ABSTRACT
This chapter provides guidelines around several ways purpose are incorporated into an organization and what techniques could be applied to measure its impact. It highlights a ‘golden’ metric to evaluate the effect of purpose. In addition, most CEOs or CFOs who commit to being more purpose-led will also require seeing metrics that correlate the effect of purpose on big picture KPIs such as year-on-year revenue growth, profit growth, customer growth, market share, and firm valuation. Measuring the effects of a purpose commitment at this aspiration level doesn’t require inventing too many new metrics, but rather coordinating many standard business metrics to connect to purpose-related evaluations. A firm’s important KPIs around consumer attitudes and behaviors, and their resulting business impacts, should also be connected to purpose-led decisions and communications as much as possible. Some metrics around purpose should aim to specifically examine employee and external stakeholder understanding of a company’s brand purpose and its delivery on that purpose.
