Purpose-Driven Leadership

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Well, hello, and welcome to our podcast, Success, Secrets, and Stories.
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I'm your host, John Wondolowski, and I'm here with my co-host and friend, Greg Powell.
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Greg?
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Hey everybody.
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And when we put together this podcast, we wanted to put out a helping hand and help that next generation and help answer the question of what does it mean to be a leader?
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Today we want to talk about a subject that I think supports that concept.
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Today, on our podcast, we are going to dismantle the fundamental trap, one that catches most of every ambitious person early in their career.
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It's the belief that leadership is defined by wealth that you generate rather than by the purpose that you cultivate.
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And let's be honest, when you first start to earn a title of manager or director or founder, your brain automatically jumps to building wealth.
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You look at the quarterly targets, the revenue goals, your new salary, or your business profit margins.
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We've been conditioned to believe that a successful leader is simply a machine that converts human effort into financial capital.
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But if you lead strictly by wealth, you will quickly find yourself running ragged, like a dog chasing its own tail.
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Wealth is an outcome.
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Purpose is the engine.
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Today we're going to talk about and break down the transition from that metric-driven management style to becoming a purpose-driven leader and why that shift can actually make your business more profitable in the long run.
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So let's start with a story everyone is familiar with.
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Let's face it, all through high school and college, the same mantra is repeated.
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What do you want to be when you grow up?
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The view you have ahead of your career when you finish college is rarely the same vision you hold 20 years later.
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Like how many of us have a degree that has little relevance to our actual long-term career?
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That is where this discussion really starts.
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Are your career decisions based on building wealth?
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Or are they based on the purpose of what you are doing on this planet?
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The key here is that your priorities will change as the environment and conditions around you change.
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It is impossible to fully imagine that environment as a 22-year-old grad from a great university in the Midwest.
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Now, if you're dealing with a good career counselor, they will tell you to keep your options open and understand that your degree is a starting point, not a fixed blueprint for your future.
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But the focus of this podcast is on leadership.
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As a leader, you have to understand the practical differences between building wealth and finding purpose in your career.
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So from a leadership viewpoint, let's look at some of the ways that we define the challenge of how wealth and purpose interact.
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The first way is the short-term goals.
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And wealth is often treated as a short-term goal.
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Financial metrics are looked at as either monthly or quarterly.
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You start estimating what your annual salary is going to be in an environment that you're in.
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Leading purely for wealth forces you into reactive, short-sighted decisions to protect your immediate cash flow.
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In contrast, purpose, its true long-term goal, purpose acts as an internal compass that forces you to ask the question Will this decision protect our reputation and the culture five years from now in the business that you're in?
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So let's look at the same equation from a different perspective.
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The human nature behind these two motivations, wealth versus purpose.
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Wealth relies on external human drivers.
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By that I mean money, bonuses, and titles are external rewards.
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They can create basic compliance from the working staff, but they often fail to inspire deep creativity.
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Purpose uses internal human drivers, such as meaningful work, a sense of autonomy, and shared values that come from within the organization.
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When team members understand why their work matters to real human beings, they become more capable of self-motivation.
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But the next perspective is very interesting.
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John, let's talk about employee retention.
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Yeah.
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You're right.
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Employee retention is actually one of those challenges.
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The concept of employee retention is usually an afterthought.
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And sometimes people talk about retention challenges as if they were simply victims of the environment that they're in.
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Now let's break it down into categories of wealth versus purpose.
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When employees are looking through the world of the lens of wealth, what they are creating is capital mercenaries.
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And that's really the essence of it.
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If your company culture is solely built on hitting financial targets, your employees will leave to another competitor for a 5% increase in pay.
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If you taught them that money is the only thing that matters, by the time you're trying to keep that strong employee from leaving, you've already lost the conversation.
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If wealth is the only thing that matters, discussions about healthcare costs and education funds and 401ks becomes a noise to the employee.
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They have learned that wealth is the only true matter because that's what you've taught them.
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The hard reality is that anyone who stays with an organization after they've threatened to leave for a pay increase is often looked upon as not serious for advancement from that point on.
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Now, compare that to organizations that look at themselves through the eyes of purpose.
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Purpose creates missionaries.
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And when employees feel connected to their organization, their goals, their ambitions, their loyalty skyrockets.
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They stay through difficult quarters because they believe in the destination of the organization.
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Purpose-driven companies demonstrate the value of employees' contributions.
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Pay increases come only when they're part of the broader conversation about the employee's impact to the team.
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Now, if you're a new manager in a corporate structure, you might be thinking, this sounds great, but my director doesn't seem to care about purpose.
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They care about the spreadsheet.
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How do you balance both?
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Well, you do it by protecting your team while delivering on your metrics or those KPIs, key performance indicators.
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You become a translator.
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Your job is to take the cold, hard financial targets, hand it down from the executives, and then translate them into purposeful human objectives for your direct reports.
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And John, when I was thinking about this transition and how new managers handle the challenge of translating code metrics into a human message that inspires a team, I remembered your experience working in higher education.
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Maybe you can share a little bit about how your boss gave a directive and how you translated that directive to your team.
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Yeah, directive is kind of an interesting term, more of a demand.
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But that's a great example to talk about in terms of leadership.
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At one point in my career, I was a senior administrator in charge of new construction and facility maintenance.
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And that leader that I was dealing with was more of a dictator than a college president.
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Anything he said felt like a veiled threat, and it seemed like he took entertainment and scaring staff and administrators by threatening their careers at a drop of a hat.
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To give you an example, he would set an impossible expectation, such as no change orders will be approved on any construction project.
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Now, if you're in the construction industry, you know that that's simply impossible.
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Especially when you're dealing with projects that range from$50 million to$100 million.
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Now, architects, engineers, construction staff were really frustrated by the combative conversations about new scope on every discovery that construction was finding.
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What he was pushing for was to challenge every change order to ensure that we achieved the best possible outcome while minimizing the impact toward our contingency funds.
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I had to encourage my staff to get past his bravado and listen to the essence of what he was asking for.
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He wanted to make sure the institution was getting the best value for the construction costs associated with each construction job.
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And the proof was that 95% of the change orders that we presented him were justified, and it was considered acceptable in terms of scope creep.
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We were able to help him understand the changes from the academic world and his own personal perspectives were the change orders that were usually up for debate, but were still acceptable.
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Notice what happened here.
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The operational goal remained the same.
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The matrix of the change order is still being challenged, but the psychology behind framing it is that shift.
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As a manager, you realize that data informs, but stories compel.
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If you stand in front of your team and you talk only numbers, you are appealing to their logic, and logic alone does not make people care.
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You have to find a human impact in your department output and understand how your directions would feel if you were receiving them yourself.
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The words are simple.
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So let's pivot a little bit to someone like a small business owner or entrepreneur.
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When you are running your own shop, the pressure to focus on wealth is intense.
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You gotta pay rent, you gotta meet peril, you have to get inventory.
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It is incredibly easy to let purpose slide when you're in survival mode.
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But here is a counterintuitive truth purpose is your ultimate competitive advantage against massive corporate organizations.
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Large companies have deep pockets.
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They can outspend you on marketing and underbid your price.
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What they cannot easily replicate is your deep, authentic, and local purpose.
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To build a purpose-driven small business that generates substantial wealth, implement three structured steps.
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First, make sure you define your core mission.
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Two, eliminate greed-based revenue.
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And three, hire for culture when I write fit.
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Yeah, and Greg, when you say mission statement, he's implying that there is things like anti-mission statements.
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These include generic statements such as, we will provide quality service to maximize the value of the organization, which means absolutely nothing when you think about it.
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Instead, for a mission statement, write down what the business will never do to just make a profit.
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For example, Subaru will never sell a Subaru that does not meet the performance and safety standards as one of the best in the automotive industry.
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Notice the difference.
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In terms of the description of the organization and how that relates to customers and employees.
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That's an important point to understand.
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Small businesses have to deal with clients who will pay their staff but treat them horribly, that create demands that violate customer core values or on occasion put employees at risk.
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When you accept money from these kind of risk-based purchases, you are trading purpose for wealth.
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Your team is watching you closely, and they see you tolerating abuse and compromising your ethics just for a paycheck, and they lose the respect of leadership.
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If you can understand how greed can destroy an organization, any toxic client can be fired.
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Think about that.
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To boost morale, operational efficiency will actually quickly replace whatever lost revenue you're dealing with.
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The last one on the list is probably the most obvious.
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Hire for cultural alignment.
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When you are working with a small team, it is tempting to hire the person with the highest sales track record or the most impressive resume.
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But a lone wolf or solo operator who does not share the core values of your team will fracture the culture that you are trying to develop.
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So hire people who genuinely care about the problems your business solves.
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You can train technical skills, but you cannot train a human being to care.
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So let's go back to the general concept of leadership overall.
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Obviously, this is the discussion, and we are trying to emphasize that purpose-driven approach is better than a simple money grab.
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But the conflict comes in where you're trying to do a purpose-driven approach as an employee.
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And say you're 25 years old, that's kind of hard because at that point in your career, at 25, you're usually trying to make the decisions on what kind of income you can make rather than what kind of career you can develop.
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But they are connected.
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And at that same time, when you have finished those entry-level positions, deciding whether you want to be wealth-driven or purpose-driven, that becomes a key element of your career.
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If all you're trying to do is make as much money as you can, there are organizations and institutions that will give you the opportunity to maximize your wealth.
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Whether they are good or bad depends on how you interpret your goals and your ambitions in life.
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I think our implied recommendation is to understand that wealth is fleeting.
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There are people who chase the dollar and at the end of their careers realize how much of a life they've missed while expecting the number of zeros in their bank account to give them a meaningful life.
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What we are suggesting is that you have a purpose in your life and understand that a working environment can contribute to the human condition.
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I work with human resources because I felt I could help individuals with their careers and their lives.
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That career allowed me to focus on helping others.
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Purpose was not lost in terms of wealth, because I did build my wealth in my career to a vice president level.
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But I made conscious decisions to lead with purpose, and I found a balance between helping people at work and creating a better environment for my family at home.
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That balance is an extension of what it means to be a leader.
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The results of my efforts are also creating the legacy I left behind.
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Yes.
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So let's pull this together and give an overall view.
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Remember this simple sentence.
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Leadership is a practice, not a title, it's a behavior.
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Wealth is measured that tells you whether your business is financially healthy, but purpose is the measurement that tells you whether your business will survive to the next decade.
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When you lead with purpose, you create the environment where excellence becomes a standard, retention becomes easier, and wealth is a natural byproduct of your impact.
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Hopefully, you've learned something from this podcast today.
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And if you've liked what you've heard, I've written a book called Building Your Leadership Toolbox, and we talk about tools like this, and it's available on Amazon and Barnes and Noble and other sites.
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The podcast is what you've been listening to.
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Thank you so much.
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It's also available on Apple, Google, and Spotify.
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A lot of what we talk about is with Dr.
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Durst and his MBR program.
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If you'd like to know more about Dr.
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Durst, you can find out on SuccessGrowthAcademy.com.
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And if you'd like to contact us, please send me a line.
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That's wando seventy-five periodjw at gmail.com.
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And the music has been brought to you by my grandson.
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So we want to hear from you.
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Drop me a line.
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Tell me what's going on, what you like, and what you would like to hear about.
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It has always helped us to create content.
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Thanks, Greg.
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This was fun.
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Thanks, John.
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As always.
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Next time.
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Yeah.