Your Company’s Purpose Matters More Than You Think
What’s your purpose?
It’s a question most organizations have considered at some point, but it’s not always given the same level of importance as, say, business strategy.
It’s easy to sideline purpose when more immediate concerns—competition, supply-chain disruptions, workforce challenges—dominate leadership discussions.
However, I want to make the case that deeply interrogating your business’s purpose—its raison d’être—is one of the most critical tasks an enterprise can undertake.
Your organization’s enduring purpose is much more than meets the eye— it’s what makes it different, and special, and competitive in the face of today’s AI-fueled market disruptions.
Ultimately, your purpose is more than just a statement of intent—it’s a fundamental claim to your right to exist and a clear articulation of why you matter.
The Power of an Enduring Purpose
In his book, Re:Align – A Leadership Blueprint for Overcoming Disruption and Improving Performance, Dr. Jonathan Trevor presents a compelling argument for defining—or redefining—enterprise purpose.
He contends that an enterprise’s enduring purpose, which provides long-term clarity on what a business does, why it does it, and why it should matter, is the foundational link in the enterprise value chain.
He writes, “The best-aligned enterprises are the best-performing ones because their business strategies, organizational capabilities, organizational architecture, and management systems are arranged ideally to support the fulfillment of the enterprise’s purpose. The implication is that to be highly aligned and high-performing, all enterprises should be led by their purpose.”
To illustrate what he means, Trevor points to Disney as an exemplary case. Disney’s purpose is simple yet powerful: “Create happiness by providing the finest in entertainment to people of all ages, everywhere.”
This purpose drives Disney’s three-part business strategy—products, entertainment, and integrated physical and digital experiences.
The company not only excels in each of those areas individually, but also manages them collectively as a synergistic portfolio. (For example, films support merchandising, and vice versa.)
This concept, known as portfolio integration, is a core organizational capability at Disney, supported by a collaborative organizational architecture.
(You’ll note these three italicized terms in Trevor’s initial quote: business strategy, organizational capability, organizational architecture. There’s a fourth one as well that’s worth noting: management systems. Along with purpose, these terms make up the enterprise value chain.)
By aligning its purpose with its operational structure, Disney ensures that its business strategy remains both adaptable and sustainable, reinforcing its market leadership across generations.
Aligning Purpose with Performance
When we view purpose as the foundation of business strategy, organizational capabilities as the mechanisms for executing strategy, and organizational architecture as the structure that enables those capabilities (a mouthful, I know), we see why purpose must be defined first.
The right purpose, executed effectively, can mean the difference between long-term and short-term success.
In the book, Trevor cites a study that shows that employees who find meaning in their work are twice as likely to be satisfied with their job and three times more likely to remain with their employer than their peers.
He also cites research showing that people who share a strong, idealistic motivation for their work perform significantly better over time.
This makes a strong business case for investing in purpose—not just in defining it, but in ensuring it is widely known, understood, and embedded into the organization’s culture.
Crafting a Purpose That Endures
Defining an enterprise purpose is a crucial first step, but purpose alone does not drive success. It needs to be reinforced through strategy, culture, and daily operations to become a true competitive advantage.
Without integration, purpose remains a concept rather than a catalyst for growth.
Here are three key actions to make purpose a living, breathing force within your company:
- Communicate with Clarity and Consistency – A well-defined purpose should be more than a statement on a website or in an annual report. Your leadership team must continuously reinforce it through internal messaging, storytelling, and company-wide initiatives. Every employee should understand how their role contributes to the overarching purpose.
- Align Purpose with Strategy and Decision-Making – Purpose should be a guiding principle in business decisions, from product development to customer engagement. When evaluating new opportunities or initiatives, leaders should ask: “Does this align with our core purpose?” If not, reconsider its strategic value.
- Embed Purpose into Organizational Culture – Hiring, onboarding, and performance management should all reflect the company’s purpose. Recognizing and rewarding employees who exemplify purpose-driven work fosters a stronger commitment across teams.
When purpose is not just defined but actively lived, it serves as a powerful differentiator in an increasingly competitive and uncertain market. Organizations that lead with purpose don’t just survive—they thrive. (pun intended)
So, what’s your enterprise’s enduring purpose? And more importantly, how are you ensuring it drives meaningful impact?
Take a moment to evaluate whether your organization’s purpose is clearly defined and actively influencing your strategy, culture, and decision-making.
If not, consider initiating a leadership discussion or workshop to refine and integrate purpose-driven principles across your enterprise.
If you need help, I’m here. Feel free to reach out today.
