The Evolving Role of the CEO: Creating Purpose, Clarity and Direction

Why the best CEOs help people understand not only where the organisation is going, but why it matters

Ask a board what they want from their next CEO and you will hear similar things. Strategic thinking. Commercial credibility. A track record of growth. All of these matter. But after more than two decades working with CEOs, boards and leadership teams, I think there is another capability — one we often underestimate. The best CEOs give people a clear sense of what their organisation is here to do, and connect that purpose to the decisions and challenges of the business.

Purpose has to mean something in practice

Purpose can sometimes feel like a big concept, particularly for an SME. In reality, it is about being clear on why the business exists, what it stands for and how that shapes the decisions you make. 

For me, this isn’t about creating a new mission statement or putting another set of words on the wall. In many successful businesses, particularly founder-led and family-owned organisations, there is already a very strong sense of purpose. People instinctively know what the business stands for and why it matters. 

The challenge for a CEO is to understand that, articulate it clearly and make sure it remains relevant as the organisation grows and changes. 

Purpose only really matters if it helps people make better decisions. It should influence where you invest, the customers you choose to work with, the people you recruit, the opportunities you pursue and, sometimes, the things you decide not to do. 

Timpson is a well-known example. Its philosophy of looking after its people so that they, in turn, look after customers isn’t simply a statement of intent. 

Closer to home, Arthur Rank Hospice Charity in Cambridgeshire is another organisation where purpose is very clear. Sharon Allen, its CEO, spoke at our Best Employers conference last year and talked about the importance of keeping the people the charity exists to support at the heart of decision-making. For an organisation balancing clinical care, funding pressures, NHS relationships, employees, volunteers and donors, that common purpose provides an important point of reference. 

That is where purpose becomes useful. It gives people something to come back to when the answer isn’t obvious.

The gap between knowing and communicating

Most CEOs have a pretty clear idea of their strategy. The harder part is making sure everybody else understands it. 

A CEO has context that nobody else in the organisation shares in full. The most important skill is taking all of that complexity and communicating it simply — without oversimplifying it. People need to understand what is changing, why it is changing, what it means for the organisation and what it means for them. 

That requires consistency too. The most effective CEOs I have worked with aren’t necessarily the most polished communicators. They are often the ones who are clearest and most consistent. You hear the same themes in a board meeting, in a conversation with employees, in the questions they ask their leadership team and in the decisions they make. 

Over time, people begin to understand not simply the strategy, but the thinking behind it. And that is when they can start making good decisions without the CEO having to be in the room. 

Communication matters most when things are difficult

Of course, it is relatively easy to talk about purpose when a business is growing, results are good and everyone feels positive. 

The real test comes when things aren’t going to plan. A restructuring. A missed target. The loss of a major customer. A difficult investment decision. Or simply a period when the CEO doesn’t yet have all the answers. 

These are the moments when people look particularly closely at their leaders. The CEO doesn’t need to pretend that everything is fine. Nor do they need to have an immediate solution to every problem. 

But they do need to provide enough information for people to understand what is happening, enough context to understand why decisions are being made and enough honesty to retain their trust. 

In my experience, the strongest leaders are able to say, in effect: this is what we know, this is what we don’t yet know, this is what we’re doing about it, and this is what hasn’t changed. And very often, that final point brings you back to purpose. 

"I’ve led very different organisations and have found that communication matters most when things are difficult. Being open about the challenges, explaining why decisions are being made and keeping people connected to what we are ultimately trying to achieve and importantly, how they can contribute, all helps maintain trust and a sense of direction.” Gordon Watling – CEO, Cogent Technology ltd.  

What should boards be looking for?

This has implications for the way we appoint CEOs too. When we’re helping a board define what it needs from its next CEO, naturally we look at experience, commercial capability, strategic thinking, leadership style and track record. 

But I think we should also be asking: can this person create clarity when things are complicated? And can they connect strategy to something that gives people a reason to follow? 

These qualities aren’t always easy to establish through a traditional interview. I am often more interested in how someone talks about a business they have previously led. What did they believe the organisation was there to do? How did that influence the choices they made? How did they communicate a difficult decision? What happened when people disagreed with them?

Those conversations can tell you a great deal about how somebody will actually lead. 

Across the CEO and Managing Director appointments we have made at Pure Executive, in businesses ranging from SMEs and family-owned organisations to larger corporates and not-for-profits, I see this consistently. The CEOs who make the greatest impact tend to give people clarity, direction and something meaningful to be part of. 

"Leading through tough times has taught me that a strong sense of shared purpose is critical. Part of that is leaders engendering cultural trust. That takes authenticity, honesty, empathy, good listening, and letting go. In my experience, resilience and growth come from developing, empowering and inspiring teams, then trusting them to do amazing things." Minnie Moll - previous CEO of the Design Council, Jarrolds, East of England Co-op.   

Creating space to think about how you communicate

Even experienced CEOs benefit from stepping away from the operational demands of the role from time to time and considering the story they are telling about their organisation. Is what feels very clear in their own head equally clear to everybody else? 

It is one of the reasons Minnie Moll and I have created the Executive Leadership Circle - a space where CEOs and other senior leaders can step outside their businesses, learn from one another and think about some of these bigger leadership questions. 

A final thought

A CEO can have a very good strategy and still struggle to take people with them. 

The difference is often whether people understand why it matters. 

Purpose shouldn’t sit separately from strategy, culture or performance. At its best, it connects all three. And perhaps that is one of the most important parts of the CEO’s role today: creating enough clarity about where the organisation is going and why it exists that people throughout the business can make good decisions, even when the CEO isn’t in the room.

Lynn Walters   Pure Executive   lynn.walters@pureexecutive.com 

Lynn Walters has worked with boards and senior leaders across the East of England for more than 20 years and founded Pure Executive. She leads NED board searches and spends her time advising boards and developing senior leaders. She and former CEO Minnie Moll are launching the Executive Leadership Circle for CEOs and senior leaders; to find out more about joining the Circle, please get in touch.