The Purpose Blind Spot: When Growth Has No Meaning
In the rush to grow, many organisations overlook a critical question: Why do we exist in the first place? Without a compelling and clearly defined purpose, growth can become a directionless ambition, measured only by financial metrics, rather than driven by meaningful impact.
This article is part of our series, Where Are Your Growth Blind Spots?, where we explore often-overlooked barriers to sustainable growth. Drawing from Vibrance’s Growth Orienteering approach, we aim to help leaders uncover hidden obstacles and unlock their organisation’s full potential.
In this instalment, we examine the Purpose Blind Spot, a limitation to growth that arises when an organisation lacks a clearly defined purpose that gives meaning and direction to its growth ambition.
The Importance of a Defined Purpose
Poorly defined purposes are easy to spot. They manifest as generic statements that focus solely on shareholder value. This leads to short-term thinking and disengaged employees. Furthermore, a lack of alignment between purpose and daily actions can trigger scepticism and disengagement among teams.
Such ill-defined purposes create growth blind spots that leaders often overlook. The consequences can be significant. Without an authentic purpose, organisations struggle to inspire loyalty, differentiate themselves in the market, and make enduring decisions. On the other hand, purpose-driven organisations are better equipped to navigate uncertainty. They attract top talent and build lasting relationships with customers, all vital for successful growth strategies.
Purpose Statement: Unlocking Growth Potential
Crafting a purpose statement that acts as a North Star is essential. Not only does it help overcome the blind spot, but it also unlocks your organisation’s full growth potential.
As David Pountney emphasises in his article, A Purpose – The North Star of Growth Orienteering, a strong purpose can unlock sustainable growth. This occurs when it reflects the organisation’s aspirations and resonates with all its stakeholders. To create an effective purpose statement, David identifies five essential attributes:
Simple and Concise: A clear purpose is easier for employees and customers to understand and remember. For instance, Canva’s “Empower the world to design” exemplifies clarity guiding expansive growth.
Effectively Embodies a Bold Ambition: Boldness inspires extraordinary outcomes. Patagonia’s statement, “We’re in business to save our home planet,” illustrates its commitment to environmental sustainability, central to its brand identity.
Communicates Commitment and Intent: A purpose should connect on both rational and emotional levels. This fosters trust and deeper alignment. Tencent’s purpose, “To enhance the quality of life through internet value-added services,” serves as a prime example.
Enables Growth Beyond the Core: A compelling purpose should support aspirations to expand into new territories while remaining rooted in the core. Ørsted’s purpose, “Creating a world that runs entirely on green energy,” guided its transition from a fossil fuel company to a leader in renewable energy.
Evolves as Needed: Purpose statements should adapt to reflect shifts in strategic direction. For example, Microsoft’s shift to “Empower every person and every organisation on the planet to achieve more,” marked a new era of innovation and growth under Satya Nadella.
A strong purpose statement not only defines why an organisation exists, but it also inspires stakeholders and drives strategic growth.
Case Study: Who Gives A Crap’s Purpose-Driven Growth
In a commoditised market with many options, Who Gives A Crap carved out significant space for itself. This was not due to reinventing toilet paper but because it had a clear and compelling purpose: "to ensure everyone has access to clean water and a toilet within our lifetime."
Founded in 2012, this Australian-based company began addressing global sanitation issues by selling eco-friendly toilet paper. They donate 50% of their profits to improve sanitation in developing countries. This strong sense of purpose enabled them to build a deeply engaged workforce. On Glassdoor, 94% of employees recommend working at Who Gives A Crap, and the company boasts a 100% CEO approval rating. This high level of alignment and engagement fosters a culture where people work not just for a business but for a cause they believe in.
Purpose also translates directly into business success. Every aspect of Who Gives A Crap’s operations, from eco-friendly product design to witty marketing campaigns, reflects its purpose. This foundation resonated with socially conscious consumers worldwide. The company’s annual global revenue is now estimated around the $100 million mark. Its UK operations, launched in 2018, have shown rapid success. Revenue grew to nearly £39 million by 2023, an 18% increase from the prior year. In 2020, Who Gives A Crap achieved a record $5.85 million in donations to sanitation projects, reflecting both the scale of its growth and the strength of its mission-driven business model.
Who Gives A Crap demonstrates how purpose can transform simple products into platforms for meaningful impact and sustained growth, starting with engaged employees and radiating out to loyal customers.
Overcoming the Purpose Blind Spot
The purpose blind spot is a common yet avoidable challenge. When organisations lack a compelling purpose or fail to live by it, they miss the opportunity to inspire, differentiate, and create lasting impact.
In conclusion, the purpose blind spot represents more than a missed opportunity. It signifies a crucial distinction between viewing growth as an end or as a means to something greater. Without a strong purpose, growth can become a hollow pursuit, focused solely on profits or shareholder value.
However, when an organisation’s purpose is clear and compelling, growth becomes a powerful enabler for achieving that purpose. It aligns efforts, inspires teams, and maximises impact. A strong purpose ensures growth is not merely about getting bigger but about making a bigger difference.
Ask yourself: Does your organisation’s growth ambition truly serve its purpose? Or has it been left behind in the race to grow?
If you have bold growth aspirations, begin by defining a purpose that reflects your reason for being. Let it guide your actions, inspire your people, and use growth as a means to fulfil it.
Note: an earlier version of this post was originally published on the Vibrance blog
