7 Ways Purpose is Driving Organizational Change and Transformation

Does your business have a purpose – and is that purpose understood by everyone in the organization? 

A business with a clear and easily communicable purpose has a competitive advantage. Employees are more motivated, customers are more loyal, and there’s a reason for everything the company does. A clear business purpose can also help drive necessary organizational change and transformation throughout the company. 

Key Takeaways

  • Purpose is the reason your company exists – and what motivates your management and employees
  • Having a purpose drives the organizational change necessary to grow your business
  • Purpose-driven companies grow via expansion into new territories and market segments, acquisitions of like-minded companies, and development of innovative new products
  • Purpose helps transform business models, inspire new leadership, and launch new businesses

Why Your Organization Needs a Purpose

A purpose defines why your business does what it does. It’s not just about generating profits and revenues, nor about growing the customer base, nor about increasing market share. A purpose-driven business has a reason behind every action it takes. It’s the vision that drives the entire business.

Purpose in an organization brings meaning to its employees. It gives them a reason to work hard every day, above and beyond simply earning their paychecks or increasing shareholder value. Working toward a shared purpose – a greater good beyond sales and profits – motivates employees to do their best. 

When a company has a clear sense of purpose, employees realize that they are part of something bigger than themselves – bigger than the company, even. Employees become engaged with the cause, which inspires them to be more creative, more productive, and more involved with the company and its customers. Equally important, customers view purpose-driven companies as more concerned about important causes and are more loyal to those companies. 

This increased engagement and motivation affects every aspect of an organization and can have a noticeable impact on the bottom line. Research shows that purpose-driven companies grow three times faster than their competitors, have 46% higher gains in market share, and outperform the market 15 to 1. Purpose is a powerful driver of success, as illustrated in the video.

How Purpose Drives Organizational Change and Organizational Transformation

In The Business Case for Purpose, the Harvard Business Review asked executives for their opinions on purpose in the organization. Of those surveyed, 84% said their business transformation efforts have greater success when integrated with an important purpose. It’s readily apparent that companies that possess a clear sense of purpose are able to transform faster and more effectively. Striving to fulfill the business’ purpose drives innovation and change.

There are several ways that possessing such a purpose can drive change and transformation in the organization, from expanding geographically or into a new market segment, to acquiring or merging with another company. We’ll look at the most impactful ones. 


According to the Harvard Business School report, the most common way that purpose-driven organizations grow is by expanding geographically. One-third (66%) of organizations that prioritize purpose grow by expanding into new geographic reasons. It’s a logical way to expand – take what’s working in one region and invest what’s necessary to replicate that success elsewhere. Think of it as evangelizing your company’s purpose to potential customers in a new territory. 


The number-two way that purpose driven companies grow is by changing leadership. More than half (58%) of organizations that prioritize purpose end up shaking things up at the senior management level. Focusing on an overriding purpose often requires companies to fine-tune their management team to ensure a unity of purpose across the organization. Getting senior management on board that shares the common purpose helps the company accelerate growth initiatives. 


When you know what your company wants to do and why, you can more easily identify other companies that share the same purpose. This explains why 57% of purpose-driven companies grow via acquiring or merging with other purpose-driven companies. Bringing like-minded organizations into the fold becomes a winning strategy to accomplish shared goals. 


Recognizing your company’s overriding purpose spurs the development and launch of new products and services to further that purpose. It’s not about identifying and exploiting market opportunities – instead, your internal purpose drives the types of products you develop. 


The same internal-driven focus inspires companies with a purpose to expand into new market and customer segments. Again, this type of expansion is almost evangelical. Knowing what you want to achieve, it’s easy to expand that message to new customers and markets. 


To achieve an identified purpose often requires transformation of existing business models and operations. More than half (52%) of purpose-driven organizations engaged in some form of transformative initiative to further their purpose and enable more rapid growth. 


Finally, for many entrepreneurs, having a purpose is the driving factor in launching new businesses. Purpose-driven entrepreneurs don’t launch new businesses because they’ve identified a potentially profitable market niche – they launch businesses because they have a purpose, and believe they have a business idea that can help them achieve that purpose. Entrepreneurs fervently believe that what they’re doing matters – and that’s why they’re launching their business. 

Let Televerde Help Drive Change and Transformation in Your Organization

Change isn’t easy, even if it’s necessary to grow your business and further your organization’s stated purpose. Televerde can supply the people and services necessary to help you transform your organization into one that can better achieve your purpose. Our own purpose drives everything we do – we believe in second chances by providing sales training, education, and jobs for current and former incarcerated women. Our purpose-driven business services are exactly what you need to drive organizational change in your business. 

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