The pursuit of “Corporate Purpose” is a topic which must be increasingly addressed today.
I did a podcast last week with Steve Stine at Inside Asia on Corporate Purpose and how it links to Inclusion. Steve correctly mentioned that the organizations that are first movers on this will be “the employer and provider of choice.” Which makes perfect sense.
“Purpose’ for corporations is not a new concept. In 1993, strategy researchers Christopher Bartlett and Sumantra Ghoshal saw leadership’s role as instilling a ‘common sense of purpose’ across a firm.
E&Y found that ‘purposeful companies’ now outperform the market by 42%. Deloitte has written that purpose is a core differentiator, with higher productivity and growth rates. (Specifically, a 30% higher level of innovation and 40% higher retention rate).
While corporate purpose research has considerable promise, the verdict is still out on measurement. In 2016, Harvard researchers measured the responses of 500,000 employees’ perception of corporate purpose. They didn’t find a link to financial performance, but did see a clear connection to both management clarity and employee camaraderie.
It’s not the words on the website, the formal announcements or press releases. Far and away, the largest impact is when an employee can believe in and act on the firm’s purpose.
In my conversations with leadership teams, Covid-19 has tested the fortitude of leaders and employees but has also deepened the importance of purpose. While some operated from survival mode, all remained focused on their purpose.
As I reflected on these conversations, I found one common thread. Each one spent time with their teams to understand from their perspective how they define purpose and what brings purpose to life. These conversations offer clarity and build meaningful connections — something that might be missing while working from home
