3 Reasons Why a Strong Purpose Is a Good Business Idea
The history of profit at any cost has not touched professionals for a while. Nor does it generate the same results as before. Of course, every company is profitable by definition.
However, there are a multitude of ways to achieve this goal. It turns out that this cannot be the only, nor the main focus of an organization to make it stand out in the market.
And more and more purposeful companies are proving that having a reason to exist makes all the difference in business.
For Karina Saade, COO (Operations Director) at BlackRock for Latin America, the largest asset manager in the world, the answer is clear: business purpose, or business purpose, is crucial to obtain better financial results. “Blackrock is a major investor. We have several companies in our portfolio, but our research shows that companies with a clear purpose have a competitive advantage ”, he explained.
With purpose, everything makes sense
A purpose makes the connection between an organization and society. It’s not just for the money. The purpose reflects something more aspirational.
This involves beliefs and motivations that explain what moves the people who make up the company.
It is about seeking a positive impact on the world, something that lasts, that actively influences people’s quality of life.
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Obviously this can be worked on in marketing. As it is covered here in this article about brand marketing , purpose is a fundamental part of the strategy of how the company positions itself and communicates with consumers.
But for it to work for real, the purpose needs to be authentic, go beyond discourse and generate real and continuous actions. Therefore, we have listed three basic reasons, which show how companies with purpose achieve great results.
1. Organizations with purpose think long term
Karina Saade says that companies with purpose “are the best at aligning the long-term strategy between the company’s management and shareholders”.
Of course, a purpose is not a simple objective to be achieved. Because it takes time, continuous work and focus. And this relationship between purpose and time creates an incredibly beneficial sense for the strategic plan.
We have already talked here about how mission, vision and values are a compass that points to the north of your company. The purpose also has this function of permeating the planning and guiding the organization. And with more consistent trajectories, it is possible to reap better results.
2. A Purpose Attracts Talent
As good as your selection process is, a purpose is essential. It will have a profound impact on those who will apply for the position, especially if they are younger profiles. It will be your magnet for finding people who identify with the company’s culture and can contribute to the same search.
This works not only to select professionals for high positions, but also to motivate and recognize the talents that are already in the organization. Especially because research proves the importance of guiding the business for a purpose to engage people.
According to a Gallup study , 71% of millennials say they do not feel engaged or actively connected at work.
However, if you are able to create meaning in your business, then everything changes. According to another survey by Harvard Business Review , people employed in purposeful companies report nearly twice as much job satisfaction and are three times more likely to stay in that organization.
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3. The challenge of perennial motivation
That increase so celebrated today by your employee will lose its motivating effect over time – until the employee wants more. A new position, a higher salary, a more structured team.
This dissatisfaction, mixed with ambition, is very positive for professional growth, of course. However, it is difficult to satisfy this hunger for recognition.
So, it is very common for a good professional to look for this something more in the competition.
The business purpose works as an element that brings balance to this balance of work. Companies with a well-defined purpose are able to engage employees.
That’s because they know they are investing their time in something productive, which contributes to a bigger plan. Not to mention that it helps to create an attitude of ownership of people around the objectives of the organization.
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How to Define and Stay True to Your Purpose
A purpose is not invented. It already exists and you need to identify it. This Leaderonomics article explains in a simple way what he calls golden circles:
- an initial circle that is “what”;
- another larger one, which includes the first, is the “how”;
- finally, the biggest circle that involves the first two is the “why”.
All companies in the world dominate the first circle. That is, they know the product or service they offer to the world.
Some companies know how they do it, as well as the reasons why the product or service deserves prominence in the market. But very few companies have “why” in mind.
It is worth remembering again that money is not that reason; it’s just a result.
That is why companies with purpose have exactly. Apple, Microsoft and many other companies considered to be purpose-driven organizations are successful even because they start with “why”.
Business with Purpose: Practical examples
Former Dean of the School of Education at the University of Michigan, Deborah Ball, set a good example of this challenge in an article in the Harvard Business Review.
The institution was undergoing a change in its mission, due to the adaptation to the new times. So when Deborah took office, she wanted to make it clear to everyone what the purpose of the school was. Thus, it could stimulate people’s focus and commitment.
But how to identify this purpose? Ball interviewed all faculty members, expecting fuzzy responses. However, what she found was similarities in the speeches that helped her to define a true story of why those people were gathered there.
She shared this story with everyone at the institution, which continued to be refined with the interaction of each one, until the real purpose of the school was reached.
Note that even the process of finding the north of your company positively influences the motivation and appreciation of professionals.
Once you’ve found your purpose, you need to make sure that everyone in the company is aware of it. The message must be constant, whether in onboarding strategies , in the formation of leaders or in internal communication. Connecting people with the “why” of the company will make all decisions made contribute to that purpose.
Because one thing is for sure: immediacy and short-term results will always seem tempting and may distance the organization from its purpose. But with a constant work of involvement and awareness, it is possible to remain firm in the larger objective.
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Integration to Work for the Purpose of the Company
One way to integrate and engage your team on purpose is to adopt cash management . The methodology has the principle of disseminating, in a clear and succinct way to all employees and collaborators and in an easily visible place, important information about the current performance of a company – and of each sector in which it is inserted.
Another important initiative is to adopt a management platform. With that, the teams’ workflow has a lot to gain. Since task automation simplifies processes, it allows generating and analyzing data on the company’s progress.
Each person, then, can visualize the whole and has a well-defined responsibility. Managers can quickly consult performance indexes and take a more strategic approach. And being more strategic means aligning planning and decisions with the company’s purpose.
Encourage team synergy and join the group of companies with a purpose that makes a difference.
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