Marc Benioff, the co-founder and CEO of Salesforce, has been making a name for himself in the corporate world by saying that the business of enterprise is improving the world. This statement goes beyond traditional notions of profitability, shareholder gains, and revenues and instead focuses on purpose. Purpose is an essential part of any company’s operations.
A purpose-driven organization puts people first by implementing a social mission in its DNA. Companies must consider how they can make a difference in the world. According to a Harvard Business Review report, an organization’s purpose is an aspirational reason that can inspire and motivate its stakeholders and partners. It can provide a call to action and contribute to the global community.
Why It’s Effective
Due to the increasing number of consumers and employees looking into the bigger picture when investing in a business or product, organizations must have a clear purpose. This can help them understand that their company is committed to making a difference in the community.
A clear purpose can help employees feel valued and connected to their work. It can also help motivate them to perform at their best. A purpose at work can help teams make informed decisions and improve productivity.
According to operational and humanistic psychologists, finding meaning in one’s work can positively affect performance. They also believe employees are likelier to value managers and leaders dedicated to a purpose.
How Does it Affect Business?
According to a study, purpose-driven organizations are more successful than their counterparts in various areas, such as growth, productivity, and retention.
A study conducted in 2015 by the Harvard Business Review revealed that 58 percent of companies have a clear and understood purpose, while 42 percent have no defined purpose. The study also found that those with a purpose experienced higher growth rates than those without one.
The study also noted that companies with a purpose are likelier to adopt new business models. Over half of the organizations with a purpose said they have significantly changed their strategy in the last three years.
In 2015, a comprehensive study by Northwestern University revealed that employees working for purpose-driven organizations were more committed and engaged.
Your company’s purpose should be relevant and genuine and resonate with your organization’s values and community.