What is a Purpose Driven Company?
Purpose driven companies empower their employees, and even in some cases their consumers, to make a difference in the company they work for. Employees know that the work they do for the company they work for has a purpose, and as employees they are needed and wanted to make the company a success. When an employee knows that his or her ideas, talents, or vision matter to the team, they are more likely to take pride in their work and have a vested interest to see the company succeed. This pride trickles down to the company’s consumers by better customer service, better quality work, and better morale. All of these attributes can oftentimes help to add up to a better profit margin in time: the keywords being “in time”.
Today’s business world is different from the traditional business model as more and more purpose driven companies emerge. The bottom line for the traditional business model is profit. At times anything or anyone else is expendable if it means making a profit. Making quotas for the quarter, making sure investors are happy and seeing profits rise are par for course. For decades companies and business schools have used this model as the model for growth within a company.
With increased global awareness, and instant communication via the Internet, cell phones, and text messaging, many employees are able to see or hear first hand how their company compares to other companies. They can see within another company what the working environment is like, what benefits they are offering, and how management treats their employees. There are countless websites that bash companies and share details of bad business practices. This alone can make it hard to keep moral up within a company.
Many companies invest in their employees by paying for them to go to college or for advanced training with the idea that the education will in some way be an asset to their own company. Once a person, especially a disgruntled employee, completes his or her program of study more often than not the desire for a better work environment or recognition gives them the boost they need to leave, no matter how much, time, effort, and money that company has invested into them. So what is a traditional company to do when facing such change within the global business world? Perhaps taking a look an emerging concept such as striving to become a purpose driven company is the answer.
What is a purpose driven company and how can it possibly survive in order to sustain itself if its priority is not seemingly out to make a profit? Simply put the purpose driven concept is based on the principal that when given a purpose the employee desires to strive to do more for the company because they feel that they are a valued part of the company. They are able to feel that they make a difference, and are more likely to look within themselves to make needed changes in order to serve their purpose within the company. In empowering its employees in this way, a purpose driven company grows from within, and can save resources in time, and money they may otherwise be used to seek out and train people to replace employees who leave due to dissatisfaction.
A purpose driven company tends to seek out the long-term success of a company rather than having what happens in the short term be the pinnacle of its business. It is true that the results are not instant, but knowing that a company in this fast paced changing world will most likely not fall into the “here today, gone tomorrow” category, allows for a more favorable view of its future. Having a clear purpose, vision and goals along with the needs of both employees and its consumers in mind creates a sustainable foundation for the future of an organization.
It is true that this model of business tends to be more human driven than others. Purpose driven companies tend to focus on the idea that everyone has a purpose and a company’s success depends on everyone as a whole, including its customers and other social relationships. Therefore, inspiration and guidance become a catalyst in creating change and growth within a company.
Purpose driven organizations reflect the trickle down effect at its finest.
Naturally a company must make some type of profit in order to preserve, but instead of a profit being the purpose in a purpose driven company, profit is a measure of how proficient the organization is managed. Giving a worker’s position integrity and importance creates a higher level of loyalty and productivity. If a company manages its employees as valuable needed members of the organization, employee moral goes up thereby creating an environment in which its workers have an inner reason to want to do their jobs. The desire to create, maintain, share, or sell the best product or idea they are able to then will increase. Therefore due to the efficiency of management, profit happens.
A purpose driven company not only looks at how the company reflects its employees but how the company reflects its consumers. When consumers are able to see a difference in a how a product is made, a service is presented or how employees provide a higher level customer service because of the quality of the company, consumers are more likely to want to buy, endorse or seek out products in the future due to their positive experience. Consumers will tell their friends, who will tell their friends what a great pleasure doing business with the organization is. Word of mouth advertising, a centuries old concept that can help purpose driven companies thrive today.
Consumers can play another role in a purpose driven company. Who better to hire than the consumer who knows, loves, desires, has a passion for and/or endorses the product or service? A great example are true Apple fans (I am proud to be one), who have generated millions and upon millions of dollars of free publicity purely out of their passion, for not the products but the experience. Once a level of interest and basic knowledge for the technicalities of a position are established, finding someone with a passion for a service or product can be an asset to a company. Someone who actually uses the product or service has an insight that another candidate for the position may not have.
By supporting the local community in a positive way, a purpose driven company paves the way for a stronger relationship within the community should a need arise. A purpose driven company often times goes a step further and sees itself as a reflection of the greater social environment outside of the organization. Clif Bar is an excellent example, it recognizes how its existence within community relationships on a local, state and even national level play a role in how efficiently it runs and how the business itself affects those relationships. It may choose to use local places for supplies rather than buying them from elsewhere. In doing so Clif Bar recognizes that the money put into a community can filter back into their own business in one way or another, be it consumers buying products, or recommending their services to people. That is why Clif Bar does not have just a bottom-line, nor a triple-bottom-line but a Quintuple Bottom-line, one of which is the community.
A purpose driven organization may look at how state and national decisions on the environment, or how employees’ benefits are affected due to legislative decisions. They see how those decisions can affect a company’s resources and/or its employees. In recognizing the importance of being aware of the social implications these relationships have on a purpose driven company, the company is better able to mend and build bridges should anything happen to make a purpose driven company run less efficiently than it is actually able to.
How can a business change to a purpose driven business? It can start small, and create a vision for your employees. It is a great idea for the organization to get employee feedback and follow it up with by letting them know the organization values their input. Creating this type of dialogue and connection allows for better lines of communication down the road.
For some purpose driven companies, costs of products and services are higher due to not cutting corners or striving to maintain and preserve their business missions. Not every consumer cares to buy from a purpose driven company for the sake of it being purpose driven. Therefore there is still there is a need for the traditional model of business. Some people want or can only afford cheaper things done faster, and for those a traditional business model company may be where they choose to lean towards. While it may be good short term for consumers and business, long term it can effect how employees do their jobs within the traditional business model.
Employees no longer want to feel like they working dead end jobs. They want to know that their work is meaningful and of value, especially if they are working in an environment where they may be away from home 12+ hours a day. As businesses begin to recognize this shift, changes need to be made. A wise purpose driven company will open up to their employees and allows for their imagination and creativity to make changes and differences in their work environment all within the boundaries of the company’s mission. By fostering courage, talent, purpose and insight in their employees a purpose driven, without losing sight of long term goals or losing long term profit, company can set a firm foundation and vision for years to come.
Friday, July 6, 2007
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