What’s the Purpose of a Core Purpose?

In episode 2 of the “On the Verge” podcast, hosts Danny Daniel and Jonathan Stark, along with special guest Wes Lockett, COO of Daniel Stark, dive into the question, “What’s the purpose of a core purpose?” The conversation uncovers the significant impact a well-defined core purpose can have on both employees and the overall success of a business. 

A core purpose is the driving force behind why people get out of bed every morning to contribute their best efforts to their work. When a company reaches a certain size, typically around eight to ten employees, a core purpose is indispensable. Beyond this point, it becomes essential to inspire and invigorate the team, making work not only more enjoyable but also more meaningful. 

Companies often question whether their time and resources are well-spent when searching for and solidifying a core purpose. The truth is a resounding "yes." Defined core purposes yield tangible benefits, from boosting employee motivation and increasing retention rates to enhancing institutional knowledge and work output. Employees who believe in their company's purpose give more, pushing the business toward greater achievements. 

Your core purpose may change overtime, and that’s okay! It’s important to revisit and refine your purpose as your company evolves. Through iterations, teams can eventually arrive at an unequivocal understanding of their purpose, which then becomes a cornerstone for their culture. This iterative process echoes the sentiment that anything worth doing is worth doing wrong until finding the right fit. Once this is accomplished, it's crucial to celebrate and integrate it into every aspect of the business. 

Daniel Pink's influential book Drive is a great resource for building an understanding of what it takes to create a positive work environment. According to Pink, while fair compensation is necessary, true motivation stems from providing employees autonomy, opportunities for mastery, and, crucially, a purpose. These elements influence satisfaction and fulfillment in the workplace, making the task of defining and embedding a core purpose all the more important. 

Creating important strategic documents, such as vision traction organizers (VTO) or roadmaps, where core purpose is a pivotal component, demands a significant investment of time and effort. Yet, it serves as the foundation upon which companies are built. For businesses, particularly those consumer-facing, a strong core purpose can permeate every customer interaction, creating experiences characterized by enthusiasm and commitment instead of mere transactions. 

Daniel Stark demonstrates this by making sure every customer interaction reflects their core commitment to protecting clients from getting screwed by big insurance companies. Through such dedication, they help clients feel assured and taken care of, especially during challenging times. This customer-centric approach, driven by our core purpose, illustrates the broader benefits that transcend internal dynamics. 

For entrepreneurs and business leaders considering the journey of establishing a core purpose: Just do it. The hard work involved in defining and refining your core purpose will pay dividends within your company and in the relationships you build with clients and consumers. 

A company's core purpose is a strategic tool that aligns efforts, motivates teams, and enhances customer experiences. As businesses navigate this essential journey, they are encouraged to be relentless in their pursuit, continuously questioning and refining until they find the purpose that propels them forward. 

For those interested in learning more, you can find the full episode here.