Build a purpose driven business

Purpose driven business – Don’t use profit as a primary purpose

Starting and surviving in today’s economy is hard, but the companies that figure it out have something in common: the pursuit of purpose, alongside the pursuit of profit.

Purpose driven business is not a fluffy, new-age term. In the book Corporate Culture And Performance, John Kotter and James Heskett show that over a decade-long period, purposeful, value-driven companies outperform their counterparts in stock price by a factor of 12.

In the absence of purpose, a company’s leadership is likely to have greater difficulty in motivating employees and putting the company on the course to success. Customers are likely to have difficulty connecting with the company. With purpose, a company can create positive value that is far greater than the sum of its parts.

A purpose mobilizes employees in a way that pursuing profits alone never will. So don’t use profit as a primary purpose.

The purpose driven business – Businesses with a strong sense of purpose are more successful

Companies of the future are purpose driven

An organization without purpose manages people and resources, while an organization with purpose mobilizes people and resources. Purpose is a key ingredient for a strong, sustainable, scalable organizational culture.

In today’s technology driven, rapidly evolving economy, successful companies are built not from the ground up, but from the purpose up. Every business should have a clear and succinct expression of its purpose – its reason for being beyond the products it makes or the services it provides.

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