Do you have a Noble Purpose? Or do you just sell stuff?
We all want to do good. But doing good outside your business is not enough, if the actual business itself does not have a Noble Purpose.
Purpose has become a hot topic in business. Thanks to some great research, we now know that having a purpose correlates to profits.
Former Procter & Gamble CMO Jim Stengel's book Grow, documented that businesses driven by purpose outperform the market by 384 percent. Deloitte's latest workplace study revealed a direct link between purpose and profit. My firm's research with sales teams documented that salespeople who sell with Noble Purpose, who truly want to make a difference to their customers, outsell the salespeople focused on quotas.
Having a Noble Purpose beyond making money, winds up making you even more money.
Yet leaders are often confused about what Noble Purpose really is. I routinely get emails from people describing how "noble" their business is because they "give back" to charity.
Giving to charity is lovely, but it misses the entire point of Noble Purpose.
Businesses with a Noble Purpose don't merely do good outside their business; their whole business model is based on adding value to their customers.
Compare these two examples:
The CEO of Company A says, "Our purpose is to increase shareholder value. Earnings are our top priority. That's what we talk about in meetings, and it's how we evaluate our leaders. Our employees know that their primary job is to hit the earnings target. Because we are nice people, we also "give back" 10 percent of our profits to charity."
Company B takes a different approach. Their CEO says, "Our Noble Purpose is to improve life for our customers. Customers are the nexus of our business. In meetings, that's what we talk about, our customers. Every single employee knows that making a difference to our customers is our primary purpose."
Which company do you think is going to provide better customer service? The employees who have been told that they are merely a vehicle to drive earnings?
Or employees who have been told their Noble Purpose is to add value to their customers?
Which set of employees is going to be more likely to innovate? The team spending time with their noses in spread sheets? Or the team with a laser focus on their customers?
Now the bigger question: which company would you want to buy from, the one focused on earnings, or the one focused on you?
Organizations with a Noble Purpose outperform organizations focused on earnings because Noble Purpose prompts an outward focus, towards the market and customers. The result is great innovation, better service and more engaged employees.
Focusing on targets and earnings points an organization's focus inward, which rarely creates competitive differentiation.
Many businesses talk about "giving back." The words themselves are quite revealing. "Giving back" subtly implies that the business itself didn't create value for anyone other than the owners. They took and now they are "giving back" part of it.
Here's the Noble Purpose reframe: Provide real value to your customers, whether you make widgets or water pumps, your job is to improve your customer's condition. When you make money, and you will because organizations with Noble Purpose outperform the market, give a portion of your profit to charity.
You're not giving back something you took. You're putting forward a portion of the value you created.
Lisa McLeod creator of the popular business concept Noble Purpose, and author of the CEO Read bestseller Selling with Noble Purpose. For free videos click here.
Lisa is a sales leadership consultant. Companies like Apple, Kimberly-Clark and Pfizer hire her to help them create passionate, purpose-driven sales forces. She has appeared on The Today Show, and has been featured in Forbes, Fortune and The Wall Street Journal. She provides executive coaching sessions, strategy workshops, and keynote speeches.
More info: www.LisaEarleMcLeod.com
Lisa's Blog - How Smart People Can Get Better At Everything
Copyright 2014 Lisa Earle McLeod. All rights reserved.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.