The Multiplicative Force of Purpose
- April 20, 2015
Success gurus across the board will attest that being part of something bigger than oneself creates greater satisfaction, happiness, and motivation. In line with that thinking, a burgeoning movement, Conscious Capitalism, seeks to connect, reconcile and basically “force multiply” the twin engines of profit-motivation (capitalism) and mindful sense of purpose (consciousness), recognizing that these need not be mutually exclusive values.
Curious, I took the opportunity to attend a recent event in Los Angeles where our CEO Dave Sackman and VP of Talent Kent Frazier engaged in a public dialogue and constructive debate about the Conscious Capitalism movement in front of an audience of about 200 business leaders from the area. The cadre caught my attention and has me thinking in new ways.
One of the things that clicked for me during Dave and Kent’s dialogue was the idea of the “virtuous cycle” involving Purpose, People, and Profit. The ideas driving the cycle go something like this:
A company having and being motivated by a sense of Purpose can attract the right people to the organization, whose shared sense of purpose leads to high and resourceful energy, unwavering commitment, personal responsibility, and engagement; which translates to happier, more successful and even more purpose-driven clients and, for the organization, more profits… which positions the organization to hire even more of the right people, who can do even better work, leading to even more successful and purpose-driven clients, and more profits… and so on and so forth– all the while contributing to the betterment of society and the world via this shared sense of Purpose.
The future looks bright for purpose-driven companies.
- Purpose-driven companies are positioned to attract the best talent, given the orientation of Millennials, the largest demographic group in US history. A recent piece on Fortune.com and a study by Deloitte shows that one of the top three career drivers of Millennials is not money, but rather purpose.
- Purpose-driven companies, as they have the best people, will likely return more value to their shareholders than companies that don’t. Recall in Good to Great, Jim Collins proved that companies with great people, not just great strategy, reap financial success three times greater than their competitors based on stock price.
- Companies that endear themselves with ALL stakeholders can expect to reap great financial success. Raj Sisodia’s book Firms of Endearment holds and demonstrates that companies that focus on value creation for all stakeholders (not just shareholders, but also employees, customers, suppliers, community, and the planet) are on the road to long-term competitive advantage and perform financially nine times better than peers in the market.
LRW is actively practicing the principles of this movement to optimize our own culture and to help us provide better value for our clients. As market researchers, we’re in the business of understanding people, brands, markets and communities. The virtuous cycle created by employing the Conscious Capitalism principles helps us and our clients understand our interdependencies as stakeholders so we all may achieve great success and do great good together.
Injecting purpose into work is a powerful commitment that begins now with each of us. Consciously identifying your raison d’être may just lead to greater happiness, engagement, results and success. So what’s your purpose?