Finding Purpose: Why Knowing Your Company’s “Why” Drives Strategy and Success

When working with leadership teams to define their company’s purpose, my colleagues and I often begin with a simple but essential question: Why does your company or organization exist? This question isn’t about products, solutions, or profits—it’s about the deeper impact you want to have in the world and in the lives of the people you serve.

I’m fortunate to work with a team of thoughtful, driven consultants and coaches who share my belief in the power of purpose. Together, we’ve seen time and again how clarifying purpose transforms the way leaders think about strategy, culture, and decision-making. When a company defines a purpose that reaches beyond the day-to-day, it becomes more than a statement—it becomes a steady compass in a world that’s constantly changing. And while it doesn’t have to be perfect, your purpose should be powerful enough to inspire everyone involved, from executives to employees to customers.

Why Purpose Matters

Think of it as your company’s North Star. When leadership teams align on a clear purpose, I’ve seen how it strengthens not only their strategies but also the culture and the energy within the organization. A few years ago, our team worked with a company that had been in business for decades. While they were focused on operational excellence and becoming the best in the industry, their vision felt narrow. Through our sessions, we worked together to uncover the deeper aspirations that went beyond status, asking what they truly wanted to contribute to their community, their employees, and their customers. The impact they wanted to make in the world.

Eventually, they clarified a purpose that reached far beyond industry accolades: it was about helping their customers live healthier, more fulfilling lives. Shifting the focus from internal achievement to external impact brought renewed energy to their team, and their employees connected with it because it felt relevant and meaningful. Seeing that kind of transformation is one of the most fulfilling parts of our work at Regroup.

Aligning Leadership on Purpose

When we work with executive teams, one of the things we prioritize is ensuring that the entire leadership group is aligned on purpose. When we bring a leadership team together, we facilitate discussions that go beyond the surface level. It’s always a collaborative, dynamic process that brings out the team’s diverse perspectives and highlights the values and priorities each member holds. It’s rewarding for us to watch teams find deeper alignment in the process.

For example, we worked with a family-owned business transitioning from one generation to the next. The founders had built the company with a strong purpose rooted in community service, but the next generation saw new opportunities and ways to expand that vision. We helped them find a balance that honored the past while welcoming the future. 

Common Pitfalls in Defining Purpose

We often see companies grapple with common pitfalls when defining their purpose. One of the biggest challenges is confusing purpose with product. For example, a technology company we worked with initially defined its purpose as “delivering the most innovative software.” While a worthwhile goal, it wasn’t a purpose—it was more about the “what” than the “why.” Purpose should reach further. It should express the change you want to inspire in the world.

Another pitfall is when purpose becomes too narrow or too self-focused. Some companies define their purpose around internal goals, like creating a great workplace or maximizing shareholder value. While these are valuable, they don’t speak to the broader impact a purpose-driven company can have. Purpose should extend beyond the company’s walls to connect with the people and communities it serves.

In these situations, we find it helpful to share examples from companies with clearly defined purposes. Brands like Patagonia and IKEA illustrate how purpose doesn’t have to follow a formula—it just needs to be authentic and aspirational. Patagonia, for instance, centers its purpose around environmental sustainability, while IKEA focuses on making affordable design accessible to all. These companies remind their teams and customers that purpose isn’t only about being the best: it’s about making a meaningful impact.

Purpose as a Guide for Decision-Making

Purpose isn’t just an abstract concept—it’s a practical guide for decision-making as well. In my experience, when leaders are clear on their purpose, it acts as a filter, helping them evaluate opportunities, partnerships, and potential risks. For example, one company we worked with had a strong purpose rooted in environmental responsibility. When they were considering a new supplier, they realized the supplier’s practices didn’t align with their values. While it would have been a profitable partnership, they ultimately decided to keep looking—purpose provided the clarity and courage to make a decision that aligned with their values.

Another company we worked with, a tech firm, had been struggling with prioritization. They had too many competing initiatives and found it difficult to say no. But once we revisited their purpose and guiding principles, decision-making became simpler. They began choosing projects that truly supported their mission and could set aside those that didn’t. This brings up another important point—purpose isn’t only about what you choose to pursue; it’s also about what you consciously decide not to pursue.

A Framework for Purpose

When working with clients, we use a purpose framework that helps leaders articulate their vision. We start by asking, “What are we aiming to achieve?” This opens the door to big-picture, aspirational thinking. Next, we look at “For whom?” because defining purpose requires understanding who the organization is here to serve. These questions establish the intended impact for a specific target audience.  If the leadership team seems stuck, we often ask “Why?” multiple times to uncover the deeper meaning and true purpose. For instance, if the team says “We exist to enable xyz for teachers,” we might follow up with “Why is that important?” and then ask “why?” again to get to the heart of the matter – the fundamental impact the organization wants to make. 

A purpose statement should be inspiring—it’s about the difference the organization hopes to make in the long term.

One executive team we worked with had been primarily focused on short-term goals. They knew what they wanted to achieve financially but hadn’t considered their broader impact. Going through this framework helped them realize that their true purpose was to empower small business owners. This shift gave them a clearer focus, and it brought new energy to their team.

Purpose Is an Ongoing Journey

Finally, defining purpose isn’t a one-time exercise. Just as markets and industries evolve, your “why” might evolve too. I encourage clients to revisit their purpose regularly—at least annually—as part of their strategic planning. This process isn’t about changing your core values but about realigning and ensuring that the purpose remains relevant.

Over time, your purpose might deepen as you learn more about the impact you’re having. Just as our team at Regroup grows with every client we work with, a company’s purpose grows as it learns from its experiences and adapts to change.

The Power of a Well-Defined Purpose

A clear, well-defined purpose is essential for organizations. It provides leaders with a framework for making strategic decisions, gives employees a sense of meaning and direction in their work, and cultivates a deeper connection between the company and its customers. Working with various organizations, we've witnessed firsthand how a strong, unifying purpose can help companies navigate complex challenges. When an organization's purpose is clearly articulated and embraced by all stakeholders, it serves as a guiding star, aligning efforts and decisions across the entire enterprise.

A compelling purpose transcends the products or services a company offers. It taps into something greater, inspiring employees and customers to feel part of a mission that is bigger than themselves. This sense of shared vision and collective impact can be a powerful force, empowering organizations to overcome obstacles and achieve remarkable outcomes.

This is the foundation to a meaningful strategy. It’s the “why” that makes the work worth it, and what distinguishes companies that make a difference from those that merely exist. If you’re wondering about your organization’s purpose, ask yourself: What impact do we hope to make and for whom? That’s where meaningful growth begins.

Questions to Consider

1. When was the last time your team discussed the purpose of your organization?
   Purpose, like strategy, benefits from regular reflection and recalibration. If it’s been a while since your leadership team aligned on a shared purpose, it might be time to revisit it together.

2. Does your current purpose extend beyond your products and services to reflect your company’s desired impact?
   Consider whether your purpose statement captures the difference you want to make in the world, rather than merely describing what you do or offer.

3. Are there signs that your team’s decision-making would benefit from a clearer purpose?
   If you notice hesitation, competing priorities, or difficulty saying “no” to certain projects, strengthening your company’s purpose could provide the clarity and alignment needed for focused decision-making.

Please reach out and say hello if you’d like to know more about how Regroup can help your team discover and align around your purpose.