The Purpose Economy, How Your Desire for Impact, Personal Growth and Community is Changing the World

1. The Purpose Economy: A New Organizing Principle

The Purpose Economy describes the new context and set of ways in which people and organizations are focused on creating value, and it defines the organizing principle for innovation and growth.

Beyond Traditional Metrics. The Purpose Economy marks a shift from prioritizing profit and efficiency to emphasizing meaning, impact, personal growth, and community. It's an economy where value is found in establishing purpose for employees and customers, addressing needs greater than their own. This new paradigm doesn't negate the importance of financial success but integrates it with a deeper sense of purpose.

Three Pillars of Purpose. The foundation of the Purpose Economy rests on three core elements: personal purpose (self-expression and growth), social purpose (meaningful relationships and community), and societal purpose (service to something greater than oneself). These elements drive individual motivation and shape the values of organizations operating within this economy. Businesses that tap into these sources of purpose are more likely to attract and retain talent, foster customer loyalty, and achieve long-term sustainability.

A Growing Force. While not yet the dominant force in the global GDP, the Purpose Economy is rapidly expanding, influencing consumer behavior, employment trends, and organizational structures. It's characterized by a desire for authenticity, transparency, and a commitment to making a positive difference in the world. This shift is evident in the rise of social enterprises, sustainable businesses, and the increasing demand for meaningful work.

2. Economic Evolution: From Agrarian to Purpose-Driven

Each new, dominant economy grows out of the foundation of the prior dominant economy, though the new one doesn’t entirely displace its predecessor.

A Historical Perspective. The Purpose Economy is the latest stage in a long line of economic transformations, following the Agrarian, Industrial, and Information Economies. Each transition builds upon the previous one, addressing evolving human needs and societal priorities. The Agrarian Economy focused on sustenance, the Industrial Economy on production, and the Information Economy on knowledge.

The Rise of Purpose. The Purpose Economy emerges from the conditions and tools created by the Information Economy, addressing the need for meaning and fulfillment in a world increasingly driven by technology and data. It's a response to the instability, globalization, and environmental concerns that have prompted individuals to seek purpose in their work and lives. This shift is particularly pronounced among Millennials, who prioritize purpose in their consumption, careers, and communities.

Measuring the Purpose Economy. While traditional GDP metrics may not fully capture the scope of the Purpose Economy, its influence is evident in various sectors, including nonprofits, education, healthcare, sustainable businesses, and the sharing economy. These sectors are driven by the provision of services to improve lives, inspire personal growth, and expand community. As organizations increasingly prioritize purpose and innovative hybrid models emerge, the Purpose Economy is poised to become a dominant force in the global landscape.

3. Ten Drivers Fueling the Purpose Economy

As with each economy before it, the Purpose Economy naturally progresses from the previous economy.

Human-Scale Technology. The internet has evolved from connecting us online to enabling us to find purpose online, facilitating human-scale solutions and reconnecting us to ourselves, each other, and our communities.

The Maslow Millennial Effect. Millennials prioritize purpose more than ever, influencing their consumption, work, communities, and relationships, reflecting a societal shift towards higher-order needs.

Generation Disrupt. Generation X, trained to think big and use technology, is now leading the charge in social innovation, leveraging their experience to address significant societal challenges.

Environmental, Economic & Political Turmoil. Growing uncertainty is driving individuals to seek stability within themselves and develop empathy for those affected by turmoil, fostering a desire for purpose.

Longevity. Boomers are reimagining retirement, prioritizing purpose in their second careers and inspiring others to seek meaning throughout their lives.

Changing Families and Evolving Roles. With both parents working, there's a growing demand for purpose-driven roles in childcare and eldercare, reshaping the labor market.

New Social Science. Positive psychology is dispelling myths about success and purpose, influencing leaders to prioritize well-being and meaning in the workplace.

Accelerated Globalization. Increased global interconnectedness raises awareness of global challenges, inspiring a commitment to making a difference on a broader scale.

A Shifting Social Context. Individuals and organizations are stepping in to fill gaps in government services, driving social innovation and community-led initiatives.

Blending of the Sectors. The lines between government, nonprofits, and companies are blurring, with each sector recognizing the importance of purpose in their future.

4. Purpose is Essential, Not a Luxury

True happiness involves the full use of one’s power and talents.

Beyond Financial Success. While money is important for meeting basic needs, it doesn't guarantee happiness or fulfillment. After a certain income level, the pursuit of purpose becomes a more significant driver of well-being. This shift in priorities is reflected in the growing interest in meaningful work, social impact, and community engagement.

The Power of Purpose. Purpose provides a sense of direction, meaning, and connection to something larger than oneself. It enables individuals to thrive, overcome challenges, and make a positive difference in the world. Research shows that people who feel a strong sense of purpose are more resilient, engaged, and satisfied with their lives.

Integrating Purpose into Work. Work is a central part of our lives, and finding purpose in our jobs is crucial for overall well-being. This involves aligning our values, strengths, and passions with our work, seeking opportunities for growth, and making a meaningful contribution to society. When we integrate purpose into our work, we not only improve our own lives but also inspire others and create a more positive and impactful world.

5. Busting Myths: What Purpose Isn't

Wait a minute—what’s happening to my special purpose!?

Purpose Isn't Just a Cause. It's an approach to work and serving others, a verb rather than a noun. It's about how you do what you do, not just what you do.

Purpose Isn't a Luxury. It's a universal need, not limited to those with financial wealth. It's often inversely correlated with wealth, as money can create a false substitute for defining success.

Purpose Isn't a Revelation. It's a journey, not a sudden epiphany. It comes from living life awake and seeking new experiences.

Purpose Isn't Limited to Certain Jobs. You can find purpose in any job, it's all in how you approach it. It's about finding meaning and value in your work, regardless of the specific tasks involved.

Purpose Isn't Easy. It requires giving of yourself, pushing beyond your comfort zone, and embracing challenges. It's about investing in something bigger than yourself.

6. Discovering Your Purpose Pattern: The WHO, HOW, and WHY

We don’t receive wisdom; we must discover it for ourselves after a journey that no one can take for us or spare us.

Understanding Your Purpose Drivers. To maximize purpose in your work and life, it's essential to understand what drives purpose for you personally. This involves identifying your core values, strengths, and passions, and aligning them with your actions and goals. It's about creating a personal purpose statement that serves as a guiding light in your daily work.

The WHO, HOW, and WHY Framework. This framework helps you articulate your purpose by defining who you serve, how you serve them, and why you serve them. The "who" refers to your target audience or community, the "how" describes your unique approach or methods, and the "why" reflects your underlying values and motivations. By clarifying these elements, you can gain a deeper understanding of your purpose and how to express it in your work.

Moral Foundations. Our moral view of the world serves as the foundation for our purpose. This involves understanding your values and how they guide your decisions and actions. It's about aligning your work with your moral compass and striving to create a more just and equitable world.

7. Practicing Purpose: Daily Habits and Meaning-Making

You can’t escape the responsibility of tomorrow by evading it today.

Daily Reflection. Incorporate daily practices that reinforce your sense of purpose. This could involve reflecting on what surprised, inspired, and moved you during the day, or engaging in activities that align with your values and passions. These practices help you stay connected to your purpose and make it a more integral part of your daily life.

Meaning-Making Strategies. Actively create meaning in your work by connecting your tasks to a larger purpose, focusing on the impact you're having on others, and defining your boundaries and values. This involves finding ways to make your work more engaging, rewarding, and aligned with your sense of self. It's about taking ownership of your work and finding ways to make it meaningful for you.

Job Crafting. Redesign your job to better align with your values, strengths, and passions. This could involve changing your tasks, relationships, or mindset. It's about taking control of your work and finding ways to make it more fulfilling and purposeful.

8. The Purpose Economy Organization: A New Model

The Purpose Economy organization is one that makes the creation of purpose their imperative, even if they struggle at times to realize their values and vision.

Beyond the Bottom Line. Purpose Economy organizations prioritize creating purpose for their employees and customers, serving real needs, enabling personal growth, and building community. They integrate financial success with a commitment to making a positive impact on society and the environment. This approach attracts talent, fosters customer loyalty, and promotes long-term sustainability.

Three Core Approaches. Purpose Economy organizations emphasize purpose through: delivering purpose to customers, consumers, or participants; providing purpose to employees; and/or building purpose throughout the supply chain. These approaches create a culture of meaning and impact that permeates the entire organization.

Purpose as DNA. Successful Purpose Economy organizations embed purpose into their DNA, making it a core part of their identity, values, and operations. This involves creating a culture that celebrates purpose, encourages employees to bring their whole selves to work, and fosters a sense of shared ownership and responsibility. It's about building a community that is committed to making a positive difference in the world.

9. Purposeful Ventures: Opportunities in Key Industries

I always think that’s one of the great myths—that you separate [yourself] in business.

Retail. The shift towards human-centered technology is enabling a return to personal-scale markets, where consumers can connect directly with artisans and producers, fostering community and self-expression.

Real Estate. The sharing economy is transforming real estate, with co-working spaces and services like Airbnb creating new opportunities for connection, collaboration, and resource sharing.

Finance. Social lending platforms are returning finance to its roots, enabling people to borrow money based on character and community standing, fostering trust and reciprocity.

Education. Homeschooling and personalized learning models are challenging the traditional education system, emphasizing individual needs, experiential learning, and community engagement.

Health Care. Technology is enabling a shift towards patient-centric care, with telemedicine and in-home monitoring empowering individuals to take control of their health and well-being.

10. Leading with Purpose: From Manager to Community Organizer

Efforts and courage are not enough without purpose and direction.

Audacious Goals. Set super-sized goals that inspire commitment and overcome challenges. These goals should be aligned with your values and have the potential to make a significant impact on the world.

Removing Silos. Break down traditional organizational lines and foster a sense of community that cuts across employee, contractor, and customer boundaries. This involves creating a culture of shared ownership and responsibility, where everyone is working towards a common purpose.

Community Organizing. Embrace servant leadership and empower others to lead themselves. This involves creating a culture of coaching and support, where individuals are encouraged to take ownership of their work and contribute their unique talents to the community.

Last updated: March 3, 2025