Measurement of success in purpose-led businesses is, as you would imagine, just as important as in any other organization. Richie Jones, Managing Director of vvast mentions in the podcast interview that, in their B Corp application, they had to attach key performance indicators (KPIs) to the three pillars of their purpose. This allows them to track and measure their progress towards their purpose-led goals.
One example of measuring success is through ethical advertising. The company aims to reduce the number of advertising impressions related to markdowns, as these can encourage unnecessary purchases and contribute to waste. By tracking the number of impressions produced and reducing them year on year, the company can demonstrate their commitment to ethical advertising and reducing their environmental impact.
Another way the company measures success is by tracking the full price markdown mix for brands they work with. They encourage brands to hit targets for full price sales and track the mix by brand, day, week, and year. By reporting on these metrics and showing improvements year on year, the company can demonstrate their success in reducing markdowns and promoting sustainable consumption.
The company also measures success in terms of carbon reduction. They track their own travel emissions and supplier miles to quantify the amount of carbon they have reduced. This tangible measurement allows them to assess their progress and make improvements in their operations to further reduce their carbon footprint.
In addition to these specific measurements, the company also tracks their community engagement efforts. They give away a significant amount of their team’s time to local charities and NGOs, and they track and report on this as evidence of their purpose-led work. They also engage with local universities and bring students into the business, further demonstrating their commitment to their purpose.
Overall, Jones highlights the importance of measuring success in purpose-led businesses. By attaching KPIs to their purpose pillars and tracking progress, businesses can demonstrate their commitment to their purpose and hold themselves accountable. These measurements provide tangible evidence of their impact and allow them to continuously improve and make a positive difference in the world.
Measuring success in purpose-led businesses is crucial for demonstrating commitment to a purpose, holding oneself accountable, and continuously improving. By attaching KPIs to purpose pillars and tracking progress, businesses can quantifiably measure their impact and make a positive difference. These measurements also allow businesses to transparently share their achievements and inspire others to adopt purpose-led approaches. Ultimately, measuring success in purpose-led businesses contributes to their overall success and sustainability.