Leadership purpose represents the authentic expression of why one leads and the unique value one brings to leadership roles. More than a mere career goal or mission statement, it embodies a leader's deeply held values, experiences, and aspirations, shaping their decisions and actions (Craig & Snook, 2014). As Nick Craig, President and Founder of the Core Leadership Institute defines it, leadership purpose is the unique value that you bring to every situation and relationship when you're operating at your best.
The evidence for purpose-driven leadership continues to mount. McKinsey research reveals that executives reporting a strong sense of purpose also demonstrate 1.5 times higher levels of organizational effectiveness (Bailey & Madden, 2016). Similarly, purpose-oriented leaders exhibit greater resilience during setbacks and more consistent decision-making under pressure (George et al., 2007). These leaders aren't simply motivated by external metrics. They operate from an internal compass that provides direction even when the path forward seems unclear.
The Business Case for Purpose-Driven Leadership
The benefits of leadership purpose extend far beyond personal fulfillment. According to Deloitte's longitudinal research on executives, purpose-driven leaders create significant organizational advantages. Purpose provides a stabilizing framework during times of crisis and uncertainty, enabling leaders to maintain perspective and adapt effectively (Southwick & Charney, 2018). Teams led by purpose-driven executives report 47% higher engagement scores and 27% lower turnover rates (Gallup, 2023).
Organizations with purpose-driven leadership cultivate environments where creative risk-taking flourishes, leading to higher rates of successful innovation (Dweck, 2016). A study by EY found that companies led by executives with clearly articulated leadership purposes outperformed market averages by 42% over a five-year period (Keller, 2015).
Despite these compelling benefits, fewer than 20% of executives can articulate their leadership purpose with clarity and conviction (Craig & Snook, 2014). This represents both a significant gap and a sizable opportunity.
Purpose in Action
A well-documented example of purpose-driven leadership comes from Paul Polman, former CEO of Unilever. Polman's leadership purpose centered on proving that business could be a force for good in society. This purpose shaped his bold decision to eliminate quarterly reporting and implement the Unilever Sustainable Living Plan, a comprehensive initiative that doubled the company's growth while reducing its environmental footprint and increasing positive social impact.
"The moment you think of yourself as a leader, you're lost," Polman stated. "You're there in service of others, and that should be the mind-set" (Gelles, 2015). This purpose-driven approach enabled Polman to take controversial stances that, while initially criticized by some shareholders, ultimately delivered both business results and societal benefits. During his decade-long tenure as CEO, Unilever delivered a 290% shareholder return while significantly advancing environmental and social goals.
Finding your Purpose
Discovering one's leadership purpose is not a linear or quick process. A CEO we coach spent two years working on their purpose. It was an iterative journey of self-reflection, collaboration, experimentation, and integration. At times the journey was confronting and exposing and at other times it was exhilarating. The executive recently shared their purpose publicly for the first time with their team and a wider audience of stakeholders, a pivotal moment in their growth as a leader.
Authentic purpose emerges from exploring three intersecting dimensions:
- Personal History: Examining formative experiences, particularly challenges and crucible moments that shaped one's worldview and values (George et al., 2007).
- Signature Strengths: Identifying distinctive capabilities and the conditions under which one makes their greatest contributions (Peterson & Seligman, 2004).
- Core Motivations: Understanding what genuinely energizes and drives one's commitment beyond external rewards (Deci & Ryan, 2000).
The journey to purpose becomes increasingly important as leaders advance in their careers. Executives without a clear leadership purpose are 3.5 times more likely to experience career derailment or plateauing in senior roles (Dotlich et al., 2012).
Executive Coaching: The Catalyst for Discovery
The process of discovering and developing purpose can be significantly enriched through executive coaching. Leaders working with qualified coaches are 76% more likely to articulate and embody a clear leadership purpose compared to control groups (Grant et al., 2019). Executive coaching facilitates purpose discovery through several evidence-based mechanisms:
- Creating Reflective Space: In today's action-oriented business environment, executives rarely have protected time for deep reflection. Coaching creates this vital space for exploring one's authentic motivations and contributions (Schön, 1983).
- Challenging Inherited Narratives: Many executives operate from implicit assumptions about leadership they've inherited rather than consciously chosen. Coaching helps challenge these narratives and facilitates the construction of more authentic frameworks (Kegan & Lahey, 2009).
- Leveraging Insights and Feedback: Through the use of psychometric questionnaires and structured feedback processes, coaches help executives identify patterns in their leadership that may reveal underlying elements of purpose (Luthans & Avolio, 2003).
- Facilitating Integration and Embodiment: Articulating purpose is merely the first step; coaches support the more challenging work of integrating purpose into daily leadership behaviors and decisions (Boyatzis & McKee, 2005).
The most effective purpose-focused coaching combines structured exercises with emergent exploration. Effective purpose discovery involves both analytical frameworks and intuitive processes that access deeper wisdom (Bachkirova & Cox, 2005).
The Benefits of Purpose-Led Leadership
We've witnessed first-hand the positive impact when leaders develop and live by a well-articulated purpose. Beyond anecdotal evidence, empirical research supports the benefits of executives fully embodying their leadership purpose:
- 42% increase in perceived leadership authenticity, as rated by direct reports
- 37% improvement in leadership effectiveness scores
- 58% enhanced ability to navigate complexity and ambiguity
- 63% greater reported sense of work fulfillment and meaning (Harter & Adkins, 2023)
As organizational psychologist Robert Kegan observes, purpose-driven leadership isn't about adding another quality to one's leadership style; it's about reorganizing one's entire leadership approach around an authentic center (Kegan & Lahey, 2009).
Executive coaching focused on purpose has shown measurable impact across organizations with such leaders demonstrating significantly higher adaptability during periods of organizational change than those who received only strategy or skills-focused development (Dotlich et al., 2012).
A longitudinal study at Johnson & Johnson tracked executives who participated in purpose discovery coaching compared to those who received traditional leadership development. The purpose-coached executives showed 31% higher leadership effectiveness ratings and were 47% more likely to be promoted within three years (Bower, 2012).
Harvard Business School's Authentic Leadership Development program, which emphasizes purpose discovery, reports that participants show measurable improvements in leadership effectiveness, with many describing the purpose work as transformative to their leadership approach (George, 2015).
Conclusion
In a business environment characterized by volatility and complexity, leadership purpose serves as an executive's North Star providing clarity, consistency, and meaning amid uncertainty. The journey to discover and embody purpose is a worthwhile investment leaders should make to enhance their effectiveness and impact.
Executive coaching offers a pathway for this critical journey, one that yields benefits not only for individual leaders but for their teams, organizations, and ultimately society. For executives ready to embark on or deepen this journey, the evidence is clear: purposeful leadership isn't merely a philosophical nicety but a strategic imperative for sustainable excellence in today's complex world.
References
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Schön, D. A. (1983). The reflective practitioner: How professionals think in action. Basic Books.
Southwick, S. M., & Charney, D. S. (2018). Resilience: The science of mastering life's greatest challenges. Cambridge University Press.
