July 31, 2020
5 Benefits Of Creating A Purpose-Driven Business

Emily LaDrig

The average person works 1,842 hours a year.

That adds up to 92,100 hours over a 50-year career. And during those hours, sometimes it’s easy to forget why we do what we do.

But the research is clear, individuals are more fulfilled and organizations perform better when they’re rooted in an authentic purpose. 

Your business purpose is a compass for your organization. It clearly communicates the direction you want to go, makes sure your whole team—and your customers—are on the same course, and it guides you on the journey.

When you find your purpose, you will have a more far-reaching impact by touching the lives of others in meaningful ways. When you find your purpose, you can also create a successful company that makes the world a better place.

  • Passion is about finding yourself.  It is about following our interests. Sometimes, we fulfill that part of our lives with hobbies. In other cases, we end up doing what we love for work, and it can lead to very successful careers. While many of us may find our passions and build successful careers that we enjoy, not all of us find purpose in the work.
  • Purpose is about losing yourself— in something bigger than you. It is about wanting to make a difference and do for others—to help, to give, to serve. It is the legacy you are going to leave behind.

With purpose, a company can create positive value that is far greater than the sum of its parts. In fact, some of the greatest purpose-driven companies of our generation, like eBay, Tesla and Airbnb, have also produced some of the largest profits and highest valuations.

Woman running a purpose-driven business.

There is often a misconception that companies must be either purpose-driven or profit-driven, but cannot be both. This is no longer the case. Research proves that purpose fuels profits.

Here are 5 benefits of creating a purpose-driven business:

1. Knowing the Mission Defines the Path.
When a business clearly establishes their purpose, or mission, everyone knows what is important. Employees at all levels will have an easier time making decisions and setting priorities, because they have an unmistakably defined purpose.

2. Purpose Makes Employees Feel Like They Belong.
By identifying and aligning with a purpose, a business gives their employees a clear message about the company’s culture and principles. When employees understand their company’s purpose, they are more likely to support the organization and experience a sense of fitting in. This loyalty will ensure longevity. Employees of companies that dedicate resources to purpose, experience less turnover. This statement is especially true for millennials. Retaining key employees allows a company to build strong working relationships.

3. Improved Customer Engagement.
When a company is up front about their purpose it helps them stand apart from their competitors. Having a clear purpose makes it easy to start a conversation with customers and potential customers alike. Many people also like to support companies that care about doing good. Customers are more apt to be loyal to a company that supports causes they believe in, but even if a business is working to bring about change for an issue the customer does not support, they are still likely to support the brand in their work.

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4. Give Your Strategic Alignment Purpose.
The first step to establishing alignment is to have a clear purpose. Once you know what you want your business to stand for, you and your staff can align everything else around that purpose. You can optimize processes and employee’s contributions and set performance goals to alignment around your purpose.

5. Get Metrics Around Your Purpose.
You want to put your employees in a position where they can do their best work and align their strengths with your company’s purpose. Survey employees to assess how they feel about the company’s stated purpose, and use this data to match employees to the tasks and responsibilities that best fit their strengths and help achieve the company’s purpose.

Integrating purpose into business can have a clear and positive impact on the mission your company rallies behind. 

 

Emily LaDrig is the Chief Execution Officer at Excelerate America, the fun, smart services for businesses looking to level up. Are you creating a purpose-driven business? Tell Emily about it by emailing her at emily.ladrig@excelerateamerica.com

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