How to build an organization that makes an impact

Amidst today’s multifaceted challenges, whether it’s economic turmoil, supply chain disruptions or the social media firestorm, managing to stay afloat can consume a leader’s day. However, the narrative among decision makers goes beyond simple survival. they want to make an impact.

The search for purpose is not new, but in today’s digital maelstrom, it is turning into a complex endeavor. The world has been based on profits for a long time and now it is entering a new era. Consumers demand to see brands with purpose. In an effort to attract and retain audiences, companies “they compete for social purposes.”

In this area, many business leaders are on a journey to find purpose. Some have stepped up their philanthropic initiatives, while others have made a commitment to sustainability. From November 2023, almost 8,000 organizations are registered as B Corporationsan emblem of their commitment to promoting social and environmental impact.

However, a lot of founders are hesitant to rush to define their purpose. They aim to move beyond shallow support for causes or weak gestures towards sustainability. The aspiration is to manifest a profound impact aligned with their organizational ethos, but it is a journey hampered by external pressures for immediate resolution.

How can leaders find their purpose?

Amidst all the noise, organizational leaders and decision makers need ways to define their purpose with clarity and confidence. Only by identifying a true, genuine purpose can teams embody that purpose through smaller, everyday actions.

1. Embed thoughtful leadership and inclusive hiring.

Purpose should not conflict with profit. Instead, they can complement each other. Let’s say an organization’s mission is to create a better world. Even if it focuses on improving the lives of a specific group in a small area, the same fundamental principles can guide the company in discovering its social and environmental goals.

Myong Lee, founder and CEO of Clever Care, a healthcare company dedicated to helping underserved populations, believes that economic and social returns are not mutually exclusive. “When you’re building a mission-driven organization like ours, it’s critical to define a culture with principles that align with that mission, and any culture you create will be defined by the people you hire,” says Lee.

Purpose flows from leadership to employees and from employees to the end user. That’s why Lee sees his company as a family business. advises its employees to “treat our members as you would your own family.” To do this requires a high level of detail, care and relevance.

For example, Clever Care prioritizes hiring people whose cultural backgrounds align with those of the company’s target audience. By hiring staff who share experiences with end users and speak the same languages ​​as end users, Clever Care aims to create a more inclusive and welcoming environment for clients.

2. Build a community, not a product.

Many ideas that favor business growth also align with the purpose of manufacturing and make an impact. For example, framing a brand as a community rather than just a product line can enhance audience members’ sense of belonging. This, in turn, encourages customers to stay longer, spend more and engage more.

“Community-driven product development relates to the go-to-market strategy that focuses on the community of consumers who support the product and the company that produces it as a tool for customer acquisition.” writes Naimeesha Murthy, founder of Products by Women. “It relies on community input to develop the product and the company. It places value on building relationships with consumers and aims to build brand loyalty and ultimately increase revenue.”

Leaders can approach the search for purpose as the search for the glue that binds their community. What do the people a company serves need to feel united as a community? What common cause or concern do they share? What change do they and by extension the company wish to see in the world? Leaders should focus intentional actions around this catalyst for change and lead their communities on the journey.

3. Let purpose drive innovation.

Innovation and agility are often hallmarks of tech entrepreneurs, typically used in the context of monetization during periods of rapid growth. However, agility can also be seen as a companion to purpose.

Once leaders engage with their communities and make purpose-driven decisions to better serve their members, they can spark innovation and adapt their business models in regular, mission-oriented ways. For example, if a community’s goal is to support busy, working parents in managing their mental health, a leader might explore various tools to help employees enjoy more personal time.

Innovation also involves adapting when current approaches are not effective and maintaining the flexibility to discover new ideas. If leaders notice that their communities prefer one type of service over another, they can use an innovative mindset to shift toward their preference. This prevents companies from being left behind.

Leaders can use these three tips to define the purposes of their organizations. But don’t stop at the recognition step. continue to invest in initiatives to enhance overall impact.