When I was in graduate school earning my Master’s Degree in Business Administration, I vividly remember that the #1 priority of any organization should be to maximize wealth for the shareholders. I’m not going to tell you this isn’t important; however, I will say that profit, and therefore shareholder wealth, is a byproduct of an organization that is committed to and fulfills its purpose.
Much can be accomplished through purpose. First of all, an organizational purpose clearly communicates why you are in business to your customers. Not only that but having a clearly-defined purpose helps you hire people into your organization whose skill-sets are in alignment with the needs and wants of your organization.
Unfortunately, passion isn’t enough. I know we hear about it a lot in books and at conferences, but passion quickly fades. An organization that is committed to purpose, on the other hand, can endure adversity, hire the right people, and succeed for the long term.
Is your organization leading with purpose, or are you focused exclusively on profits and driving shareholder wealth?
Nathan R Mitchell is America’s Leading Empowerment CoachTM and the Editor of Leadership Addict. In 2010 he founded the business and leadership development company, Clutch Consulting. Nathan is also a Certified Speaker, Trainer, and Coach with The John Maxwell Team. Originally from Springfield Missouri, Nathan earned his B.S. Degree in Management and an MBA from Missouri State University. Currently, he lives near Tulsa Oklahoma with his wife and children. His purpose in life is to empower others to lead to their full leadership potential.