At Palmer, we were inspired to create a service that would make being purpose-driven a norm in the for-profit business world. But (being Midwesterners) we needed practicality in addition to inspiration. As we’ve worked with clients over the past few years and continued to learn and experience, we came to realize that purpose is in fact a very practical tool for business.
A compelling purpose motivates employees, customers, partners, and communities to invest in and support the business. It’s a powerful tool for achieving healthy revenue and competitive advantage. Here are just some of the outcomes purpose makes possible:
- Loyal customers, partners, and employees. Customers, partners, and employees care about your profit to some extent for obvious reasons. But if you can give them more to care about, more to connect with—a compelling purpose that supports your ability to earn healthy revenue—they are far more likely to be loyal, committed, and motivated to step up in the face of significant challenges like recessions, major leadership transitions, or new competitors.
- Razor-sharp focus. When everyone in an organization is clear on a purpose that isn’t just “increase revenue” (there are lots of ways to do that, and not all good for the long-run), it’s much easier to recognize real opportunities versus distracting and often costly “shiny objects.”
- Rapid response. When the compelling purpose is understood across your business, the alignment between opportunity and purpose will be clear to more people, making it easier and less time consuming to commit appropriate resources and act.
- Cross-functional alliance. When teams across your organization work for the same purpose, they are more likely to have the same values and priorities, making them allies instead of silos.
- Directional pull. A compelling purpose makes clear to team members across the organization how to prioritize their work, meaning teams are more in sync and productive.
- Strategic management. When focus is sharp, response is rapid, and teams are aligned and productive, management has more time to focus on people development and strategy execution, strengthening your business for the long-term.
These outcomes point to optimized performance—one of three critical outcomes we believe purpose makes possible. The other two are continuous improvement and maximum positive impact.
Continuous Improvement. When businesses serve a purpose greater than themselves, it fosters a culture of continuous improvement. Employees are driven to find better ways and provide better products and services. Customers are more inclined to offer valuable feedback so the business can respond and make improvements.
Maximum Positive Impact. When businesses serve a purpose greater than themselves, they can achieve what we call maximum positive impact. This means positive impact on the lives of those who work for and partner with the company, positive impact on the lives of customers, and a positive impact on the communities where the business operates—whether local or global.
What can purpose make possible for your business?