The Path to Creating Meaningful Organizational Purpose

Let’s talk company purpose and what it means to put into practice.

Having a purpose that goes beyond making money became a more prevalent conversation since 2020 with the ongoing pandemic and political and social unrest spurring action.

It is no longer enough to say your company has purpose: You must practice purpose and get employee buy-in to achieve meaningful engagement. Otherwise, purpose serves no one other than being a bunch of words on paper or a company website.

Over the last two years, Arketi leaders have held conversations with many business-to-business (B2B) technology organizations — specifically their marketing executives — regarding corporate purpose. 

We talked about why purpose matters to those companies, how to define it – or in some cases evolve it — and how to build the type of culture where employees embrace and embody purpose. 

From these conversations, we gathered powerful, eye-opening information through our “Purpose in Practice: How Marketers Define, Communicate and Measure Organizational Purpose” survey and are turning these insights into action. 

Not surprisingly, nearly half (49%) of the more than 80 respondents said 2020 impacted their company’s approach to purpose, leading to increased engagement with employees and reexamining its focus. 

The link to financial success

Survey respondents unanimously agreed purpose activation is directly linked to their company’s financial success. So, while purpose should not be about making money, putting purpose into practice increases the likelihood of becoming more financially sound.

Further, respondents indicated the biggest benefit of activating purpose is having a positive reputation at 40% followed by employee retention at 33%. One-fifth (21%) of participants said being a purpose-driven organization increased sales, while 6% said it helped with employee recruitment efforts.

And while most (94%) of respondents said their organization has a defined purpose, less than half of them (49%) had a seat at the table in developing it.

The challenges of putting purpose into action 

In tallying survey results, 84% of respondents believe purpose activation should be a part of a company’s communications strategy. At the same time, we discovered the journey of putting purpose into action comes with bumps along the road, including:

• Communicating purpose in a way that resonates with all employees, regardless of their location or tenure — 30%.
• Connecting purpose activation to the company’s bottom line and business objectives — 26%.
• Measuring the effectiveness and value of purpose activation — 19%.
• Getting leadership to agree what purpose activation looks like — 16%.

Perhaps some of these challenges exist because purpose is often developed in a bubble. When a leader sets the agenda without buy-in from other leaders and employees, purpose fails because employees feel disconnected or think it is irrelevant. Purpose can also miss its mark if it fails to transcend borders or withstand acquisitions.

You cannot force purpose on employees — rather, seek their input to make sure purpose is impactful to current and prospective employees, customers, partners and investors.

Many of the leaders surveyed have had a difficult time breaking purpose down into a digestible, actionable pursuit for employees. They struggle conveying how employees can not only embrace but live company purpose in their everyday lives.

Although many respondents have anecdotal evidence regarding how purpose resonates with employees and other stakeholders, they lack the ability to use this information to make strategic decisions.

In addition, communicating how the organization delivers on its purpose externally often sounds too self-serving. 

The importance of employee buy-in

Many of the salient points surfacing in our survey point to the importance of employee buy-in. To measure the effectiveness of their purpose among employees, the top three channels used are employee surveys (78%), content engagement (73%) and focus groups (19%). 

And when communicating company purpose among employees and external stakeholders, the company website is the top channel used. Other favorites included all-team meetings, intranets for employees and social media and PR/media outreach for those outside company walls.

Now more than ever, purpose is considered a core business strategy for global B2B companies. And not just having a purpose — but activating it.

Companies practicing purpose right are in a better position to attract talent, ignite employee potential, inspire innovation and deepen employee and customer relationships. The results of our survey reveal advantages aligned with stronger corporate cultures, communications and bottom-line success.