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Why Purpose-Driven Companies Are So Successful

Writer's picture: Gifford ThomasGifford Thomas



When most of your employees believe their organization's primary purpose is to make money, the organization is destined for mediocrity. In Robert E. Quinn and Anjan V. Thakor's article in the Harvard Business Review, they shared a story of Gerry Anderson when he first became the president of DTE Energy. At the height of the recession in 2008, Gerry Anderson required his people to reach for something more besides their own self-targets and preservation, but deep in his heart, he knew his people were not inspired. In a survey conducted at the company, the results show that DTE employees' were not very engaged. According to the article, employees couldn't seem to break free of old, tired behaviors; they weren't bringing their smarts and creativity to their jobs, and they weren't performing up to their potential. What turns things around? The new leader infused the company's core purpose into each employee.

 

Before the recession, Anderson considered purpose as empty and simplistic rhetoric. But, having run into a dead end in figuring out how to make his own organization thrive, Anderson was reexamining some of his underlying assumptions about management. He was open to what a purpose-driven organization can do to inspire his team.

 

Anderson made a video that articulated his employees' higher purpose. It showed DTE's truck drivers, plant operators, corporate leaders, and many others on the job. It described the impact of their work on the well-being of the community—the factory workers, teachers, and doctors who needed the energy DTE generated. The first group of professional employees to see the video gave it a standing ovation. When union members viewed it, some were moved to tears.

 

Never before had their work been framed as a meaningful contribution to the greater good. The video brought to life DTE's new statement of purpose: "We serve with ourenergy, the lifeblood of communities and the engine of progress."

 

One must remember that a higher purpose is not about economic exchanges; it reflects something more aspirational. It explains how the people involved with an organization are making a difference, providing a sense of meaning, and drawing support for the organization's vision, mission, and objectives. Most of all, it builds trust, and everyone has a shared sense of purpose in the organization.

 

It should be noted that when we talk about an inspiring purpose, we are not talking about those bland mission statements that no one in the company can recite. Instead, we are talking about a crisp and clear cause that unites and activates all people within the organization. An inspiring mission that does best for the organization, the employees, the customers, and the world in the long term. According to Markus Heinen, Chief Innovation Officer of EY, "Purpose is an aspirational reason for being grounded in humanity and inspires action."

 

In other words, an organization needs to stand for something it believes in, going beyond profit and impacting society. This can, of course, extend beyond pure social projects. If a company can direct its vision, mission, and business model toward something that creates purpose and can demonstrate how their products create purpose, it is even stronger.


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