In a recent conversation with a manager, I was advised to steer clear of the term purpose, as it has suffered a fate shared by many trends: from initial exciting “hype” to “persona non grata”. While I understand that this disillusionment is happening, I believe it’s worthwhile we take our frustration as a doorway to delve even deeper into the concept. Purpose has the potential to transform our business world into a more equitable and sustainable version, but only if we redefine and apply it in meaningful ways: 

In a recent conversation with a manager, I was advised to steer clear of the term purpose, as it has suffered a fate shared by many trends: from initial exciting “hype” to “persona non grata”. While I understand that this disillusionment is happening, I believe it’s worthwhile we take our frustration as a doorway to delve even deeper into the concept. Purpose has the potential to transform our business world into a more equitable and sustainable version, but only if we redefine and apply it in meaningful ways:

Let's start by acknowledging our disillusionment with the current notion of purpose. When it was reintroduced in August 2019, along with the famous roundtable of CEOs of the largest US companies, it was intended to broaden companies' overly narrow focus on profit and shareholder orientation to include the creation of value for all stakeholders, including society and the environment as a whole. As a result, many companies, with the help of marketing agencies, replaced their vision statements with compelling statements of purpose. In too many cases, however, this exchange of words was not backed up by a tangible shift in activities, with profit remaining the primary focus. This has led to disillusionment and scepticism about such purpose statements, reflected in a rise in greenwashing allegations and stakeholder activism. What's left is a burnt-out concept of purpose - not because the concept is meaningless, but because its implementation has been treated as a marketing issue rather than a strategic dialogue issue.

What's needed is a conscious shift from purpose to shared purpose. The real power in rethinking businesses from their purpose lies in the small but very important prefix 'shared'. It indicates the real shift in thinking we need to make. For the concept of purpose to unfold its true power, we need to shift our perspective, our thinking and our phrasing from 'winning a competition' to 'making a difference in other people's lives'. In practical terms, this means moving from 'We're number one in...' to 'We're here for everyone's...'.

A purpose only becomes a shared purpose through dialogue. A compelling statement does not automatically make a purpose a shared purpose. That only happens when the purpose becomes a social invitation to engage. It's about allowing others to be a part of something bigger than ourselves that benefits the greater good - not just the company's market share. People will only identify with a purpose and help bring it to life if they feel it's a shared purpose and they're invited to participate.

How you can initiate a shared purpose discussion as part of your strategic dialogue. Whether on the team, department, company, or project level, I was privileged to facilitate, and witness shifts in shared understanding, shared responsibility, and a rise in identification and engagement that could be realized by investing in a meaningful but sometimes just three-hour-long shared purpose discussion within strategy workshops. I found it most effectively enabled by the following three steps*:

1. Create a common understanding about purpose versus shared purpose

2. Rethinking your “winning” vision into “contributing to / impacting others’ lives” purpose

3. Formulating together one-line inspirational purpose statements from the perspective of impacting the whole stakeholder network for the benefit of all

Working together on the shared part of your purpose ha proven to replace lengthy discussions about vision and values, and is a great way to connect and relate to all the relevant stakeholders you need to engage to bring the purpose to life. It is particularly useful at the start of a project or transformation process, when you feel that personal interests have become too prominent or unbridgable, or when you feel that refocusing on what unites you as a team will rejuvenate your shared identification.

Recent empirical research supports the importance of a shared purpose. Inviting your team, project, board or stakeholders to a purpose dialogue session is a great opportunity to create shared understanding, meaning and commitment among the key players in your ecosystem, and to learn what matters most to them. Recent empirical studies show that allowing a shared purpose to emerge is a driver of commitment and engagement (e.g. Deloitte, HBR, Accenture, etc.). It seems to contribute to a high quality, energized and focused connectivity among all stakeholders, which has probably become the most important source of competitive advantage in today's networked ecosystem economy.

So please don't stop talking about purpose! Instead, let us together ignite a renaissance of the term in its valuable and necessary shared form. Boldly open your doors, turn your corporate walls into bridges, and invite your stakeholders to see where your futures meet, and together shape your shared purpose for the benefit of us all. Thank you!

*) Advertisment: If it’s of interest for you please feel welcome to check out our PLA offering Finding Shared Purpose ready-to-go Workshop-Kit - in English and Deutsch empowers you to facilitate such discussions yourself in your context.

Thanks to freestock for the photo provided on unsplash