HBR On Leadership Why Purpose Is Foundational in Leadership
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Nov 5, 2025 
Nicholas Pearce, a clinical associate professor at Kellogg School of Management and author of The Purpose Path, stresses the importance of aligning individual and organizational purposes for success. He explains that companies thriving beyond profit motivations attract like-minded employees. Pearce shares insights on how leaders can help rediscover their organization's purpose, the role of education in fulfilling life’s work, and the signs that indicate one might be in the wrong job. He also emphasizes that genuine purpose drives profit, not the other way around.
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Purpose Should Drive Daily Work
- Purpose is the reason someone or something exists and should drive daily actions.
- Organizations perform best when employees' personal purposes align with the company's purpose.
Profit Isn't A Compelling Why
- Profit maximization alone is not a compelling organizational purpose.
- Younger workers increasingly choose employers based on purpose alignment, not just pay.
Leaders Stumped By Their Company's Purpose
- Pearce asked 50 leaders at a global company what their purpose was and met silence.
- Framing purpose as "who would care if you ceased to exist" helped them rally and transform morale.
