What does purpose even mean now?

Glide on the peace train

Happy New Year. After two much-needed weeks off, my office today is a train between Barcelona and Paris. This newsletter is fueled by bocadillos.

During this trip, I’ve been thinking a lot about the word “purpose.” In the time I’ve been talking about purpose-driven business, the word has been co-opted by larger companies and management consultants. When 63% of consumers say they want to buy from companies with aligned values, of course you’re going to see McKinsey adopting a “purpose-driven” framework for their clients. 

But what does that really mean? How do we align our work for purpose and impact?

Over the break, my son and I revisited an aquarium with a dolphin show. Five years ago, the dolphins leapt through a short show with impressive acrobatics. It was all about awe-inspiring performance. 

This time, the show focused on raising awareness of how higher water temperatures and ocean plastics would physically stress dolphins. The acrobatic displays centered on the bonds of care between the trainers and the animals. 

As we toured, it was clear the aquarium had re-centered on increasing kids’ understanding the causes of climate change and its impact on marine life. The message was clear: you can have a role in saving something you care about, and everything you do today from paying for a ticket to refilling a water bottle supports that impact.

The aquarium has established a centering principle -- saving marine life -- and focused on its desired social impact. That’s made it clear how to change everything from its dolphin show to its food service.

When you’re clear about your social impact, it gets a lot easier to see what is or isn’t for you.

When you’re focused on a “purpose” of performance metrics and functional outcomes, you’ll be trying to move KPIs, OKRs, or perhaps a North Star product strategy. You might put in an operating system like EOS or Rockefeller Principles and talk about efficiency.

That kind of purpose doesn’t have a centering principle. “We want to make more money than we did last year” isn’t a purpose.

What’s missing is the social impact, the change you want to make in the world with your work. Of course, it’s important to understand and monitor metrics like revenue, profit margins, unique visitors, conversion rates, and downloads. But it gets a lot easier to decide which choices and investments are right for you when you have a centering principle and goals for social impact. 

What’s important to you? What impact do you want to make in the world with your work? How will that change the way you run your company this year?

January dates to know

January 1: 

• US Beneficial Ownership Information Registry opened. If you own or manage an incorporated business anywhere in the world that operates in the United States, you must complete the new BOI registration by December 31, 2024. If you incorporate a new business, you have 90 days to file.

• 60 state and local minimum wage changes took effect. Check this summary for changes in your operating areas. Remember that salaried exempt employees must receive double the minimum wage over a 40-hour week to sustain their overtime-exempt status. For example, under Washington’s $17 per hour minimum wage, the minimum exempt salary is $70,720 ($17 x 40 x 52 x 2). If you do not want to increase to minimum exempt salary, you must change employee status to overtime-eligible. 

January 16: Pay Q4 2023 federal and estimated taxes. If you’re new to estimated tax payments, more information here.

January 31: File and distribute 1099s and W-2s

• W-2s must be filed and provided to your employees. W-2s reflect wages, taxes withheld, and pre-tax contributions like retirement and health insurance. More on W-2s here.

• 1099s must be provided to sole proprietors and LLCs that you paid at least $600 in 2023 via your bank account. You do not need to issue 1099s if you paid your providers by credit card. If you’re not sure who needs a 1099, check out this article from our blog.

January AMA + Save the Dates

My January AMA is tomorrow, January 11, at 10 AM Pacific. All small business management questions are fair game! Submit your questions in advance.

 Access the January AMA with this Zoom link.

Throughout 2024, I will host a monthly AMA for my subscriber list. Add the dates to your calendar. Stay subscribed to receive the monthly Zoom information.

Two ways to work with me 1:1 in 2024

 Two ways we can work together 1:1:

1. Advisory Guidance: this NEW offering makes me your “who do I ask?” person. Over 12 months, it includes live 1:1 consulting with me and real time support for operating issues and questions. See the full details here. 

2. Business Design Bootcamp: if you’re ready to define a sustainable growth plan centered on impact, we have confirmed flagship Business Design Bootcamp spots available for February, March, April, and September. The Business Design Bootcamp is a top-to-bottom redesign of your corporate strategy, defining your centering principle and impact you want to have in the world, with support to pivot your operations into the new model. Learn more about the BDB here.