Weaving Together Purpose and Profit
This article was co-authored with Sarah Herberg
This past year of extraordinary circumstances has magnified many of the challenges our society faces. Whether it be health and wellbeing, racial inequity, socioeconomic inequity, education, climate change, or polarization, we know that the need for innovation and new thinking is paramount.
We believe business can play a critical role in addressing these problems, but we need to do business better. As parents of young children, engaged citizens, experienced leaders, and strategic problem solvers, we see tremendous need and opportunity to create innovative businesses that not only solve problems and deliver profit, but are also guided by clear values.
We imagine a future where purpose and profit can not only co-exist, but enable the other to thrive. Where leaders have the skills to take on society’s biggest challenges, employees feel empowered and purposeful in their work, and for-profit institutions are helping to create a better future as a result.
We know we are not alone in this vision. We see it in the rise of B Corporations, a movement to create a new global corporate landscape, where companies create benefit for all stakeholders, not just shareholders. We see it in the way frameworks riffing off Simon Sineck’s “Start with Why” abound amongst consultancies and ad agencies. We know that companies and their leaders desire a better way. We have worked with and within organizations who are trying to do just that.
And yet, here we are. During the pandemic we have seen women leave the workforce at unprecedented rates. We have seen an uneven recovery with employment rates of high wage workers increasing slightly since the beginning of the pandemic and employment rates for low wage workers declining 19% over the same time period. Good intentions and fancy purpose statements, even CSR, it’s not enough.
We have reflected on what we think causes the huge chasm between where many of us want to go and where we are today. In our experience, we have found that we get stuck at surface level change. It’s a marketing campaign. It’s the posters on the elevators at HQ. But the real change that needs to happen is the change that shifts a company’s culture, that challenges our way of working, that builds new leadership skills and capacity, and that redirects the growth trajectory and profitability of an organization. It’s scary and it’s hard. It requires individuals to grow and it most certainly requires discomfort.
It is our aim to convince you that this discomfort is worthwhile. In embracing the power of purpose and profit, leaders can unleash an energy force that is unparalleled. Leadership at its essence is about motivating people toward a shared vision. While some leaders struggle with the shared vision, we believe more struggle with how to motivate people. We have found that purpose and profit — when working together — unlock the three key elements of motivation: Energy, direction and sustained effort. Purpose offers energy and direction, but profit is necessary to create a sustainable movement. Research supports this. Motivation matters.
Now more than ever, our world needs leaders willing and able to reimagine what businesses are capable of. Loom was created to solve problems and do this work alongside leaders. Whether you are an entrepreneur, small business owner, or a leader in an organization, we aim to support you through the inevitable discomfort that comes with change. Together we can realize this vision for a better future.
