CEO at WinWire Technologies, assisting Senior IT Leaders in helping them support business transformation.

getty

For more than a century, building businesses that generate profits was viewed as the only road to success. Recently, a shift in thinking occurred, and the purpose-driven business model emerged. Here, corporations view serving others as not only their cornerstone but also the best way to build a successful business. The Covid-19 pandemic forced just about all organizations to reevaluate their modus operandi, and many are replacing legacy objectives with purpose-driven ideals.

For example, one of our clients is a top-rated national distributor of books to public libraries and schools and has been on a journey to shift their focus from being a service-oriented organization to becoming a community outcomes provider. The company was in a prime position to launch innovative programs in response to Covid-19 "stay-in-place" orders that provide parents and families complimentary digital public library content, as well as mindful stay-at-home activities.

Traditionally, manufacturing principles drove established business models. As I've written about before, these companies were left-brain oriented. They were focused on logic and took steps that would increase the amount of money the corporation generated versus the volume it spent.

What It Means To Be Purpose-Driven

Purpose-driven corporations commit to additional objectives, such as building a diverse workforce. Nowadays, diversity is widely discussed and means embracing individuals of different genders, races, ethnicities, faiths and socioeconomic backgrounds. Purpose-driven companies broaden that definition. They see the company as a tapestry made of its individuals; the more diverse the pieces, the more beautiful the design. They embrace not only individuals' traditional diversity measures but also diverse brain trusts. They understand that both emotion (a more right-brained function) and logic are needed to create a successful enterprise.

Certainly, during a volatile time like the Covid-19 pandemic, the need for emotional support is evident. Companies may be tempted to protect themselves because of the unprecedented economic uncertainty. That outlook can result in trauma and pain for the employees, who may lose their jobs or see their wages drastically cut.

The purpose-driven company moves in the opposite direction: They shield employees when times become difficult. They create organizations where the main goal is to have a meaningful impact on customers, the communities they serve and the world they live in. During times like this, everyone understands the need to move us all in a positive direction.

The purpose-driven enterprise uses technological advancements to improve society, often in breathtaking ways. During the pandemic, they practiced smart generosity, a term coined by Carol Cone. They do more than contribute a percentage of their revenue to their favorite charity. They create products and deliver services with altruistic rather than capitalistic goals.

How Smart Generosity Bears Fruit

For instance, my company developed an artificial intelligence health care bot. The solution automatically presents updated, accurate Covid-19 information and recommendations from the Centers for Disease Control (CDC) and World Health Organization (WHO) to health care providers.

Other instances of companies embracing purpose-driven principles during these difficult times were seen in:

• Personal care and alcohol companies quickly switching from producing their products to hand sanitizer.

• Companies using their 3D printers to create ventilator drawings and components.

• Automobile manufacturers retooling their lines to create ventilators.

• Educational technology firms delivering their solutions so students can learn online.

An example of this embrace is how the aforementioned client helped launch a partnership with a children's magazine to create e-books aligned with social-emotional learning activities and provide unlimited access for families. They're a fun, interactive way to engage children, guide parents in tutoring and reduce overall anxiety during Covid-19. Literacy-driven community outcomes are a silver bullet that helps with societal problems: According to the International Literacy Association, the cost of illiteracy in the U.S. is over $300 billion. The company built activism into its purpose.

Consumers recognize, praise, and connect with brands that show such foresight and leadership. The benefits seem like more than a short-term boost. The pandemic forced companies to retool their operations dramatically. Because many expect the virus to linger for at least several more months, these changes seem more like the "new normal" than a temporary fix. Companies have found new ways to do business. So it is not surprising that the new model has been gaining ground: Even in 2019, 93% of companies surveyed were "somewhere" on their purpose-driven journey, according to a survey (download required) by ANA, The Harris Poll and Carol Cone On Purpose.

Time To Make A Change

Yet many companies are early in the transition. While 86% of B2Bs said purpose was important to their business and that they have a stated purpose, only 24% have embedded that purpose into their operations, culture, innovation and engagement with society, according to the survey.

To make the switch, management should identify employees who believe in the purpose-driven mission so much that they drive that thinking throughout the company. Around 21% of respondents fell into the category of "believers," according to the survey. Companies should identify and empower these team members so the corporation can build a solid foundation for the future.

The pandemic shook corporations at their core. Many struggled as revenue and profits plummeted. To be successful culturally as well as financially, organizations should adopt a purpose-driven model, the ideals and benefits of which have become crystal clear during these very murky times.

Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?

Source: Forbes

Powered by NewsAPI.org