Defining Success: Why Purpose Matters More Than Profit

We've succumbed to an economy driven by stakeholder expectations and rapid societal change, where the concept of success continues to evolve beyond what we thought possible just a decade in the past. Leaders today must look beyond profit margins and shareholder returns to embrace a broader, more impactful definition of success: one rooted in purpose. Purpose-driven organisations are not just a moral ideal; they are a business imperative. The data shows that businesses with clearly defined purposes not only build stronger relationships with their stakeholders but also outperform their profit-driven competitors in the long run.

This article explores why purpose matters more than profit, the metrics that prove its efficacy, and actionable insights on how leaders can align their work with values to create a lasting legacy.

The Business Case for Purpose: A Metric-Driven Perspective

Purpose is no longer an optional add-on for organisations; it has become a core driver of performance and growth. A study by Deloitte revealed that purpose-driven companies are 40% more likely to retain talent, 30% more likely to innovate, and achieve 50% higher customer satisfaction scores compared to companies that focus solely on profit. These statistics underscore a powerful truth: purpose is not at odds with profitability—it fuels it. (Deloitte, Global Marketing Trends)

Similarly, McKinsey research highlights that 82% of surveyed leaders believe purpose is essential for driving meaningful impact. However, only 42% report that their organisation's purpose is effectively realised in daily operations. This gap between intention and execution presents both a challenge and an opportunity for leaders willing to embrace purpose-driven transformation. (McKinsey)

The financial advantages of embedding purpose into business strategy are equally compelling. According to a PwC study, companies with a strong sense of purpose have seen their market value increase by an average of 12% annually over the last five years. Meanwhile, organisations that fail to articulate a clear purpose experience higher turnover rates, lower employee engagement scores, and reduced customer loyalty. (PwC, Purpose-Led Transformation)

Case Studies: Organisations That Lead with Purpose

Several global organisations provide compelling examples of purpose-driven success:

• Unilever: By committing to sustainable practices through its Sustainable Living Plan, Unilever has consistently outperformed market benchmarks. Its sustainable brands, including Dove and Ben & Jerry’s, grew 69% faster than the rest of the portfolio in 2022, accounting for 75% of total company growth. (Unilever Sustainable Living)

• Patagonia: Known for its environmental activism, Patagonia embeds purpose into every facet of its operations. In 2022, the company pledged all profits to fight climate change, cementing its reputation as a purpose-led organisation. This move not only boosted its brand equity but also increased customer loyalty by 20% year-over-year. (Patagonia)

• LEGO Group: LEGO has aligned its purpose with inspiring creativity and sustainability, investing $400 million in sustainable manufacturing and circular economy initiatives. This alignment has helped the company grow its revenue by 13% in 2022 despite economic headwinds. (LEGO Sustainability)

The Leadership Imperative: Aligning Purpose with Strategy

Leadership is the cornerstone of embedding purpose into an organisation. Leaders set the tone for how purpose is communicated, operationalised, and measured. A recent Korn Ferry report revealed that 85% of employees believe leadership plays a pivotal role in creating a purpose-driven culture. Leaders who align their strategies with a clear purpose see improvements in employee engagement, with Gallup reporting a 21% increase in profitability and a 17% rise in productivity among highly engaged teams. (Gallup, State of the Workplace)

To lead with purpose, leaders must:

1. Communicate Purpose Authentically: Purpose isn’t just a mission statement on a website; it must be woven into every communication. Leaders who authentically articulate their organisation’s purpose see stronger buy-in from employees and stakeholders alike.

2. Embed Purpose into Metrics and KPIs: Measuring purpose-driven initiatives ensures accountability. For example, setting sustainability targets or tracking community impact metrics provides tangible evidence of progress.

3. Lead by Example: Leaders must embody the purpose they preach. When leaders model purpose-driven behaviour—whether through community engagement, ethical decision-making, or transparent governance—they inspire others to do the same.

The Human Element: Purpose as a Driver of Engagement

Purpose is not only good for business; it’s essential for people. A LinkedIn survey found that 74% of employees want to work for companies where their work makes a difference. When employees feel connected to their organisation’s purpose, they are 3.5 times more likely to be engaged at work. This engagement translates to reduced turnover, higher morale, and greater innovation. (LinkedIn Global Talent Trends)

Purpose-driven cultures also prioritise employee well-being. For example, Salesforce’s Ohana culture, centred on trust and collaboration, has reduced attrition rates by 50% compared to industry averages. By putting purpose at the heart of their operations, organisations can foster environments where employees thrive.

Purpose Beyond Profit: The Path Forward

As we redefine success for the 21st century, it’s clear that purpose must take centre stage. Organisations that align their strategies with values not only create lasting impact but also secure their place in the future. Purpose is what differentiates companies that merely survive from those that thrive.

For leaders, the challenge is clear: purpose must not only be articulated but also operationalised. It’s a long-term commitment that requires clear vision, measurable goals, and authentic leadership. The rewards, however, are undeniable—greater resilience, stronger stakeholder relationships, and a legacy that outlasts financial results.

As we move forward, the question isn’t whether purpose matters. The question is, are you ready to make it the foundation of your success?

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About the Author:

Jeev Sahni is a seasoned strategic leader with over a decade of experience in strategy development and operations, particularly within the management consulting, healthcare, and pharmaceutical sectors. His tenure at Becton Dickinson & Company was marked by significant contributions to the company's growth and presence across the Middle East, including the successful launch of disruptive infusion devices in the region. As a strategic advisor to multiple organisations, Jeev's strategic vision and execution capabilities have been instrumental in driving growth and innovation across various market segments in APAC, EMEA, and LATAM.

An avid marathoner, Jeev's passion for purposeful growth stems from working with organisations such as Médecins Sans Frontières towards developing frameworks that support mental health across all age groups. He is also a corporate mentor to the BBA students at IE Business School, where he shares his insights on resilience, leadership, and growth.

WHAT I DO:

At Jequity Global Advisory, I specialise in helping Boards, CEOs, and Founders build and scale high-impact, for-profit organisations. I work closely with businesses in emerging markets to develop strategies that align profitability with purpose. From leadership development to navigating market complexities, I ensure every initiative we design is actionable, sustainable, and results-driven.

WHY IT MATTERS:

Leadership and strategy can be the make-or-break factors for success. By focusing on both impact and growth, I help organisations unlock their full potential- ensuring they thrive in competitive environments, attract top talent, and create lasting value. If you're aiming to scale or pivot, aligning strategy with execution is mission-critical, and that's where I come in.