Profits AND Purpose – Is there space for both in the private sector?

Within the private sector, profit margins and sales targets are often seen by senior management as sufficient indicators of success, leaving little perceived need for structured results frameworks or learning cycles. Still, I think more and more businesses will soon learn that these traditional metrics may no longer be enough to define their success.

For one, as demands for corporate social responsibility (CSR), conscious consumerism and sustainability commitments grow, the private sector will be asked to demonstrate real impact in its local communities and globally. This is where our corporate colleagues can learn from us in the development space, applying Results-Based Management (RBM) to clearly link investments to measurable outcomes. But, RBM’s usefulness extends far beyond just CSR and external-facing critique.

When applied internally, RBM principles can also strengthen how businesses manage and MEASURE lofty, often abstract organisational goals such as staff development, innovation, and improved organisational culture. Tracking the outcomes of workplace initiatives—such as training, employee engagement, workplace wellness, or diversity programmes—beyond the surface level of what was done to determine whether they were effective and why (or why not) provides insights into whether these efforts actually improve inclusion, productivity, retention, and morale. And before you come at me with your staff satisfaction survey results, read here to learn why it may not be as insightful, or as useful, as you think.

RBM tools also underpin continuous quality improvement by identifying which internal processes create efficiencies and which require redesign. In competitive markets, this holistic learning advantage can be as valuable as a marketing strategy, as your internal customers are just as important as your external ones.

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Why then does RBM remain relatively uncommon in private enterprises? For one, outcome measurement is not taught in business courses. While project management provides some level of tracking results, it falls short of outcome measurement. Even when exposed to these principles, executives associate these frameworks with donor reporting rather than commercial performance. Another reason may also be that many professionals assigned to CSR or social-impact roles come from communications or marketing backgrounds rather than from development or programme evaluation disciplines. Without familiarity with theories of change or performance frameworks, they may focus only on storytelling rather than on systematic results tracking to create (and be able to tell) an even better ending to the story. Yet with basic capacity-building, these teams can use RBM tools to turn good intentions into a data-driven strategy.

Integrating RBM helps businesses move from activity-based reporting to evidence-based decision-making across their organisation —aligning profitability with purpose. Ultimately, companies that measure what truly matters not only help make the world a better place, they also build stronger brands, nurture brand loyalty, and create more innovative, more resilient organisations. Reach out to us today to see how we can help you integrate RBM in your for-profit organisation.