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Purpose as True North
An authentic purpose functions as a company's "True North", guiding its strategies and behaviors. It provides a moral compass for decision-making beyond just profits.
Benefits of Purpose
Cultivating a sense of purpose beyond products and services provides many benefits. It boosts employee satisfaction, fuels innovation, strengthens stakeholder relationships, and builds trusting brands.
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Purpose Discovery (120 words)
Companies should look inward to discover their guiding purpose.
It often requires deep contemplation of the founders' visions and analyzing how the company's competencies address human needs.
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Purpose Communication
- Once defined, purpose should be integrated internally through training, narratives, and leadership modeling.
- Externally, communicating purpose through advertising, packaging and branding enhances consumer connections.
- Strategies across the organization should reinforce purpose.
Hiring, training, products, partnerships, and incentives should activate purpose, not just talk about it. Otherwise, purpose rings hollow.
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Purpose Governance
Governing policies and structures should safeguard purpose.
Executive compensation, shareholder communications, CSR initiatives and impact reporting should be guided by purpose, not undermined by it.
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Purpose Evolution
- As the world changes, a company's sense of purpose will need to evolve.
- Leaders must continually re-examine if current purpose still motivates employees and meets customer needs.
- Refreshing purpose requires tapping into founding ideals and envisioning future opportunities to serve.
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CURATED BY
CURATOR'S NOTE
In Deep Purpose, Harvard Business School professor Ranjay Gulati examines how leaders and organizations can cultivate a deeper sense of purpose that drives meaningful growth. Through research and examples, he provides a framework for aligning company values with value creation.
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