Having a purpose can be misconstrued as just another corporate trend, but focusing your strategy, people and operations around a single, unifying idea can generate significant business growth. Nowhere is this truer than the world of energy, which is inherently purpose-led in its nature. Chris Holmes, Managing Partner, Culture & Employee Experience at Brandpie, shares the tangible ways in which being purpose-led can benefit organizations.
Energy organizations are facing dynamic complexity and systemic change unlike anything we've seen before.
In the last three years alone, the nature of work has changed beyond recognition: the rise of hybrid and remote working, workforce generational differences, and changing expectations of the employee experience are creating a time of marked uncertainty. CEOs, Chief People Officers (CPOs) and HR leaders face the increasingly daunting task of addressing these internal challenges alongside the external threats arising from market instability, new market entrants, disruptive technology and changing business models.
To navigate complexity and enable efficient decision-making, organizations need a distinctive purpose that aligns executive teams and unites the business. With this in place, C-Suite executives can drive employee engagement and business performance.
When leadership is aligned and your people are motivated by your purpose, there are clear business results:
- Better performance: Purpose-driven companies have better overall performance. In a study by EY, companies that had a clearly defined purpose outperformed their peers by a factor of 10 over a 15-year period.
- Business growth: Purpose-driven companies grow faster than their peers. In a study by Deloitte, companies that had a clear and well-communicated purpose grew three times faster on average than their competitors.
- Unifying employees behind one vision: A clearly defined purpose helps employees feel more connected to their work, understand the company's mission, and feel like they are part of something bigger. According to a report by LinkedIn, 71% of employees who feel connected to their company's mission are more likely to stay with the company for an extended period.
- Reduced turnover: Purpose-driven companies have lower employee turnover rates. In fact, studies have shown that purpose-oriented employees have 20% longer expected tenures and are 50% more likely to be in leadership positions.
- Higher engagement: Purpose-driven companies have higher levels of employee engagement. According to a Gallup report, companies that have highly engaged employees outperform their competitors by 147% in earnings per share.
- Greater sense of belonging: When employees feel a sense of belonging, they feel valued, engaged and committed to the organization. According to a study by Deloitte, employees who feel a sense of belonging are more productive, motivated, and engaged at work.
Because of the complex, fragmented, fast-changing landscape in which energy businesses operate, the need to unify leadership and employees behind a shared, powerful idea that drives performance is even greater than before.
Equipped with a distinctive and powerful idea, purpose serves as a lens through which to assess the strategic decisions and actions your company takes (or does not take). Ensuring that the purpose is aspirational and inspirational, yet grounded in the reality of what the organization does and how it operates, provides a clear direction that everyone across the entire organization can work towards together.
Purpose doesn’t have to be lofty or hard to define. A powerful purpose is as inspirational as it is practical.
The results are clear: purpose delivers.
