Effective leadership is a must in the successful growth and thriving culture of any organization. Gone are the days when a disengaged, ruthless corporate leader with little regard for their employees or customers could build a thriving business and enjoy seamless expansion.
Whether you’re in charge of a small, family-run business, are launching a startup, or run a multi-million dollar corporation, your innovation, vision, and engagement sets the tone for your entire company.
If you’ve implemented a strategic business plan, incorporated your vision and values in your business model, but still struggle to retain talent and lead your company into a bright future, you may need to re-evaluate the purpose that drives your leadership methods. Guiding your business with compassion and integrity through purpose-driven leadership can prove the key you need to unlock the success you long to achieve.
What is Purpose-Driven Leadership?
If you’ve been involved in managing or running a business in any sector over the past couple of decades, chances are you’ve heard “purpose-driven leadership” used in motivational speeches, company literature, marketing material, and more. But what exactly is purpose-driven leadership?
Purpose-driven leadership aims to inspire, motivate, and engage, and can set up your organization to achieve explosive growth. Purpose-driven leaders connect their personal values and passions with their business models, and emotionally invest in the mission of a business. By deriving personal meaning from their work, these leaders convey resonance and help to acquire, engage, and retain top talent.
If you struggle to discern how to lead with purpose, you’re not alone. According to Harvard Business Review, fewer than 20% of people in leadership positions have a strong sense of their own purpose and life direction. However, once you’ve tapped into your own “why” for your professional and personal life, you’re better equipped to inspire others.
Purpose-driven leaders often embody the following qualities and skills:
- Building a sense of community and investment among employees, shareholders, customers, and more
- Challenge to the status quo
- Clear communication skills
- Cultivation of a growth mindset
- Global difference makers
- Innovative and trail-blazing practices
- Leading by example
- Passion for bettering the lives of others/ never in business solely for personal gain
- Risk-taking
- Transparency
- Understanding of the customer journey
How purpose-driven leadership can positively transform your business
If you instill leaders who exhibit the aforementioned qualities, you may find that purpose-driven leadership quickly transforms both the way you do business and the success of your ventures. By working from a foundation of purpose, you (and your team) begin to see how every action — regardless of how small or large — can propel you forward and have lasting impact.
Purpose-driven leadership is built on compassion for your workforce and those you serve. When you lead with integrity and ensure that your “why” aligns with the vision and mission you espouse, this resonates with and motivates others.
Authentic purpose can provide the following ripple effects to your business culture and successful growth:
- Creative collaboration:
When people can align their own purpose with the purpose of your business, they may become more open to, and actively seek, creative collaboration. Purpose-driven leadership allows your team to feel more motivated to contribute to work that can change the world and find creative, collaborative solutions to challenges.
- Fulfillment:
When your workforce understands the unique purpose behind your business and can see how their work actively contributes to this purpose, you may find that your team — from executives to entry-level workers — feel more fulfilled.
Fulfillment can lead to greater talent acquisition and retention. According to HR Executive, 87% of U.S. employers recognize the vital need for a thriving workplace culture, and purpose-driven leadership can lend to a healthy, successful culture. The publication also found that 88% of employees long for a fulfilling work experience.
- Measurable impact on customer and client base:
When your strategic business plans are implemented through purpose-driven leadership, your purpose influences each detailed step. This allows you to see your purpose positively impact the people you serve as you achieve measurable goals.
Why compassion is vital to successful leadership
Successful purpose-driven leadership still requires the ability to make tough decisions. However, approaching challenges with transparent honesty and understanding can go a long way toward building sustained success. Compassion and integrity are infectious and inspiring, and can influence your workforce along with your customers and clients.
For example, say an outstanding member of a team begins to seem distracted at work. Once jovial and charismatic, this person has become sullen and distant. Their productivity noticeably drops, and they no longer bring innovative ideas to the table. A purpose-driven, compassionate leader might meet with this team member, ask them if everything is okay in their personal and professional life, and collaborate to find a solution to their sudden work challenges.
Compassionate leaders are:
- Active listeners
- Approachable
- Collaborative
- Empathetic
- Focused on people over product
- Inspiring communicators
- Open to feedback
- Supportive
How to lead with integrity
Leading with both integrity and compassion can provide a phenomenal foundation for purpose-driven leadership. When your leadership reflects compassion, your customers and your team will feel valued. When you’re transparent and truthful, your employees and customers will trust you.
To lead with integrity, it’s important to ensure that your words and actions align with your espoused values. For example, if you emphasize community service as a company value, but your business isn’t involved in “giving back” to the people you serve, your integrity might be called into question.
Businesses that lead with integrity:
- Are committed to ethical practices
- Audit practices to ensure consistent alignment with values
- Communicate with transparency
- Course correct to reflect values and to serve customer needs
- Emphasize workplace accountability
- Take responsibility for mistakes and missteps
- Welcome client and customer feedback
3 ways to master purpose-driven leadership
By leading with integrity and compassion, you can easily establish purpose-driven leadership in your business. Here are three practices that you can implement to transform your organization and experience the positive impact of a purpose-driven mission.
Clarify your purpose
Avoid using vague language in your strategic business plan and when defining your values. Make sure that your company’s mission statement is clearly stated and easy to follow. Revise your mission statement and business practices to reflect the necessary details to achieve your overall purpose.
Empower your team
Empower team members to share ideas, make decisions, and own their triumphs and failures. When employees feel valued and trusted, their high-quality production tends to increase. If they make mistakes, they’ll feel empowered to rectify and conquer these challenges. Empowered employees are loyal employees.
Promote diversity and inclusion
Surrounding yourself with “yes” people only can lead to disaster. Diverse ideas can lead to collaboration that aligns with your purpose. Create a healthy workplace culture where every individual is respected, regardless of their position or background. When every position matters, people will feel included in your purpose and as if they’re contributing to your mission.
Examples of purpose-driven leadership
Many popular, 6-figure (and beyond) organizations have adapted a purpose-driven leadership business model that has led to success. Some of the most high-profile examples include:
- Ben & Jerry’s:
The successful ice cream brand advocates for social responsibility in alignment with the values of the purpose-driven leaders leading the charge. Ben & Jerry’s mission includes three core values that work in conjunction with one another: Product Mission (fantastic ice cream for its own sake), Economic Mission (to create sustainable financial growth), and Social Mission (making the world a better place through innovation and advocacy).
- Bombas:
Bombas sells high-quality, comfortable socks, t-shirts, and underwear while also bettering the lives of people in need. Every purchased product is matched by a donation to people experiencing homelessness. For Bombas, the products serve the company’s great purpose-driven mission.
- Patagonia:
Outdoor retailer and clothing outfitter Patagonia provides an excellent model for successful purpose-driven leadership. Under the direction of founder Yvon Chouinard, the brand has spent decades actualizing its company values through tangible practices.
For example, Patagonia apparel is manufactured using only the best durable, environmentally-friendly materials, and the brand often spearheads educational and environmental campaigns to positively affect global change.
The aforementioned corporate examples highlight extremely successful organizations that have authentically developed purpose-driven leadership. Embracing a purpose-driven leadership model and leading with compassion and integrity might be the key to creating a healthy culture and taking your own business to the next level.
Ryan Niddel is the CEO of MIT45, serves on the board of multiple 7-figure (and beyond) companies, and is considered Ohio’s top growth specialist. He’s helped numerous organizations develop successful purpose-driven leadership.
If you’re ready to unlock your full potential as a purpose-driven leader by leading with integrity and compassion, take your business to the next level, and experience exponential revenue growth, connect with Ryan today to schedule a free consultation.
