August 17, 2021
Purpose-driven Organizational Transformation
A purpose-driven company stands for and acts for something bigger than just its products and services and through that becomes competitive in a rapidly changing economy.
What is a purpose for an organization?
A higher purpose in an organization is not just about profitability or growth. It reflects something more ambitious. The purpose describes how the people who work in an organization make a difference, how their work gives them a sense of meaning and that they contribute.
A purpose can be explained as an organization's reason for existing. A purpose-driven company stands for and acts for something bigger than just its products and services. The aim becomes the basis for an organizational strategy and a roadmap to remain competitive in a rapidly changing economy.
Leading Business can help you with purpose-driven organizational development. We help both leaders and management teams to develop purpose-driven companies.
What are the characteristics of purpose-driven organizations?
They integrate purpose into the core business and design a strategy for application and decision making.
They connect employees' daily work to a larger, common purpose
They are based on the purpose to create measurable goals for the organization
An organizational purpose can drive innovation.
They engage their partners around the purpose. It can be about how to interact with suppliers, customers, distributors, and the board.
What is purpose-driven organizational development about?
Purpose-driven businesses come in all shapes and sizes and in various industries across the globe. They can be found both in business, the public sector and in non-profit organizations. What they have in common is a clear understanding of what they stand for, and a willingness to take a stand in a way that creates long-term value for their organization and the people they serve. It's no longer a question of WHETHER an organization should lead based on a purpose, it's about HOW they should do it.
At a basic level, purpose can express what an organization strives to be and do. But on a deeper level, it becomes a conscious expression of how an organization intends to evolve and change itself.
Linear and transformative purpose
There can be two forms of purpose, one linear and one transformative. An example of a linear purpose is the car salesman who sells cars for customers to get from A to B. For a transformative purpose, the car dealer will actively choose the type of cars, such as environmentally friendly electric cars, that they will sell. The purpose will not only deepen the meaning of what the car stands for, it will also affect everything around car sales and the effect the electric car can have on the lives of its customers.
The purpose has the greatest potential when a company shifts attention to its own consciousness and inner growth.
How to create a purpose-driven organization
The development of a purpose-driven organization takes over where the strategy has been designed and is to be implemented. In order to succeed with the purpose implementation, we need to have an organization that supports the people who will work in it. They need to be able to come into their own with their unique abilities and competencies. To create that opportunity, we need to review our internal structures, processes and routines so that they are designed in a way that is holistic and engaging. Reward systems, appraisals, etc. should be designed so that they also support what the purpose should contribute to.
Read more about purpose-driven organizational development in the blog
We regularly publish content in our blog. Below are blogs that are focused on organizational development based on the purpose.
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