Running a Profitable and Purpose-Driven Business
March 22, 2022 | On the Business Owners & Entrepreneurs Podcast
Katie Burkhart appeared on the Business Owners & Entrepreneurs podcast for a conversation with host Peter Boolkah. She talked about purpose-driven business and shared why the “why” of your business is just as important as the “how”.
Listen to the episode below.
read the transcript
excuse any typos as we tried to capture the conversation as it happened.
Peter: Hi, Peter Boolkah here, and welcome to today's edition of The Transition Guy. Joining me today in the studio is Katie Burkhart, who is a CEO, founder, and keynote speaker. Welcome, Katie!
Katie: Thank you so much for having me.
Peter: So, I thought today we'll talk about a purpose-driven business. The reason I want to talk about that today is there is so much fluff and misinformation about purpose-driven business. I mean, very much people misunderstand, thinking that if you've got a purpose-driven business, then money is a bad word. “You can't make a profit, it's got to be for the good of the world,” but surely it can. You can add value to your customers, value to your employees, and still make money.
Katie: Absolutely. And in fact, that's really what being a purpose-driven business is all about. So, one of the ways I like to think about this is you have the point on which you're focused. Why is it that we're all coming together as an organization? And historically that's been, “We're here to make money, period.” That's why we're all coming together to do whatever it is that we do every day.
And increasingly, what you're seeing is that that's not really enough to get people out of bed in the morning to come to work. And while you have a gradated scale on the customer side, if you don't have a top-notch team who's there helping your company to do what it does, you are not going to be successful. So, what we need to do is we need to shift from saying, “This profit is why I'm getting out of bed in the morning” to “This purpose is why I'm bringing everybody here together and seeking their contributions.”
And when I say purpose, what I'm looking for is your why. Why is it that you exist in the first place as a company? Why are you doing what you're doing and why does it matter? And that's where you get into matter. Not just as, “We're helping to solve world hunger,” which is noble and awesome, but what value do you deliver? And the way that you end up making money is by effectively delivering that value to the people that you serve over, and over, and over again. That's what's going to allow you to bring in the money that you need to bring in to scale and figure out how to solve that problem or deliver that value in a way that allows you to make money is really there. And that's where you get into this shift that we talk about that money is the resource, not the goal.
Peter: Do you think that's fundamentally changed since the pandemic?
Katie: I think it has accelerated a change that was already starting to happen. We knew pre-pandemic that most founders starting out new businesses had already started to prioritize making an impact above simply making money. Not that they didn't recognize the need for capital. And I think the pandemic gave us this universal pause to sit down and say, “What is it that I really want out of life? What's important to me?” And most critically, “How do I want to spend my time?” And I think that's a huge shift that we perhaps have never had before. Especially on the employees’ side where we sort of, I don't want to say took for granted, but there was an expectation that you needed a job and you were going to take a job. And that was just a reality of life. And I think what we're now having to recognize is this shift that really is a purpose-driven organization. You understand that your employees on many levels are choosing to spend their time working with you. You know this is an investment of their time, and it needs to be worth it to them to come in and to do their best work.
Peter: So, we've got a couple of things here because I definitely agree with you on the employee front. And that was very much demonstrated in November when, in the US, 4.7 million people exited the workforce. I think that's the record. That's the biggest exodus ever, the “Great Resignation.” So that's telling us something. Basically, people won't just tolerate a job.
Katie: Yes.
Peter: However, one of the big challenges you've got is most entrepreneurs that get into business, I would probably say they've never gotten into business with any great purpose—other than either they've been made redundant and they needed something to do. Or perhaps they didn't have the best time at school, consider themselves unemployable, and thought they had nothing to lose. Whereas we've got those great examples of people that have purpose-driven businesses, the majority of them do not and never went into business with that mindset. How are they gonna make that transition? Or in fact, can they make that transition?
Katie: So, we would say that every business has the opportunity to be a purpose-driven business, to use that model to run their business more effectively and really thrive in the purpose economy. However, you are going to find those businesses that never really were here to deliver actual value. They are just adding to the noise of the 65,000,000th app that does what the other 64 million do on the market. And they really didn't have a clear value proposition in the first place. They didn't know who they were trying to help. They did not take the time to understand them. They were just looking for that quick win. Those people are going to have to rethink what it is that they're here to do and really look at what contribution they are making. I think the existence of those companies is here.
And I think those will be the ones that—whether they do it themselves and choose to just step back, or they can't recruit people to come in and really help their companies to grow—will slowly but surely fade out because they just won't be able to be effective as we move forward. For those that don't quite fit that small subset, I would say most businesses, there was some problem, some change, some something that motivated them to get into business that they wanted to do. And if it was an individual who started it, they were probably trying to bring their unique capabilities to whatever that problem or value add was into the world. And I think the work is now in sitting down and actually refining that out so that they can express it in an intelligent way. And then starting to think about, “Okay, how do I get people to come in and work on this, figure out how we're really listening to the people I'm trying to help, and make sure that whatever this is is actually going to help them with whatever it is that they need to do within the context of our business?”
But I think the, the first big shift is making sure you understand what is that value that we're centered on? Why do we exist? And then working to listen and make sure that you're doing it as well as possible for the customer. And then figuring out how to express that enthusiasm through impact stories of customers you've helped succeed. It's one really great way to do it to team members that you're bringing on board.
Peter: Yeah. And I think that's the really key point, that they've got to take the time out and actually articulate where they add value. And for some people, where they added value pre-pandemic may no longer be where they can add value post-pandemic because the world, as we've said, drastically changed and is not gonna necessarily bounce back to as we knew it pre-pandemic but bounce forward. And that forward will be different in many respects. Then that value offering may have to be tailored for our new reality.
Katie: Yes. and it's why one of the pieces of being purpose-driven is also, “If you're not learning, you stop.” And one of the best things, or most important things, to be constantly curious and learning about is the people you serve. Where are they? So first, you have the customer, the beneficiary, and you’re saying, “Where are they? Is this what's really helping them right now? Or is there something else that we need to do?”
And then more importantly, thinking about where do our capabilities help them now versus for a period of time. When everybody was an expert in remote work, you didn't pass the sniff test on a lot of companies. But we're like, these are not your unique capabilities. This feels very weird and opportunistic, and it's not actually helpful versus looking at “Where can we really use what we do to keep moving this forward.” And not to mention from an innovation point of view, where do we need to look at totally new ways of maybe not what we're delivering but how we're delivering it because the world is different now.
What these people need from me and the value I'm adding may be different than it was before. Or, how I need to solve that problem is that now it needs to be done in a way that was different than it was before. On the employee end, things are totally different. If you're not looking at really good systems for how to manage remote teams, looking at helping them to build asynchronous communication skills, because that's not going away. The idea that we're all gonna be in the office all the time is not happening. Putting everyone on Zoom meetings for nine hours a day is not working. So really looking at “How do we deliver that value? How do we give you, especially, the autonomy that you are really looking for?” Which gets back to your point about those people who didn't have a job and then went out and started their own thing.
I think there's a large wave of people that aren't necessarily looking to build a business per se, but they're looking to capture that time, freedom, and autonomy—to make sure that their time is going to the things that really matter to them. Employers need to really look at “How do we give them that same autonomy? Make sure that we're connecting their personal purpose and the unique capabilities they bring to advance our corporate purpose but provide them with the stability, the relationships, the community that we can provide as a bigger organization that they may not get on their own?”
Peter: Interesting that you say that because I think most companies operated remotely out of necessity due to the fact that there were restrictions in place. You couldn't travel, but I'm hearing from a number of people that they're now saying that remote working's unhealthy for the individual, that they've got to get back into the office, and it's not good for team dynamics, and people should really be working in the office again and shouldn't be working at home.
Now to me, that really sort of says, we want to go back. Not that we're going forward. It's like, if you commute to work for an hour and a half each way, then that gives you thinking space and all of that time. Now, that kind of bullshit probably worked pre-pandemic, but surely the shift now has been that significant that if there are working options, people will hold out for something that suits them.
Katie: Mm-Hmm.
Peter: How do we deal with that fixed mindset? Because I am seeing that a lot. And it's like, these leaders of industry with that fixed mindset, they do honestly believe that that's the way to go--that we've got to go back.
Katie: So, I think the challenge you have is “Change is always difficult.” And so is embracing that learning mindset that things are going to be different. How do we take what's working and build on that? I would be the first to say that remote-only companies are difficult because you're not getting to see people in person. Humans are social creatures, and it does matter.
And one of the most important or key sources of purpose and fulfillment in life is your relationships to other people. So, I can't stress enough how critical it is for business leaders to make sure that that's happening and they're building relationships in a really human-centered way. So, I don't think that you're going to lose in-person. I think what's going to go away is the sense of nine to five. We all sit in the office; we're all going to sit in the same meetings and look at each other. That’s gone.
That's not what your team is looking for. It does not allow them the flexibility to work at the times that work best for them. To recognize that there isn't “work” and “life” in these sort of neat boxes; it is all your 24 hours a day. And there's, I think, great opportunity to bleed them together. And I think people saw in the pandemic the opportunity to do so in ways that were actually really positive for them. Now, that all being said, you can't have people on Zoom meetings for 24 hours a day. It isn't actually healthy or helpful. So, how do we balance out meeting time with other forms of communication? How do we look at giving people space in our communication expectations, which most businesses don't have and should?
We've determined that Tuesdays are days as a company. We just don't schedule meetings so that you have space. We've determined that after a certain hour in the evening, we're not expecting you to respond to Slack messages so that you are creating some barriers and buffer guards for people to have some sense of what's expected to them and what's expected when we come together.
But also flip side, looking at an individual level of understanding in your team, when are their best working times? How do they best communicate? So that there's a little bit more of that personalization that we've been so hyper-focused on on the customer level starting to come back into the team level. Because you've got a little bit more of this independent agents choosing to come together. A little bit more Rebel Alliance versus kind of the old way of doing business is the Empire where “You're going to do it because I told you too, and that's sufficient.” It's not sufficient anymore.
Peter: Now, what steps can business owners that are going to find this quite daunting, that's going to believe that their perspective of the old way—as you call it, let's say the Empire's way—is the best way to go forward. But it isn't. What tips can you give them to start changing their outlook?
Katie: One of the first things that we say to leaders is a recognition that it's not about you. And I think that that's one of the huge shifts, whether that's a personal shift as a business founder or a captain of industry who—for completely understandable reasons, I'm a founder myself—is really excited about what they're doing and wants to build this empire to do whatever it is that they're doing in the world. But recognizing that to do that effectively, it's not about you at all. It's actually about the value that you're delivering out into the world and how well you're doing it. And ultimately, to do that well, you're going to need to do that with other people.
There are very few of us making that level of impact and that level of capital to your original question all by ourselves. So, I think that's the big shift that has to happen. And when we see leaders make that shift, all of a sudden, a whole lot of other pieces start to fall into place. From how they define success, what it is that they're actually measuring, how they're communicating to their team, it’s huge. The next piece that we start to look at is okay, if you recognize that it's not about you, as leaders you need to start connecting what you're asking your team to do to why you're asking them to do it. And I think we're starting even for old mindset people to see some interest in, for example, the OKR goal setting mentality—where we are really trying to say this has to be an aligned effort.
And the more you can align that with, “Here's the actual value we're trying to deliver. Here's how we've broken that out in steps. In a plan, here's where you fit. And here are the contributions that you're actually making,” the more successful that's going to be. A machine you can turn on and off. A person wants a reason and some context that this thing they're going to spend weeks on, this project they're working on for weeks, is actually moving the needle forward in a valuable way. So those are two things that we would say as top-level shifts have to happen. And then after that, pragmatically, we say take some time to listen and see where things are at your organization—both on the customer and your team, as well as any partners and other stakeholders, to understand where they are.
And when we say that, we typically do it in facilitated sessions where we actually bring those people in the room and run a dynamic conversation, but the C-suite is in the room. They are actually listening firsthand to what these people are saying. In so many businesses, purpose-driven or otherwise, nobody is really listening to what's going on and what their perspective is. What's their experienced value versus the value you perceive you’re delivering, which often are not the same thing.
So, figuring all of that out and bringing those pieces and those perspectives to the table is huge. From there you can define not only your purpose but the rest of your core strategy. Your vision, mission, values, and story, then start to work from there. As far as “Okay, if we understand these things now, how do I start to really evolve how my business operates day-to-day to make sure that these don't end up locked in a poster on a wall, which is not really going to move me forward?”
Peter: And as you say, the first place to start really has got to be “what value are you offering to the marketplace?” And really, that's where they need to start.
Katie: Yes, absolutely. And figuring that out and, as much as possible, understanding that. Even understanding that in the language that they use. What do your people say? How do they say it? What does experience look like for them? And being able to then translate that over time from an operational perspective into the business is huge.
In fact, Adam Grant did a now very widely understood study. If you bring in someone, understand the problem that they have, and your team actually gets to meet one of those customers who has that problem, they're going to be so much more motivated to do what it is that they're doing because they understand why they're doing it and the impact that they're going to have in the world and on another human being.
Peter: And I think that's where we are now, where in the economy of impact, people want to see the end result of what they're doing.
So, if people want to connect with you, or they want a bit more information about what you do and what you offer, where do they go?
Katie: So, the first place that you can find me is on LinkedIn. I actually take all connections and will happily answer your questions by message or find a time to meet with you if you are so inclined. The other place to really join our community and hopefully get more actionable insights about shifting to a purpose-driven model and actually running a purpose-driven business is in our MatterLogic community. And the best way to join that is to go to matterlogic.co/weekly so that we actually drop these insights into your inbox every Monday morning.
Peter: Brilliant. Thank you so much, Katie.
Now, if anything's resonated with you today and you want a bit more information about how you can start working out what value you deliver, both to the customer and to your employees, but you're struggling what to do next, head over to boca.com and get in touch. Let's set up a discovery call to see how you can move it forward.
If you loved today's episode, please like it, share it with others, and subscribe so you don't miss any future episodes. Remember that the most important thing out there is “Failing to learn is learning to fail.” And we are in a learning environment, especially with everything that's going around us. We've got to keep learning. We've got to keep changing.
Katie, thank you so much for being an awesome guest. It's been a pleasure speaking with you today.