What successful purpose statements do differently

March 4 2024

We often help organizations strengthen their purpose. At its best a good #purpose can be magic. At its worst an empty slogan on the wall.

Harvard Business Review shows what great companies do differently. A good read for any organization who wants committed employees, a soaring business and to make a difference.

'Most large companies like to have purpose statements. They put those statements on websites, in ads, and maybe on the walls of plants and offices. A bold purpose, so their leaders seem to believe, will motivate employees. It will help everyone pull together toward a worthwhile goal.

Alas, it rarely works. Most purpose statements don’t much matter. Sadly, purpose statements at all too many organizations are just empty words. The companies that issue them don’t live up to their lofty promises."

But research by Bain & Company, identified some companies that are the exceptions. Four methods to turn their statements into reality:

1. Tell the truth about purpose.

Dont just say it, but do it. Your purpose should not just be a slogan on the wall but a part of every aspect in your organization. Then employees and customers will believe your purpose.

You can also show this in your benefits. If creating a better world is part of your purpose and company values, show it by providing #payrollgiving as part of your benefits

2. Build a team fully committed to purpose.

It is important to be on the same page. #Hire people that are motivated by the purpose first. Set KPIs that reflect the purpose.

3. Put your money where your purpose is.

If you say that creating a better world is part of your purpose, you won't be believed if you give 100% of profits to shareholders. If you say you care about a better world, surely you can miss a little to support effective charities directly, or match employee donations?

4. Turn purpose statements into standard operating behaviors.

At The Social Handshake our purpose is to make doing good easy. Internally employees are applauded if they help customers to make it even easier. But also internally we cheer each other on when we help each other make stuff easier, wether it is related to tech, operations or better communications.

Extra benefit of a clear purpose is that it makes it easy to decide what to do and what not to do. Does it make it easier to do good? is a standard question for us when we decide what to do.

A company’s purpose is its promise to do something for someone.

' At its best, clear and compelling promises that are kept can align stakeholders on common goals, inspire extraordinary commitment, focus resource allocations on proper priorities, increase accountability, and build a business system that creates mutual benefits for all team members.'

Small steps like Payroll Giving, but also many other small steps together, can ensure a company lives up to ones purpose.

What steps would you recommend?