The return of purpose…

Good to see the FT’s Andrew Hill picking up on the return of purpose as a key factor in corporate success. Lauded back in the mid-nineties by Collins and Porras in Built To Last, their mighty fine exploration of the most succesful visionary companies, the P word was apparently on the lips of many a CEO at this year’s World Economic Forum in Davos. “The most important thing is to focus on purpose,” said Bank of America’s Brian Moynihan. “You have to be a purpose-driven organisation,” said EY’s Mark Weinberger.

While purpose seems to be back in fashion, there is according to Andrew Hill some uncertainty over what we actually mean by the term. However, bearing in mind the essentially social nature of business, when you root purpose in the common interest, the shared endeavour, the collective action of a company, rather than, say, individualistic notions of why you go to work every day, the fog lifts.

Purpose is simply what we are all here to do together. Express that clearly and with feeling and you will have a powerful reason for people to work with you and buy from you and an enduring guide for good actions.

Andrew Hill highlights a great example in his article. When Ellen Kullman, chief executive of DuPont, asked a contract worker on the Kevlar production line what he was doing, he replied: “We’re saving lives.”

Saving lives, not just making bulletproof vests. A good purpose is indeed powerful stuff.