Tips for Leaders Balancing Purpose and Profit
Consumers expect more of brands than ever before, but standing for something beyond profits is not an easy transition. Executive coach John Blakey offers his advice for founders.
By Ali Donaldson, Staff reporter
Doing good has never gone out of style for entrepreneurs.
There have never been more B Corp companies. Mission and culture have become such common startup parlance that the discussion can border on clichéd, and despite the political pushback and macroeconomic headwinds, the global environmental, social, and governance market is projected to exceed $40 trillion--more than a quarter of all assets--by 2030. Still, leading with purpose beyond your profit-and-loss statement is no easy task for founders, says executive coach and author John Blakey, who has spent more than two decades advising entrepreneurs, CEOs, professional sports teams, and gold-medal Olympic squads.
"A lot of leaders are preoccupied with that decision about, 'Are we going to stand for [a] purpose?' " says Blakey, whose latest book, Force for Good: How to Thrive as a Purpose-Driven Leader, recently published. "They underestimate how difficult life becomes once you've made that decision."
He adds, "The moment that you put yourself or your brand on a moral high ground, you become a target for a lot of scrupulous and unscrupulous attention."
Still, that's no reason for founders to be deterred. They just need some help, and Blakey offered one of his coaching sessions to Inc. Here is some of his advice for entrepreneurs looking to bolster their purpose-driven leadership skills and galvanize their teams.
Think strategically, not tactically.
In recent years, founders have juggled inflation, higher borrowing costs, and recurring recession fears. Another "disruptive decade" is likely in store, says Blakey, but navigating headwinds does not require sacrificing your company's mission. For entrepreneurs feeling the short-term pressure to deliver on revenue and profitability, Blakey recommends thinking strategically, not tactically. As tempting as it is to focus on survival in the short term, take a step back and look beyond the next few quarters.
"You can be tactical over 12 months to exploit the economic situation in your favor," he says. "If you're strategic as a leader, you're building something for the next five to 10 years."
Find your third team.
In Force for Good, Blakey emphasizes the power of community and urges business leaders to be intentional and proactive about finding their "third team," a support network that exists outside of the office, family, and friends. Founders need an additional avenue for camaraderie, encouragement, and guidance, but Blakey says that doesn't necessarily need to be a kitchen cabinet of fellow founders or CEOs in your industry. A third team can be the people you play pickup basketball with or members of your religious congregation. The relationships matter more than any perceived expertise.
"It starts with what you're passionate about," he says. "If you looked around in your life, probably there is a third team waiting." He adds, "Invest time and energy in that community."
Maintain motivation.
Blakey, who has advised Premier League soccer teams like Arsenal, Tottenham Hotspur, and West Ham United, as well as Olympic coaches in rowing, diving, and shooting, likes to remind his executive clients what they can learn from these elite athletes. The most important lesson to glean: motivation.
Fans see the glamour of the Paris Olympic Games or the World Cup, but not the years of practice that went into the championship moment. Athletes adopt regimented schedules and make sacrifices. Often, their day-to-day lives look pretty boring, Blakey says, but they are able to stay focused.
"As business leaders, we haven't always been used to working with that level of discipline. We've often assumed that things will take care of themselves," he says. "What I noticed in the world of sport is they don't leave those things to chance. They know how important motivation is."
Rekindle your joy.
One of the most common downsides that Blakey sees in founders and CEOs is that they lose their sense of joy.
"They're still committed. They still get up, and they do what needs to be done, but a little bit of that sparkle has gone out of people's eyes," says Blakey. "Leaders think they can hide it, and in my experience, it leaks out."
He adds, "Rekindling the joy of the job and of the role and of the purpose is an important thing for a leader to do, because if their light goes out, then it's not long before other people's light starts going out as well."
Know your moonshot.
Founders know the importance of goal setting. As part of the practice, Blakey makes his clients define a moonshot and tells them to focus on the wow factor of that long-term goal, rather than how exactly they will achieve it.
"Throwing goals into the future is a huge, hugely empowering thing," says Blakey, who compares the power of a moonshot to compound interest. The excitement that people feel about the possibility generates extra motivation and passion, he explains. Over time, that adds up. "People overestimate what they can achieve in one year, and they underestimate what they can achieve in 10 years," he says.
Give up on a good day.
Entrepreneurs should always have an exit strategy in mind. Even for purpose-driven leaders, there comes a time when the job is done.
"Letting go is the big challenge for founders," says Blakey. "There are so few leaders, in my experience, who recognize that moment and time that well."
Founders who stick around too long can risk losing their zest and edge and see their performance and companies deteriorate, he explains. Instead, he tells his clients: "Give up on a good day."