Why Most Companies Get Purpose Wrong—And How You Can Fix It

Walk into nearly any company today and you’ll see inspiring mission statements on the wall. But ask employees if those words match reality, and the answers often reveal a painful gap. According to Dan Pontefract’s 'The Purpose Effect,' most organizations get purpose wrong—not because they lack vision, but because they fail to live it every day.

The Disconnect: When Purpose Becomes a Slogan

Too many leaders treat purpose as a marketing tool, not a guiding principle. The result? Employees disengage, customers lose trust, and innovation stalls. Pontefract’s research and numerous case studies show that companies obsessed with profit or power create toxic cultures, where people do just enough to get by.
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From Words to Action: The Good DEEDS Framework

To bridge the gap, organizations must embed purpose in every decision. The Good DEEDS model offers a roadmap: Delight customers, Engage team members, (Be) Ethical, Deliver fair practices, and Serve all stakeholders. Companies that live these values see dramatic improvements in retention, innovation, and reputation.

Leadership’s Role in Purpose Transformation

Leaders must model purpose in their actions, not just their words. This means transparent communication, ethical decision-making, and a relentless focus on serving all stakeholders—not just shareholders. Pontefract highlights companies that transformed their cultures by investing in community projects, prioritizing fair pay, and listening to employee voices.

Measuring What Matters

Purpose-driven organizations use scorecards and regular check-ins to track alignment. They celebrate stories of purpose in action, ensuring that every team member understands how their work contributes to the greater good. Research shows these organizations outperform their peers in innovation, engagement, and customer loyalty.
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Conclusion: Making Purpose Real

If you want to fix your company’s purpose problem, start by living your values. Align incentives with mission, invest in your people, and put service at the heart of your business. The journey isn’t easy, but the rewards—a thriving culture, loyal customers, and lasting impact—are worth it.