Every enterprise should embrace a social mission that extends beyond profit, aiming to enhance the well-being of its customers as a primary objective. Failure to establish and communicate such a purpose, and to ensure its integration into all aspects of business operations, risks losing customers, employees, and overall business value. The foundation of profits lies in a clear sense of purpose.
Taking customer experience seriously is imperative as it offers insights into meeting customer expectations. This has evolved into a crucial focus area, now an integral part of business strategy. A lack of a well-defined strategy can impede profitable business growth. The changing landscape of corporate priorities is evident in the evolving customer-business relationship. As satisfaction rises, attention to the customer must intensify.
While many companies excel in their operations, only a few articulate the 'why' behind their actions and translate it meaningfully into 'how.' How can we move beyond merely delighting customers with our products? It is increasingly evident that the 'why' and 'how' have become the most meaningful differentiators for businesses, with 'meaningful' referring to consumers' understanding of what a business offers, its relevance, and its appeal.
So, why is purpose essential? Demonstrating an authentic and credible purpose, beyond mere profit-seeking, contributes to commercial value in an intensely competitive world. Purpose really matters to consumers, as their attitudes and motivations have shifted. Consumers seek brands with an authentic sense of purpose, led by individuals passionate about or genuinely interested in what they offer. Additionally, consumers desire brands contributing to solving or addressing wider societal challenges.
Business success hinges on a shared sense of identity and motivation among owners, employees, and customers, forming a *Shared Value Initiative. This transcends the product, aligning with beliefs and values, ultimately recognising the social impact businesses have, tying into the health and well-being of the communities in which they operate in. Rather than treating social and environmental issues as external factors or responsibilities, companies actively seek opportunities to align their business goals with societal needs. Redefining the purpose of business to improve Shared Value, not just profit, will drive innovation and productivity growth. Organisations are consistently tested for authenticity, with customers judging actions and words based on interactions with average employees, not just the CEO. Authenticity matters.
Purpose is crucial to employees. They seek companies with a shared sense of purpose, finding dignity in their daily work beyond a pay cheque. Southwest Airlines, one of the world's largest consistently profitable low-cost airline, places cultural alignment at the heart of its business philosophy. Employee engagement, understanding, and sharing a common purpose result in increased productivity, loyalty, and enhanced customer satisfaction. As management guru Peter Drucker said, "Culture eats strategy for lunch."
*Coined by Harvard professors Michael E. Porter and Mark R. Kramer in their influential 2011 article "Creating Shared Value" in the Harvard Business Review, the concept of Shared Value challenges the traditional notion that there is a trade-off between financial success and social responsibility.