three foundational areas. These areas encompass the organization's core mission, the culture that enables its people, and the alignment of its operations with societal needs. A clear and compelling mission provides direction and motivation, while a supportive culture empowers employees to engage with the organization's goals. Additionally, addressing societal needs ensures relevance and fosters a connection with the community. Together, these elements form the bedrock of an organization that not only survives but thrives by maintaining a steadfast commitment to its purpose.
Pillars of high-purpose organizations
Purpose-driven organizations are defined by their commitment to making a significant impact. This determination to bring about change is their core, driving every aspect of their existence and operations. They typically spot an urgent, unaddressed need in the market and innovate to meet it, a process that includes understanding customer needs, creating a solution, aligning resources for delivery, and shaping the organization around this mission. The drive to fulfill a meaningful purpose, such as curing cancer, often proves more motivating than mere profit goals.
Once a purpose is identified, the organization must embody the resolve to realize it, questioning how to concretely solve the problem. Purpose-driven companies craft their business models to support and sustain their solutions, even if it means pioneering new business practices. They align their operations and introduce their solution to the market to stand on its own merits. The three pillars of high-performance, purposeful organizations are: establishing the organization to make a difference, leaders passionate about its purpose, and actualizing that purpose in the marketplace. When the purpose permeates the organization, it galvanizes everyone's involvement. A compelling purpose can immerse employees so deeply that they willingly invest extra time, continuously seeking enhancements.
To ignite organizational passion, it's crucial to communicate the purpose clearly, transforming employees into advocates. Giving them direct experience with the customer benefits, sharing success stories, and tracking impact through meaningful metrics can foster passion. Organizations should aim high, constantly strive for improvement, and remind everyone that the journey towards fulfilling the purpose never truly ends. Creating feedback loops that amplify the customer's voice ensures that the drive to improve lives is a shared, palpable goal.
03High-purpose entities: case studies
In its early days, Southwest Airlines relied on conventional marketing and advertising strategies to attract passengers. The company successfully employed various slogans such as “Just Say When” in the 1970s, “The Company Plane” in the 1980s, and “Just Plane Smart” in the 1990s. However, this approach made Southwest appear as just another airline, competing with rivals over minor service features. Upon deeper examination of the brand, it was observed that customers frequently mentioned the affordable travel freedom Southwest provided. This led to the creation of a new phrase that succinctly captured Southwest's mission: To give people the freedom to fly. Suddenly, Southwest transcended the airline industry and repositioned itself in the business of freedom. Instead of comparative advertising, it could now concentrate on the impact it was making in the lives of its customers.
Once Southwest's mission became clear, the company took numerous steps to align with that mission. The CEO sent personal letters to every Southwest employee, containing a freedom manifesto. Employees were informed that they were now official freedom fighters, and their uniforms were altered to include T-shirts with messages like: “See more people”, “Go More Places”. The company initiated a freedom-themed advertising campaign with the slogan: “Go. See. Do”. All customer offerings were marked with freedom-related messages. The company introduced promotions like “Wanna Getaway?” which reinforced the concept of freedom while filling planes. Southwest introduced a new loyalty program called “Rapid Rewards” which truly gave people more freedom to fly when they wished. The company introduced a new online promotional program called “DING!” which offered travelers hot last-minute travel deals. DING! was a real win-win situation because it also enabled the company to sell seats which otherwise would have gone unused. DING! generated more than $150 million in additional revenue in its first year alone. The end result of focusing on Southwest Airline’s purpose and bringing it front and center in all the company does has been a huge success story for
Southwest. It has enabled the airline to continue its run as the only profitable airline in the industry for thirty-six years in a row. Sam Walton established Wal-Mart on the premise of: “Every day low prices on the brands you trust. Always” and grew it to have billions of dollars in sales. Eventually, however, people started demonizing Wal-Mart and claiming it was hurting the communities in which it was established, paying below-average wages and whatever other ills one cared to heap on Wal-Mart’s head. To escape this marketplace perception, the management at Wal-Mart decided to refocus the company on its long-standing but unspoken purpose. After some time spent analyzing Wal-Mart, a concise statement of the company’s purpose was articulated: Wal-Mart’s purpose is:
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