Purpose statements take various forms, ranging from a succinct three-word phrase adorning a company logo to a more elaborate 20-word expression featured in comprehensive communications. Regardless of length or format, the core purpose remains consistent: encapsulating the ultimate objective of an organisation and explaining why it exists and how it intends to make a positive impact on our lives.
Consider the following examples: eBay aims to “empower people and create economic opportunity for all”; Mondelēz encourages people to “snack right”; and Microsoft’s purpose is “to empower every person and every organisation on the planet to achieve more”.
While profitability is crucial, today’s business landscape demands a delicate balance between capitalism and profound aspirations. Investors, stakeholders, clients and customers seek to understand an organisation’s higher goals alongside financial success.
Authentic, tangible and evidenced
A primary objective of a purpose statement is to unify teams and steer behaviour toward a common goal. To achieve this, the purpose statement must possess authenticity and tangibility and it must be evidenced. It’s essential to be true to your organisation’s actual purpose.
If your business isn’t dedicated to protecting the planet, ending poverty, or saving whales, don’t feign such intentions. Beware of ‘purpose-washing’, where companies make social impact claims without putting in the genuine effort to substantiate them. It’s perfectly acceptable to aspire to help people “snack right”.
Let’s examine Microsoft’s purpose statement in more detail. It encourages a growth mindset, reinforcing the idea that everyone’s input matters. It also aligns with the tech giant’s initiative, which has provided free training in digital skills to 42m people, addressing the needs of a post-pandemic economy. This statement authentically engages all key stakeholders, while remaining firmly grounded in Microsoft’s products and services.
A robust and authentic purpose statement also acts as a magnet for the right talent. Over the past few years, the workplace landscape has undergone a significant transformation. The conventional belief that compensation is the primary motivator for job seekers has evolved, particularly among Gen Z and Millennials. They now prioritise factors beyond monetary rewards, such as flexibility, organisational culture and the intrinsic value derived from daily tasks.
According to global marketing and communications agency Allison+Partners:
• 91% of employees feel that a company’s purpose makes them feel they are in the right place as they face ongoing challenges like economic risks.
• 88% believe purpose-driven companies will be more successful compared with those that are not.
• 86% consider having meaning in their work more important than ever before.
• 84% are inclined to work for purpose-driven companies exclusively.
Clarity and resonance
Assess how well your organisation’s purpose resonates with your team members. Consistency, authenticity and ongoing communication are essential. Steady communication supported by leadership can integrate the purpose statement into the organisational culture, guiding employee actions and decisions.
Despite the potential value, many companies with powerful purpose statements struggle to effectively communicate them. In a world where it is said the average office worker receives around 121 emails a day, it’s crucial to consider how, when and where to emphasise your purpose.
Instead of shouting it from the rooftops or hosting purpose-themed events, focus on integrating the purpose into everything your organisation says and does. It should become a subtle, uncontrived presence, evident in email signatures, posters and daily meetings. Establish feedback channels to ensure that the sentiment is understood, embraced and practised by all members of your organisation.
Embed purpose
Airbnb faced scrutiny when its customer promise to “belong anywhere” was contradicted by unwelcoming host behaviour. The company’s business model hinges on trust between strangers, and any erosion of that trust harms the entire enterprise. Properly embedding the purpose is fundamental to demonstrating the authenticity of these claims and building trust with customers.
A collaborative approach to crafting the purpose, involving employees and stakeholders, and aligning it with individual roles and responsibilities, is essential. The statement should evolve alongside changes in business models and outputs.
In conclusion, the foundation of a purpose statement lies in internal understanding before it extends externally. It can only succeed when employees and stakeholders fully embrace, convey and exemplify its principles through their actions.
Purpose should occupy the top tier of every organisation’s hierarchy, guiding values, behaviour, culture, reward systems and recognition. It should be the guiding principle ensuring that all other communication is undeniably accurate and aligned with the organisation’s true purpose.
Ben Watson is director of the internal communications consultancy Blue Goose.