New York, NY–December 13, 2016—In Built to Last, James Collins and Jerry Porras reveal that purpose-driven and values-driven organizations outperformed the general market and comparison companies by 15:1 and 6:1, respectively.
In their book, Corporate Culture and Performance, Harvard professors John Kotter and James Heskett found that firms with shared-values–based cultures enjoyed 400% higher revenues, 700% greater job growth, 1,200% higher stock prices and significantly faster profitability, as compared to companies in similar industries.
Author and leadership development expert Dov Baron describes a company’s purpose as being a hidden calling that’s bigger and more powerful than the established primary driver – profitability. He says the primary driver “is a given, and it is the universal ‘feed my family’ purpose for starting any business.”
Baron says that while the data is in regarding the financial benefits of a company being purpose-driven, the true advantages are less visible from the outside.
“Purpose is the foundation of a company’s culture. It’s the constructive fuel that powers the organization – it’s the glue that binds people as teams and keeps teams aligned with company leadership,” says Baron.
“What is less well known is that a company’s purpose is not obvious or necessarily apparent, even to the people who founded it,” he continued.
Simon Sinek’s famous 2009 Ted Talk “Start with Why” has had over 20 million views, and has inspired an avalanche of corporate Purpose Statements to be created. One of the problems, according to Baron, is the majority don’t go very far beyond the limited guidance that Sinek – or anyone – can deliver in a 20-minute presentation.
Baron says that to uncover a company’s purpose requires deep introspection, and unfortunately, it’s impossible to do this without outside help. “It’s impossible to D-I-Y this type of deep introspective work because nobody is objective in their subjective reality,” he said.
Though, according to Baron, the payoffs for doing the work are varied – and immense.
“Your company purpose becomes the ultimate filter through which all human resources and hiring decisions are made. In fact, at purpose-driven companies, the applicants likely to be in alignment with your purpose seem to magically appear … and those who would never fit in either deselect themselves or never apply in the first place. The average investment in new hires is between 1.5 and 2 times their annual salary, so the potential savings from avoiding ‘bad hires’ alone is substantial,” he points out.
Baron concluded that purpose can be the true and powerful point of differentiation for any company in a commodified market.
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Distributed by iWire News
Company Name: Digital Business Report
Contact Person: John McDermott
Country: United States