Jim Collins called it the 'Genius of the AND'. Why should a company choose between profit and purpose? Why can't they have it all? Well, in short, they can. Studies have consistently proven that companies with a strong, well communicated purpose, aligned to the fabric of the organisation create higher, more sustainable profits than those without a core purpose. Our experience backs this up. All companies we have worked with to create a strong identity have had a much smoother journey to achieving their strategy... and resulted in EBITDA growth.
Purpose is a greater understanding, that answers 'why do we exist for?' In a company, it is the “glue” that holds an organization, the magnet that attracts the right people, employees, investors and suppliers. It is what causes many people to come together in harmony to achieve a larger goal. There are good examples of companies with strong purpose: Disney: Use our imagination to bring happiness to millions of people. Johnson & Johnson: Relieve pain and disease. Southwest Airlines: Give people the freedom to fly. Google: Organize the world’s information and make it universally accessible and useful. Those and other companies of the group studied had, in aggregate, cumulative growth of 73% in three years, 128.5% in five years and 1025.86% in 10 years, compared to an average growth of the S&P 500 companies of 37.6%, 13.1% and 122.3%, respectively.