Metrics and 7 Other Challenges Companies Face When Implementing Their Purpose

Metrics and 7 Other Challenges Companies Face When Implementing Their Purpose

Originally published in Diario Estrategia

The need for genuine support from company leaders, resistance to change, and the perception that purpose is merely an inspirational concept lacking clear strategic implications are just some of the challenges involved in addressing this essential issue within an organization.

This is according to Olga Mardones, a senior consultant at Almabrands, who led a new breakfast event in the “AlmaTalks” series with various companies and clients to discuss metrics and purpose. This followed the results of the study “State of the Art of Purpose in Chilean Companies – 2024,” also conducted by Almabrands, which revealed clear evidence that one of the main barriers to advancing the activation and implementation of purpose is the lack of metrics to track progress in the process.

“Organizations in Chile face challenges that, in many ways, are similar; one of the most frequently discussed is how to bring purpose to life and measure it. In this regard, I want to point out that it is not enough to simply define KPIs; rather, we must identify which indicators truly reflect progress toward that purpose and its impact on the business and culture,” says Olga Mardones.

At this breakfast meeting, he adds, it was very striking to hear representatives from some companies point out that they are able to measure the impact of their purpose internally (for example, using engagement metrics), but few have addressed measuring that impact externally on customers. “We now know that, as an employer brand, it has an impact based on interviews with candidates who tell us that’s why they want to work here.”

7 More Challenges

In addition to the metrics, the conversation highlighted seven other challenges that companies must address in order to make progress in activating and implementing their purpose:

Genuine Support from a Leader: The effective implementation of the company’s purpose depends largely on leadership. Without the backing of senior management and the commitment of the CEO, the initiative may be perceived as a superficial project from the marketing or human resources departments. One of our attendees said, “Without sponsors in senior management, there will be no results, and it will just be a passing fad.”

Inspirational versus Strategic: Purpose is often perceived as an inspirational element rather than a tool with clear strategic implications. One participant remarked, “It’s one thing to know the purpose, but it’s another to live it,” emphasizing the need for tangible integration into business decisions.

Resistance to Change: Some organizations face significant resistance when trying to implement purposes that align with more inclusive values. One example cited was: “The resistance is enormous… when we brought in a transgender model, they told us we’d be fined.” Companies face pressure to ensure that their purpose is not just a statement, but a fundamental part of their culture. Achieving this level of integration involves changes that are not always easy to implement at all levels.

Lack of a genuine connection between purpose and practice: Companies often feel that their stated purpose does not 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 is evident at every level.

Challenges in Consistently Communicating Purpose: Organizations face difficulties in consistently and effectively communicating their purpose—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: The 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 that the purpose will be perceived as merely a marketing ploy: Some attendees expressed concern that the purpose might be perceived as a marketing strategy rather than a genuine commitment, which could erode the company’s trust and reputation if it does not act accordingly.

Difficulty aligning the company’s purpose with the interests of all stakeholders: Companies find it challenging to balance the expectations and values of different stakeholders (customers, employees, investors, and the community, among others) with regard to their purpose, which can lead to conflicts or perceptions of favoritism toward certain interests.

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

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

For more than 15 years, Almabrands has been helping companies define their purpose—understood as a transformative force for building a better society through development, and also as a tool to inspire organizations to engage in more meaningful dialogues with their internal and external audiences.