Purpose is falling short (and what must change)

Our latest Brandpie CEO report revealed that 83% of organizations now have a purpose statement or intend to create one in the next 12 months.

Purpose is coming of age. There are now far more businesses with a purpose than without one. But as we enter this era of ‘mainstream purpose,’ it’s still clear that something is off. When we talk about ‘purposeful businesses’ we all default to talking about the Unilever’s and Patagonia’s of this world. The purpose club is still too small.

Our planet and our societies need purposeful businesses like never before. And whilst purpose, as a concept, might have gone mainstream, its true transformational power is being held back. We believe purpose is suffering from a couple of big (but very solvable) challenges.

First, a clear and simple definition of what a powerful purpose is. Second, a strategic approach to purpose transformation. We’re on a mission to help every business engage and unleash the power of purpose in their own business. To move purpose beyond tokenism to transformation and meaningful value creation.

Our vision for Purpose 2.0

1. Purpose must be meaningful.

Purpose connects what you do with what the world needs in a meaningful way. It inspires, challenges and enables you to build long-term value creation.

This definition helps us uncover the power residing in every business. A meaningful purpose is going to take time to uncover, to craft, to test. It’s going to be with you for a long time, so don’t rush this step. Interrogate your purpose statement as its being developed. A summary of what you do today isn’t a purpose. If it isn’t going to force a reconsideration of your business for the long term, then it’s defeating the purpose (pun intended).

2. Purpose must reside at the corporate business level.

It’s not a brand thing. Yes, it can have a strong influence on your positioning, campaigning, partnerships, innovation, and a whole host of other activity at the brand level. But purpose must be something that drives business direction first and foremost. Aligning your purpose, business ambition and strategy first is essential. Without this, any activity at the brand and culture level will be fragmented and less impactful.

3. Purpose must be activated strategically.

Purpose should force reconsideration and reprioritization of activity right across your business. It will expose areas of misalignment and disconnect. It should touch upon every audience you have. It should inspire innovation and unlock areas of new value. If your purpose simply allows ‘business as usual’ to continue without forcing a reconsideration of everything you do, then it’s not being activated strategically.

It is likely to feel very uncomfortable at times. But change is never comfortable. And that’s ultimately what a great purpose does. It provides a single point of focus to help a business change in a meaningful and enduring way.

4. Purpose is for life.

Purpose isn’t something that can be dipped in and out of. It takes consistent focused effort and ownership at the most senior (and most junior) levels of the organisation. A great purpose will outlive a CEO change or board re-shuffle. It defines the legacy an organization can leave for future generations.

Is your business Purpose 2.0 ready?

• Is your purpose truly meaningful? Does it connect what the world needs to what you are uniquely placed to deliver?
• Is it driving your strategic decision making, prioritization and investment strategy?
• Is it unlocking innovation and value creation?
• Is it making a meaningful difference to your business and to the wider world?

If you answered yes, then congratulations. You are in that small club of truly purposeful business living and breathing Purpose 2.0. Share your journey, help others advocate for you, and support others in their purpose endeavours. We need more of you!

If the answer is no, then we would love to help.