Purpose is about people
Purpose is a human construct not a business one.
The pursuit of meaning in living, and the search for the “good life - the why of living”, is fundamental to the human condition and one framed and studied by philosophers for many centuries and more recently by psychiatrists and neurologists.
Purpose is life’s meaning for people. It is the basis for human motivation beyond our instincts. It enables conscious choice and direction of thoughts, actions and interactions.
For example, the pursuit of “a better world” by helping others (Altruism) or “a better self” by learning and growing (Self-Actualisation) have been common purposes for people over the centuries. We are well aware of the inherent human well-being and satisfaction that is created by such pursuits.
Purpose is thus related to morality and what constitutes “a good life”. Any discerning purpose is necessarily founded on moral ideas of being good for oneself and for others.
—Businesses should be for the benefit of people
Businesses are human inventions, not naturally occurring phenomena. They were imagined and then implemented for the betterment of humankind. The constructs behind investors, businesses, employees and markets are to facilitate better outcomes for people and society. The reason a business exists for people is its purpose.
This is typically clear when businesses are founded. The founder and their story is usually based on human need and betterment; a human purpose. The successful founding culture has a missionary zeal to create the next legacy, small or large, for humankind. The founding brand is authentic to its customers, who typically advocate it with conviction. And the opportunity to do something good for people (oneself and others) shared amongst a group of employees enables them to experiment, fail and keep fighting, in pursuit of their shared purpose. The world’s best VCs say they will back such purpose driven missionaries over financial mercenaries every time.
—Most large businesses have lost sight of their purpose (for people)
As businesses grow, leadership succession takes place, and shareholders become unrelated to employees or customers, there is a shift in focus to shareholder returns; “We exist to deliver sustainable returns to our shareholders” has become the default guiding objective for most large listed companies.
CSR programmes, shared value projects, “purpose” marketing messages and triple bottom line reporting are used to assuage stakeholders of broader interests in people and society, but such interests remain secondary or complementary to the primary shareholder objective.
—Purpose is an essential foundation for leadership and cultures that enable trust, alignment and innovation
The loss of purpose comes at a great cost to large companies. When an authentic human purpose is shared amongst employees as a foundation for leadership and culture it enables:
- Boundaries and tests for ethical decisions and actions
- High employee motivation, and alignment to strategy
- High trust and advocacy from customers and communities
- Clarity of arenas for growth, and capacity for employees to experiment, fail and adapt
The erosion of trust with large companies today and the challenges to innovation where risk taking is essential will not be addressed by risk managers, cascaded reporting and greater Board oversight of decisions. It requires a leadership and culture derived from a shared purpose; one underpinned by a moral idea that underpins both ethical decision-making and risk taking.
Purpose is not at the expense of shareholders. Businesses need to sustainably reward investors, so they can deliver their purpose. Businesses should and can be good for people, and so do well for shareholders. With authentic purpose, interests of people and shareholders are aligned, not in trade-off. Purpose-driven businesses do well by doing good.
ByMany Chapter – Connection and Collaboration
Rediscovering your purpose
The good news is if you have been a successful business then you have a purpose for people. Our experience suggests there is always a shared motivation for good amongst groups of people that have had some success. It just needs to be re-discovered, amplified and brought to the centre of your strategy, leadership and culture development again. Stories are the most powerful method for discovering and amplifying purpose; stories of success, challenge, customer experience, employee experience and human impact.
There is no template, your context matters, and the integration with your strategy, brand and innovation agenda is critical if it is to be authentic and primary to your future success. But done properly, there is no more powerful force for people…and business.
Purpose discovery questions
Ask yourself...
Where have you been?
- What’s the history of your organisation and why it was established?
- What unfulfilled human need did it originally aim to fulfil?
- What are the stories that best reflect your organisation at its best, acting on purpose?
Where are you going?
- What’s the vision for the future?
- What customer need or problem are you seeking to address?
- What is your organisation being called to become for its customers and society?
- Why is your organisation the one that can meet that calling?
What's your context now?
- What challenges and opportunities is your organisation facing into today?
- How has customer and social expectations shifted in your current context?
- What is the catalyst for change?