WHY DO YOU MATTER AND TO WHOM ? Some Words About Purpose
(the purpose of a business is to make a business full of purpose)
Most companies in the world still think that the purpose of their business is simply to make money. That is certainly true, to some extent, except that there is enough evidence that making real money is actually a by-product of a higher purpose. Simon Sinek said, and he was right, “People these days don’t buy what you do, but rather why you do what you do”.
So, does your company matter to customers ? Will they shed a tear if tomorrow you are not here ? Whatever the answer is, there are many examples and proof points that having a purpose and aligning the organization to it has a direct positive impact on employees, customers, the financial results and the pace of its innovation.
Take Adidas, as an example. “Through Sports, we have the power to change lives”, they say. Since it’s renewed focus on this higher purpose, they came up with a sport-shoe that is made of retractable ocean plastic, lately with ‘future-craft’ a 100% recyclable shoe that never ends, or a post mastectomy sport-bra. The last 4 years, they grew 18% in sports footwear (while Nike grew 7%) and their stock price sored +380% over the last 5 years. Coincidence ?
“We are in the business of saving our home planet”, says Patagonia and offers to pay your bale if as an activist you get arrested anywhere in the world… No wonder their sales quadrupled in the last ten years and as they report 1 in 2 buyers is a BELIEVER.
Whether your purpose is linear or transformative, if you can live and breathe it, it will serve as a compass and give a clear sense of direction, helping you to define your vision, mission and values in that order.
And so, the PURPOSE of a company is to make a business full of PURPOSE.
Food for Thought !