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

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

Interview originally published on uschamberfoundation.org

 

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

 

You describe the Purpose Economy as the fourth great economic era. Could you explain a bit more about what that means? How can business leaders effectively harness 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 shifted. Our first economic era was the Agrarian Economy, in which owning land was essential. In the second era, the Industrial Economy, natural resources became the engine of wealth creation (fuel, metals, and so on).

 

The Purpose Economy is the era in which the ability to create meaning for people drives innovation and generates value. Employees are more empowered than ever, and consumers choosing among similar global products increasingly value 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 do you recommend leaders sustain and amplify their organization’s purpose?

 

The key is to embed purpose into every system: goals, messaging and actions. If purpose and values can’t be operationalized, they should be redefined to ensure they are integrated. That, together with the backing of leadership and the board, will help sustain them through the ups and downs.

 

At its core, the Purpose Economy revolves around connection, which matters most when it comes to creating meaning.

 

Social connection is in rapid decline: 26 million Americans don’t have a single close friend. We don’t trust one another. Service is declining. Our lack of connection is literally killing us and pulling society apart. If organizations want to stay relevant and maximize their impact, this is likely the area where they can make the biggest 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 purpose increases profits, but not everyone believes it. How can companies make sure their pursuit of purpose doesn’t compromise profitability, but supports it instead?

 

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

 

Even if you take a traditional view and see purpose simply as a cause or a matter of “giving back,” research shows that sustained financial success comes from serving others. If you want to go deeper, check out Adam Grant’s classic, Give & Take.

 

Reflecting 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 those 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 build those three things into everything.

 

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 bigger vision is possible. Engage people in writing the story, using their time, talent and expertise to make possible what others think is impossible. Build a community of people who are part of the journey, and celebrate everything. Finally, make learning an explicit goal on par with revenue.