Deep Purpose

1. Purpose is an Existential Reason for Being, Not Just a Tool

This statement encompasses both goals and duties, and it succinctly communicates what a business is all about and who it’s intended to benefit.

Beyond Instrumentalism. Most leaders view purpose as a means to an end, a tool to enhance branding, culture, or employee engagement. Deep purpose leaders, however, see it as an existential statement, the very reason for the firm's existence. This fundamental shift transforms how the organization operates, shaping decision-making and uniting stakeholders.

Defining Deep Purpose. A compelling purpose statement has two key features: an ambitious, long-term goal and a commitment to broader social duties. It transcends the pursuit of profit, calling on the organization to serve society or humanity in some way. This deeper sense of purpose acts as a unifying statement of the commercial and social problems a business intends to profitably solve for its stakeholders.

Convenient vs. Deep Purpose. Many firms practice "convenient purpose," articulating idealistic statements but failing to fully integrate them into their core operations. This can take various forms, from "purpose-as-disguise" (using lofty language to mask nefarious activities) to "purpose-on-the-periphery" (treating social initiatives as secondary to the core business) to "purpose-as-win-win-only" (focusing exclusively on solutions that maximize both profit and social good). Deep purpose, in contrast, permeates every aspect of the enterprise.

2. Deep Purpose Requires Navigating Tradeoffs, Not Just Seeking Win-Wins

Inspired and empowered by the purpose, they negotiate stakeholder interests to arrive at sometimes painful decisions that stakeholders may or may not find “good enough” in the short term but that pay off for everyone eventually.

The Illusion of Painless Solutions. Many believe that purpose-driven companies can achieve win-win solutions that benefit both society and investors without any compromise. However, idealized win-win solutions are difficult to achieve, and companies often revert to prioritizing profits when faced with tough choices. Deep purpose leaders acknowledge the inherent challenges and dedicate themselves to navigating tradeoffs between stakeholders.

Practical Idealism. Deep purpose leaders adopt a mindset of "practical idealism," balancing their commitment to purpose with the realities of the commercial system. They aim for solutions that deliver both financial results and social benefits, but they are also willing to make difficult decisions that may require short-term sacrifices from some stakeholders. This approach involves honest and often messy problem-solving, rather than seeking perfect, unattainable outcomes.

Etsy's Example. Josh Silverman, CEO of Etsy, faced criticism for laying off employees and restructuring the company. However, he argued that these measures were necessary to ensure Etsy's long-term viability and its ability to serve all stakeholders, including sellers and the community. By making these tough choices, Etsy was able to improve its financial performance and increase its social impact.

3. Purpose Drives Superior Performance Through Four Key Levers

Profits are in no way inconsistent with purpose—in fact, profits and purpose are inextricably linked.

Beyond Financial Performance. While many companies focus solely on financial metrics, deep purpose leaders understand that purpose can drive superior performance through four key levers: directional, relational, reputational, and motivational. These levers work synergistically to galvanize organizations and generate outsized results.

The Four Levers:

• Directional: Purpose serves as a "North Star," guiding strategy and channeling innovation.
• Relational: Purpose fosters trust and long-term relationships with ecosystem partners.
• Reputational: Purpose builds affinity, loyalty, and trust with customers.
• Motivational: Purpose elevates work, inspiring and motivating employees.

Bühler's Success. The Swiss plant equipment manufacturer Bühler Holding AG exemplifies how these levers can drive success. By committing to "innovations for a better world," Bühler has focused its strategy, built strong relationships with customers, enhanced its reputation, and inspired its employees, leading to sustained high performance and growth.

4. Authentic Purpose is Rooted in the Past, Not Just the Future

In defining purpose, deep purpose leaders look to the past, immersing themselves in the intentions of founders and early employees, scouring for themes that capture the firm’s ineffable soul or essence.

The Sankofa Approach. Like the mythological Sankofa bird, deep purpose leaders look backward to inform their path forward. They immerse themselves in the intentions of founders and early employees, seeking to understand the firm's "soul" or essence. This historical grounding lends authenticity and weightiness to the purpose, fostering deeper emotional connections and commitment.

Connecting with the Past. By understanding the company's origins, values, and key moments in its history, leaders can craft a purpose statement that resonates with employees and stakeholders. This connection to the past provides a sense of continuity and helps to build a strong organizational identity. It also helps to create a moral community.

LEGO's Transformation. Jørgen Vig Knudstorp, CEO of LEGO, revitalized the company by reconnecting it with its founding purpose of providing "good play." By immersing himself in LEGO's history and rediscovering the company's core values, Knudstorp was able to galvanize employees and chart a path toward future success.

5. Communicate Purpose Through Compelling Storytelling, Not Just Slogans

In conveying this story, they discuss purpose in personal terms, establish a sense of shared ownership, and evoke urgency to embrace purpose in the present.

Beyond Generic Messaging. While many companies communicate their purpose through slogans and rallying cries, deep purpose leaders go further by crafting a grand, foundational story about the company. This "Big Story" lends depth, meaning, and even poetry to the enterprise, creating a shared understanding of the organization's values, trajectory, and destiny.

Elements of a Compelling Story:

• Critique the status quo
• Evoke a morally resonant future
• Issue a rallying cry

The "Self-Us-Now" Framework. Deep purpose leaders use storytelling to connect with stakeholders on an emotional level. They tell stories of "Self" (their personal journey and values), "Us" (the organization's identity and shared values), and "Now" (the current challenges and opportunities). This framework helps to create a sense of shared purpose and inspire action.

6. Deep Purpose Cultures Embrace Individuality, Not Just Conformity

Deep purpose leaders bind organizational purpose to team members’ personal development and growth, firing up intrinsic motivation and unleashing new levels of commitment and performance.

Beyond Traditional Culture. While many companies focus on creating strong, conformist cultures, deep purpose leaders embrace individuality. They create humane and inclusive cultures that emphasize self-expression, growth, and personal purpose. This approach recognizes that employees are more engaged and motivated when they can bring their whole selves to work.

Connecting Personal and Organizational Purpose. Deep purpose leaders provide opportunities for employees to connect their personal reasons for being with the organization's purpose. This can involve encouraging employees to explore their values, pursue their passions, and use their unique skills to contribute to the company's mission.

Pete Carroll's Approach. Seattle Seahawks coach Pete Carroll exemplifies this approach by fostering a culture that celebrates individuality and supports players' personal development. By creating a welcoming and inclusive environment, Carroll has been able to unlock his players' potential and achieve remarkable success.

7. Escaping the "Iron Cage" Requires Autonomy and Collaboration

These organizational moves fuel trust in the workforce and commitment to the purpose.

The Limitations of Bureaucracy. While bureaucracies can be efficient, they can also be rigid, impersonal, and soul-destroying. In today's dynamic environment, companies need to be more agile and innovative. Deep purpose leaders recognize that breaking free from the "iron cage" requires granting more autonomy and fostering collaboration.

Autonomy and Collaboration. Deep purpose leaders empower employees by giving them more control over their work and encouraging them to take initiative. They also break down silos and foster collaboration across functions, business units, and geographies. This approach creates a more dynamic and responsive organization.

The Purpose-Trust-Autonomy-Collaboration Nexus. Purpose, autonomy, and trust are interconnected. A strong purpose fosters trust, which in turn enables greater autonomy and collaboration. This creates a virtuous cycle that drives innovation and performance.

8. Sustaining Deep Purpose Requires Vigilance and Proactive Measures

To sustain purpose, deep purpose leaders proactively address some key purpose-derailers.

The Fragility of Purpose. As powerful as purpose is, it remains fragile. Leadership transitions, crises, and growth can all threaten to diminish commitment to purpose and erode the moral community. Deep purpose leaders must be vigilant and proactive in addressing these challenges.

Key Purpose-Derailers:

• The Personification Paradox: The risk of purpose being too closely tied to a specific leader.
• Death by (Inadequate) Measurement: The failure to develop meaningful metrics for tracking progress toward the purpose.
• The Do-Gooder's Dilemma: The challenge of balancing social impact with financial performance.
• The Purpose-Strategy Split: The risk of strategy and purpose becoming misaligned.

Proactive Measures. To sustain purpose, deep purpose leaders must attend to succession planning, foster accountability through metrics, manage shareholder expectations, and moor strategy firmly to purpose. By taking these steps, they can ensure that their organizations remain on track and aligned with their animating reason for being.

Last updated: February 14, 2025