MIT Sloan Management Review on Unlock the Power of Purpose

Companies that have defined a values-based core purpose for their existence and pursue strategies aligned with that raison d’être can gain many advantages: greater focus, more engaged employees, more loyal customers, and better financial performance.1

It’s no wonder that developing a purpose statement is now on many business leaders’ agendas — especially as employees increasingly question their organization’s impact on communities and the planet.2 But if companies do little else with the statement than post it on their website, there’s little likelihood that it will confer much benefit.

About the Author

Álvaro Lleó de Nalda is associate professor of managing people in organizations at the University of Navarra. Alex Montaner is a senior consultant with DPMC. Amy C. Edmondson is the Novartis Professor of Leadership and Management at Harvard Business School. Phil Sotok is CEO of DPMC North America.

Learn more about MIT SMR.