22 THE NAFCU JOURNAL MAY–JUNE 2022 Those early pioneers had a common cause that brought them together for which the formation of a credit union was the solution. In those early days, the reason behind the creation of the credit union was the origination of the organization’s purpose. As we fast forward to 2022, purpose has become a buzz word. The word has the risk of being the new pet rock of business jargon. That said, purpose, when used in the proper context, is a key ingredient and truly the lynchpin of credit unions’ sustainable growth. One of the challenges with purpose being used as a buzz word is that it can quickly become a catch all for all that ails the organization, and therefore appear unauthentic. Research shows that purpose improves your long-term relevancy and ensures your sustainable growth, but only if it is authentic to, and aligned with, the stakeholders you serve. Without authenticity, a hollow purpose will do more harm than good. Purpose is one of those phrases that has different meaning to different people. For some, purpose is the same as mission. But not to me. I believe your mission is what you do, while your purpose is why you do it. The why is foundational and fundamentally imperative. Purpose lies at the intersection of two essential questions: Who are we, and what need do we fulfill in society? Purpose goes well beyond financial performance. Purpose defines why society should want your credit union to succeed and, when done right, purpose makes you indispensable to your members. Pursuing your purpose is a powerful change from “business as usual” and involves taking risks and painting outside the lines. Finally, for your organization’s purpose to elevate your business and be truly impactful to your stakeholders, it must be personal to you. How does purpose tie to sustainable growth? Harvard Business School Professor Michael Porter famously said, “Culture eats strategy for breakfast.” Like most things in organizational performance, employee engagement is one of the keys to success. Employees are the leverage point for whether organizations and leaders can implement and execute strategy. It’s no different with purpose: embedding your purpose and using it as a driver for growth, can only happen with highly engaged employees. Research from a 2021 MIT Sloan study showed that 72% of employees feel it is important to work for an organization that has a purpose they believe in. Yet, only 25% of those respondents believed their organization is as purpose-driven as the leaders think it to be. The difference here is commonly called the purpose gap. As leaders, it is imperative to identify these gaps and remediate them for the organization to remain relevant. Harvard Business Review’s 2019 article “Why Are We Here” showcases the performance impact of purpose, and its significance. For companies that have clearly defined and communicated their I love hearing credit union origin stories. These stories usually involve a small group of people and a shoebox. Yes, almost always a shoebox. “ Having a clearly articulated and inspiring purpose which is fully embedded in your culture is what drives performance because it motivates and empowers employees to do their best work. When employees are aligned with your organization’s purpose and are empowered to live it, they show up differently. ”
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