How Organizational Purpose Drives Company Culture
How Organizational Purpose Drives Company Culture
“All the great leaders, those with the capacity to inspire…. They all start with Why! Great leaders are able to paint a picture of a Future State that does not yet exist, a world that does not yet exist, in words so clear that we can imagine it ourselves—and if we are driven by that cause we want to commit ourselves to help build that world.”
—Simon Sinek, Start With Why
WHY?
It’s the first question we learn to ask as toddlers, and the best question we’ll ever ask ourselves as leaders and entrepreneurs. It all starts with why:
Why does your company exist?
Why do your customers come to YOU to meet their needs?
Why do your employees come to work?
These questions form the foundation of your organizational purpose, your raison d’etre, your BIG WHY. That purpose then drives your long-term vision, dictates culture and core values, and determines everything about how the company will operate—from how you treat people, to how you make money, to what products you offer.
Clarify Your Organizational Purpose
Your organizational purpose is your promise to your customers. It’s the statement that says, here’s why we exist and what you can count on us to do.
A solid purpose statement is not a vague, aspirational, pie-in-the-sky statement like, “We help people reach for the stars!” It’s specific to your business, your offering, and your vision for the future.
At USAA, which serves members of the military and their families, their purpose is to provide extraordinary service to people who have done the same for their country.
LEGO’s purpose is to develop “children’s creativity through play and learning.”
IKEA’s purpose is to offer “a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”
Each example provides clarity and precision, upholding the very identity of each company and the ways in which they measure success.
When you clarify your why, you significantly improve your ability to communicate that why to others. When you communicate your why, you are better equipped to lead and inspire others, build a team with everyone pointed in the same direction, and track your progress toward fulfilling that purpose. Communicating your why not only helps enlist and empower workers, but also entices clients/customers to support the cause. By communicating your purpose with all stakeholders, you build a community around your why.
Foster Intrinsic Motivation in Your Employees
Conventional “wisdom” holds that attractive incentives and proper managerial oversight are the keys to employee engagement. Carrots and sticks are the way, they say.
But did you know that employees consider purpose to be more than twice as important as traditional motivators like compensation and career advancement?
That’s right: More than money, people crave meaning. They want to know that the work they’re doing is fulfilling a larger purpose, that it matters. Unlike rewards and punishments, purpose provides sustainable intrinsic motivation. It remains constant when the effectiveness of carrots and sticks wears off. If you ask people to show up and do their work, they will be more accountable, productive, and effective if they are motivated by the WHY, not just their paycheck.
Use Your WHY to Build Company Culture
If you want to accomplish your mission and fulfill your why, you can’t do it alone. As a small business owner or entrepreneur, you can only wear all the hats for so long. Eventually you need to delegate work and elevate others within your organization. It is critical to both your company culture and your bottom line that those folks are in alignment with your why. Then, your employees become like-minded soldiers that go to combat daily in support of your mission.
To create and maintain that purpose-driven army, you must deliberately build a culture around your why. You must hire a team that is intrinsically motivated by the organization’s purpose and aligned with your non-negotiables.
Here are 3 ways to build a purpose-driven company culture:
Talk about purpose in every job interview. Skills can be taught, but you can’t make someone care about something they don’t care about. Make finding “mission fit” folks your top priority.
Never stop talking about your why. Stay focused on it with Drishti-like intensity. Those who are not aligned will start to find the door, making room for those who are.
Build your carrots and sticks around your purpose. Use them to tap into—not replace—employees’ intrinsic motivation. Reward behaviors that are in line with your why, and find ways to discourage behaviors that aren’t.
Achieve Your Desired Future State
When you hire people who are intrinsically motivated by your purpose and build a deliberate culture around your values, you exponentially increase the likelihood that you will achieve your desired future state. You’ll have the right people on the bus, and everyone will be driven by the same internal motivations toward the same results.
If you need help clarifying and communicating your why, let’s talk. Your desired future state is possible, and I can help you get there.