Creation of purpose-oriented organizations

The Apollo 11 moon landing is an iconic symbol of human achievement, but it also holds valuable lessons for organizations seeking to create purpose-driven environments. With a clear and audacious purpose of landing a man on the moon and returning him safely to Earth, the mission united thousands of individuals within NASA and its partner organizations towards a common goal.

Drawing inspiration from this historic event, let’s explore the key elements that make purpose-oriented organizations successful.

In the following sections, we will uncover the remarkable benefits of purpose-oriented organizations through facts, detailed elaboration on each step, and examples.

Did you know that having a well-defined and clearly articulated purpose can be the driving force behind a company’s success? As HR leaders, you are pivotal in cultivating purpose-oriented organizations, starting with creating a compelling vision. By aligning the purpose with our company’s values, mission, and long-term goals, you can unlock the transformative power of purpose, fostering employee engagement, driving innovation, and achieving sustainable growth.

So, are you ready to explore the key elements that can help you create purpose-driven organizations? Let’s delve into each step, unravel the benefits through facts, delve into elaborate examples, and unearth the deeper meaning and significance of organizational purpose.

Based on research conducted by Imperative, 58% of companies with a well-defined and articulated purpose achieved a growth rate of 10% or more within the past three years. In contrast, 42% of companies lacking an articulated purpose experienced negative growth.

HR leaders play a crucial role in creating a purpose-driven organization by defining and communicating a clear vision of the organization’s purpose. They should align the purpose with the company’s values, mission, and long-term goals. This step engages key stakeholders, including employees, in shaping the organization’s purpose. HR leaders can execute this step by:

• Engaging key stakeholders, including employees and leadership, to envision the organization’s purpose.
• Fostering discussions and workshops to explore and define the unique purpose that aligns with the organization’s values and aspirations.
• Encouraging creativity and diverse perspectives to shape a purpose that resonates with everyone involved.

Let’s take an example of an HR leader in a technology company who envisions a purpose-driven organization focused on creating innovative solutions that positively impact society. Through collaborative workshops and discussions with employees, they identify the purpose as “Using technology to improve lives and drive positive change globally.”

A comprehensive study by Raj Sisodia, an advisor to Whole Foods and a Babson professor, analyzed 28 companies from 1996 through 2013. The study revealed that purpose-driven enterprises achieved an astounding growth rate of 1681%, surpassing the S&P 500 average of 118%.

Once the purpose is envisioned, HR leaders can dive deeper to understand the specific areas where the organization can make a meaningful difference. This involves identifying the social and environmental issues that align with the organization’s purpose and values. HR leaders can execute this step by:

• Conducting research and analysis to identify societal, environmental, or economic challenges that connect with the purpose.
• Engaging with external stakeholders, such as customers, partners, and communities, to gain insights and validate the relevance of the purpose.
• Collaborating with interdisciplinary teams to brainstorm and explore innovative ways the organization can address those challenges.

For instance, an HR leader in a retail company realizes that their purpose of creating an extraordinary employee experience can align with community engagement. By conducting surveys and collaborating with stakeholders, they pinpoint supporting local charities as a specific area of focus. The organization’s purpose evolves to “Creating an exceptional employee experience while positively impacting our community.”

A study conducted by Qualtrics revealed that employees who feel that their organization’s values resonate with their own are more inclined to recommend their employer as an excellent place to work (70% compared to 25%) and experience a sense of personal accomplishment from their work (72% compared to 29%).

To create a purpose-driven organization, HR leaders should ensure authenticity in the organization’s purpose. This means aligning the purpose with the core values and culture of the company. HR leaders can execute this step by:

• Assessing existing policies, procedures, and practices to ensure they align with the organization’s purpose.
• Fostering an environment of open communication and transparency to build trust and authenticity.
• Recognizing and celebrating individuals and teams demonstrating the organization’s purpose through actions and behaviors.

For example, an HR leader in a manufacturing company prioritizes empowering employees to thrive and grow. They foster a culture of innovation, collaboration, and continuous improvement, where employees are encouraged to contribute their ideas and expertise. The performance evaluation criteria are revised to incorporate metrics that align with the organization’s purpose, such as employee development, engagement, and job satisfaction.

According to Gusto’s ‘Community at Work’ report, 52% of employees left or considered leaving a job due to a lack of belonging, while 54% stayed longer because of a strong sense of community.

HR leaders should embed the organization’s purpose into the decision-making process at all levels. This involves making purpose a key criterion when evaluating strategic initiatives, projects, and investments. HR leaders can execute this step by:

• Establishing a clear framework that integrates the purpose into the organization’s decision-making processes.
• Developing guidelines and criteria that reflect the purpose and serve as a consistent arbiter for evaluating strategic choices.
• Ensuring cross-functional alignment by engaging various teams and departments to align their decisions with the purpose.

For example, an HR leader in a healthcare company ensures that all new product development initiatives undergo a purpose-focused evaluation. They establish a cross-functional committee that includes representatives from different departments and backgrounds to assess how each proposed product aligns with the organization’s purpose of improving patient care and well-being.

According to a PWC study, aligning upskilling initiatives with the organization’s purpose leads to improved productivity, talent acquisition, retention, and a more resilient workforce. 93% of CEOs observed these positive outcomes.

To maintain a purpose-driven organization, HR leaders need to foster a culture of continuous learning and development. This involves providing opportunities for employees to enhance their skills, knowledge, and understanding of the organization’s purpose. HR leaders can execute this step by:

• Developing and implementing comprehensive training programs and workshops that specifically address the need for upskilling, reskilling, and cross-skilling in alignment with the organization’s purpose.
• Encouraging employees to actively seek external learning opportunities directly linked to the organization’s purpose by attending conferences, seminars, webinars, or industry events to gain insights, network with like-minded professionals, and stay updated on the latest trends and advancements related to the organization’s purpose.
• Providing resources and support for employees to engage in purpose-driven initiatives and volunteer activities like creating dedicated platforms or internal networks where employees can collaborate, share ideas, and participate in projects or initiatives that contribute to the organization’s purpose.
• Offering flexible work arrangements or volunteering opportunities during work hours to encourage employee involvement.

For example, a purpose-oriented technology company implements upskilling programs focusing on emerging technologies and sustainable practices. By providing employees with the necessary training and development opportunities, they can contribute meaningfully to the company’s mission of creating innovative and environmentally friendly solutions. As a result, the company experiences increased productivity, attracts top talent with a passion for the purpose, and retains employees aligned with the organization’s values and goals.