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.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
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.
Already a subscriber? Sign In
Ask Sanyin: How Do You Build for an Unpredictable Future?
While the pandemic was a wild ride of uncertainty for me and many of my peers in leadership, it feels like we never regained our footing.
What You Still Can't Say at Work
Most people know what can’t be said in their organization. But leaders can apply these techniques to break through the unwritten rules that make people self-censor.
Make Character Count in Hiring and Promoting
Most managers focus on competencies when evaluating candidates but it’s character that will transform the DNA of the organization. Here’s how to assess it.
Why Influence Is a Two-Way Street
Managers achieve better outcomes when they prioritize collaborative decision-making over powers of persuasion.
Know Your Data to Harness Federated Machine Learning
A collaborative approach to training AI models can yield better results, but it requires finding partners with data that complements your own.
How Integrating DEI Into Strategy Lifts Performance
Incorporating diversity, equity, and inclusion practices into core business planning can provide a competitive edge.
The Myth of the Sustainable Consumer
Companies that understand the different kinds of consumers for sustainable products can market to them more effectively.
A Practical Guide to Gaining Value From LLMs
Getting a return from generative AI investments requires a systematic approach to analyzing appropriate use cases.
Improve Workflows by Managing Bottlenecks
Understand whether process or resource constraints are stalling work.
Craft Schedules That Work for Everyone
Business leaders can improve retention and business performance with schedules that make sense for workers’ lives.
