Photo: Christina @ wocintechchat.com / Unsplash
In the bustling corridors of offices from Tokyo to Toronto, from London to Los Angeles, a seismic shift is underway. The traditional metrics of success—profit, market share, and shareholder value—are no longer enough. A new generation of businesses, leaders, and employees are demanding a deeper sense of purpose. They’re looking beyond the bottom line, seeking companies that make a positive impact on the world.
Whether you’re working from office space around Melbourne or your garage in San Francisco, this shift is likely impacting everything from your business model to your marketing. And it’s arisen from a fascinating confluence of factors.
Perhaps most notably, the rise of social media has amplified public scrutiny of corporate behavior. Add to this the fact that climate change and environmental degradation have made sustainability a pressing concern, and a growing number of consumers – particularly millennials and Gen Z – are turning their attention to brands that align with their values.
As a result, smart business owners are waking up to the importance of purpose-driven leadership. Purpose has evolved into a must-have feature for attracting top talent, building customer loyalty, and creating long-term value. But how do companies measure their progress towards a more purpose-driven future? Here are five metrics that can help redefine success in the new corporate world:
1. Employee Engagement and Psychological Safety
Engaged employees tend to be more creative, productive, and happy employees who are happy to stay with a company long-term. They are also more likely to be passionate about the company’s mission and values. A crucial factor in fostering employee engagement is psychological safety. This is the shared belief among team members that they can speak up, ask questions, and take risks without fear of punishment or embarrassment. When employees feel psychologically safe, they are more likely to contribute their ideas, collaborate effectively, and be fully engaged in their work.
To measure employee engagement and psychological safety, you can use surveys, focus groups, and other methods to gather feedback on employee satisfaction, job satisfaction, alignment with the company’s purpose, and perceptions of psychological safety. Additionally, observing team dynamics and interactions can give you valuable insights into the level of psychological safety within your team.
2. Customer Loyalty
Loyal customers are more likely to return repeatedly, recommend your company to others, remain customers for life, and ignore your competitors (even when they offer amazing deals). To measure customer loyalty, track metrics such as customer satisfaction, net promoter score (NPS), and customer lifetime value (CLTV).
3. Social Impact
You can measure your social impact by tracking your contributions to society, the environment, and the economy. Depending on the initiatives you engage with, this could include metrics such as charitable donations, volunteer hours, emissions reductions, and job creation.
4. Ethical Performance
Ethical performance refers to a company’s adherence to ethical standards and practices. This includes factors such as fair labor practices, responsible sourcing, and ethical marketing. To measure your ethical performance, conduct audits, implement ethical compliance programs, and monitor media coverage for negative news.
5. Purpose Alignment
Purpose alignment refers to the extent to which your company’s actions and decisions are aligned with its stated purpose. To measure purpose alignment in your business, conduct internal assessments, solicit feedback from employees and stakeholders, and check on the progress you’re making towards achieving your purpose-driven goals.
By incorporating these metrics into your decision-making processes, you can move beyond a narrow focus on profit and towards a more holistic approach to success. A purpose-driven company is not only more sustainable but also more resilient, more innovative, and more likely to create lasting value for all stakeholders.