close
Search:
It seems that purpose is starting to pay off. In DDI’s 2018 Global Leadership Forecast results, the research firm highlights several financial advantages to organizations that define their purpose and act on it. In a survey of 1,500 global C-Suite executives, DDI found that those companies who both define and act with a sense of purpose outperformed the financial markets by a whopping 42 percent. Those companies who talk a good game—that is, they have defined their purpose but don’t do anything about it—performed at the mean of all organizations. And those without a purpose statement and who obviously do not act or behave with a sense of purpose underperformed by 42 percent. Authors Robert Quinn and Anjan Thakor detail the transformation of DTE Energy’s organizational purpose in this Harvard Business Review article. After reflecting on how exactly the company’s purpose ought to change—coming out of the 2008 economic meltdown—CEO Gerry Anderson decided to shift gears and both define and act differently. He wanted to see the entire company act differently. Anderson started with the company’s new declaration of purpose. “We serve with our energy, the lifeblood of communities and the engine of progress.” From there the company and its senior leaders wove the purpose into everything imaginable, be it training, meetings, and even sing-alongs. The result? As the authors write in HBR, “DTE’s stock price more than tripled from the end of 2008 to the end of 2017.” The EY Beacon Institute reports similar good tidings from the definition and enactment of organizational purpose. Over three years the firm found that 58 percent of companies who prioritized both the definition and enactment of organizational purpose experienced growth of 10 percent or more. Compare that with the laggards, those thinking about it or doing nothing. Forty-two percent reported flat or declining revenue over the same period. Boston Consulting Group also found long-term benefits to financial results when compared to an organization’s ability to define and operate with a sense of purpose. That is, purpose has to be truly baked into the DNA of the company. From total shareholder return, EBITDA growth and revenue increase, those purpose-first companies outperformed companies without a sense of purpose by 2X. The results are starting to pile up. There is a definitive link to acting with a higher sense of purpose and the bottom line of a company. So why aren’t more organizations operating this way? First, there is pride. How many CEOs and executives want to admit that their strategy is wrong? That is a sign of weakness. And when there are signs of weakness many believe an exit package is certain to follow. Second, even the word “purpose” continues to have a negative connotation in the land of executives. It sounds soft. It’s not tough. You can’t possibly measure it. Isn’t “purpose” the name of a Justin Bieber album that my children keep playing over and over? Third, Larry Fink is wrong. Some executives believe the BlackRock CEO has lost his stature with the recent push to highlight the link between purpose and profit. “He’s clearly not one of us,” some will mutter in the backrooms of private clubs. “I’m not going down that purpose path. It’s crazy.” But the problem is that it’s not crazy. Purpose is a winning strategy. More and more data suggests that is a strong and positive financial bottom-line benefit to both defining and acting with a higher sense of purpose. I spent the better part of three years researching this concept in the run-up to publishing my book, The Purpose Effect. And since 2016 I have continued to stay very close to the concept. It’s only gathering speed. What side of history do you want to be on?
WORK-LIFE BLOOM

PERSONAL ASSESSMENT

Find out if you’re currently blooming, budding, stunted or in need of renewal through the Work-Life Bloom Personal Assessment.

START ASSESSMENT  

Testimonials

  • Dan is a conference organizer’s ideal speaker. Not only did he inspire and energize our group, but he also masterfully adapted his content so it resonated with the audience and our conference theme. As a bonus, Dan is able to nimbly navigate to adjust to a reduced time slot when other speakers went over time without sacrificing the impact of his session.

    Director and General Counsel
  • Dan accomplished what we set out to do, which was not only to be inspirational, but also to leave everyone with tools and food for thought / self-reflection to improve their personal and professional lives.

    Hermann Handa, FCT
  • Dan challenged us to have clarity of purpose, both as individuals and as an organization. He related inspiring stories drawing on his experience in business, technology and academia. As he said, ‘There is no ownership without belonging.’

    Christian Pantel, D2L
  • Dan Pontefract suggests leaders must be transformational and transactional, collaborative and considerate, daring and decisive, inclusive and insistent, playful and formal, harmonious, and humble, encouraging and results-driven. In a word, Flat.

    Robert Morris
    “How to strengthen engagement, empowerment, and execution, then leverage them for a decisive competitive advantage”

Media Appearances

sidebar hashtag menu home office pencil images camera headphones music video-camera bullhorn connection mic book books file-empty files-empty folder folder-open price-tag barcode qrcode cart coin-dollar coin-euro mobile user users user-plus user-minus key lock unlocked glass mug spoon-knife fire bin switch cloud-download cloud-upload bookmark star-empty star-half star-full play pause stop backward forward first last previous next eject volume-high volume-medium volume-low volume-mute amazon google whatsapp twitter dribbble behance behance-black github appleinc finder windows8 skype pinterest pinterest-o chrome firefox edge safari opera file-pdf file-word file-excel html-five asterisk search search-plus search-minus cog arrow-circle-o-down arrow-circle-o-up edit share-square-o check-square-o arrows question-circle arrow-left arrow-right arrow-up arrow-down mail-forward expand compress eye eye-slash comment twitter-square facebook-square camera-retro cogs comments thumbs-o-up thumbs-o-down sign-out linkedin-square external-link sign-in unlock feed bell-o arrow-circle-left arrow-circle-right arrow-circle-up arrow-circle-down globe filter arrows-alt link paperclip bars envelope linkedin rotate-left bell angle-left angle-right angle-up angle-down desktop mail-reply mail-reply-all chain-broken chevron-circle-left chevron-circle-right chevron-circle-up chevron-circle-down html5 unlock-alt youtube-square youtube-play dropbox stack-overflow apple windows trello female male arrow-circle-o-right arrow-circle-o-left wordpress file-image-o paper-plane paper-plane-o share-alt cc-visa cc-paypal cc-stripe bell-slash bell-slash-o facebook-official trademark registered wikipedia-w question-circle-o