Leading with Purpose: Aaron Hurst’s Insights and Perspectives on the Future of Business

Leading with Purpose: Aaron Hurst’s Insights and Perspectives on the Future of Business

Interview originally published on uschamberfoundation.org

In today’s world, purpose-driven leadership and social impact are more important than ever. Aaron Hurst, an award-winning social entrepreneur and author of *The Purpose Economy*, has dedicated his career to fostering positive change in society. In 2001, he founded the Taproot Foundation, which played a key role in creating a $15 billion pro bono services market in the U.S. and has initiatives in more than 30 countries. His book predicted that purpose would be a central force in economic growth and innovation.

You describe the “Economy of Purpose” as the fourth major economic era. Could you explain a little more about what this means? How can business leaders effectively leverage purpose to drive both economic growth and social impact in this new era?

At different stages of economic development, the primary source of value and wealth creation has changed. Our first economic era was the Agrarian Economy, in which land ownership was essential. In the second era, the Industrial Economy, natural resources became the driving force behind wealth creation (such as fuel, metals, and others).

The Purpose Economy is an era in which the ability to create meaning for people drives innovation and generates value. With employees more empowered than ever and consumers—faced with a choice among similar global products—placing greater value on those that bring meaning to their lives.

Organizational leaders must understand the psychological needs of their teams and customers and design work environments, products, and services that meet those needs, thereby increasing their emotional intelligence (EQ).

In times of complex social challenges, how are leaders advised to uphold and amplify their organization’s purpose?

The key is to incorporate purpose into all systems: objectives, messages, and actions. If the purpose and values cannot be operationalized, they should be redefined to ensure their integration. This, along with the support of leadership and the board of directors, will help ensure their sustainability through the ups and downs.

Essentially, the Purpose Economy revolves around connection, which is the most important factor when it comes to creating meaning.

Social connection in society is rapidly declining: 26 million Americans don’t have a single close friend. We don’t trust one another. Community spirit is fading. Our lack of connection is literally killing us and tearing society apart. If organizations want to remain relevant and maximize their impact, this is the area where they can likely make the greatest difference right now.

In the Purpose Economy, we need connection to be a leading key performance indicator (KPI) for every organization.

In a recent LinkedIn survey, 88% of respondents said that purpose increases profits, but not everyone believes this. How can companies ensure that their pursuit of purpose does not compromise profitability, but rather supports it?

How can a company live up to its values without compromising its profitability? You don’t hear this question very often, and yet it’s essentially the same one. Purpose isn’t a cause that distracts us from our core business. It’s the reason the company exists. It’s the reason your work matters. Why should you have to sacrifice profits for that? It’s what aligns the company and drives productivity, motivation, and customer loyalty.

Even if you take a traditional perspective and view purpose simply as a cause or a matter of “giving something in return,” research shows that sustained financial success is achieved through service to others. If you’d like to explore this further, check out Adam Grant’s classic, *Give & Take*.

As you reflect on your journey as a social entrepreneur, what are some of the most important lessons you’ve learned about the power of purpose? How have these lessons shaped your approach to leadership and innovation?

We find meaning in relationships, impact, and growth. The key as a leader and innovator is to incorporate all three of these into everything we do.

This is my recipe: find a critical opportunity to make an impact on society. Create a compelling vision that inspires people and that they can share. Define the initial steps needed to give people hope that the broader vision is possible. Engage people in shaping the story by using their time, talent, and expertise to make possible what others think is impossible. Build a community of people who are part of the process and celebrate every step along the way. Finally, make learning an explicit goal that is on par with revenue generation.