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The Purpose Gap?
We need to put human beings back at the heart of business
Purpose acts as a north star in a world where there’s no time
“ “
Page 2 of 45
We brought together Leaders of
• Global Corporations
• International Consultancies
• Leading Charities
• And top entrepreneurs
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
to discuss this question…
Page 3 of 45
?“Why is there a yawning gap between why businesses say they exist and how
employees and customersbelieve they act?”
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 4 of 45
In other words to talk about the
Purpose GapLet’s start with why this even matters..
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 5 of 45
There’s a malaise at the heart of business
62% of US workers would rather have a different boss than a pay rise 66% of UK workers are disengaged 70% of Americans hate their job
92% of American employees believe their job is in detriment to their overall wellbeing
Only 33% of citizens think business is ethical
92%
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 6 of 45
Organisations have become machines of efficiency and we’ve
forgotten about the social needs of human beings
There has been a fundamental breakdown of trust between business and society. And this extends to employees.
““The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 7 of 45
Human energy is being replaced with systemisation
and process to the detriment of people, the organisation
and society itself
This is about the massive unrealised potential of individuals and organisations
““The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 8 of 45
So, according to this group of people currently leading global businesses
and international charities, what needs to change?
© Contexis 2016
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
Page 9 of 45
There are two fundamentally flawed assumptions
The Purpose of
business is to
maximise profit
People are essentially self serving
© Contexis 2016
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
Page 10 of 45
We need to step back from the
times of Friedman when the
function of business was seen
as purely making profit for the
shareholders
We need to put human beings back at the heart of business
The cult of efficiency can
dehumanise people, create
silos and lead companies to
do some really stupid things
“ “
“ ““ “
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 11 of 45
How do we achieve that? ?© Contexis 2016
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
fearPage 12 of 45
In the past business drove people through money, status, fear and control.
People still don't feel free to express themselves - there is often inherent fear.
The challenge is to recognise the importance of thinking about HOW
people really operate.”
We need a fundamental reappraisal of how we think about people.
““
© Contexis 2016
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
peoplePage 13 of 45
People are just another product of a business. The
character of a business is expressed through it’s
products, people and brands
All organisations form or deform people. As leaders we get to choose which.
““
© Contexis 2016
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
Page 14 of 45
If you treat someone as if they can’t be
trusted they’ll behave in an untrustworthy
wayThe double hermeneutic ..
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 15 of 45
Profit is to business as breathing is to life; it’s important but not the
essential reason you get up in the morning!
We need to realise that people are hard-wired to seek meaning - tap into that and we tap into the discretionary effort
““As human beings we are relationship orientated and hard-wired to seek a bigger purpose .. plus we yearn for autonomy and mastery
““The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 16 of 45
So, much of the answer lies in business rediscovering its Purpose? ?
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
purposePage 17 of 45
In a world that is constantly changing with staff turnover increasing more and more, people having pluralist roles, there's a greater need to have an overriding
purpose to act as the glue in the business
Purpose holds the business together.
““
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
purposePage 18 of 45
Purpose acts as a north star in a world where
there’s no time
Purpose creates context to allow for more agility in decision making
““Purpose is the WHY from which other manifestations (vision, mission, brand) should flow
““The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
purposePage 19 of 45
In my view there’s a direct correlation between
purpose and efficiency
Purpose can lead to efficiency and productivity
““Purpose allows people to be their best““
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 20 of 45
Purpose works…. all the evidence supports this, but not if it’s just a statement;
there must be full integration of a broader beneficial
purpose into the strategy and fabric of the business for
purpose to be meaningful and sustainable.
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 21 of 45
Why is this urgent now? ?The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
speedPage 22 of 45
“With speed comes the need to empower
employees further down the hierarchy. There’s no
time to await decisions from senior management, the organisation needs to
be much more fluid”.
The rate of change is increasing at an enormous speed
““
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 23 of 45
Having clarity of purpose allows employees to
respond faster, particularly to customers
Consumers are more demanding and informed than ever before.
““
speed
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 24 of 45
the societal context has changed. Increased transparency allows
consumers to more easily understand the full range of what
we do. This puts enormous pressure on corporates
Consumer power is increasing
““
transparency
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 25 of 45
Make it simple for consumers and they’ll
choose to change. They’ll choose brands with a
purpose. Brands they can believe in
People buy why over what
““
Why
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 26 of 45
If Purpose works,why the GAP? ?
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
purpose Page 27 of 45
At my two previous companies [both
FTSE100] purpose didn’t work very well and didn’t have the impact it should
have given the money that we spent on it
It’s easy to state a Purpose. Its very hard to make it real
““ £
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
sensePage 28 of 45
In ten years we have grown fourfold, 93% of our people have joined in that
period, the way we work means only 15% of our people can physically fit in
our offices at any one time. Against that environment, it’s critical to create and
maintain a unified sense of purpose
In complex, dynamic organisations it requires an enormous amount ofsustained focus to create a unified sense of purpose “
“93%
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 29 of 45
Many corporates historically have used purpose simply as a
PR exercise. There’s a SAY-DO gap - a lack of integrity around
purpose”. That can be very damaging
The greatest mistake is not being authentic
““
Too often Purpose is subsumed into marketing. This is not marketing-driven (but of course impacts the brand)
““
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 30 of 45
Too many purpose statements are aimed at making people feel better and are not credible or congruent with what the organisation does (or how it behaves)
An inauthentic purpose is worse than no purpose at all“ purpos
e
“The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
purpose Page 31 of 45
The purpose needs to fully congruent with the values of the business and encompass how people should operate
In defining purpose it's imperative to get an accurate reflection of what the business stands for because purpose drives decision making. In the Mid Staffs hospital fiasco senior management believed that their purpose was to reduce cost - having lost sight of what the real purpose of a hospital really is
““
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 32 of 45
And it gets harder the bigger the business is
I find it’s got harder to hold onto the purpose and culture as the company’s got bigger
““
purpose
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 33 of 45
Just having a Purpose is not enough….
This is fundamentally about what your view of people is““ The social conditions
have to be in place for purpose to thrive
Purpose is developed in an environment of trust - and communication is key
““ ““
purpose
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 34 of 45
And is this really new? ?The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 35 of 45
Are businesses just reverting back to having a clarity of
purpose greater than money, like Cadbury having a
purpose to develop social value?
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 36 of 45
so.. what is the conclusion? ?
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 37 of 45
An organisation is at its maximum potential when
everyone is working to the common good
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 38 of 45
To maximise their potential and be successful in today’s
changing environment businesses need...
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 39 of 45
The imagination and integrity
to see the whole person
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 40 of 45
A clear purpose that is authentic and
congruent
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 38 of 45
The courage of conviction to drive
that purpose throughout the
business
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 38 of 45
Inspiring leadership committed to sustaining the
purpose
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Page 38 of 45
Effective communication
channels
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
Join in?“As human beings we are relationship orientated and hard-wired to seek a bigger purpose plus we yearn for autonomy and mastery”. Twitter: @contexis
Linkedin: Join the Purpose in Business Movement
Attend our next Roundtable: [email protected]
Get inspired: www.contexis.com/insights http://www.blueprintforbusiness.org/
Page 2 of 45
With grateful thanks to our contributors
The Purpose Gap
Introduction
What needs to change?
How do we achieve that?
Rediscover Purpose
Why is this urgent?
Why the gap?
Is this really new?
Conclusion
© Contexis 2016
