Purpose-Driven Leadership: A Complete Guide
In this blog post, we will explore the meaning of Purpose-Driven Leadership, look at some of the benefits it can offer organizations, and discuss how you can put it into practice in your own business.
Purpose-driven people are a rare breed. What inspires them is not fame, fortune, or power, but a sense of calling–something they’re passionate about that goes beyond their own self-interest. They aren’t motivated by material possessions or traditional notions of success. Rather, they find meaning and satisfaction in pursuits that align with their personal values and goals.
Aside from our personal life, having a clear purpose is the key to achieving success professionally speaking.
It’s the personal purpose, or “the why”, in the equation of life that drives us to improve ourselves, those around us and truly fulfill our potential. When effective leaders lead with purpose, they are making a difference in their community. They can reach their goal of having a purpose-driven team which brings about even greater achievements for their company.
So how do you go about finding your purpose as a leader? If you’re looking for a way to take your leadership skills to the next level, then read on, this article is for you!
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“Purpose-Driven Leadership” is a relational leadership model where leaders put their focus on the core values of their organization and let them guide their actions.
For the past decade, experts in business, psychology and academia have been studying the topic of Purpose-Driven Leadership. The pure scientific aspects of purpose-driven leadership aside, we’ll look at it from a business perspective.
Purpose-Driven Leadership means disregarding what you believe is important and focusing on what matters most to your customers. Its philosophy is not about being the best at everything, but it is about being the best at the things that matter most. It is all about creating a shared sense of purpose within an organization and aligning the actions of leaders with the greater values and goals. This resonates with the concept of collective leadership, where all members of the organization work collaboratively towards a shared vision.
When done right, purpose-driven leadership can be a powerful lever of success. It can help organizations achieve their goals, and it can inspire employees to do their best work. Based on a sense of shared purpose, Purpose-Driven Leadership can be successful in organizations of all sizes. So, whether you’re a small entrepreneur or a senior executive at a big company, you should bring purpose into your relational leadership strategy.
We know the charismatic speaker who can motivate a team and get them to achieve great things. We also know the leader who is quieter and more introspective, but who has a deep understanding of their people, what makes them tick and their value. Both types of leaders can make success, yet not to its fullest potential. As it calls on something from both traits, purpose-driven leadership can be a powerful lever for achieving “the big picture-” success.
Purpose… It’s the single most important factor in determining whether employees are engaged, productive and happy at work. And it’s what drives you to do what you do each day. The problem is many leaders have no idea how to create a culture of purpose in their organization. This is where adopting principles of monkey management can be beneficial, as it fosters a shared sense of responsibility and autonomy, driving engagement and purpose.
Purpose-Driven Leadership is a model that calls on leaders to have a strong sense of purpose. The idea is that if you want to be successful, you must have a clear sense of what your purpose is in your organization and how it relates to the larger world. By focusing on these things, you will be able to make decisions with greater clarity and efficiency.
The first step to becoming a purpose-driven leader is to get clear on your purpose. Once you know what your purpose is, it will be easier to steer away from the things that are not aligned with it.
In essence, Purpose-Driven Leadership leans towards the principles of Corporate Leadership, emphasizing the importance of clearly communicated goals and strategies to the entire organization, while ensuring that every decision made is aligned with the overall objectives and vision of the company.
Besides having a clear idea of “what” they do, purpose-driven leaders focus on “why” they do it. A leader’s job isn’t about getting things done, but rather about making a positive difference in the world.
Purpose-driven leaders ask themselves two questions: What am I doing? Why am I doing it? These questions are essential because they help you focus on your values which will lead you to success. The more you can align your actions with your values, the more successful you become as a leader. A purpose-driven leader is clear about their personal values and the values of their organization. They use this clarity to guide their decisions and actions.
If you still have doubts about what your purpose is, it’s time you get to know and apply the 3Ps principle.
Back in the 1990s, Bangladeshi economist Muhammad Yunus introduced the concept of “conscious capitalism”. Through his microfinancing bank, the Nobel Peace Prize winner showed how a “socially conscious” corporation could work and prosper.
This concept is similar to another principle in business theory referred to as the “Triple Bottom Line”. The term was first coined back in 1994 by business writer and businessman John Elkington.
This business management model, also called “3Ps or TBL” could help you define your purpose as a leader based on 3 pillars. The 3Ps principles addresses “success” from a social (people), environmental (planet), and financial (profit) perspective.
The People-Planet-Profit principle makes it easier, not only to determine your purpose as a leader, but also to pursue it! These three P’s, or three areas, are interconnected — if you focus on only one or two of them, you’re missing out on opportunities to grow your business and improve your team’s productivity.
Having said that, however, try not to be one of those TBL adopters that John Elkington has called out for diluting the core meaning of his concept. In an article, Elkington accused “accountants and reporting consultants” of reducing the TBL to just a smart reporting tool that makes them look good. The 3Ps system was originally designed, as Elkington puts it, as “a genetic code, a triple helix of change for tomorrow’s capitalism, with a focus on breakthrough change, disruption, asymmetric growth, and the scaling of next-generation market solutions.”
So, more than just an accounting framework, the 3Ps principle stands for the triple impact (social, environmental, and economic) of a company or organization. As a leader, you’re always looking for ways to improve your, your team’s, and your company’s performance. This concept can help you make leadership decisions that are good for your business and the world at large.
The 3Ps will guide your steps toward becoming more purpose-driven and more effective as a leader. And we’ve made it easier for you by breaking them down below one by one
People: Your Team Goes First.
The people in your organization are its greatest asset, so it’s important to treat them as such. You need to inspire and motivate them so they can achieve their goals, as well as yours as a leader. In this context, employing a trait approach to leadership can be very effective, as it allows leaders to understand and leverage their innate characteristics to influence and inspire their teams. It’s important that your employees feel like they’re part of something bigger than themselves and that they understand why they do what they do. Investing in your employees’ personal growth will help ensure that they feel appreciated and secure in their jobs.
This can be done through training programs, creating opportunities for advancement, offering benefits like paid vacation or health insurance — things that go beyond what you might legally be obligated to provide.
Other than your team members or employees, the word “people” extends to the community and all those affecting or being affected by the company’s business. One way your company is affecting the community is through its climate action, or the lack thereof!
Planet: Pursuing Sustainable Practices
Once you have a good understanding of the people around you, it’s time to focus on the second P, Planet, which refers to the natural environment that we need to survive. What does it take for your business to be sustainable? What can you do for the environment? How can you reduce waste?
Today, being environmentally conscious, individually speaking, is more relevant than ever before! And as far as the planet’s own posterity is concerned, business climate action is of urgent necessity.
As a leader, you should be mindful of the positive (or negative) impact your company has on the environment. It is important that you make environment-friendly choices while creating an
eco-friendly workplace culture for people to thrive without harming nature around them. You, and they, should understand that to ensure business sustainability, you should “go green, and save money in the process (more on that in our next point of discussion).
Profit: Being Succesfull as a Business.
Once we’ve established ourselves as good stewards of our planet and others, we need to envision profitability through purpose-driven initiatives. This means being socially responsible, working towards creating positive change in our communities, and doing everything we can to keep our planet healthy for future generations.
Going green isn’t just good for the planet — it also makes good business sense! From lowering utility costs and reducing waste management costs to attracting new talent with sustainable benefits, companies that embrace sustainability are often ahead of the curve when it comes to innovation and employee retention rates.
So, are you ready to step up and become the leader you were meant to be?
An organization’s energy, resources, passion and focus are constantly being pulled in different directions. To stay true to a common purpose, leaders must learn to remove the distractions and empower employees to do their best work. You must know how to attract those who want to be a part of your purpose-driven organization, and help your business become more profitable.
Now, you can count on technology to have your back! As an AI-powered automation tool, AllActivity helps improve productivity, increase profit margins, and reduce environmental impact. In other words, it checks all the three boxes, or P’s! First, AllActivity connects people within the organization in an efficient way. Two, it reduces your carbon footprint (less paperwork, less waste). And three, it maximizes profit margin through better task and time management.
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