NON-CONFIDENTIAL AND ENTIRELY SHAREABLEPurpose+, Amstel 95, Amsterdam, The Netherlands
Transformation
Framework 1: The stick and the essence of value creation
Supplier surplus
Willingness To Pay (WTP)
Price
Costs
Willingness to Sell (WTS)
Tota
l val
ue c
reat
ed
Producer surplus
Customer surplus
Source: Harvard Business School
Framework 2: Multiple stakeholder impact, short term and long term
Stakeholder Likely short-term impact Likely long-term impact
Stakeholder 1
Stakeholder 2
Stakeholder 3
Stakeholder 4
Stakeholder 5
Stakeholder 6
Stakeholder 7
Etc.
Source: A Framework for Ethical Reasoning, Sandra Sucher (Harvard University)
Framework 3: The purpose+profit framework
Purpose
Profit
Purpose+ProfitCash cow
Irrelevant Foundation
Source: Purpose+
Framework 4: Shaping the century by choice
Adaptation
Free
dom
of c
hoic
e
Boundary Shapers
ParadigmPrisoners
Market Shapers
Source: Purpose+
Stra
tegi
c ch
oice
Forc
ed c
ompl
ianc
e
Implicit(Reporting, internal regulation etc.)
Explicit(Products, branding, marketing etc.)
Century Shapers
Framework 5-1: The purpose fit framework...
Source: United Nations SDGs, Purpose+
Framework 5-2: ...purpose fit examples...
“Making sustainable living commonplace.”
“Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”
“To create a better everyday life for the many people.”
“To design eyewear at a revolutionary price, while leading the way forward for socially-conscious business.”
“To organize the world’s information, and make it universally accessible and useful.”
“To give everyone the power to create and share ideas and information instantly, without barriers.”
“Give ordinary folks the chance to buy the same things as rich people.”
“Changing business for good.”
“To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”
“To bring health through food to as many people as possible.”
Source: United Nations SDGs, Purpose+
Framework 5-3: ...and a purpose fit checklist (long)
Current neglect• How many resources are already being
dedicated to tackling the problem through other players?
• Is there reason to expect that this problem cannot be solved by either markets or governments or other philantropy?
Scale of impact• What is the magnitude of the
problem that you’re trying to solve?• How will the scale most likely
develop over time?
Tractability• How easy is it to tell if you’re
making progress?• Do interventions with this
cause exist, and how strong is the evidence behind those interventions?
• Do you expect to discover new promising interventions within this cause?
Company fabric• Does it fit the company’s
historic mission and DNA?• Does it fit the current company
branding?• Does it fit the company values?• Can it be a logical fit in the
current/future strategy of the company?
Best Purpose FitCombines high impact with natural fit
Source: Purpose+, Effective Altruism
Framework 5-4: ...and a purpose fit checklist (short)
Source: Purpose+
Purpose fit framework, short version for leadership meetings
Yes No Do you find this purpose personally inspiring? If so, how much (1-10)?
Yes No Does the purpose help you think expansively about the long-term possibilities and range of activities the organization can consider over the next 100 years, beyond its current products, services, markets, industries, and strategies?
Yes No Does the purpose help you to decide what activities to not pursue?
Yes No Is this purpose authentic - something true to what the organization is all about -not merely words on paper that "sound nice"?
Yes No When telling your children and/or other loved ones what you do for a living, would you feel proud in describing your work in terms of this purpose?
Framework 6: Competitive advantage is temporary
2,2 3,1
1,3 2,2
Don’t adapt
Don
’t ada
pt
Patagonia
Häg
lofs
Adapt
Adap
t
2,2 3,1
1,3 2,2
Don’t adapt
Don
’t ada
pt
Patagonia
Häg
lofs
Adapt
Adap
t
Result: both Häglofs and Patagonia promote their brands as radically sustainable
Source: Purpose+
Framework 7: Use competing frames to get the proper commitment
Source: Clark Gilbert, Harvard Business School
High commitment, rigid plan
High commitment, flexible plan
Low commitment, rigid plan
Low commitment, flexible plan
Fram
ing
in th
e re
sour
ce a
lloca
tion
phas
e
Framing in the venture building process
Thre
atO
ppor
tuni
ty
Threat Opportunity
Framework 8: Strategic behavior
Behavior A
From… …To
Behavior B
Behavior A Behavior B
Behavior A Behavior B
Behavior A Behavior B
Behavior A Behavior B
Behavior A Behavior B
Source: McKinsey & Company
Framework 9: The Iceberg
Behaviour
Thoughts
Emotions
Norms & Values
Beliefs
Needs
Fears
Source: McKinsey & Company
Framework 10: Explicit dilemmas
Purpose Profit
Freedom Framework
Short term Long term
Local Global
CooperationCompetition
Explore Exploit
Stakeholders Shareholders
??? ???
Source: Purpose+
For more information
• Rens ter Weijde• Mail: [email protected]• LinkedIn: www.linkedin.com/in/rensterweijde