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Why is Your Organisation's Higher Purpose Critical?

26/7/2018

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Why is your organisation's higher purpose critical for your organisation's financial health?

​The Gartenberg study, which included 500,000 people across 429 firms and involved 917 firm-year observations from 2006 to 2011 — documents that firms exhibiting both high purpose and clarity have systematically higher operating financial performance (return on assets) and forward-looking measures of performance (Tobin’s Q and stock returns).

Simply said, quoting from the enclosed HBR article,
"Purpose is not just a lofty ideal; it has practical implications for your company’s financial health and competitiveness. People who find meaning in their work don’t hoard their energy and dedication. They give them freely, defying conventional economic assumptions about self-interest. They grow rather than stagnate. They do more — and they do it better. By tapping into that power, you can transform an entire organization."

For the organization to have a higher purpose, the CEO has to have a higher purpose. That requires CEOs to be emotionally and spiritually intelligent. Mere intellectual intelligence will only take you so far.

Click below to learn how to create a purpose driven organization.
https://hbr.org/2018/07/creating-a-purpose-driven-organization.html

Questions for deeper reflection:
1. What does being emotionally and spiritually intelligent mean?
2. Why is that needed to have a higher purpose?
3. Why does the CEO need a higher purpose for the organisation to have a higher purpose?

​Love, Jyoti.
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