Brand purpose and leadership, as an elementary navigator in today’s complex world

Purpose-driven brands and leadership are proven to have greater business success, while achieving higher employee and customer satisfaction. The current COVID crisis has made the challenges for organizations, leadership and employees even greater. Purpose is increasingly touted as the key to navigating today’s complex, volatile, ambiguous world, where strategy is constantly changing and few choices are obviously right or wrong..

We are in the „Age of Purpose“ – Purpose as a collective value for brands, as a leading force in personal and professional development; and as a driver of business decisions aimed at creating long-term value, building resilience, and driving conscious stakeholder decisions. The „Age of Purpose“ continues to gain momentum with COVID and themes such as sustainability, equality, diversity and inclusion. Demand continues to grow for new products, services and business models that deliver both purpose and profit. Leaders who understand and actively live Purpose will succeed in the face of environmental, social and economic uncertainties.

Company, brand purpose, what is it

The corporate purpose makes a contribution to society that goes beyond profit maximization, it provides orientation, activates intrinsic motivation and is an energizer. The classic Corporate Purpose has evolved into a higher Purpose that takes greater account of societal concerns. This is because the Corporate Purpose tells the world and people from all the stakeholder groups reached what the company wants to and can do for them economically, ecologically and socially to make their lives better.

Examples like:

IKEA: “to create a better everyday life for the many people”
Lego: “To inspire and develop the builders of tomorrow”
Patagonia: “Patagonia is in business to save our home planet.”

Of course a magnificent statement is absolutely meaningless unless it is backed up by solid, measurable commitments. It is of great importance that the purpose of the company can be experienced, otherwise the brand loses credibility. Today’s purpose shifts from why to how, and companies need to close the purpose gap. A McKinsey survey found that: 82 percent affirmed the importance of purpose, but only 42 percent reported that their company’s stated “purpose” had much effect (exhibit).

Closing the purpose gap

How do we convey a sense of purpose across a broad range of environmental, social and governance (ESG) priorities?

Understand the purpose: Review the purpose and values as an individual and from a business perspective, if unclear, challenge the status quo.
Identify the gaps: anyone can identify the gaps or come up with ideas. This may take some courage, but that’s where it starts. As a company or leader, it’s important to understand the gaps in the first place.
Get real: connect the purpose to the core of the business. Review the strategy, the products and services, the operations, and the organization itself.
Engagement: stakeholder and executive engagement is still absolutely essential, but it won’t succeed without employee buy-in.
Make the purpose tangible: Only when you can connect the statements to experiences does a purpose manifest itself
Top of minds: keep the purpose in everyone’s mind every day to ensure continuity
Measure and reward: Implementing metrics to demonstrate success and rewarding exceptional performance will help accelerate further.

Purpose-driven leadership

Academics argue persuasively that the most important role of a leader is to be a steward of the organization’s purpose. Business experts argue that purpose is a key to exceptional performance, while psychologists describe it as the path to greater well-being. Medical professionals have even found that people who have purpose in their lives are less prone to illness.

Principles of purpose mastery for leaders

Understand, know the purpose and values of the organization
Question if not clear or missing
Identify your values and align them with the organization
Act on the purpose, respect the ecosystem
Be a role model and commit
Learn from mistakes and adjust your behavior
Be flexible and non-judgmental
Discuss, share and learn with others

Purpose-driven leadership in times of COVID

In times of COVID, the central questions are how to maintain the relationship with teams and individuals in the virtual world. How work performance and motivation within the company can be revitalized over a longer period without physical contact. The challenge for leaders is not so much to control goals, but rather to create a sense of belonging within the team and the organization despite the distance. This is exactly where a common purpose – a common goal and vision can be more important than ever. That’s why companies and leaders need a very clear idea of why they do what they do. Especially in difficult times, the Purpose functions like an „inner compass“ a navigator that can give hope, courage and belonging.