What: MITSloan reviews the conditions needed to implement a purpose which is at the same time bonding all teams together but also contributing to the business advance;

Why it is important: Hubert Joly has given some ideas about the importance of purpose in companies turnaround and transformations. However, the notion can be perceived a bit blurry, which is why the methodology proposed by MITSloan is interesting and based on actual research.

As seen during the chat with Hubert Joly, purpose can be a powerful driver in a company’s transformation and turnaround. It is not however a lever that can be pulled, and needs a shared commitment rooting into the organization’s identity, its role, the reasons why this role is meaningful. As research shows, purpose make a difference in organizations only when it changes the way people operate.

The MIT has developed a set of processes (the “Purpose Strength Framework”) in order to set up a clear process related to setting up a purpose and measuring its impact on the company.

The first step is to make sure that the purpose has power through a shared belief about the identity, meaning and the mission of the organization. To be authentic it must express what is felt is important in the organization. To be coherent it needs to be consistent with the day to day operations. Both conditions leads to integrity. Research shows that when all three criteria are present, employees are doubling their levels of motivation.

Once the purpose has been set, it needs to be communicated, shared and incorporated into operations. This goes through:

• Purpose knowledge: this is made by clarifying how business decisions are based on the corporate purpose. Any opportunity to communicate purpose and manifest it in the organization is a must, and must be visible. A medical equipment company designed its offices following its purpose to make it tangible and visible.
• Purpose internalization: every employee should be empowered to connect the purpose of the organization with their individual values. This is done through explicit processes, such as discovery games or workshops.
• Purpose contribution: it is critical to measure the impact of purpose on the organization. Some companies have set up scorecards helping, at the department level, to follow how purpose has been communicated, implemented and how it contributes to excellence.

Unlock the power of purpose