We're Asking Too Much of Brand Purpose

Since 2019, UK listed companies have been expected to articulate their purpose. The intention was a good one. It encouraged boards to think beyond short-term shareholder returns and consider the broader role of business in society. Purpose moved out of the marketing department and into the boardroom.

But as purpose has risen up the corporate agenda, I've started to wonder whether we've begun asking too much of it. Today, we don't just expect purpose to explain why a business exists. We also expect it to engage customers, inspire employees, attract talent, support sustainability, shape culture, guide strategy and differentiate the brand. We're only one step away from asking it to make a cup of tea and turn the lights off. That's an awful lot for one idea to carry.

Perhaps the fundamental issue is that we've started treating purpose as if it is the brand. It isn't. A strong brand needs both a clear purpose and a clear positioning:

• Purpose explains why you exist.
• Positioning explains why someone should choose you.

‘Why Us?’ Is Just As Important As ‘Why Do We Exist?’

That distinction matters because the two questions perform very different roles.

A compelling purpose can create meaning, alignment and direction. It can help employees understand what they are contributing to, guide decision-making and demonstrate the role a business plays in the world.

But businesses also need to answer more commercial questions:

• Why should a customer buy from us?
• Why should an investor back us?
• Why should a prospective employee join us?
• Why should a partner work with us?

These sit much closer to commercial success. They influence choice, preference and ultimately the bottom line.

And that's where I think some brands have lost their balance. Recently, I've found myself reading purpose statement after purpose statement and having the same reaction: If I removed the company name and logo, would I know which organisation I was looking at? Too often, the answer is no.

When Purpose Becomes the Whole Story

You don't have to look far to see the effect:

• In construction, company one says its purpose is to improve people's lives through transforming the performance of infrastructure. Company two also talks about improving people's lives through building the facilities and infrastructure communities need.

• In financial services, company one wants to help people and businesses thrive, while company two wants to help customers, colleagues and communities prosper.

• In energy, company one exists to deliver the energy the world needs, safely and responsibly, while company two exists to serve today's energy needs securely, responsibly and safely.

Looking at those statements, I don't think the problem is that any of them are wrong. In fact, I'd argue we'd want construction companies to improve people's lives, banks to help customers prosper and energy companies to deliver energy safely and responsibly.

Nor do I think every purpose statement needs to be unique. After all, why shouldn't two construction companies genuinely believe they're improving people's lives? Why shouldn't two banks want their customers to prosper?

The challenge comes when purpose becomes the only idea a business articulates. Purpose can explain why an organisation exists and why it matters. What it cannot do on its own is explain why that organisation should be chosen over its competitors. That's where many brands are missing a piece of the puzzle.

The Difference is Already There. We’re Just Not Expressing It.

What I find particularly interesting is that many organisations are already far more differentiated than their purpose statements suggest.

Take Keller Group:

• Its purpose is "building the foundations for a sustainable future." A perfectly sensible statement. But that isn't what makes Keller distinctive.
• What makes Keller distinctive is that it is the world's largest geotechnical specialist contractor, owning the critical first stage of construction projects and combining deep local expertise with global capability to prepare any ground.
• The differentiation isn't hiding in the purpose statement. It's sitting in the business itself.

The same is true of OSB Group:

• Its purpose may be centred on helping people prosper, but the business underneath is a specialist mortgage lender operating in carefully selected segments, supported by specialist brands, underwriting capabilities and strong intermediary relationships.
• Again, the differentiation already exists.

The challenge is not discovering the difference. The challenge is expressing it.

Why Positioning Deserves Equal Attention

This is where positioning comes in.

If purpose explains why a business exists, positioning explains why it should be chosen. It articulates the difference that already exists within an organisation and translates it into something customers, investors and employees can understand and act upon.

The strongest brands don't force purpose to do all the work. Instead, they allow purpose and positioning to perform different but complementary roles.

AJ Bell provides a good example:

• Its purpose is straightforward: "To help people invest." There's nothing particularly unique about that. But it doesn't need to be.
• The differentiation comes from its positioning, "Feel good, investing", which creates a distinctive territory around making investing simpler, more accessible and better value.
• Its "Investing is for everyone" campaign reinforces that idea, while the bell itself acts as a distinctive brand asset that builds recognition and memorability.
• Purpose, positioning and brand assets are all working together. They're not all trying to do the same job.

A Brand Is Bigger Than Its Purpose

None of this is an argument against purpose. Purpose, sustainability and societal contribution remain vitally important. Businesses should absolutely continue asking why they exist and why they matter.

But a brand is bigger than its purpose. The strongest brands understand that purpose and positioning are not competing ideas. They are complementary ones.

Purpose explains why you exist. Positioning explains why someone should choose you.

One creates meaning. The other creates preference. Both matter. And both deserve attention.

Your purpose doesn't have to be unique. Your positioning probably does.