Corporate DispatchPro NATHANAEL MUSCAT
Reinventing business on purpose As demarcation lines between industries and offerings become ever more blurred, purpose is fast emerging as a key strategic driver for sustainable growth. Traditionally, high-growth strategies involve the creation of new markets, extending the range of products and service, or disrupting the industry. All of these approaches focus on the forces external to the company. A purpose-driven strategy, by contrast, concentrates on the internal forces of the organisation, although this is by no means an inward-looking approach. Simply put, purpose establishes the raison d’etre of a company. A MATURE PURPOSE ORIENTATION Research by Thomas W. Malnight, Ivy Buche and Charles Dhanaraj published in 2019 surveyed leaders from 28 companies across the United States, Europe and India that registered an average compound annual growth of at least 30 percent for five consecutive five years. The study found that, in these businesses, the company’s purpose was clearly spelled out and integrated into its core functions. Very often, purpose is a tangential aspect of businesses that companies whip out in their marketing campaigns but remains a hazy idea beyond that. On the other hand, the research team discovered that the high-growth companies they were analysing had all developed a strategic view of organisational purpose and made it the centre of their business. The study concludes that rebuilding a company in the image of its stated purpose becomes transformative in two ways: it redefines the playing field and reshapes the value proposition.
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