Fully realizing the advantages of being a purpose-driven organization requires a leadership approach a little different from some of the more conventional leadership approaches. In our work helping leaders and their organizations put purpose to work in a practical way that drives results and increases positive impact, we’ve identified five guiding principles for purpose-driven leadership that we’d like to share with you here.
Principle 1: Engage Your Stakeholders
As a leader, it can be hard to let go of control and put it in the hands of the masses. But a leadership trait that will put you ahead in the next economy is being able to facilitate the wisdom and creativity of the critical mass.
Generating a purpose from the people who work in or with your organization consistently is the best way to ensure you articulate a shared purpose that feels authentic and that the organization can truly live into. A shared purpose also creates a critical mass who will help permeate it further into the organization than a single leader could on his or her own.
Principle 2: Motivate & Empower
Purpose isn’t just an ideal. It’s a practical way to create focus and clarity that empowers your people. Be sure to put your purpose to work motivating and empowering your people by designing goals around your organization’s purpose. This engages your employees, further drives the shared purpose through the organization, and creates accountability to the system, not just to a single manager.
Also, ensure that your organization’s purpose informs systems and policies. When systems, policies, and work practices are out of sync with the purpose, the disconnect is apparent to employees, customers, and other stakeholders, which only breeds suspicion about how authentic your purpose really is. It can go so far as to disengage stakeholders, minimizing the value-add of being a purpose-driven organization.
Principle 3: Simplify
Organizational complexity is inevitable today; using it to your advantage sparks creative problem-solving, collaboration, and responsiveness. Complicated organizations, on the other hand, are riddled with unnecessary approvals, micromanagement, and inefficient processes. You can embrace complexity and minimize complication by letting purpose drive strategy and governing by values, not rules.
- Let purpose drive strategy. If purpose is your “why,” then strategy is your “how.” Knowing your organization’s purpose makes “shiny object” opportunities less tempting and the best answer more apparent when there’s no clear “right” answer.
- Govern by values, not rules. Rules rarely reflect purpose; they are more often cumbersome and unwieldy. Values, on the other hand, keep employees aligned with purpose, guiding them toward the best decision in any situation.
Principle 4: Earn Social Capital
Earning social capital with your people means they are more likely to establish trust, engage in healthy conflict, and achieve the best results. In an organization with a shared purpose, motivated and empowered people governed by values, you are more likely to have time to spend getting to know, understand, and build trust with your people. Make sure that you and other leaders across the organization are making the most of that time. (This is also an effective way to build a culture of trust and open communication.)
Principle 5: Sustain the Organization
Being purpose-driven and being financially healthy are not mutually exclusive—each is more possible with the other. Financial health allows the organization to continue creating positive impact, while purpose gives it commitment from employees and customers, as well as strategic clarity and focus.
As a leader, taking the long-view is one of the most valuable things you can do to ensure sustained health in your organization. For instance, if you find yourself considering an opportunity misaligned with your purpose, take the time to discover why you’re considering a tempting yet misaligned opportunity. Jumping on an opportunity that solves an immediate problem temporarily while ignoring misalignment robs your group of the more valuable exercise of realigning for long-term success.
Finally, take time to understand the financial return behind purpose-driven organizations. Authors Sisodia, Wolfe and Sheth wrote the book Firms of Endearment after researching 72 public and privately-held organizations. The research presented in the book helps leaders understand the importance of the long-view and purpose.
An Exciting Future Awaits
Research tells us that purpose-driven organizations are the ones that will thrive in the next economy, outperform their non-purpose-driven competitors, and embrace disruption with exceptionally prepared people. We’d love to help you and your teams position your organization for the future using the clarity and power of purpose.