What are Purpose-Driven Goals?
The fundamental requirement for an organization looking to execute on its purpose is the establishment of clear goals. Goals serve as guide rails, outlining what must be accomplished in the long term and providing a sense of direction toward achieving the organization’s core purpose. If, as a leader, you find yourself contemplating the next steps for your organization, it’s possible that your organization might benefit from the practice of purpose-driven goal-setting.
What are Purpose-Driven Goals?
In simple terms, purpose-driven goals are specific, finite accomplishments that serve the organizational purpose. They are aligned with the fundamental reasons that guide and inspire actions and go beyond merely achieving financial outcomes alone. For organizations looking to be a true force for good, purpose-driven goals serve as a driving force, motivating individuals and teams to work with passion, dedication, and a sense of fulfillment. They are a true reflection of the “why” behind what the entire organization aims to achieve and act as a catalyst for translating ideals into tangible positive change.
Just like all effective goals, purpose-driven goals should also be measurable, achievable, and time-bound. For example, if an automotive organization’s purpose is to “create a sustainable future for mobility,” a strong purpose-driven goal could be: “Reduce carbon emissions from our vehicle fleet by 30% over the next 3 years.” With a concrete objective that ladders directly up to their environmental mission, this goal provides clear guidance for focusing initiatives and innovating solutions. It turns a broad philosophy into an actionable and measurable plan for making a real difference.
Setting Purpose-Driven Goals
Goal-setting is the process of establishing or assigning goals and monitoring their progress until the desired results are achieved. In purpose-driven organizations, the leadership establishes the top-level organizational goals periodically, and the rest of the organization formulates goals at the department, team, and individual levels to align with them. Here’s a simple five-step guide to setting purpose-driven goals:
- Discover the purpose of your organization: Purpose is your organization’s raison d’etre; its the North Star. Most established organizations do have an inherent purpose, yet it often goes undefined. Defining purpose is easier said than done, but it is never too late to start. You can find some valuable inputs for the same here and here.
- Align goals with the purpose of your organization: Once the purpose is clearly articulated, the next step is to align it with your goals. Goals act as the bridge that connects aspirations with tangible achievements. They not only provide direction for your purpose but also lay out a concrete path to follow. It’s imperative to define goals in a way that closely aligns them with the overarching purpose of the organization. Leveraging the SMART framework, we can effectively refine these goals into actionable and highly strategic steps.
- Cascade from the top: In purpose-driven organizations, leadership sets the top-level organizational goals. These goals should resonate with the organization’s overarching purpose. Once the top-level goals are set, prioritized goals can be set at the department, team, and individual levels in alignment with the organizational purpose.
- Track progress and adapt: Achieving purpose-driven goals is an ongoing process. You need to continuously track progress, re-prioritze, and make adjustments when necessary. Regularly assess goals and their alignment with the organizational purpose. If you’re not making the desired progress, it’s time to reevaluate your approach and adapt your goals.
- Celebrate milestones: It is equally important to recognize and celebrate achievements to keep everyone motivated and focused on achieving their goals. It reinforces the idea that their efforts are valued and makes them feel like an integral part of the organization’s success.
According to goal-setting theory stated by Edwin Locke, establishing goals gives individuals a clear understanding of their responsibilities and helps them prioritize critical tasks. Individuals who set specific and ambitious goals are more likely to achieve better results than those who set easy goals. Utilizing Peptrics’ agile performance management platform, you can create or assign goals that align with organizational purpose and monitor their progress through an intuitive performance dashboard.
