Identifying Your Business’s Purpose Archetype

Your business’s core values combined with who or what it exists to serve determines its Purpose Archetype. So to identify your business’s Purpose Archetype, start by considering two dimensions of your business: (1) core values and (2) products or services. For instance, if personal growth is a core value and the business sells fitness products, it may be a Trainer company. However, if your business sells fitness products and equitable access to fitness is a core value, it may be an Advocate company.

How Your Purpose Archetype Works

eliminates the noise

Your business’s Purpose Archetype helps in a few key ways. First, it narrows the focus and leads the business to its purpose statement. By using core values and products or services, you’ll eliminate the noise that distracts and overwhelms leadership when it comes to identifying purpose.

Take the story of a small restaurant group we worked with recently. The noise around the leadership told them that their purpose should be sustainable ingredient sourcing. They operated from that purpose for a few years, but it just wasn’t landing. Instead, a look at their values, products, and service helped them identify as a Nurturer company. From that Purpose Archetype, the restaurant group articulated a purpose statement that helped them focus and build on what makes them stand out in their market. Sustainable ingredient sourcing is an important part of the company’s business model, by the way. But their purpose is to develop the next generation of great leaders in the workforce.

connects with stakeholders

Traditional archetypes make it easy for us to understand and connect with a character, politician, or TV personality. So Purpose Archetypes make it easy for your stakeholders to quickly understand and connect with your business. When stakeholders easily understand and connect with your business, they’re more likely to commit to your business for the long-term.

The restaurant group’s Purpose Archetype helped them connect with their stakeholders by showing them great leadership in every interaction with the business. Customers experience their purpose of developing great leaders when they interact with kind and engaging staff members. They notice attention to quality when they taste the food and enjoy healthy ingredients. Likewise, suppliers experience kind and engaging buyers who are focused on building long-term relationships. And of course, employees are working in an environment of skill building and growth.

improves operations

The difference between a business that has a purpose statement and one that is purpose-driven is aligned operations. Of course purpose-driven businesses need to have a positive impact externally. But they also need to thrive as a business. This alignment is what drives the business outcomes and value that stem from purpose.

In a different example, consider an events company we worked with. Experiencing a leadership transition and changes forced by COVID, they needed to streamline and improve operations. Identifying as a Builder company, they were able to focus their operating resources on what they do best: creating space for entrepreneurs to grow. They also saw potential for expanded service offerings when they considered what it meant to be a Builder company.

Going Beyond the Purpose Statement

For businesses that strive to be truly purpose-driven, the purpose statement is only the beginning. Understanding the archetype behind your business’s purpose statement helps bring it to life in operations. Or, if your business is struggling to find clarity of purpose, discovering its Purpose Archetype will help generate an authentic and compelling purpose statement. Either way, it’s putting your purpose to work that counts.

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There is an emerging business model shaping the next economy. You may hear it called purpose-driven, conscious capitalism, conscious brands, stakeholder balance, triple bottom line, or for-benefit business. Whichever name you like, one of the many factors contributing to its shaping the next economy is the largest transfer of wealth in human history taking place from Baby Boomers to Millennials. And Millennials are going to spend that wealth (along with their time and talent) on businesses embedding positive impact.

Many companies are pursuing this business model and seeing real and lasting results. Others are riding its coattails by “greenwashing;” marketing themselves as if they generate positive impact while operating in ways that do not. So how do you make the investment, generate the best impact, and make sure your stakeholders know it’s authentic?

One of the most effective ways is to become a Certified B Corp (B Corp). It sets your business apart and lets consumers know you are truly a conscious brand generating positive impact. While you don’t have to be a B Corp to be a driver in conscious capitalism, there are some advantages: 

1. Certification standards inherently reduce financial risk and improve long-term profitability
2. Greater survival rates during economic downturns
3. Stand out among competitors who may greenwash
4. Join a network of like-minded businesses
5. Build your business’s foundation for success in the next economy

The What

Certified B Corps function as a network of companies driving the next economy forward by generating positive impact. They are for-profit businesses certified by the nonprofit organization B Lab for taking measures with customers, employees, governance, the community, and the environment to generate positive impact. Certified B Corps can be LLCs, LLPs, S Corps, C Corps, or any other form of business to qualify. However, companies in states with benefit corporation legislation must file as a benefit corporation within a certain time period of becoming certified (look up your state here).

The How

Start with the B Impact Assessment (BIA), which assesses your business in five categories: workers, community, environment, governance, and customers. Your business must score at least an 80 out of 200 possible points to become certified. 

While this may sound easy, many companies do not earn 80 points on their first attempt. The BIA is designed to ensure high standards and maintain the certification’s credibility. Be prepared to take your first pass at the BIA as an initial assessment to understand where you might improve. For instance, even just documenting informal, undocumented positive practices could help increase your score. 

Once you complete the BIA with a score of 80 or higher, B Lab will make documentation requests and may perform an audit of your company. For those that don’t score 80 right away, B Lab offers a simple planning tool for setting and making progress toward improvement goals. 

A few tips to help you succeed on the BIA:

WRITE IT DOWN.

Many businesses committed to positive social or environmental impact have informal, undocumented practices that support their commitment. The more you have in writing, the better prepared you’ll be. (For instance, a mission or purpose statement, certain employee benefits, hiring practices that support improved DEI, etc.)

Establish a team.

The BIA is a rigorous policy, practice, and operations tool that can be used for the continuous improvement of your organization. There will be information to gather, unwritten practices to be captured in writing, and questions about the business to be answered. Establishing a team internally and/or hiring a Certified B Corp consultant will help you move through the process smoother and faster.

Prepare for a process, not a test.

Your first pass at the B Impact Assessment will likely provide your baseline; a starting point to build on. Stay in the process and the reward of becoming a Certified B Corp will be immense and long-lasting. Value will span facets of your business from revenue and profit to talent and employee engagement; from customer loyalty to a healthier stakeholder system to operate in. 

Ready to explore becoming a Certified B Corp?

New Commodity can help your team complete the BIA, gather information, and get all the “unofficial” positive practices you’re already following into writing. Contact us for more information or to schedule a consultation.

If the B Corp path isn’t right for your business today, there are other ways to embed positive impact into your operating model. Join the New Commodity community for more on building your business’s foundation for the next economy.

The post The Why, What, & How of Becoming a Certified B Corp appeared first on New Commodity.