Thirty-five years ago, author Aaron Hurst’s own uncle Marc Porat coined the term “Information Economy,” predicting the rise of Silicon Valley and the internet giants. Since that time, Hurst, CEO of Imperative and Founder of Taproot Foundation, has observed an economic shift emerging from the need for Purpose, which he terms “The Purpose Economy.” In his book, Hurst makes the case for why our economy is becoming more Purpose-driven and how organisations (including hospitality businesses and boutique hotels) can thrive in light of this shift. Hurst draws upon his experience catalysing the pro bono service market, research, case studies and personal anecdotes, to reveal how this new economy is making an impact – for people and planet!

#1: There are different types of Purpose: Personal Purpose, Social Purpose and Societal Purpose.

Personal Purpose is the pursuit of passion; something deeply personal. As Hurst puts it, “We find Purpose when we do things we love, attempt new challenges, and express our voice to the world.” Social Purpose is about creating meaningful connections; sharing your Purpose with people you love. And research shows that Purpose is better when shared - after all, relationships provide more meaning to humans than anything else out there. Lastly, there is Societal Purpose: making a bigger impact on society as a whole. And that doesn’t mean you have to end world hunger – you can derive Societal Purpose through your existing work if you’re able to connect it to the bigger picture.

#2: There are different types of Purposeful organisations: values-driven organisations, excellence-driven organisations and impact-driven organisations.

Hurst has identified three types or Purpose-driven organisations. There is the values-driven organisation, where values are embedded into the organisation’s core and drive all decision-making. There is the organisation that strives to build excellence, where the Purpose is its craft and its focus on producing quality work. And lastly, there is the impact-driven organisation, which seeks to take responsibility for and have a more positive impact on its stakeholders, people and planet.

#3: There are different ways to embed Purpose into your organisation: through customers, through employees and through the supply chain.

Hurst notes that there are three ways in which Purpose is typically emphasised within an organisation. The first is by delivering Purpose to customers through a service or product that gives them a greater personal, social or societal Purpose. The next is by giving employees a sense of Purpose through their work. And the last approach to Purpose is building it into the supply chain - considering the people and companies with which you partner, practicing fair trade principles, empowering local communities, etc. The organisations that will perform well in this new economy are those that empower individuals to have a certain self-awareness about Purpose, and connect it to their own organisation's Purpose.

How can your organisation lead with Purpose? Hurst has some recommendations:

• Remove silos by combining functions to be in service of the larger community as a whole
• Community organise in a way that motivates and leads people to lead themselves
• Build community leaders by empowering and engaging your people
• Work without managers by creating a culture of coaching and support that doesn’t require top-down hierarchy
• Make your leaders conductors by pointing people in the right direction, instead of pushing them in the right direction

“Purpose is not a noun, it is a verb. It is about how we work. We experience purpose when we do something that’s greater than ourselves. We experience purpose when we push ourselves and grow. We experience purpose as part of a community.”

Thanks for following along on our boutique hospitality consultancy’s never-ending path to Purpose! We’d love to hear from you! What do you think about “The Purpose Economy?” How is your hospitality business or boutique hotel adapting to thrive in this new era? Comment below.

Lastly, support a local bookshop by buying “The Purpose Economy” here: https://bookshop.org/.

Hoteliers, answer this: what’s your hotel brand’s purpose?

If your answer entails earning a profit or serving a specific stakeholder group, such as your hotel guests, employees or investors – we kindly suggest that it’s time to rethink your purpose. You see, purpose must go above and beyond; above creating value for a single category of stakeholder and beyond making money. It must be broad, humanistic and socially-engaged, linking your hotel brand to a greater good.

Let’s just say that’s the difference between purpose and Purpose, with a capital P!

So are you ready to start the journey from purpose to Purpose? In this blog post, we’ll show you the way forward.

Before we continue, let’s be clear about what your brand’s Purpose actually is: Brand Purpose is the reason your hotel exists – its WHY. It inspires you, hotelier, and your team members to do what you do – and love it!

It is not a vision statement (where your hotel is headed) or a mission statement (what it does to get there), but it is the compass at the heart of your hotel that guides it - and all team members - in the right direction. 

Walk down the aisles of your local supermarket or scroll through Booking.com, and you’ll see: consumers have endless choices. So how do you get your brand (aka your hotel) to stand out? By connecting with them on an emotional level. By demonstrating that your hotel brand has a distinct Purpose - one that they connect with.

In its Strength of Purpose study of 8,000 global consumers, Zeno Group found that 94% of consumers say it’s important that the companies they engage with have a strong Purpose. And when they do, consumers are:

• 4x more likely to purchase from the brand
• 6x more likely to protect the brand in a challenging moment
• 4.5x more likely to champion the brand with friends and family
• 4.1x more likely to trust the brand

And there’s more compelling data out there. The Kantar Purpose 2020 study found that brands recognised for high-commitment to Purpose have grown at more than twice the rate of others. Over a period of 12 years, the brands with high perceived positive impact had a brand value growth of 175%, versus 86% for medium positive impact and 70% for low positive impact.

Need more reason? Purpose allows hotels to:

• Build greater customer loyalty
• Preserve reputation
• Attract and retain top talent
• Cultivate healthier work cultures
• Enable the development of innovative products and services
• Better navigate turbulent times
• Guide strategy-development, decision-making and transformational change

1. Define your Purpose

To define your hotel brand’s Purpose, bring together a diverse group of people within your hotel, across a range of departments, and ask yourselves the following question:

WHY do we exist beyond making profit? Why do we get up every morning?

Tips to a great Purpose statement:

• Be ambitious and inspiring.
• Be clear and coherent.
• Be authentic and unique to your brand.

2. Embed your Purpose

What is Purpose if it’s not properly embedded into your hotel? Rhetoric. Empty promises. Bullshit.

To realise the benefits of Purpose, it’s important to build a culture around it. Identify and empower those people who are equally driven by your hotel’s WHY and allow your Purpose to guide all steps you take together.

Tips to embed your Purpose:

• Communicate it to prospective employees.
• Make it a part of new employee onboarding.
• Use it as a lens for making all business decisions.
• Build it into your KPIs.
• Reward behaviours that reflect it.

3. Amplify your Purpose

Once your Purpose is properly infused internally, it’s time to take it external and attract those people – guests, customers, partners, etc. – who also believe what you believe. Here the goal is to inspire and spark a movement among your stakeholders, so that they’re motivated to join your hotel on the way to a more purposeful future.

Tips to amplify your Purpose:

• Repeatedly refer back to it in your communications.
• Serve as a role model and inspire through action.
• Identify partners who can help you to accomplish it.
• Get active in organisations and non-profits.

It is easy to define a Purpose. Actually living, breathing and effectively demonstrating a commitment to that Purpose is a larger task, but that’s what it takes for your hotel to create real and sustainable impact in the world.

The message is clear: begin your journey to a Purposeful hotel brand now. If you want a place to start, we suggest picking up “Start With Why” by Simon Sinek.