Why Purpose Matters

Every company has a deeper Purpose. That may sound lofty and idealistic, but it’s true. And there are a growing number of books and articles – backed by research – that reinforce the fact that those organizations that are very clear about their ultimate “why” are more successful than those that aren’t.

Jim Collins and Jerry Porras championed a core purpose (your “fundamental reason for being”) as part of the core ideology they introduced in their book Built to Last in 1994. Fast forward 20 years to a Deloitte survey of multi-level employees in for-profit U.S. businesses. It found that companies that had a strong sense of Purpose reported greater customer and employee satisfaction and stronger financial performances.

A Harvard Business Review article called “The Power of Collective Ambition” underscores the importance of purpose when it states, “Purpose is the center around which vision, strategy, brand, values and leader behaviors must orbit.”

So what makes a Purpose (aka mission, though there is a subtle difference) so valuable? A Purpose …

  • Provides clarity around why what a company does truly matters (no matter what product or service it provides).
  • Gets everyone in the organization centered around a common goal and moving in the same direction.
  • Creates positive feelings about the organization’s contribution to the common good.

A Purpose is the core of an organization. And a well-defined one can build comradery among team members, a great reputation in the marketplace, and a strong, successful brand. Uncover your brand Purpose with Jackson Spalding.