Evolving purpose measures

Our 2022 Brandpie CEO Purpose Report surveyed 1000 business leaders across the world. We talked to leading CEOs, academics and thinkers about purpose and its implications on business strategy, sustainability, and workforce.

Our findings revealed one, common, unifying thread: the age of short-term shareholder value is over, and the age of long-term, sustainable, stakeholder growth is here to stay.

This year we investigated how CEOs consider purpose measurement. From previous surveys, our consulting engagements, and the academic literature, we knew that measuring purpose is challenging and the answers are not always obvious. This year’s data showed that 66% of CEOs are making purpose a priority in 2022 compared to 34% in 2021. For most CEOs, it’s clear that measuring purpose is a significant undertaking, especially as they look to embed and develop their company’s purpose.

We found twelve metrics that CEOs consider when measuring purpose. We have categorized these into four groups. The first is monetary, with the metrics being: company value, sales and growth, brand value and financial performance. The second is customer, with CEOs focusing on company reputation, brand perception, brand loyalty and customer satisfaction. The third is employee focused and within this is employee motivation, employee turnover and attractiveness as an employer. The final grouping is sustainability.

As shown in the above table, these metrics cover a range of stakeholders; shareholders (money), customers, employees as well as the supply chain, society, and the environment (ESG). However, although the measures cut across a range of stakeholders, what is also apparent is that they are not new – organizations have been reporting against these for some time. This is especially helpful as no organization needs a proliferation of new measures.

At Brandpie, we’re investigating this further; working with Professors Nick Barter and Chris Fleming of Griffith University on the topic of purpose. We’re researching these measures to understand how they link to purpose-driven transformation while also developing some new ones that have critical cut through. We don’t have all the answers yet, but we are on a mission to enhance purpose measurement and reporting to ensure that purpose-driven companies are transforming for the betterment of the world. The questions we’re considering include: how is purpose activation linked to business outcomes? Which metrics show the strongest correlations? And do we need new metrics?

If you would like to be part of this conversation, then please get in touch.