Beyond profit: how purpose-driven planning creates reliable business growth (part two)
- The GrowthCatalyst Team
- Jun 4
- 8 min read
In our last Insight, we introduced the concept of purpose-driven planning for SMEs. As promised, here’s the second of two parts. This time, we cover the practicalities of implementing a purpose-driven planning approach in your business. You can read (or re-read) the first instalment here.
Be warned! This is about transforming a pretty fundamental business activity and involves something of a mindset shift. There’s a ton of benefits to be realised if you go down this path, so it’s worth the effort from several perspectives.
Key takeaways
Your business purpose can be your business "super-power" in aligning teams and guiding decision-making. Work on making sure it’s clear to everyone.
You can only make this transformation if you deeply and broadly understand your current business state.
It’s critical to have your leaders (formal and informal) 100% supportive
Start with strategy, and don’t compromise on execution
Communicate and seek feedback along the way
As ever, if you enjoy this Insight, please feel free to share it with contacts, colleagues and clients
Start with these five key steps
As we said, when you commit to a purpose, there's a transition and shift in mindset needed.
Often, that's not easy to achieve, particularly when you'll probably need to bring some sceptical people along for the ride. So a structured approach is essential.
Successful implementation of a purpose-driven framework depends on a process that typically follows the following steps:
i) Clarify your purpose
We’ve written about this frequently and you can read more here [LINK]. To put it really succinctly, clarity of purpose comes down to answering the following questions:
Why do we exist as a business beyond making money?
Who is our ideal client and what challenges do they bring to the table that we're great at resolving?
What would be lost to those clients and our prospective clients if our business disappeared?
What principles, values and behaviours guide how we all work in this business?
Once you have the answers and can articulate a clear purpose in less than twenty words, you have the foundation for all subsequent planning activities.
Some tips: Don’t try to do this alone. There’s a back story to every business that can only be uncovered with input from a range of people in your business (and probably some outside it as well).
Structured workshops, focus groups, informal discussions and any other means of communication you care to use will all help with this critical step.
And don’t be surprised if this takes a little time. As a general rule, the bigger and/or older the business, the longer it may take. Patience and focus is needed.
ii) Assess your current state
Again, there are a few simple questions to focus on to get a snapshot of how well your existing planning process delivers to your needs. You should look into:
Your current decision-making methods and what criteria are involved in choosing among perhaps several decision options;
The timeframes your current planning activities cover;
How stakeholders influence your planning and their impact on outcomes;
How you define and measure success;
The communication methods you use to deliver planning messages across the business.
The answers to these questions will uncover the gaps between where you are right now and where you aspire to be from a planning perspective.
Some tips: Look beyond what you as owner/leader believe to be the answers to these and related questions. While you may think decision-making in the business is pretty slick, others may have a different view built on experience. So be sure to ferret out the “real” truth here.
iii) Align leaders
Let's put this as plainly as possible...if you don't have your leaders on board, a move to a purpose-driven planning framework could be a bridge too far.
By the way, when we talk about "leaders", we don't just mean the people who occupy senior roles and are therefore naturally considered part of your leadership group. Most businesses have several "informal" leaders...people to whom others look for support and guidance.
They also need to be behind any change you introduce because they're the true influencers in your business. If you don't know who they are, you ought to find out.
What does "alignment" mean in this context? It means your leaders, both formal and informal, should demonstrate:
A connection/buy-in to the business purpose;
Decision-making that supports and is clearly influenced by purpose;
An ability and willingness to think long-term when it comes to planning;
An equal ability and willingness to look beyond the numbers when assessing performance;
Strong communication skills and the ability to convey messaging that's anchored in your purpose.
In the absence of leader alignment, purpose-driven planning is unlikely to deliver to expectations.
Some tips: Invite your leaders (both “formal” and “informal” to be as open and honest in their appraisal of your current business state as possible. Ask them to tell it like it is. And when you hear their views, it’s best not to take them personally! You need their buy-in for this to be successful – it’s a big change and their commitment can make or break.
iv) Develop your purpose-driven strategy framework
This framework should enable the translation of your purpose into a practical and workable plan that includes:
Your 3 to 5-year (or any other longer term you choose as relevant) vision that describes the future state of your business and is inspired by your purpose;
The major key initiatives or projects that will help deliver your vision;
Action plans and objectives that identify important (and measurable) milestones along the way to achieving your strategic priorities;
KPIs that help all employees understand their role in helping the business achieve its longer-term aspirations.
You might also consider clarifying what you won't do. This is a good way to avoid the "opportunity rabbit holes" that crop up from time to time.
Some tips: “Practical and workable” are the keywords when referencing strategy. Your strategy should detail the projects and initiatives that will help you achieve your business aspirations in a purpose-driven way. As such, this really is where the rubber hits the road. If others in the business – especially those who execute your strategy – don’t buy the story you’re telling, your strategy is most definitely not practical and workable. Keep at it until it is!
v) Communication and engagement
It's disheartening to talk with business owners and leaders who tell us their plans never seem to "stick." They spend considerable time and effort creating a really well-crafted plan, only to be disappointed with the outcomes they achieve.
A while ago, during a project kick-off meeting with a client, we asked team members about their understanding of the longer-term plans for the business. At this point, one of the senior leaders interjected, suggesting that everyone knew about the strategy and where the business was heading. When we asked team members again, we got crickets...nobody had much of a clue.
This is by no means an isolated case and it highlights the need for constant, multi-channel communication with employees to reinforce purpose and your plans. They need to understand what's expected of them, how they should make decisions and the value of their contribution.
When employees have that understanding, they're more engaged and productive, which is great for them, your clients and your business.
Some tips: Isn’t “communication” what so many in business (of any size) most often complain about? There’s not enough, or too much…it’s delivered poorly or using the wrong medium. As a business owner/leader you probably often feel like you’re behind the communication eight-ball.
The best tip?
Don’t over think it. Make your messaging to your teams a clear as possible, take the view that there’s no such thing as communicating that message too frequently and use multiple methods of communication. Couch everything in terms of how your strategy is driven by purpose. Keep it up…don’t lose momentum, and the results will speak for themselves.
Today’s employees want to work with purpose-driven businesses
That much is clear. And it’s just one reason supporting a move to a more purpose-driven planning process.
There’s a range of factors that affect employee engagement, of course. What’s clear, though, is that a large proportion of employees are willing to sacrifice, at least in part, some of the more traditional drivers of engagement to be part of a purpose-driven business.
Many people in the workforce would even take a pay cut to work in a purpose-driven business that they feel aligns with their values.
This is hardly a trivial research finding and should occupy the minds of leaders across all businesses. We’re not talking about employees necessarily feeling like they’re contributing to world peace…they want fulfilling work in a business that recognises other outward-looking priorities can co-exist with revenue and profit.
So do clients
The other significant reason to subscribe to purpose-driven planning – clients and prospective clients
Again, we point to research from various sources that shows clients, when given the opportunity, will choose to engage with purpose-driven businesses over those that aren’t.
Next time you speak to your clients either directly or through client surveys, you should make a point of asking them if they're aware of your business purpose. You'll be surprised at the range of responses you receive and will light a fire under you to embed purpose more deeply across your business. If you don't, your competitors probably will...
Do your clients really get your purpose?
There’s really nothing more to be said on this issue, except maybe to give you a gentle nudge to read this Insight.
On the issue of profitability
One more thing…
Research from around the world shows that purpose-driven businesses can derive superior financial outcomes than other businesses. Some of that research goes back several decades, so it’s hard to dismiss it as a fantasy.
Deloitte, for one, has published data showing that purpose-driven businesses can capture more market share and grow three times faster than competitors. By the way, they also report 30% higher levels of innovation and 49% higher levels of employee retention. You can find the Deloitte report here. Chapter Two, in particular, is excellent reading.
Closer to home, a client of ours experienced a significant uplift in revenue and profitability after working with us on clarifying and embedding purpose. You can see exactly what the owner of that business said by checking out the GrowthCatalyst homepage.
Other than that, if you’re still not sure, we’d urge you to do some more research…but once you’re convinced, do give us a call!
The choice for business is clear
Purpose-driven…or not.
And really, it’s not a choice, is it?
Becoming and remaining purpose-driven is always a good choice.
What’s increasingly apparent is that individuals are to be looking for ways to “make a meaningful impact” in the world of work. That can be as simple as understanding exactly how their role and what they do influences business outcomes other than profit and revenue.
You can allow those individuals to do just that in your business. It’s clear that if you do, you’ll do better than those that don’t.
The same goes for clients. You’ll get more engaged and loyal clients if you can demonstrate a commitment to a broader purpose that shows you want to make a difference in their lives.
This isn’t just a fad that’s going to go away.
Is "spreadsheet planning" still your preferred tool?
Want to change things up for a better result?
A conversation with a GrowthCatalyst adviser could be just what you need. We'll walk you through our Business Profiler and discuss the benefits you can expect it to deliver as you work towards your long-term aspirations.
Contact us to arrange a face-to-face or virtual conversation.
Alternatively, you can book a time for an initial discussion here.
In other news...
GrowthCatalyst has joined forces with several like-minded professionals to form the advisory group Konektis (check us out here). Collectively, the Konektis team provides integrated, multi-disciplinary advice to SMEs to deliver a "one strategy" outcome.
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