“Sounds great, but is it profitable?” This is one of the first questions leaders ask me when I talk about the impact of love-powered leadership. The short answer is yes, it is profitable, and often a key competitive advantage (mini-case studies are in the book, The Amare Wave).
Matt O’Hayer, founder of Vital Farms, is a prime example of profitable, values-driven, and sustainable love-powered leadership that brings out the best in all the company’s stakeholders. Started on a single farm in Austin, Texas in 2007, Vital Farms is now a national consumer brand that works with over 375 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales.
Way More Than Eggs
For Matt, it was never just about selling eggs or making money. It’s always been about creating and sustaining a company grounded in conscious capitalism, where every stakeholder is genuinely valued, and balance is key to success. As Henry Ford said, “Profit is not the purpose of a business, but rather the consequence of a business well-run.”
From a financial perspective, Vital Farms’ values-driven approach and focus on long-term stakeholder benefits are working exceptionally well. In the third quarter of 2024, Vital Farms raised its annual net revenue guidance to $600 million—a 27% increase from 2023—as part of a steady growth trajectory positioning the company to achieve its $1 billion net revenue goal by 2027.
Leading with Purpose, Treating People Well
At Vital Farms, meetings begin with a reminder of mission and purpose, not numbers. This ensures that everyone is aligned and inspired, and it helps the team embrace the stakeholder model authentically. “All we have to do is the right thing, and results will follow,” Matt says.
He explained that respecting vendors—trusting them to provide quality and not squeezing them for cost savings—has resulted in loyalty that goes far beyond business transactions. He shared how their investment in truckers, like creating a very comfortable truckers lounge, led to unexpected benefits, like better on-time performance, which helps get fresh eggs into stores sooner for customers.
How Values Pay Off
In line with their values, Vital Farms chose to become a B Corp and a public benefits corporation. These designations ensure that Vital Farms remains accountable to its stated values and purpose rather than focusing solely on profitability. When the company went public in 2020, it attracted investors who aligned with its mission, resulting in a highly successful IPO.
Consider honestly for you and your organization:
- How do you prioritize and treat all your stakeholders?
- Are you willing to trust that doing the right thing will lead to good long-term results?
5 Amare Action Steps to Greater Success
1. Start with purpose. Begin your next meeting by discussing your company’s mission or purpose before diving into numbers. Set the tone for values-driven decision-making.
2. Re-evaluate vendor relationships. Consider if you’re treating your vendors as true partners. Reach out often to understand their ongoing needs and how to strengthen your relationships.
3. Create value for all stakeholders. List three ways you can improve the experience for a key group—whether it’s your customers, vendors, or employees—and take action this week.
4. Balance empathy and business needs. Practice making decisions that account for both the human element and the business outcome. Look for ways to support people without compromising the health of the business.
5. Reinforce core values. At your next team gathering, remind everyone of your core values and how they influence your decisions. Make them a living part of your culture, not just words on the wall.
The Leadership Balancing Act
Matt O’Hayer and Vital Farms remind us that leadership is about balance—balancing empathy with accountability, humility with winning, and ensuring that success never comes at the cost of the values that matter most. The bottom line is that business success is the result of the values you live by, building relationships on trust, and doing right by all your stakeholders.
As a conscious leader, your fulfillment will come from the integrity you lead with, the example you set, and the impact you make. Lead with love, do the right thing, and let financial success follow naturally.
Tell Me What YOU Want
My purpose in each and every one of these newsletters is to serve you and support you in being your very best as a human being and leader. I am starting on a new set of books and would love your ideas on what would best support you. Will you help? Please contact me to set up a time for us to chat.
Today’s Amare Wave Wednesday Quote
“Profit is not the purpose of a business, but rather the consequence of a business well-run.”
—Henry Ford
Click here and read more Amare Wave Wednesday newsletters on related topics:
One Minute Meditation: A Quantum Practice That Can Revolutionize Your Leadership
Stop It: A Leadership Lesson in Getting Better By Letting Go of What No Longer Works
Beating to One Drum: How Ubuntu Inspires Modern Leadership
How to Balance Daily Tasks and Big Dreams: A Leadership Lesson from a Powerful 17th Century Renaissance Man
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