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Axiom Award Bronze Medalist for Business Ethics
A distinguished Harvard Business School professor offers a compelling reassessment and defense of purpose as a management ethos, documenting the vast performance gains and social benefits that become possible when firms manage to get purpose right.
Few business topics have aroused more skepticism in recent years than the notion of corporate purpose, and for good reason. Too many companies deploy purpose, or a reason for being, as a promotional vehicle to make themselves feel virtuous and to look good to the outside world. Some have only foggy ideas about what purpose is and conflate it with strategy and other concepts like “mission,” “vision,” and “values.” Even well-intentioned leaders don’t understand purpose’s full potential, struggling to balance purpose and profit and engaging half-heartedly with it. Outsiders spot this and become cynical about companies and the broader capitalist endeavor.
Having conducted extensive field research, Ranjay Gulati reveals the fatal mistakes leaders unwittingly make when attempting to implement a reason for being. Moreover, he shows how companies can embed purpose much more deeply than they currently do, delivering impressive performance benefits that create long-term value for customers, suppliers, employees, shareholders, and communities alike. To get purpose right, leaders must fundamentally change not only how they execute it but also how they conceive of and relate to it. They must practice what Gulati calls deep purpose, furthering each organization’s reason for being more intensely, thoughtfully, and comprehensively than ever before.
In this authoritative, accessible, and inspiring guide, Gulati takes readers inside some of the world’s most purposeful, high-performance companies to understand the secrets to their successes. He explores how leaders can pursue purpose more deeply by
- navigating the inevitable tradeoffs more deliberately and effectively to balance between short- and long-term value;
- building purpose more systematically into every key organizational function to mobilize stakeholders and enhance performance;
- updating organizations to foster more autonomy and collaboration, which in turn allow individual employees to work more purposefully;
- using powerful storytelling to communicate a reason for being, arousing emotions and building a community of inspired and committed stakeholders; and
- building cultures that don’t merely support purpose, but also allow employees to link the corporate purpose to their own personal reasons for being.
As Gulati argues, a deeper engagement with purpose holds the key not merely to the well-being of individual companies but also to humanity’s future. With capitalism under siege and relatively low levels of trust in business, purpose can serve as a radically new operating system for the enterprise, transforming organizational culture and enhancing performance while also delivering meaningful benefits to society. It’s the kind of inspired thinking that businesses―and the rest of us―urgently need.
Ranjay Gulati is the Paul R. Lawrence MBA Class of 1942 Professor of Business Administration at Harvard Business School. His pioneering work focuses on unlocking organizational and individual potential—embracing courage, nurturing purpose-driven leaders, driving growth, and transforming businesses. He is the recipient of the 2024 CK Prahalad Award for Scholarly Impact on Practice and was ranked as one of the top ten most cited scholars in Economics and Business over a decade by ISI-Incite. The Economist, Financial Times, and the Economist Intelligence Unit have listed him as among the top handful of business school scholars whose work is most relevant to management practice. He is a Thinkers50 top management scholar, speaks regularly to executive audiences, and serves on the board of several entrepreneurial ventures. He holds a PhD from Harvard University and a Master's degree from MIT. He is the author of Deep Purpose, and lives in Newton, Massachusetts with his wife and two children.
