Creating a purpose-driven organization is not just about having a mission statement and values. It requires a deeper commitment to aligning every aspect of the company with its core purpose. In this blog, we will discuss what a purpose-driven organization is, how a company can create a purpose-driven organization, and why it’s important.
What is a purpose-driven organization?
A purpose-driven organization is a company or business that is guided by a clear and meaningful purpose beyond just making a profit. The purpose is usually centered around making a positive impact on society or the environment, and it serves as a guiding force for decision-making and actions taken by the company.
The purpose is integrated into every aspect of the business, including its mission, values, culture, and strategy. It is communicated clearly to employees, customers, and other stakeholders, and is used as a guide for decision-making and actions taken by the organization.
An example of a purpose-driven organization is certified B Corporation and Benefit Corporation atlasGO, which aims to create positive awareness around social and environmental issues and accelerate impactful change.
Let’s dive into seven ways a company can create a purpose-driven organization.
7 ways to create a purpose-driven organization
1. Define the purpose
The first step in creating a purpose-driven organization is to define the company’s purpose. The purpose should go beyond just making a profit. It should be something that motivates and inspires employees to come to work every day. The purpose should be clear, concise, and easy to understand.
2. Align the vision and values
Once the purpose is defined, it’s important to align the company’s vision and values with it. The vision should be the ultimate goal the company wants to achieve. The values should be the guiding principles that will help the company achieve its purpose and vision.
3. Hire for purpose
To create a purpose-driven organization, it’s essential to hire employees who are aligned with the company’s purpose and values. During the hiring process, it’s important to ask questions that will help determine if a candidate is a good fit for the company’s purpose and values.
4. Communicate the purpose
Once the purpose, vision, and values are defined, it’s important to communicate them clearly and consistently to all employees. This can be done through regular communication channels such as company meetings and newsletters.
5. Lead by example
To create a purpose-driven organization, it’s essential that the leaders of the company lead by example. They should embody the purpose and values of the company and demonstrate them in their actions and decisions.
6. Empower employees
To create a purpose-driven organization, employees need to feel empowered to make decisions that align with the company’s purpose and values. This can be done by giving employees the autonomy to make decisions within their roles and by recognizing and rewarding those who embody the company’s purpose and values.
7. Measure success
To ensure the company is staying true to its purpose, it’s important to measure success beyond just financial metrics. Metrics should be established that measure how the company is fulfilling its purpose, such as customer satisfaction, employee engagement, and social impact.
Why is a purpose-driven organization important?
The results of a recent Gallup survey revealed concerning statistics about employee and customer perceptions of organizational promises and purpose:
• Only 27% of the employees feel that their organization consistently fulfills the commitments it makes to customers.
• Less than half (46%) of B2B customers strongly believe that the companies they do business with always deliver on their promises.
• Just 40% of employees have a strong sense that their job holds significance because of the mission or purpose of their organization.
The survey results have highlighted the importance of purpose-driven organizations, as they can address the concerns regarding employee and customer perceptions of organizational promises and purpose.
Check out some more benefits of operating a purpose-driven organization:
1. Attract and retain top talent: In today’s competitive job market, employees are looking for more than just a paycheck. They want to work for a company that has a clear and meaningful purpose. A purpose-driven organization can attract and retain top talent who are aligned with the company’s purpose and values.
2. Engage employees: When employees feel connected to the purpose of the organization, they are more engaged and motivated to do their best work. They are more likely to go above and beyond in their roles, which can lead to increased productivity and better business outcomes.
3. Build customer loyalty: A purpose-driven organization can build strong connections with customers who share similar values. When customers feel a sense of alignment with the company’s purpose, they are more likely to become loyal customers and advocates for the brand.
4. Drive innovation: A clear purpose can drive innovation by providing a North Star for the organization to work towards. Employees who understand the company’s purpose can use it as a guide to develop new products, services, and solutions that align with the purpose.
5. Increase social impact: A purpose-driven organization can make a positive social impact by aligning its purpose with a larger social or environmental cause. This can help the organization attract customers, employees, and partners who share similar values and want to make a difference in the world.
Creating a purpose-driven organization is a process that requires commitment and alignment across all aspects of the company. By defining the purpose, aligning the vision and values, hiring for purpose, communicating the purpose, leading by example, empowering employees, and measuring success, a company can create a purpose-driven organization that inspires and motivates employees to fulfill its purpose.
Written by Kelly Baker, Content Marketing at atlasGO
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