What are the Barriers to becoming a Purpose-Driven Organisation?

Despite the fact that there are many benefits for an organisation to be Purpose-Driven, only a small percentage achieve it.  This article explores why that might be the case.

There are a number of barriers including short-term shareholder pressure, systems and infrastructure that are not aligned with long-term purpose, and the lack of performance targets and incentives aligned with purpose.

Why do many organisations find it difficult to discover and embed their purpose?

Poor communication from top leadership is one of most significant challenges in integrating purpose in their organisation.

Research has shown the following as the most significant barriers to becoming a truly purpose-driven organisation:

  • Short-term shareholder pressure hinders management’s ability to focus on long-term value creation
  • Systems/infrastructure not aligned with purpose
  • Staff performance targets/incentives not aligned with purpose
  • Lack of meaningful metrics to capture/track long-term value creation
  • Insufficient buy-in across the organisation
  • Poor communication from leadership
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