The rise of the purpose-driven organization – Part 1
Post 1 of 2 on Trend 1 of 5 that organizations must understand and embrace in 2020 to ring in 2030.
1. The rise of the purpose-driven organization with a robust set of values that inform decision making and shape company culture.
2019 marked a significant change in mindset as to what the purpose of a company should be. Shaped by economist Milton Friedman, for the last several decades, the purpose of a company was widely accepted to be simply to create shareholder value.
This changed in August 2019, but we began to see these changes at the end of the previous decade.
Millennials began to turn down jobs in companies that do not clearly define and articulate a higher good for their customers and the community at large.
Venture capitalists began to form funds that would only invest in purpose-driven companies.
In abundance of empirical research started to show that organizations who do good also do well from a financial perspective.
Finally, In August 2019 the definition of a company’s purpose was formally changed by the US Business Roundtable. It now talks about the dignity of work and meeting the needs of all stakeholders including employees and customers.
2020 is the year to define your purpose. How do you add value to your customers and the community at large?