Building Purpose: How Grupo Bancolombia Found Its Strategy for Impact
Grupo Bancolombia’s Strategic Evolution
About seven years ago, a pivotal shift occurred at Grupo Bancolombia. Unlike traditional strategy frameworks driven purely by financial metrics or growth targets, newly appointed CEO, Juan Carlos Mora Uribe, introduced a radical idea: to ground the company’s strategy in a meaningful purpose. The goal was clear—align ambitions and aspirations with something deeper, something that would resonate with employees, customers, and broader stakeholders.
The corporate strategy office was tasked with this transformation. But where do you start when building a purpose? They researched companies characterized by having successfully tied purpose to results. Corporate Head of Strategy, David Zapata, knew it had to be more than a statement. It would need to drive strategic decisions.
We sat down with Zapata to uncover his organization’s journey to leading with purpose.
Engaging Employees for Authentic Purpose
“We didn’t build the purpose behind closed doors,” says Zapata. Instead, the team actively engaged more than 8,647 employees in four countries across Latin America through interviews, questionnaires, brainstorming, and ideation sessions. Employees were invited to share their ideas on what the bank stood for and what mattered most to them. This bottom-up approach was intentional; it allowed employees to feel ownership of the purpose, rather than having it dictated to them. The company also aligned its purpose with the United Nations’ Sustainable Development Goals (SDGs) to align its mission with a global sense of purpose.
The process wasn’t without challenges. While employees were enthusiastic, management initially struggled to align with the purpose statement. Each leader had their own interpretation, adding complexity to the process. Zapata notes, “Everyone saw logic in the purpose, but each wanted to put their own touch on it.” They weren’t fully committed because they didn’t feel the same sense of ownership that the employees did. Realizing this, Mora Uribe decided to incorporate a top-down approach by investing in aligning the management team. Leaders were enrolled in a global program where they could learn about world trends and discuss complex topics, making the purpose more tangible and relatable to societal needs.
"We didn't build the purpose behind closed doors."
Aligning Purpose with Strategic Decisions
Through this iterative process, Bancolombia developed a purpose that encapsulated three core aspects:
1. Addressing local societal needs in Latin America.
2. Aligning with the bank’s capabilities and deliverable outcomes.
3. Engaging key stakeholders, starting with employees.
The resulting purpose statement—“We promote sustainable development seeking the welfare of society”—was not just a catchy slogan. It became a driving force behind strategic decisions and company culture. The CEO ensured the purpose was at the center of public speeches and internal communications, solidifying it as his legacy.
However, the team knew that a purpose could not simply be words. They had to figure out how to measure progress towards achieving it. This led to the creation of three strategic pillars:
- Strengthen the competitiveness of the productive landscape of the country, developing agriculture and rural areas, subject matter experts and entrepreneurs, and technological transformation of companies.
- Build more sustainable communities and cities, decarbonizing industries, promoting sustainable transportation, and increasing access to proper and sustainable housing.
- Enhance financial inclusion, providing financial education, access to credit, and support for entrepreneurs and single women.
These pillars were translated into tangible Key Performance Indicators (KPIs) using the Norton Kaplan methodology, which measures financial impact, customer satisfaction, technological and operational efficiency, talent development, and societal welfare. “Every bank division is responsible for driving specific KPIs based on their capabilities,” explains Zapata, making the purpose actionable at every level of the organization.
The team knew that a purpose could not simply be words. They had to figure out how to measure progress towards achieving it.
Advice for Companies Seeking Purpose-Driven Strategies
Zapata offers key insights for companies considering similar initiatives:
- Focus on what you can deliver: A purpose needs to be both meaningful and achievable. “It shouldn’t be so broad that you can’t implement it effectively in the regions where you operate,” Zapata emphasizes.
- Mobilize the hearts of employees: The purpose must resonate on an emotional level, creating a sense of pride and drive across the organization. “If people can relate to the purpose, it changes how they view their role,” says Zapata, highlighting how today a bank teller in a remote branch can feel part of a broader mission for sustainable development.
- Align with global goals: Bancolombia’s decision to align its purpose with the United Nations’ SDGs was both practical and strategic. It linked the bank’s mission to global priorities, creating a clearer path forward.
Zapata also stresses the importance of building purpose both bottom-up and top-down. While grassroots involvement fosters participation and ownership, top management commitment is equally important for overcoming internal politics and driving strategic alignment. Finally, Zapata emphasizes that a purpose should not just be aspirational; it must inform decision-making and everyday actions. “If your purpose doesn’t help people make decisions in their daily work, then it’s not truly integrated into your strategy,” he concludes.
“If people can relate to the purpose, it changes how they view their role.”
The Call for More Purpose-Driven Companies
Reflecting on his journey in developing Bancolombia’s purpose, Zapata believes that the private sector must take a leading role in addressing societal challenges. “Governments alone cannot solve these issues. The private sector needs to step up,” he asserts. His hope is that more companies will adopt purpose-driven strategies that not only drive business outcomes but also make a meaningful impact on society.
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