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Purpose: The Secret Ingredient That Drives Business Success

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Purpose, promise, performance (Photo credit: dgray_xplane)

The other day, I was meeting with a CEO who was telling me all about the stuff his people were doing. They were building out these incredible models that would help their customers somewhere down the line become more profitable. He was sending people to training classes so they could provide better levels of service, although he hadn't quite thought through what better service would look like in his company or if it was even necessary. He was doing a lot of things that every management book says you should do, yet his company was still floundering.

It was easy for me to see that he was missing one key ingredient. Purpose. He couldn't articulate in one sentence why his company was in business, which certainly explains why his team was out of alignment and why the company was struggling.

Here's what you need to know about purpose.

Purpose is not a gimmick. By that I mean, it's not simply the flavor of the month. It's the key ingredient behind every business decision you make.

You don't need a two-day offsite to determine your purpose. Ask yourself and the people you work with one simple  question: At the end of the day, what difference are we trying to make in the world? Don't filter any of the responses. Instead, simply jot down whatever you think of or what your people may say. After doing so, toss out any responses that say your company's purpose is making money, as those companies that are most successful have a purpose that extends way beyond the mighty dollar.

Take a look at companies that are operating on purpose. Examples of successful purposeful driven companies include Walmart, Virgin and BMW. These companies have weathered the recession better than most. That's because every decision they make is done on purpose. For example, the purpose of Southwest Airlines is displayed prominently on the homepage of their website. Our Purpose: To connect People to what's important in their lives through friendly, reliable, and low-cost air travel. Every decision Southwest makes is based on whether or not the outcome is in alignment with their purpose.

Communicate your purpose. Finding your purpose is certainly a step in the right direction, but what if no one knows about it? Weave your purpose into all of your internal and external communication. Talk about it, describe the importance of it and discuss how the decisions you are making all tie back to the purpose of your company.

Hire on purpose. Take a look at your hiring profile and make adjustments where necessary. Look for candidates who possess the traits that align with your company's inner compass. Do this today.

Jim Collins calls purpose the greatest "stop doing" list in the world. If an activity doesn't add value or support your purpose, stop doing it. Everything must work together and everything must serve the purpose. Including you.