Pursuing a purpose

Most employees and employers would answer affirmatively to the question, "Does your organisation have a main objective?" and then provide their interpretation of that objective. But what if different answers arise within the same organisation, even though the main objective should, in principle, be the same for everyone and something everyone can identify with? Using the concept of purpose, I argue why it is so essential for people within an organisation to have a shared understanding of its main objective. For this discussion, I use the following definition of purpose: the reason for an organisation’s existence, beyond profitability, as a means of conveying how an organisation avoids or solves problems. Purpose is therefore comparable to concepts such as mission and vision. While vision represents the "what" and mission the "how," purpose describes the "why": why the organisation was founded and why it still exists today. What do they aim to achieve as an organisation, and how do they strive to realize this? Although most organisations typically have a clear vision and mission, they often overlook the preceding step: the purpose. The popular concept of "meaningful work" is also related to purpose, as it reasons on an individual level why a person finds their work meaningful. Purpose takes this reasoning one step further and examines it on a collective organisational level.

While some might argue that employees go to work simply because they need an income, the idea of purpose offers a more compelling rationale. Actively pursuing a widely supported purpose can significantly benefit an organisation in three ways:

1. A widely embraced purpose within an organisation can enhance its legitimacy. In recent decades, the term "corporate social responsibility" (CSR) has gained significant traction. Profitability alone is no longer sufficient, which is why almost all large organisations contribute to a good cause, a social group, or the environment, with consumer expectations in mind. While CSR primarily legitimizes an organisation outwardly, purpose is more about legitimizing the organisational raison d’être internally. A strongly supported purpose within an organisation fosters employee pride in their work and alignment with the organisation’s mission.
2. In today’s tight labor market, where employees have their pick of jobs, primary and secondary employment conditions are no longer always enough. While organisations could previously differentiate themselves with "luxury" secondary benefits, now they must rely on additional advantages. A strongly lived purpose can persuade a prospective employee to join an organisation. An organisation focused solely on profitability, unable to foster internal connection, and with no further contribution to societal or social themes is generally less attractive than one with a clear goal that strives to motivate and include all its employees. The opportunity to build pride and connection is a significant point for organisations to win (and retain) talent.
3. Purpose can serve as a unique selling point for the organisation, exuding authenticity to customers/users/consumers, competitors, stakeholders, and the external world. Although purpose primarily focuses on the internal organisation, every organisation naturally wants to be perceived externally as unique and authentic. Pursuing a purpose can enhance the organisation’s external image and thereby attract new investors or customers.

In practice, purpose can manifest in various ways, which can also indicate whether a purpose is truly embraced within an organisation. While management often decides on strategic issues, even the operational layers of an organisation should be able to give a consistent answer to the question of the organisation’s raison d’être. Another indication is when employees are proud of their work and do not feel like they have an "ordinary" job. 

Take, for example, a large hospital with many departments and employees who have no direct interaction with each other in their daily work. Despite the clear main objective of helping people, many employees in the organisation do not feel connected to each other and do not perceive themselves as working towards the same goal. This fragmentation within the organisation means the purpose is not widely supported. Characteristics often include a rigid hierarchy with many layers, a strong management structure with little freedom, and consequently, less collective pride within the organisation.

In contrast, a smaller regional healthcare institution demonstrates how the main objective of helping people can indeed serve as a shared purpose. This organisation continuously reminds its employees of the collective goal, ensuring that every employee knows what they are working for. The result is an organisation where employees have significant freedom, minimal hierarchy, and are extremely proud of their work.

Similar differences can be observed in other sectors, such as government institutions, energy companies, and manufacturing industries, between organisations with a shared purpose and those without.

To ensure that a purpose is well-lived within an organisation, people must be thoroughly informed and/or reminded of the purpose. Despite the common assumption, "But everyone in my organisation knows what we’re here for," employees only actively become aware when they are reminded of it. Furthermore, the communication of a purpose should be experienced and supported by a cross-section of the organisation—all types of employees from all types of teams. Thus, a purpose often cannot be communicated by management alone. This sense of ownership in pursuing a purpose is crucial.
Additionally, an organisation must be optimally structured for pursuing a purpose. Organic organisational structures—characterized by low hierarchy, horizontal communication, informal management, consultative leadership, flexibility, and broad job profiles—are well-suited for pursuing a purpose. In contrast, a more mechanistic organisational structure—characterized by clear hierarchy, vertical communication, formal management, directive leadership, and specialized and delineated job profiles—is less suitable for embedding a purpose.

Several contextual factors also influence the success of a shared purpose. For example, larger organisations often find it more challenging to make a purpose work throughout the organisation, while smaller organisations find it more straightforward. Private organisations tend to have a more organic structure than public ones, increasing the likelihood of successfully pursuing a purpose. The complexity of an organisation is another determining factor. While some (often private) organisations have one clear goal, others, such as municipalities and hospitals, have numerous diverse goals. In such cases, fostering a purpose among every employee is an enormous challenge. Although not impossible, complex, mechanistic, and extensive organisations face more difficulty in pursuing a purpose.

While living a purpose is comparable to internalizing a mission and vision, purpose requires a different approach. Given its role in attracting and retaining employees, projecting authenticity, and acting socially responsibly, purpose is suitable for every organisation in today’s world. Organisations should become more aware of what a shared and lived main objective can mean. With the right organisational structure, an appropriate main objective, and a motivated organisation, both the organisation and its employees and employers stand to benefit!