How to drive growth by bridging the gap between leadership vision and team application

Did you know that while 87% of C-suite leaders believe they clearly articulate their company’s purpose, only 46% of employees1 report that purpose is effectively operationalised within their teams?

Furthermore, while 85% of C-suite leaders agree that purpose significantly impacts financial performance, only 47% of their teams share this belief (1).

This striking gap highlights a critical issue: leaders may think they are embodying and communicating purpose, but their teams often remain unconvinced or disconnected. This misalignment is a missed opportunity—one that could drive engagement, growth and long-term success.

Why purpose matters

Purpose is more than a corporate buzzword—it’s the engine of high-performing organisations. Research consistently shows that purpose-driven companies outperform their peers:

– 4x Revenue Growth: companies with strong culture and purpose experience significantly higher financial returns (2).

– 23% Higher Performance: highly engaged teams perform dramatically better than low engagement teams (3).

– 2x Growth Rates: purpose-active businesses grow twice as fast as purpose-passive ones (4).

Beyond numbers, purpose fosters innovation, improves employee retention, and strengthens customer loyalty. Yet, for most companies (5), the challenge lies in translating C-suite ideals into tangible actions that resonate across all levels of the organisation.

Key insights from the study

A recent quantitative study conducted between November and December 2024 by Splash Projects surveyed executives at all levels, from junior managers to the C-suite, to explore how purpose is operationalised. The findings revealed:

1.     A perception gap: across every question in the survey, C-suite executives rated purpose implementation on average 16% higher than their teams. The biggest gaps were seen in:

– Role alignment to purpose: 27% higher for C-suite.

– Impact of purpose on performance: 23% higher for C-suite.

– Personal connection to purpose: 22% higher for C-suite.

This suggests leaders overestimate the extent to which their teams internalise and act on organisational purpose.

2.     Purpose-driven activities: the top four areas where purpose comes to life across all participants were:

– Brand representation: 67%

– Values and culture alignment: 52%

– Product development and innovation: 48%

– Community outreach and volunteering: 33%

Among the high purpose businesses these four areas scored even higher and were typically double that of low purpose businesses. In addition, high purpose scored high on leveraging purpose in recruitment and retention of staff, and sourcing, partnerships and operations.

3.     Universal agreement: regardless of seniority, 94% of respondents agreed that a strong company purpose improves motivation and job satisfaction, while 84% said it provides a competitive edge.

Practical implications for leaders

The findings underscore a crucial truth: purpose without action is merely rhetoric. To unlock the full potential of purpose, leaders must focus on:

1.          Bridging the communication gap: purpose needs to be more than a message—it must be a lived experience. Passive communication methods, like memos or speeches, are insufficient. Experiential learning, which has a 90% memory retention rate, is far more effective in embedding purpose into day-to-day roles (6).

2.         Embedding purpose across functions: purpose should influence every decision, from product design to partnerships and hiring practices (see Patagonia example below). Purpose can’t just be a buzzword, but opportunities should be sought to hero purpose within the business. This can start small, but one statement action creates ripples other can act upon.

3.     Measuring impact: purpose only becomes tangible if it is properly talked about and tracked. This can start by regularly discussing the business’s purpose and values in meetings, recognising those who excel and celebrating purpose-led initiatives. This can be extended into wider activation metrics by department —such as employee alignment, customer sentiment and performance outcomes—to ensure purpose is not just aspirational but actionable.

Real world comparisons: Patagonia vs Columbia Sportswear

Patagonia exemplifies a purpose-active organisation, with its commitment to environmental and social sustainability driving loyalty, advocacy, and long-term growth. Employees at Patagonia understand the purpose and seamlessly integrates its purpose into every facet of its operations, earning unparalleled loyalty from employees and customers alike.

In contrast, Columbia Sportswear is arguably purpose-passive and focuses on pricing and distribution, which may deliver short-term wins but lacks the resilience and loyalty purpose-driven brands command.

Closing thought

Purpose isn’t just a north star—it’s a map guiding every employee. When leadership and teams align, purpose transforms from a mission statement into a powerful driver of engagement and growth.

As we move into a purpose-driven era, leaders must ask: are we bridging the gap between vision and execution? Are we empowering our teams to live the purpose we aspire to, or is it just rhetoric?

For more information about purpose, teamwork, leadership and experiential learning follow Splash Projects on LinkedIn or visit www.splashprojects.com.

Gareth Helm

Managing Director, Splash Projects

References:

1. Splash Projects Operationalising Purpose Survey Nov-Dec 2024

2. Arbinger Institute’s Report: Creating a high-performance culture 2023

3. Gallup State of the Global Workplace 2024: upper quartile vs lower quartile

4. Harvard Business Review and EY Study: 1400 executives

5. PWC Putting Purpose to Work: A study of purpose in the workplace

6. Harvard Business Review ‘The Power of Experiential Learning’ 2018