Organizational purpose is critical to success, distinct from mission and vision. It brings significant value, including elevated shareholder returns, increased employee engagement and retention, and higher productivity.
Embedding purpose effectively requires authenticity, application across the organization, and consistency with current realities and behaviors. It must be executed across culture, strategy, and brand to have maximum impact.
When purpose is well-embedded, it becomes a cultural norm and "muscle memory" for the organization, manifesting in everyday actions that reflect the purpose.
Meeting Notes:
The Importance of Organizational Purpose
Ashley M. Grice shared a personal experience with a Delta flight attendant who went above and beyond by thoughtfully providing the speaker with a bag of almonds before their flight, exemplifying Delta's purpose in action.
Purpose plays a critical role in organizations, distinct from the mission (what they do daily) and vision (where they are headed).
It is the "why" behind an organization, found at the intersection of who they are at their best and the role they are meant to play in the world.
It is rooted in the organization's ethos and aspirations, and is timeless.
Well-embedded purpose across organizations brings significant value, including:
Elevated total shareholder return
Increased employee engagement and retention
Higher levels of productivity
Embedding Purpose Effectively
Purpose needs to be authentic:
Rooted in the organization's ethos
Distinctive to the brand
Meaningful to all stakeholders
Consistent with its values
Ashley M. Grice cited Optus, an Australian telecommunications company whose purpose "powering optimism with options" is authentic to its brand as a challenger promoting positivity.
Purpose cannot be superficial or disconnected from the organization's current realities and behaviors.
Excavating purpose must be done from the inside out, as it can introduce tension between idealism (who they want to be) and realism (what they are capable of).
Purpose must be applied across the entire organization:
At the C-suite, to unify mission, vision, and influence strategic agenda.
For middle managers, to provide clarity, authority, and guardrails for decision-making.
For frontline employees, to understand how their work contributes to the overall company value, making them feel seen (e.g., the NASA janitor story).
The Impact of Purpose on Culture and Strategy
When purpose is well-embedded, it becomes a cultural norm and "muscle memory" for the organization, manifesting in everyday actions.
Ashley M. Grice cited the Delta flight attendant's gesture as an example of how purpose becomes ingrained in the organizational culture.
Purpose must be executed consistently across the organization's culture, strategy, and brand to have the greatest impact.
The Delta flight attendant's actions reflected purpose executed across Delta's culture (her thoughtful gesture), strategy (serving customers), and brand (going above and beyond).