As leaders, our role is to define a vision, set direction, and inspire purpose. But if that purpose isn’t grounded in a clear understanding of who we—and our organizations—truly are, it risks feeling hollow or disconnected. Just as a leader must know his values, motivations, and strengths to guide authentically, so must a company understand its core identity before defining a resonant purpose.

Purpose without identity is like strategy without insight; it may look good on paper, but it won’t last. True purpose emerges from a place of self-awareness, aligning actions with values in ways that build trust and drive sustainable growth. The challenge for leaders, then, is to ensure that before purpose is articulated, identity is well understood—so that what we create serves our organization and society meaningfully.

For a leader, defining identity requires deep reflection and intentional introspection. It’s about knowing one’s values, motivations, and unique perspective. Self-awareness goes beyond surface traits; it’s a compass for decisions and values that guide action. Purpose flows from this understanding as a reason for being.

For example, a leader deeply committed to sustainability will make decisions that reflect this value. His purpose is not a destination; it’s an authentic expression of identity.

This principle applies also to companies. Companies that define a purpose without examining their identity risk creating statements that sound aspirational but lack depth. When purpose is rooted in a clear, authentic identity, it naturally inspires loyalty and trust.

Consider Patagonia: its identity as a company committed to environmental responsibility drives decisions from product development to corporate activism. Patagonia’s purpose resonates not as a mere objective but as a core part of who they are.

Purpose that isn’t grounded in identity tends to falter under pressure, impacting fulfillment and e”ciency. For individuals, this often leads to burnout and lower productivity. Imagine a leader who pursues a career path based solely on societal expectations rather than personal alignment. They may achieve conventional success but feel disconnected, leading to lack of motivation and effectiveness. Purpose becomes an external mask rather than a true reflection of self.

For companies, a purpose misaligned with its identity disrupts e”ciency and engagement. Employees sense the disconnection, affecting morale and productivity, while customers view it as inauthentic. Without an authentic foundation, purpose statements risk backfiring and eroding trust.

To base purpose on identity, companies need first uncover who they are, laying the foundation for greater loyalty, trust, and efficiency.

So, how can leaders ensure that purpose is firmly rooted in identity? For individuals, this begins with introspection. Taking time to explore core motivations, values, and strengths provide clarity. Asking questions like What are my core values? What brings me fulfillment? What legacy do I want to leave? reveals an inner compass. Once these insights are clear, purpose becomes an organic outcome.

For companies, defining identity involves collective reflection across the organization. Engaging team members at every level to explore shared values, strengths, and motivations uncovers the essence of the company’s identity. IBM, for example, evolved its identity from hardware manufacturing to digital solutions. This shift allowed IBM to redefine its purpose in alignment with its identity, not as an end-goal but as an enduring commitment to stakeholders and society.

For leaders and companies alike, identity serves as a compass guiding meaningful purpose. When we understand who we are, our actions, decisions, and goals naturally align, allowing purpose to emerge in a way that feels both authentic and inspiring.

In today’s rapidly shifting business landscape, grounding purpose in identity isn’t just a best practice—it’s essential for success and ultimately survival.

Are you ready to define who you are before defining why you do what you do? In both personal and professional realms, aligning purpose with our true identity is a path to greater impact and fulfillment.