Post-Pandemic Purpose

As economies across the globe feel the shake-out from the current pandemic, posing a temptation to shift from survival of the fairest, to survival of the fittest – the question many SMEs now face is whether the move towards a progressive, purpose-driven capitalism is a luxury they can still afford.  We argue that we do not need to regress in order to progress, and that purpose means more now, than ever.

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Growing Purpose And Purposeful Growth

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But what does it mean to be a business of purpose? Certified B Corporations are the golden beacon of what this means on the level of certification – bringing together a community of likeminded new businesses that are robustly internally and externally regulated to harmonise both purpose and profit, by considering the impact of their decisions on their workers, customers, suppliers, community and the environment. This is a network of leaders, driving a global movement of people using business as a force for good.  

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This is a far cry from the model of ‘growth at all costs’ that still dominates much of the western hemisphere, whereby the environment is plundered without thought, cheap labour required to meet fast demand reigns, and employees are consistently on the brink of burnout in the name of maximising shareholder profits.  

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The new paradigm of purpose recognised that this approach to economic growth was not socially or environmentally responsible or sustainable, and that a new wave of likeminded businesses would need to collaborate to compete. What’s more, 2 out of 3 respondents of the aba-design survey agreed that their greater purpose gave them a competitive advantage in the market.

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Structurally, the notion of baking purpose into the ethos of an SME is explored in Simon Sinek’s ‘The Infinite Game’, whereby having a greater vision and being mission-lead, facilitates a company’s growth and survival through remaining existentially flexible and prioritising long-term over short-term decisions. An example would be the failure of Blockbuster to withstand the rise of competitors such as Netflix, because their greater vision to meet evolving customer demand was overshadowed by complacency, short-term profits and structural resistance to change.  

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“When it comes to purpose, there’s a lot that SMEs can teach bigger companies. They are often much closer to their people and really care about delivering on their purpose” – Natalie Tickle from Heart of The City

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New Narratives

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As technology increasingly lowers the barriers to entry in markets across the world, making goods cheaper and competition fiercer, what is it that makes some businesses stand out from the rest? Genuine emotional connection between a brand and all of its stakeholders - employees, customers, partners and investors alike, is one of the strongest durable elements that remains. Whether this be built on shared values, insights, visions of the future or solid founding principles, this connection is woven together through story.

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Story telling is both an art and a science - but the common ground shared by all the above is a united purpose and mission. At the centre of every good story there is a moral, one which the universal truth narrative seeks to communicate. There’s a reason that its our stories that have often persisted across millennia to anchor in the shared beliefs that define communities, and today organisations are increasingly crafting and deploying them holistically to provide a strategy for tremendous growth anchored in unique, emotional bonds shared by businesses and the people they serve alike.

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More than a great product, a compelling context and direction is what provides momentum - providing motivation, inspiration and investment. Every story teller adopts the narrative in their own image, and modifies it slightly before passing it on in a chain of human imagination and communication. This ancient need is what social networks have tapped into so well, and in the age of information overload, it matters more than ever.

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The story itself must be lived and breathed by the members of an organisation, and woven into everything it does: from customer experience, to product road map, and into the day-to-day experience of working culture. Companies must go ‘all-in’ but the rewards they reap are significant and transformative.

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When it comes to pivoting with purpose - almost every company is forced to evolve at least once in their life cycle, a shift in business strategy as a reaction to a number of different factors at some point, especially with young or emerging brands. The Lean Startup goes so far as to advocate these as a rite of passage for any agile organisation in an ever-evolving market place.  A pivot revolves around a key fixed point such as product, market, go to market strategy or business model, and brand story is no different. Understanding why the company exists in the first place clarifies what can change and what must remain immutable.

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In order for a good product to succeed in the market place, it has to connect with the right customers with the right expectations. If a product fails to live up to its promises, customers will quickly move elsewhere, and when choosing between two brands of the same price and quality, they’ll be more likely to chose the one that they trust.

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A clear signal sent by the brand is that the voice of their users matters. Unlike traditional media outlets, influencers, forums and social media platforms present a way for people to connect with a more direct and relatable ambassador. As well as functioning as a framework for growth, the story serves as the North Star during inevitable times of turbulence. True category defining companies earn their status by standing alone and founders intuitively understand the emotional core of their business, as it often reflects a pain they themselves have experienced, affording them a unique solidarity with their customers.

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One of the biggest challenges at the core of successful collaboration between both consumers and SMEs alike - is communication. In a sea awash with media and PR noise, conveying an authentic purpose in a way that is intentional, clear and compelling remains a challenge, with less than 30% of businesses reporting that they felt their mission was well presented to workers, customers, their community or their industry.

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So as COVID continues to sweep across the globe, are such additional challenges still worth taking on? From an economic point of view, purpose and profit have statistically been proven to go hand in hand, with businesses who are purpose-lead claiming to be on average 23% more profitable than their non-purpose driven or un-guided counterparts. This is consistent with the findings of the B Corporation movement, who validate that in spite of the regulatory challenges, SMEs who register with them become more profitable after completing the certification process.  

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The crisis has been a wake-up call for businesses to seize the moment, as leaders are challenged about the kind of world we want to re-build moving forwards: on a broader societal systems level, change or progress can create a disequilibrium that reflects market imperfections and an imbalance between supply and demand conditions, and as far as the laws of entropy are concerned, all organised systems gradually decline into disorder and chaos over time unless action is taken to avert this.

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In years to come, there’s a strong possibility that we could look back on one of the silver linings to the COVID era being an explosion in purpose-driven motivators, leading us into a defining era for what it means to be a modern-day business in a progressive and paradigm-shifting space.

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