Businesses With A Strong Sense Of
Purpose Are More Successful
Want to make more money? Make sure
your employees feel like they’re working for something greater than just
profit.
You may have already sensed that
companies with a clear sense of purpose do better than those without one. A new
study from Deloitte confirms it: organizations that focus their energies beyond
pure profit do better than those without a "culture of purpose." And
yet, the survey also reveals that most executives and employees think that
businesses aren’t doing enough to create this kind of culture.
The survey, which sampled 1,310 U.S.
adults, found that 90% of people who believe their organization has a strong
sense of purpose also report a strong financial showing in the business over
the past year. They also report high employee and customer satisfaction. Only
65% of respondents who say they work for an organization without a strong
culture of purpose report a good financial performance in the company. Customer
satisfaction is relatively low (63%) and employee satisfaction is dismal (19%).
It’s not just enough to talk about a
culture of purpose.
There’s a disconnect, though,
between how employees and executives view their organizations. While 64% of
executives believe their company has a strong sense of purpose, only 54% of
employees think the same thing. Just 59% of employees think that their
company’s business strategy goes hand-in-hand with providing products that are
good for society--but 73% of executives share that belief. "The disconnect
is that there is a difference between intent and actual execution. It’s not
just enough to talk about a culture of purpose," says Punit Renjen,
Deloitte’s chairman.
Dunder-Mifflin, the fictional paper
company portrayed in The Office (RIP), is the perfect example of a company without a culture of
purpose. Employees are directionless, managers provide no mentorship, most
workers are apathetic about the product they’re selling, and they don’t do much
for the community.
Deloitte, believe it or not, thinks
it has a strong sense of purpose--and that it creates a meaningful impact for
clients, the investing public, and the surrounding community. "For
clients, we’re helping them achieve the goal they’ve hired us to do. Clients
are also the investing public. The impact for them is making sure that financial
statements have the highest levels of quality and integrity," says Renjen.
"For people, we hire the very best individuals, and through mentorship, we
help them become good at their craft. The impact in that instance will be the
mentorship we provide and our ability to really help our people thrive and
become very good at what we want to do."
Renjen also says that Deloitte makes
an impact in the communities where it works, in part by holding an annual Impact Day where employees are encouraged to volunteer for local
nonprofits.
Creating this sought-after culture
of purpose sounds simple in theory. Renjen recommends figuring out the culture
first and measuring it second. "I’ve always believed and it’s born out by
our research that if you aspire to be an exceptional firm over time, you must
do a couple of things: you must have a clearly articulated strategy based on
your core competency, the competitive landscape, and the environment that you operate
in," he says. "Exceptional organizations also answer questions as to
who they are."
That’s easier said than done for
large, older organizations that have stumbled along for decades without a real
sense of purpose. But it’s a big opportunity for newer companies that can embed
their values into the business from the start. Companies who succeed will be
handsomely rewarded by passionate young employees. Says Renjen: "It’s very
important--in fact it’s critical that when millenials and talent of this generation
making decisions as to where they’re making careers that they look to
organizations with a clearly defined culture of purpose."
http://www.fastcoexist.com/1682123/businesses-with-a-strong-sense-of-purpose-are-more-successful
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