Purpose-driven organizational transformation
A purpose-driven company stands and acts for something bigger than just its products and services and thereby becomes more competitive and sustainable in a rapidly changing economy.
What is a purpose within an organization?
An evolutionare purpose in an organization is not about profitability or growth. It reflects something more ambitious. The purpose explains how the people who work with an organization make a difference, it gives them a sense of meaning and that they contribute to create something better to the world, in a small or larger context.
A purpose can be explained as an organization’s reason for existence. A purpose-driven company stands for and acts for something bigger than just its products and services. The purpose will be the basis for an organizational strategy and a roadmap for remaining competitive and resilient in a rapidly changing economy.
Leading Business can help you to accelerate your purpose-driven organizational trasformation. We help both leaders and management teams to develop purpose-driven organizations and teams.
What characterizes purpose-driven organizations?
They integrate the purpose into the core business and formulate a strategy for application and decision-making.
They link the employees’ daily work to a larger, common purpose
They are building on the purpose when creating measurable goals for the organization
An organizational purpose can drive innovation.
They engage their partners around the purpose. It can be about how to collaborate with suppliers, customers, distributors, and the board.
What is purpose-driven organizational transformation all about?
Purpose-driven organizations come in all shapes and sizes and in various industries around the world. They are 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 is no longer a question of IF an organization should lead based on a purpose, it is 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 develop and change itself.
Linear and transformation 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 so that customers can get from A to B. In that case, the purpose will drive the organization to develop different methods to be able to sell the cars which in turn will help the business to achieve linear growth. 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 its attention to its own consciousness and its inner growth.
How to create a purpose-driven organization
The development of a purpose-driven organization takes over when the strategy has been designed and is to be implemented. To be able to succeed with the purpose implementation, we need an organization that supports the people who will work in it. They need to be able to come to their full potential with their unique abilities and skills. To create that opportunity, we need to review our internal structures, processes and routines so that they are designed in a way that becomes holistic and engaging. Reward systems, performance appraisals, etc. should be designed so that they also support the purpose to which they contribute.
Read more about purpose-driven organizational development in the blog
VWe regularly publish content in our blog. Below are blogs that focus on organizational development based on the purpose.
August 17, 2021
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