Metrics and 7 Other Challenges Companies Face When Activating Purpose

Metrics and 7 Other Challenges Companies Face When Activating Purpose

Originally published in Diario Estrategia

 

The need for genuine support from company leaders, resistance to change, and the perception that purpose is merely inspirational and lacks clear strategic meaning are just some of the difficulties in tackling this essential issue within an organization.

 

So says Olga Mardones, Senior Consultant at Almabrands, who led a new breakfast in the ‘AlmaTalks’ series with various companies and clients to discuss metrics and purpose. This followed the results of Almabrands’ study “State of Purpose in Chilean Companies – 2024,” which clearly showed that one of the main barriers to activating and implementing purpose is the lack of metrics to track progress.

 

“Organizations in Chile face challenges that are similar in many ways, and one of the most discussed is activating and measuring purpose. On this point, I want to stress that defining KPIs isn’t enough; you need to identify which indicators truly reflect the progress of purpose and its impact on the business and the culture,” says Olga Mardones.

 

At this breakfast, she adds, it was striking to hear representatives from some companies say they are able to measure the impact of purpose internally (for example, with engagement metrics), but few have tackled the external measurement of its impact on customers. «We now know that, as an employer brand, it has an impact, because candidates tell us in interviews that this is why they want to work here».

 

7 more challenges

 

Alongside metrics, the conversation surfaced 7 other challenges companies must address to make progress in activating and implementing purpose:

 

Genuine backing from a leader: Effective implementation of purpose depends largely on leadership. Without the support of senior management and the conviction of the CEO, the initiative can be perceived as a superficial project of the marketing or HR departments. One attendee said that “without sponsors in senior management there will be no results, and it will only be done because it’s trendy”.

 

Inspirational versus Strategic: Purpose is often seen as an inspirational element rather than a tool with clear strategic implications. One participant said: “Knowing the purpose is one thing, but how it’s lived is another,” underscoring the need for tangible integration into business decisions.

 

Resistance to Change: Some organizations experience significant resistance when trying to implement purposes aligned with more inclusive values. One case mentioned was: “The resistance is huge. When we brought in a trans model, we were told we would be fined.” Companies face pressure to make purpose not just a statement, but a fundamental part of their culture. Achieving this level of integration requires changes that are not always easy to implement at every level.

 

Lack of genuine connection between purpose and practice: Companies feel that the stated purpose often fails to translate into concrete actions, creating a disconnect that can undermine the organization’s credibility with employees and customers. Purpose must be synonymous with action—action that shows up at every level.

 

Challenges in communicating purpose consistently: Organizations struggle to communicate their purpose consistently and effectively, both internally to employees and externally to relevant audiences, which can lead to perceptions of inconsistency or a lack of authenticity.

 

Long-term strategy and times of crisis: Purpose must be part of a long-term strategy that defines why the brand should continue to exist in the future. This provides strength and resilience in times of crisis. One participant said: “Talking about a long-term strategy, about why this brand needs to exist for another 10 years, helps defend these issues.”

 

Risk of purpose being seen as just marketing: Some attendees voiced concern that purpose could be perceived as a marketing strategy rather than a real commitment, which can erode the company’s trust and reputation if it doesn’t act accordingly.

 

Difficulty aligning purpose with the interests of all stakeholders: Companies find it hard to balance the expectations and values of different stakeholders (customers, employees, investors and the community, among others) around their purpose, which can lead to conflicts or perceptions of favoring certain interests.

 

As you can see, the challenges are many and varied. “It’s essential that companies understand purpose not just as an inspirational statement, but as a measurable commitment reflected in their culture and their results,” says Olga Mardones.

 

Internally, she adds, metrics must go beyond employee satisfaction or engagement; they should cover organizational cohesion and people’s alignment with the company’s values. Externally, the impact of purpose on the customer experience and brand perception becomes a competitive differentiator, helping strengthen consumer trust and loyalty.

 

For more than 15 years, Almabrands has helped companies build their purpose, understood as a transformative force for achieving a better society hand in hand with development, and as a mobilizing tool that enables organizations to have richer dialogues with their internal and external audiences.