How Cannabis Firms Can Compete With Purpose

Much research has shown than companies with a motivating Purpose or 'reason for being’ will outperform competitors with a more of pedestrian culture. By performance I mean profitability, brand image and employee retention.  A Purpose acts as an inspirational North Star, reliably pointing employees to the right decisions and actions based on an ethos and set of values. It can also powerfully unite external stakeholders like investors, suppliers and consumers around an organization’s motivating principle.  In the social media-driven 2020s, having a convincing Purpose is a vital asset in consumer-focused industries.

You won’t find many cannabis firms with a Purpose, given their young and dynamic nature.  However, Cannabis organizations will have natural personal, societal or cultural affinities to mental wellness, social justice, and the legacy community. Importantly, a Purpose would serve more than the corporate interest.  They would honour the legal industry’s forefathers, encourage decriminalization, celebrate the plant and foster greater awareness around the victims of the justice system.  

How do you build a strong Purpose?

1. Make it a corporate priority - Creating a Purpose is too important to be a ‘corner of the desk’ or siloed functional initiative;

2. Engage the team and be patient - To get buy-in and good ideas, you need to involve everyone in a 360° internal/external analysis and brainstorming.  Done right, this journey takes time especially given other corporate imperatives;

3. Craft your Purpose - Your output should be a pithy statement that would be converted into an authentic story and values.  Fair warning:  this is not an easy task as most cannabis Purpose statements (where they exist) tend to be quite similar. Also, you will want to ensure your Purpose is integrated with your corporate positioning and brand promise;

4. Focus on change – Integrating a Purpose into your organization is all about long-term change management.  Bake your new ethos into all practices, systems and marketing communications.

5. Living it - Reinforce your Purpose through leadership modelling, regular internal communications and performance measurement systems.

Leading with Purpose can be a double-edge sword.  With many advantages comes some market risk.  Your company will be scrutinized and challenged by informed people - as well as trolls. Your firm could be perceived as: overreaching (see Ben & Jerry's), banal (your Purpose is seen as me-too, humdrum) and insincere (where enterprise actions don’t match their noble words).

#purpose #culture #change