Want to make money? Focus on purpose.

 

In her book “Selling with Noble Purpose,” Lisa Earle McLeod says the companies that are struggling to grow and be profitable are missing one key element.  “What’s missing is a sense of larger purpose.”

 

I’ve been in credit unions for over 12 years, and I’ve found that most credit union employees (regardless of title or position within the organizations) fit into two groups:

 

There are some exceptions of course, but sadly, most of the people in the latter category are the ones who have the greatest impact on your members; they are the front-line employees who hold the member experience in their hands.  These are arguably the most vital employees to your business being successful.

 

McLeod goes on to say that, “the very thing that differentiates top performers – a sense of purpose – is almost never mentioned by company leadership.”  However, what is mentioned to employees more commonly is profitability and revenue.  These absolutely need to be discussed.  This post is not refuting the importance of driving sustainable success for your balance sheet.

 

Financial institutions – especially smaller, community-oriented institutions like credit unions and community banks – are trying to find their “magic bullet” for growth and profitability.  However, Peter Drucker argues that “profit is not the purpose of a business but rather the test of its validity.”

 

If you find your organization struggling (meaning, growth, employee engagement, etc.), it’s time to step back and think about your purpose.  

Many of you know your organization’s purpose, and it may be as simple as better communicating this purpose with everyone on your staff.  Regardless of where you are on defining your purpose, start with the actual impact you are having on actual members of your credit union: saving them time, saving them money, helping to make their day better or easier, and doing what is unexpected.  

 

Those moments of impact are the stories you will share again and again internally between co-workers, departments, at all staff meetings to reinforce the purpose you share as an organization.  And once your organization is driven by, makes decisions for, and is completely aligned around one noble purpose, profit will come.  

 

It’s not profits for the purpose of profits, however.  Your profits will be a result of your purpose.  As Roy Spence said, “Purpose is your reason for being;