Leading for Purpose

Winning Customers & Team Members with the WHY

Here is a slide for plain text.

Why is today important to you?Exchange & absorb exercise:

• Think about 2 – 3 reasons you chose to attend this workshop. What do you hope to learn? What challenges or opportunities are you/your organization facing at work? What do you hope to come away with?

• Find 2 other people in the room whom you do not know. (Form a triad.)

• Have each person share their reasons for being here today.

What gets people to give you 150% of

their effort?

How Team Members See Purpose

Why employees say their company has a purpose Deloitte Culture of Purpose Study 2014

When asked what makes a company purpose driven employees most likely to cite positive impact products and services have on customers (87%) and on society (84%)

“When society makes up its mind about something you better be ahead of it not behind

it. And the environment (and purpose) is an issue upon which society has made up its mind.”

Jeffrey Immelt, CEO General Electric

Purpose Revolution• Biggest gain 1995 – 2016

• A high reputation score vs.middling double buying, recommending, 25% greater investing

• 80% would buy CSR company but are confused as to whether companies are good

• B2B CSR/Sustainability demands growing FAST

The Three Whys for Purpose

Recruit & keep the best talentDrives higher engagement & commitmentCorporate reputation-staff best ambassadors

Talent Wants Purpose42% of workforce now want to work for organization that has a positive effect on the world according to research by Global Tolerance

62% of Millennials (those born between 1981 – 1996) want to work for a company that makes a positive impact.

53% of millennials would work harder if they were making a difference to others

Research says most desired talent are the MOST FOCUSED on Purpose

Purpose Driven by Millennials

But Don’t Forget BoomersMore than 50% of millennials would take a pay cut to find work that matches their values

90% want to use their skills for good

7800 future leaders from 29 different countries say the business world is getting it wrong

75% feel businesses are focused on their own agendas rather than improving society

28% feel their current organization is making full use of their skills

Purpose is Driving Talent to Companies

What Matters Most to Employees

• Ethics• Green/Environment• Alignment of Mission & Reality• Aligns Personal Values• Meaningful Work

Green Drives Engagement

Purpose/Engagement Connection

Purpose Engagement Outcomes• Stock performance surges with nearly

150 percent higher earnings per share

• Employees generate significantly higher productivity, profitability and customer satisfaction, and fewer safety incidents

• A Hewitt & Associates of 230 workplaces with more than 100,000 employees and found that the more a company actively pursues worthy environmental and social efforts, the more engaged its employees are

• The Society for Human Resources Management compared companies that have strong sustainability programs with companies that have poor ones and found that in the former:

o morale was  55% bettero business process were 43% more efficiento public image was 43% strongero employee loyalty was 38% better

Ethical Workplaces Critical Dimension

94% say it’s “critical or “important” that the company they work for is ethical82% would prefer to be paid less but for a company with ethical business practices than receive higher pay for a company with questionable ethics80% cite disagreement with ethics of employees, a supervisor or management as the primary ethics based reason for leaving a job21% cite pressure to engage in illegal activity56% of U.S. workers define current company as having an ethical culture, yet 1 in 4 say past 6 months they witnessed unethical & even illegal behavior, and only 11% were unaffected by it

The Current State of Corporate Purpose

EY & Harvard Business Review Analytics Services global survey of 474 executives about organizational purpose showed:

• 90% understood that purpose could be a powerful lever in business• 89% of executives surveyed said a strong sense of collective purpose

drives employee satisfaction• 85% said I’m more likely to recommend a company with strong

purpose• 84% said it can affect an organization’s ability to transform• 81% said purpose-driven firms deliver higher quality

products/services• 80% said it helps increase customer loyalty

The State of Corporate Purpose (EY Study)

The survey identified 3 categories of companies relative to purpose:

• Prioritizers – companies that already articulated and understood purpose (39%)

• Developers – companies that do not yet have a clearly articulated purpose but are working to develop one (48%)

• Laggards – companies that have not yet begun to develop or even think about purpose (13%)

• Prioritizers outperform on revenue generation, market expansion, and new product launches

The Gap (EY study)While 90% of executives surveyed said their company understands the importance of purpose, only 46% said it informs their strategic and operational decision making

Barriers & Challenges to embedding purpose• Short term shareholder pressure• Poor communication from top leadership• Systems/infrastructure not aligned with purpose

How to better integrate purpose into the organization• Offer better leadership development and training. Develop the kind of

leaders who can communicate and align the organization around purpose• Performance metrics and incentives tied to purpose• Driven operationally and in depth from the top

Purpose

Recruiting and

Onboarding

Connecting People Across Groups

Engaging Employee’s

Personal Values

Consistently Messaging Purpose

Purpose Metrics

Align Job with Purpose

Hands On PurposePurpose

Centered Talent

Key Success Factors

How to Engage Employees

Clear Authentic PurposeRegularly CommunicatedDriven down to individual jobIdentify Employee ValuesHands on Purpose--engage them in what you are doingPurpose Benefits

It All Starts with a Clear, Compelling &

Authentic Purpose

How do we define purpose?

An aspirational reason for being that is about making life better now, and in the

future, for all stakeholders especially customers, society and planet.

Inspiring Purpose…Why are we really here?

What is the reason for your business?

QUESTION How central is this in

recruiting & orientation?

Does it feel real?

Focus on Higher Purpose

Work Task/Business Purpose

Higher or Noble Purpose

Purpose: Advancing Every Company, Enhancing Every Home, Improving Every Life

• 3M Technology Advancing Every Company

• 3M Products Enhancing Every Home• 3M Innovation Improving Every

Life  

Our Values• Act with uncompromising honesty and

integrity in everything we do.• Satisfy our customers with innovative

technology and superior quality, value and service.

• Provide our investors an attractive return through sustainable, global growth.

• Respect our social and physical environment around the world.

• Value and develop our employees' diverse talents, initiative and leadership.

• Earn the admiration of all those associated with 3M worldwide

Mission statement: "To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time."

Purpose statement: "To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow."

“The company’s objective is the manufacture and distribution of food products in such manner as to

promote a mutuality of services and benefits among all stakeholders.”

Forest E. Mars, Sr. 1947

Connect to the Founding Story

A Purpose That MattersPart 1

Write down the purpose of your organization. Consider:• Why do we exist?• What good do we do? • What difference do we make in the world for

people, society, nature, the environment, etc.

• How do we make the world a better place?

Evaluate the quality of your purpose using the Purpose Quality Scale

A Purpose That MattersPart 2

• Join with 2 other people • Have each share their purpose and checklist• Have a discussion about each Purpose

Statement. What makes the Purpose compelling – what grabs you? How might it connect to customers, employees, investors, other stakeholders?

A Purpose That MattersPurpose Purpose Quality

Score1 = Not True5 = Very True

Authentic

Compelling

Congruent with what you really doScalable - employees at all levels of the organization can relate to it and make it their ownAttainable

Connects with our customers

Connects with the talent we want to attract and retain

Connects with our investors

TOTAL SCORE

Communicate Purpose

Consistently

As a leader we must dare to

inspire

The CEO matters

A LOT

Balancing the Messages

Balancing the Messages

“We become the stories we tell”

Elie Wiesel

Engage Employee’s

Personal Values

People are Driven by their own Values not

Company Values

Align Jobwith Purpose

Purpose doesn’t matter if it’s

someone else’s purpose

How we see our work matters…A LOT

A JobA CareerA Calling

Helping people think of their job purpose rather than just a job

function

The job of every person in the park is to spread happiness

Aligning Job With Purpose

Every job writes a missionLeaders connect job to the higher purposeConnecting recognition to purpose valuesRegular asking “how did you/we matter?”Role model purpose driven job

Build It Into Recruiting &Onboarding

Recruiting Talent to PurposeBuild It Into Recruiting/Make it Real

Benefits for Purpose

Involve them in Doing Good as Part of Interviewing

Interview to values – here is how you can live your values here!

Have videos of current employees talking about purpose (and connecting to their job)

Do a “Job Purpose” Audit

Two Examples

Hands on Purpose

The CorporateService Corps

Carbon in the Rail Yard

The State of Corporate Volunteering

78% of companies support employee volunteering71% provide time off without pay70% allow access to company facilities and equipment35% make information about volunteering available to employees31% allow time off without pay for volunteer activities29% allow time off with pay for volunteer activities

18% during regular business hours

Purpose Benefits

Volunteering ideally on company dimeCharity Matching as opposed to charity givingSabbaticals for Purpose-the norm for those who want itCompany Change Initiatives- E.G. IBM Corporate Services CorpsPerformance Pay for Doing Good

Volunteering Pays Twice

78% of people who volunteered in the last year reported lower stress levels

76% say that volunteering has made them feel healthier

Volunteers report coming back as better leaders and performers

Purpose Metrics & Benefits

Myth: What gets measured gets done

Fact: What gets measured & focused on gets

done

Purpose Metrics

Do you have purpose metrics?3M every person has sustainability on performance appraisalMeasuring impact of purpose activities on important outcomes (e.g. volunteering impact on retention, leadership skills & engagement)Success breeds success. So measure and communicate purpose metric improvementsMeasure authentic connection to the purpose (is it real, do I feel my job is making a difference)

Synergies Across

Functions

Purpose

Recruiting and

Onboarding

Connecting People Across Groups

Engaging Employee’s

Personal Values

Consistently Messaging Purpose

Purpose Metrics

Align Job with Purpose

Hands On Purpose

Purpose Centered Talent

Key Success FactorsPart 1

Take a few minutes to review each success factor. For each factor write down:

• What are we doing now that’s working on this factor?

• What can you be doing to better connect purpose to this factor?

Score your organization. How strong is the link now between your Purpose and each factor?

• Very Weak 1-------------------------5 Very Strong

Purpose

Recruiting and

Onboarding

Connecting People Across

Groups

Engaging Employee’s

Personal ValuesConsistently

Messaging Purpose

Purpose Metrics

Align Job with

Purpose

Hands On Purpose

Purpose Centered Talent

Key Success Factors

Part 2

• Join your Factor Group

• Share your findings with each other

• Record and be ready to report out:

• 4 – 6 key activities that best connect Purpose to your factor

• Challenges & opportunities

Success Factor What are we doing now? What can we start doing?How strong is the link to purpose?1 = Very Weak 5 = Very Strong

Recruiting & Onboarding

Connecting People Across Groups

Engaging Employee’s Personal Values

Consistently Messaging Purpose

Purpose Centered Talent Key Success Factors

If you want to drive

purpose…get

disciplined

What the Ritz teaches about driving culture

Discipline is Destiny• Build in reminders of mission (e.g. Every meeting begins with the Customer/Higher Purpose--Lullaby plays every time a baby is born, announce every time an employee collects a donation at Safeway)

• Balance every “margin” message with “mission”

• Share your personal higher purpose as a leader and ground it in stories

Discipline is Destiny• Have a compelling noble purpose not only for the company but for each team—come back to it regularly (have each team member create personal mission connection)

• Retain a deep connection to your “founding story”

• Sell changes based on Values not just business imperatives

“All airlines have airplanes. What customers and employees are looking for is something more

intangible, for a psychic experience, you might even call it spiritual. Spirit is hard to define but its

impact on a business is palpable.”

Herb KelleherSouthwest Airlines

The Transforming Power of Purpose

Learn More At DrJohnIzzo.Com

THANK YOU!

#SB16SD #ActivatingPurpose

Please take a few moments to complete the feedback survey in the SB’16 mobile app