Theories on organizational leadership philosophy have continued to evolve over the decades.

In the 1840s, leadership theory stated that great leaders were born not made. Later in the 1930s, trait theory emerged to describe great leadership as based upon certain physical qualities or social traits. At this point, great leaders could either be born or made, but only by associating with certain great leadership traits. Behavioral theories emerged in the 1940s focusing on the cause and affect of certain leadership behaviors toward their followers. Leadership theory now suggested the great leaders could be taught. Contingency (or situational) leadership theories came on the scene in the 1960s. Later, in the 1970s we began to see transaction leadership, such as leader-member exchange. Leadership became a mutual activity between the leader and follower. Finally, we saw the introduction of transformational leadership and servant leadership in the 1970s. Leadership became about behavior, inspiration, and most importantly a mutual relationship between follower and leader.

A Changing of the Guard

Arguably, two of the greatest change drivers facing organizations today are that of increased globalization and the shifting of our workforce to the millennial generation. It is these two factors that are changing the entire business environment we live in today. First, the landscape has changed. We are and will continue to do business in a globalized world. Second, the people have changed.

Today, globalized organizations are currently undergoing a radical shift into a millennial driven workforce. When the landscape changes, and the people change, everything changes. We are currently undergoing, what I like to call a changing of the guard for organizational leaders. Therefore, the way we lead the organization needs to change. It is based upon the two ideas of increased globalization and the deployment of millennial into the workforce, where we believe the theories of organizational leadership need to evolve once again.

Purpose-Centered Leadership

In order for the leader to meet the new demands of the globalized, millennial driven workforce, we must embrace a purpose-centered leadership philosophy. The two aspects of purpose-centered leadership, purpose for the individual and purpose for the organization, seek to align an individual’s purpose (meaningful work, values and experiences) with the organization’s corporate purpose (values and cause).

The first aspect of purpose-centered leadership takes into account Vicktor Frankl’s (1958) theoretical work of will to meaning and applies three distinct notions for purpose as a motivator for organizational leadership theory:

1. Purpose will involve pursuing meaningful activities for the employee within their vocation.
2. Employees need to understand how these meaningful activities bring value or make meaning of past circumstances to themselves and potentially provide benefit to others.
3. The employee’s meaningful work needs to be in alignment to a worthy cause.

It is through the alignment of these three elements of will to meaning (meaningful work, alignment and identification of values to meaningful work, and the alignment of meaningful work to a worthy cause) where purpose can become the highest motivator for us as individuals and as leaders in the organization.

The second aspect of purpose-centered leadership involves how the organization views and utilizes purpose for their members:

As a purpose-centered leader it is our duty to identify, articulate, and share the corporate purpose amongst employees of our organizations. The corporate purpose is how an organization sees and defines purpose internally and for its stakeholders. A corporate purpose communicates the powerful aspect of purpose for the organization, and it can ultimately provide the point of alignment for a worthy cause as discussed in Frankl’s will to meaning work.

The sharing of the corporate purpose involves facilitating the alignment between the members of our organization and the corporate purpose (Finely, 2009; Springett, 2004; Bartlet & Ghoshal, 1997; Burns 1978). To help embody this idea, prominent author and transformational leadership authority, James MacGregory Burns (1978) writes; “there is nothing so power-full, nothing so effective, nothing so causal as common (or shared) purpose . . . leadership is nothing if not linked to collective purpose”. (p. 3).

It is proposed that when leaders facilitate the alignment of these two aspects of purpose-centered leadership, the individual and the organization will experience this tremendous drive of purpose. Not only will this result is both performing to greater extents than others who do not, but both the individual and organization will share in the creation of meaningful work, which benefits both entities and society at large. This is where the tremendous value for purpose-centered leadership comes into play.

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Sources:

Bartlett, C. A., and S. Ghoshal., (1997). Beyond Strategy, Structure, Systems to Purpose, Process, People: Reflections on a Voyage of Discovery. Monash Mt. Eliza Business Review 1, no. 1 (September 1997): 54–61.

Burns JM. 1978. Leadership. Harper & Row: New York.

Finley, D. C. (2009). What’s your purpose?: Steps to creating a purpose-driven business. Journal of Financial Planning, , 18-19.

Frankl, V. E.,. (1958). On logotherapy and existential analysis. Am J Psychoanal the American Journal of Psychoanalysis, 18(1), 28-37.

Springett, N.,. (2004). Corporate purpose as the basis of moral leadership of the firm. Strategic Change, 13, 297-308.