The Strategy Digest
The Strategy Digest / MIT Sloan Management Review

The Missing Link Between Purpose and Performance

MIT Sloan Management Review · Article · 21 Aug 2025 · Empirical research · Paywalled · Editor's rating: ★★★ Essential

Analysis of 57,000 employees across 469 companies shows team leaders are the critical missing link between corporate purpose and performance: those who conduct regular purpose dialogue, maintain equitable relationships, and grant autonomy achieve significantly higher employee commitment.

Summary

Durand, Asmar, and Laouchez analyze 57,000 employees across 469 companies to identify why corporate purpose fails to translate into employee commitment. The culprit is team leaders: those who engage in regular 'purpose dialogue'—deliberate discussions about the organization's strategic direction—maintain equitable relationships with all team members, and grant autonomy achieve significantly higher commitment levels. The paper introduces purpose dialogue as a distinct and measurable leadership behavior, positioning team leaders as both the primary bottleneck and the primary lever in the strategy-to-performance chain. For strategists, the finding reframes purpose-based strategy from a C-suite communication problem to a middle management capability problem.

Key concepts

Purpose dialogue · corporate purpose · employee commitment · team leadership · purpose-performance gap · stakeholder engagement

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