Companies that have defined a values-based core purpose for their existence and pursue strategies aligned with that raison d’être can gain many advantages: greater focus, more engaged employees, more loyal customers, and better financial performance.1It’s no wonder that developing a purpose statement is now on many business leaders’ agendas — especially as employees increasingly question their organization’s impact on communities and the planet.2 But if companies do little else with the statement than post it on their website, there’s little likelihood that it will confer many benefits.
Purpose is not a lever that can be pulled; rather, as our research has confirmed, it exerts its power as a deeply held commitment that is shared throughout an organization and motivates action. The identity of the organization, its role, and the reasons why that role is meaningful and valuable all flow from that shared commitment.3 Purpose makes a difference in organizations only when it changes the way people operate.4
For purpose to have a transforming and lasting impact, leaders need a deliberate, sustained approach to identifying, operationalizing, and measuring it. Our earlier research identified a set of key elements for defining and developing a solid purpose. We have subsequently developed a set of processes we call the Purpose Strength Framework. (See the “Purpose Strength Framework” at https://sloanreview.mit.edu/x/63427.) Here, we’ll explain how companies can use it to turn intention into consistent action that yields the benefits of being a purpose-driven organization.
How Purpose Gets Its Power
This story is from the Summer 2022 edition of MIT Sloan Management Review.
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This story is from the Summer 2022 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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