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The Purpose Effect: Building Meaning in Yourself, Your Role and Your Organization

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Pontefract combines years of experience and research on employee engagement, behavior, and culture to create a work about the three crucial areas of personal, organizational and workplace role. If all three can come to fruition - if there is a positive interconnection between the three distinct definitions of purpose - the benefits should be felt by employees, teams, the organization, customers, and, perhaps most importantly, society as a whole. We can refer to this balanced state as the "sweet spot". When one area is lacking or ignored, the results range from disengagement and apathy to lack of growth and even bankruptcy.

The Purpose Effect is aimed at both leaders and employees who wish to achieve a purpose mind-set on a personal level for the organization where they are employed and in their role at work, too.

A business leader who is committed to purpose will create purpose for the organization. An employee who feels his/her personal sense of purpose is being fulfilled at work will be an invaluable asset to productivity and success. An organization centered on purpose will benefit every stakeholder, from employees to society in general. This sweet spot of purpose creates a reciprocal relationship between all three areas and sits at the center of Pontefract's work.

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First published May 10, 2016

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About the author

Dan Pontefract

11 books68 followers
Dan Pontefract is a leadership and corporate culture strategist and an award-winning author with over two decades of senior executive experience at SAP, TELUS, and Business Objects.

Since launching Pontefract Group in 2018, he has worked with organizations worldwide, including Salesforce, Amgen, Nestlé, Autodesk, Manulife, BMO, Nutrien, and Virgin Media O2.

He has presented at four TED events and delivered over 600 keynote talks in Australia, the Middle East, Europe, the US, and Canada.

He is the author of Work-Life Bloom (winner of the 2024 Thinkers50 Best New Management Book and the Axiom Business Book Awards Gold Medal), Lead. Care. Win., Open to Think, The Purpose Effect, and Flat Army.

He writes for Forbes and Harvard Business Review and is an adjunct professor at the University of Victoria’s Gustavson School of Business.

Named as one of the Thinkers50 Radar Class of 2018, HR Magazine’s 100 Most Influential People in HR, and Inc. Magazine’s Top 100 Leadership Speakers,

Dan lives in Victoria, BC.

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Displaying 1 - 17 of 17 reviews
Profile Image for Dan.
Author 11 books68 followers
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May 10, 2016
As the author, I have read it several hundred times ... and am a wee bit biased, of course. ;-)
Profile Image for Wendy.
2,371 reviews45 followers
July 10, 2016
In "Purpose Effect" which I won through Goodreads Giveaways Dan Pontefract focuses on the higher calling of individuals and organizations to create a work environment where employees are motivated, inspired and engaged in their role which only enhances the company's effectiveness and success as well as business leaders who are committed to balancing purpose and profit in their organization in a fair and accountable way that benefits all stakeholders and society as a whole. By balancing and aligning "purpose" whether personal, organizational or role, a partnership or sweet spot is formed providing positive results including rewarding fulfillment for an employee and a stable, unified and productive company.

Dan Pontefract's thesis is well-researched and includes not only his personal experience but success stories and organizational failures. This is a constructive look at harmonizing all three categories of "purpose" to bring out the best in people ( enriching their lives and work) and conversely the organization which in the end benefits society. Having worked for years in a negative, de-motivating working environment in a unique community and only now finding enrichment and stimulation in my present role, I found this book refreshing, positive and rewarding; a most read for employees and employers alike.
Profile Image for Sarah Cupitt.
808 reviews42 followers
September 20, 2023
It's funny that I was making a mindmap while reading this book. AKA corporate PTSD. Why do we need to sell that work is an enjoyable experience? Why can it not simply be a role that provides enough income for us to simply live? It is so typical that research from Deloitte was included in this book. Maybe instead of a culture of purpose, focus on paying people enough instead of telling everyone a ping pong table analogy in the hopes it will distract everyone from being exploited.

Takeaways:
- purpose doesn’t spontaneously appear (this book should take notes from itself)
- team members should be considered both leaders and followers (again, my point)
- When there’s a mismatch between an organisation and the people within it, you’ll notice disputes over remuneration, profit, role, power, and performance (AND MAYBE WE SHOULD NOTICE???)
- A company pursuing profit above all else also breeds mismatch (facts)
- many corporate systems still prioritize profits over collective purpose (should have been edited to remove that end part lol)
- According to some studies, only 5 percent of individuals participating in performance management practices are satisfied with the process (I wonder why)
- Only good thing this book suggested: Evaluations should fuel development through ongoing guidance, not rigid annual grading
- and the deed model - DEEDS is an acronym that stands for: Delight, Engagement, Ethics, Delivery, and Service
- “What am I doing to evolve myself?” reminded me of hustle culture and doing the work of seniors above you while getting no addition pay and just the responsibilities
- There are three main mindsets people adopt at work: job, career, and purpose. (maybe it should just be about the paycheck, instead of grinding for nothing, and endless perfectionist lifestyles)
- Rediscovering our “why” – on both personal and professional levels – provides the foundation of purpose. (sure but why do they have to overlap? why can't they be separate?)

Quotes:
- individuals who consider themselves to be engaged at work are twice as productive, stay five times longer in their job, are six times more energized and take 10 times fewer sick days than those who are not.
- “The Easterlin Paradox, named for Richard Easterlin’s argument in a 1974 essay, taught us that increasing levels of pay over time does not equate to increased levels of happiness.” (yeah but most people don't make 75k in Australia to get to the money can't make you happy benchmark)
- One specific goal we should contemplate is how to seek out a role in an organization that helps fulfill our personal sense of purpose
- Each of us deserves a life where we get paid to fulfill our purpose
Profile Image for S.
90 reviews
December 2, 2022
Dan Pontefract, author of Flat Army, explains how companies can establish meaningful goals, provide energized workplaces, and contribute to their communities and society. Such “purpose-driven” firms put principles ahead of profits, but they find in the long run that being purpose-driven is good for business. Pontefract shows firms how to reach a meaningful “sweet spot” where three important roles come together: each employee’s “personal sense of purpose,” the company’s purpose and the role-based purpose employees feel when their jobs align with their priorities and beliefs. Those who seek a sense of direction for their organizations and business students will benefit from this detailed, practical, inspirational book.

Takeaways

Purpose-driven” firms put principles above profits. They focus on their customers, employees, team members, community and society, as well as profits.
The “Purpose Effect” has three components:
“Personal purpose” centers on each employee’s identity and commitment.
“Organizational purpose” concerns a firm’s “principles, ethics, leadership and culture.”
“Role purpose” focuses on turning each worker’s job into a “calling.”
The alignment of these elements creates an energizing “sweet spot.”
The Purpose Effect inspires employees by making their jobs meaningful.
Purposeful organizations follow the “Good DEEDS” acronym: “Delight, Engage, (Be) Ethical, Deliver” and “Serve.”
To use it, make customers feel great, engage with your employees, operate ethically, always be fair and serve all stakeholders.
Purpose-driven companies set out to earn profits and improve society.

Summary

The “Purpose Effect”

Purpose-driven firms base their activities on the Purpose Effect, which concerns the organization’s purpose beyond making money, the roles that its team members play within the organization and their individual motivation. The organization, individual team members and society all benefit when each element is in place.

When an organization and its team members are indeed on the same page – when the sweet spot is being demonstrated by all parties – a collective sense of community can be felt.
The Purpose Effect engages and fulfills team members and engages them. In this atmosphere, people do better work. If an organization’s purpose conflicts with employees’ purposes, they will be unhappy at work. But the Purpose Effect ensures that all workers feel that their jobs represent more than just paychecks. They want their work to be meaningful and to give them a genuine sense of purpose. As management expert Peter Drucker explained, “To make a living is no longer enough. Work also has to make a life.”

The Components of the Purpose Effect

The Purpose Effect emerges at the intersection of three essential factors:

1. “A Personal Sense of Purpose”

Each team member should have a special, motivating purpose that addresses “what, who and how.” Personal purpose calls for knowing who you are in terms of three aspects: First, develop yourself. Be determined to improve and grow. Ask, “What am I doing to evolve myself?” Second, define what your life should be, and redefine it regularly. Ask, “Who am I in life and at work?” Third, decide every day to act in a moral, ethical and responsible way in keeping with the person you choose to be. Ask, “How will I operate and be perceived by others?”

2. “Organizational Purpose”

This is why your company exists. Organizational purpose defines who and what the company is to itself, team members, customers, its local community and society as a whole. Organizational purpose concerns “principles, ethics, leadership and culture.” Organizational purpose requires the implementation and deliverance of solid “fair practices” to all team members. This involves compensation (pay your people fairly); performance management (substitute “coaching and mentoring” for “in-depth scrutinizing”); and “recognition” (58% of all team members want more workplace appreciation).

3. “Role-Based Purpose”

Every organization assigns people to certain roles to meet its goals, and every team member’s role should be meaningful. Most people define themselves according to their work; that’s why their roles at work are so important. Employees’ role purpose should completely align with their “personal and organizational purpose.” For role purpose to emerge, companies must treat their employees well.

The sweet spot is less a gentle overlap between three categories of purpose, and more the result of dynamic tension between three often contradictory demands.” (Box of Crayons consultancy founder Michael Bungay Stanier)
Team members who have a sense of the purpose about their roles don’t think of their jobs as meal tickets. Instead, each person views his or her job as a “calling.” This is how you want your employees to feel about their work. University of Ottawa research indicates that 76% of people who see their jobs as callings are “always engaged” at work.

The “Sweet Spot”

The sweet spot of purpose is where the three areas come together in a “reciprocal relationship.” A balanced sweet spot emerges only when these main components work together. This aligned structure supports members of the staff, “teams, the organization, customers, owners and, perhaps most importantly, society as a whole.” The sweet spot isn’t a final destination. Instead, it’s “an outcome of the alignment between personal, organizational and role purpose.” To reach the sweet spot, organizations first need a declaration of purpose.

An organization without purpose [could] miss out on keeping or hiring high-performing individuals.
The declaration of purpose of Deere & Company (previously known as John Deere, still its trade name) states, “We are committed to serving those linked to the land, thereby helping to improve living standards for people everywhere.” Whole Foods’ purpose is, “Helping support the health, well-being and healing of both people – customers, team members and business organizations in general – and the planet.” Patagonia’s purpose is to “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

“Win-Win-Win”

Many companies have a shortsighted focus on profit alone. Such organizations should broaden their perspectives. Mana Ionescu, the founder of Lightspan Digital, a purpose-driven Chicago firm that offers professional content marketing and social media services, says that companies need win-win-win strategies.

In a world where anything or anyone can be owned, manipulated and exploited for profit, everything and everyone will eventually be.” (University of British Columbia law professor Joel Bakan, “The Corporation”)
These tactics create profits as well as giving customers solid value, making significant contributions to society, and providing meaningful, rewarding and satisfying work for their employees. However, win-win-win will work only if all team members, no matter what their individual roles and authority, perform as both “leaders and followers.”

An individual who seeks a personal sense of purpose in life…is constantly developing, defining and deciding his values, priorities, attributes and general ways of conducting themselves.
The culture of a win-win-win organization is “open, connected, collaborative, participative”; it’s based on “general reciprocity.” This means that all team members work together for the common good and understand the organization’s goals of achieving a high level of service as well as a profit. Everyone in a win-win-win organization should have a “purpose mind-set.” That is, all team members should feel passionate about their work and their performance. Everyone should commit to developing a “meaningful and engaging” workplace.

The “Job Mind-Set”

The purpose mind-set stands in marked contrast to the job mind-set, which shapes the actions of employees who do their jobs simply to earn paychecks, and the “career mind-set,” under which employees focus primarily on advancing their careers so they can earn more money and accumulate more power and prestige.

Companies in which more employees perceive their workplaces as ethical report higher retention rates, more positive work and supervisory relationships, better dispute resolution, and enhanced productivity.” (Keyes)
Both of these money and power-oriented mind-sets undermine the purpose mind-set. When you educate your employees about their personal, organizational and role purposes, address these negative mind-sets directly. Explain why they aren’t in alignment with how people think in a purpose-driven organization.

“Personal Declaration of Purpose”

Each team member should create his or her personal declaration of purpose that answers the all-important question, “Who am I in life and at work?” This brief written document provides each person with an “ongoing definition” that changes depending on evolving circumstances. You can’t achieve balance – the sweet spot – among your personal, organizational and role purposes unless you know the personal purpose that brings meaning to your life.

“Good DEEDS”

Organizations that are formally or informally dedicated to their purpose subscribe to the goals outlined by the Good DEEDS acronym:

“Delight your customers” – Remember, customers are the top priority; strive to make them happy.
“Engage your team members” – Helping your team members flourish will create a sense of communitas, denoting a “feeling and spirit of togetherness.”
“(Be) ethical within society” – Make a positive contribution, and have no negative effect on people or the environment.
“Deliver fair practices” – Offer top value for a reasonable price.
“Serve all stakeholders” – An organization’s stakeholders include its “customers, team members, the community and owners.”
Purpose Is Good Business

McKinsey & Company advises companies to “integrate environmental, social and governance issues into their business model – and act on them.” Purpose-driven companies achieve “positive productivity gains,” and they enjoy “short- and long-term growth” and “financial benefits.” Deloitte reports that 73% of team members in purpose-driven organizations feel “fully engaged” in their work.

By working faithfully eight hours a day you may eventually get to be boss and work 12 hours a day.” (journalist Robert Quillen)
Companies that operate with purpose are on the path to becoming productive, successful enterprises with engaged team members. Their focus is to improve society as well as to increase profits. This isn’t just smart business; it’s also the moral, ethical thing to do. Futurist Buckminster Fuller probably said it best: “Make the world work, for 100% of humanity, in the shortest possible time, through spontaneous cooperation, without ecological offense or the disadvantage of anyone.”
This entire review has been hidden because of spoilers.
Profile Image for Jung.
1,873 reviews44 followers
September 20, 2023
"The Purpose Effect: Building Meaning in Yourself, Your Role, and Your Organization" by Dan Pontefract explores the profound impact of purpose in the workplace. It delves into the concept of purpose at three levels: personal purpose, organizational purpose, and role purpose, and how aligning these levels can transform both individuals and organizations.

The book emphasizes that purpose goes beyond profit and financial success; it is a higher calling that aims to improve society and benefit all stakeholders. Aligning these levels of purpose creates a "sweet spot" where employees find meaning in their work, resulting in increased engagement, satisfaction, and performance.

Pontefract identifies five signs of purpose friction within organizations: disputes over remuneration, profit, role, power, and performance. These signs highlight the importance of aligning personal, organizational, and role purpose to prevent workplace conflicts and dissatisfaction.

The book provides practical guidance on discovering personal purpose through continuous development, defining identity and values, and taking action that aligns with one's values. It also offers a framework for creating organizational purpose using the DEEDS model, emphasizing delighting customers, engaging employees, ethics, fair delivery, and serving all stakeholders.

Furthermore, Pontefract explores the three main mindsets people adopt at work: job, career, and purpose. He emphasizes the importance of fostering a purpose mindset, where work is meaningful, engaging, and aligns with personal purpose.

The author encourages leaders to lead by example, modeling purpose, fostering employee growth, and recognizing achievements that advance the organization's mission. By empowering individuals and creating a culture of purpose, organizations can reach the "sweet spot" where personal, organizational, and role purpose align, driving growth and enriching society.

Overall, "The Purpose Effect" provides valuable insights and practical strategies for individuals and leaders to harness the power of purpose in the workplace, ultimately creating more meaningful and fulfilling careers and organizations.
Profile Image for Tim Hughes.
Author 2 books77 followers
September 1, 2020
Maybe it’s because I feel I have already found my purpose in life and run a business with purpose that I didn’t feel I go that much from Dan’s book. I’ll be honest, I’m a third of the way through the book “creativity, inc” by Ed Catmull, who was the Head of Pixar, when “Toy Story” was launched and I have got more from that.

One thing that does not fit with me is the constant view that “Purpose” only comes when there is no money involved.

Electric cars never really took off until Elon Musk came along, why? There were plenty of start ups that created electric technology, they would sell out to an automotive vendor, who would make many a promise, only to close the technology down. Why/ Because electric technology was disruptive to the petrol car manufacturers and they didn’t want companies companies coming in and taking their business away. Just like Kodak, hide the first digital camera in a cupboard so it would disrupt the film business.

Along comes Elon Musk, who had made money through Paypal and could be bought out. To make electric cars, he’s had to disrupt the battery market, which looks like it will change the way we build houses. Now we can have solar rook tiles, rather than solar panels. He is also paying for a number of “jumps” in space technology advancing us to the Moon and even Mars. Here is a man with Purpose and with money. In fact we wouldn’t have Tesla if he hadn’t made money from Paypal.

Dan keeps repeating the story that a person has a high powered job and it was fulfilling and it wasn’t until they left that role that they found their purpose. I’m not sure that in some cases money maybe a factor, but it won’t be in all cases. And not having money can be just as unfulfilling.

Want to understand your purpose, this is a great start
Profile Image for Jason Cihelka.
64 reviews3 followers
February 7, 2019
In this book, Dan discusses the three aspects of the purpose effect “sweet spot”: individual, role, and organization purpose. I like how all three were investigated in great detail, and there are tons of examples and case studies throughout. Definitely worth the read!
Profile Image for Nabeel.
13 reviews
October 25, 2023
This is an interesting and provoking read. I love how the author formulates and dissects each angle of purpose be it in life or job. He then merges these philosophies to crafting a "purpose." What is the purpose of having a purpose is a driving agenda in this book. Insightful read.
Profile Image for Paiman Chen.
318 reviews8 followers
June 10, 2021
Delight your customers
Engage your teammembers
(Be) ethical within society
Deliver fair practices
Serve all stakeholders
Profile Image for Sharon Summerfield.
87 reviews3 followers
December 6, 2023
Wonderful book. So many beautiful pieces to this book.
I had the true joy to read this book while stranded at an off grid lake.

Gorgeous book.
Profile Image for Kelsey Rae.
414 reviews1 follower
March 23, 2025
It’s going to be a no for me. The job can be a career, but it’s always going to be about the pay check. This read kind of naive.
Profile Image for Frank Calberg.
191 reviews65 followers
April 4, 2023
Reading the book, I found these extracts useful:

Methods to find your purpose:
- Location 340: Ask "why". Example: Why do I want to do x in this way?
- Location 520: Discover and prioritize your personal values.
- Location 1700: Redefine your purpose as you learn and grow.
- Location 2800: At the supermarket chain http://www.marketbasket.com/, important values are community and serving all stakeholders. People, who work for Market Basket, are paid more than people, who work for other supermarkets. Shareholders of Market Basket get less dividends than shareholders of other supermarkets. And prices of Market Basket products are lower than prices of products at other supermarkets.
- Location 2900: At https://lstnsound.co/, which makes headphones, every decision has to be able to answer yes to this question: "Will this decision help give more people the gift of hearing?"
- Location 3200 and 3500: Find out what your strengths and interests are.
- Location 3250: Try to constantly develop yourself towards your best self.
- Location 3250: Try different kinds of work.
- Location 3250: Follow people on social media who do different kinds of work.
- Location 3250: Meet new people at events.
- Location 3300: Help out at / give to different causes you like.
- Location 3300: Find out what your users need and value.
- Location 3300: Be specific when you define your purpose.

Avantages of having a purpose:
- Location 480: When you move away from a victim mindset and instead take the time to understand what inspires you, you and everyone else win.
- Location 1700: The words "I decide" provide a sense of grounding and choice about how you respond to your internal and external environment. That can bring a sense of calm. You can decide what your next step will be. What is the next step you will take?
- Location 3400: Putting focus on purpose means putting focus on serving users.
- Location 3500: Putting focus on purpose enables people to work from anywhere.

Inspiration:
http://www.slideshare.net/frankcalber...
Profile Image for Keri.
238 reviews4 followers
October 10, 2016
Due to the fact that I didn't think this book would be a good suit for me or would aide me in any way, I let my husband read this. He works for a large company and is a terminal manager. I concluded that he would best benefit from this book. His opinion was as stated...

This book was an eye opener to myself, about myself and about the team members. After reading this book it all made perfect sense. I was able to learn, recognize what I was doing wrong, and be even more encouraged on the things I am doing correct. For any business, large or small, I believe all team members should be required to read this. I personally believe everyone would love their job more and be able to receive the rewards they achieve.
2 reviews
November 11, 2021
Excellent book! I will put the recommendations into practice for sure.
4 reviews1 follower
April 25, 2017
This is an excellent read on finding your purpose (and satisfaction) in your work experience. Spoiler alert: it comes at the intersection of your personal, your company, and your role purpose! Great examples of people and companies who have successfully navigated these tricky waters. I highly recommend this read for anyone who is dissatisfied with their current employment situation as well as anyone who works within an organization and has the ability to work on culture change issues. Pontefract's work in this area is only going to become more critical as Millennials demand positions and companies in which purpose is part of the job - not just a work-for-pay situation.
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