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Measuring Purpose: An Integrated Framework

This paper sets out a logical and inclusive approach to measuring purpose. We advocate a three-stage process, the first of which anchors the purpose, mission and vision of the organisation in its governance. The second stage identifies the business metrics that derive from purpose in relation to inputs, outputs, outcomes and impacts. In the final stage, these reporting metrics are converted into monetary values through enterprise cost-based accounting and societal valuation. This three-step approach provides a coherent reporting framework against which critical decisions can be made. These decisions may be internal – enabling management to allocate scarce resources appropriately – or external, allowing investors and other critical stakeholders to assess the performance of a company against its stated purpose. We conclude by categorising existing measurement initiatives in relation to the three stages.