Re-Thinking Purpose

Whatamp8217s the state of purpose todayThere are three ways to look at it The first is that purpose is a core differentiator A survey by Deloitte indicates the followingquotPurposeoriented companies have higher productivity and growth rates along with a more satisfied workforce who stay longer with them 5 Our research shows that such companies report 30 percent higher levels of innovation and 40 percent higher levels of workforce retention than their competitors6 While traditional trends might dominate purchasing behavior new opportunities exist to connect with customers through purposequotIn 2019 consumer survey showed that price and quality remain the biggest factors driving customer decisions 7 However many of the same respondents 55 percent believe businesses today have a greater responsibility to act on issues related to their purpose Those failing to do so risk being displaced by purposedriven disruptors For example Unileveramp8217s 28 amp8220sustainable livingamp8221 brands ie brands focused on reducing Unileveramp8217s environmental footprint and increasing social impact such as Dove Vaseline and Lipton delivered 75 percent of the companyamp8217s growth and grew 69 percent faster on average than the rest of its businesses in 2018 compared to 46 percent in 2017 8 Soap petroleum jelly and tea are everyday household essentials but by promoting sustainable living these products became differentiated as they embody the companyamp8217s purposequotIt is interesting to note that Unilever has not done well recently and changed management which makes many believe that purpose can be overplayedOn What Next a podcast I host we recently had two different guests talk about purpose and each provided a different perspectiveOne was from Thomas Kolster who basically said quotForget everything you know about brand purposequot His basic belief was that businesses are now trying to position themselves as heroes but they39re not heroes Customers are heroes and they say quotThis is my purposequotThis second perspective is yes purpose is important but forget brand purpose and align with customer purposeThe other was from Steve Harrison who believes that purpose is overhyped and that companies have forgotten that they exist to make things sell things and create jobs Anything that makes them not remember they39re providing jobs selling things and making things and instead come up with social concoctions means they have lost the plotThis third perspective is purpose is bunk Make things Create jobs Ship things and stop all the mumbojumboWhy purpose is important but needs to be nuanced and authenticFor most firms reality lives between these perspectivesPurpose is important because it is one of the quotwhysquot that Simon Sinek says a company needs Purpose is also important to attract and retain talentPeople are very interested in what the purpose of the company is even if the purpose is quotWe make great productsquot Many people are now looking not just to join a company for money fame or power which are important but for the comnpany39s purpose values and connectionsBut a company should be very clear that when they are identifying a purpose it has something to do with their industryIf it sounds bombastic it will bombAuthenticity is key which means tight and believable scope versus quotwe are here to save the worldquot that gets everybody who is in the real world either rolling their eyes or shrieking with laughterBusinesses and brands are stepping into an unfortunate void People are looking to brands and companies to solve problems because they have decided to give less credence to media and government If media and government did their jobs we wouldnamp8217t look to brands and CEOs to fill inThe purpose trend and the need for CEOs to increasingly take positions way outside their business and expertise is due to a crisis of leadership A breakdown of trust and a refusal to see the world as it is If leaders actually led which means identifying reality fixing problems and delivering products and services people would not say quotWhat about purposequotThat is their purpose Fix problems Think long term Look after people Ship product Build infrastructure Create jobsWhy purpose is hardOften it is Ben and Jerry or Patagonia or Unilever that are trotted out for case studies There are many other examples but not too many that resonate and ring true because it is difficultPurpose is principles If you39re principled youamp8217re going to do things that will potentially hurt your career hurt other people or hurt financial performance because you decide to say quotThat doesn39t fit my principlesquotThose brands take a stand and the stand pisses off certain peopleWhat a lot of companies today are doing is adding purpose because they donamp8217t want to piss off people which is the exact opposite of what purpose is Purpose is taking a stand But too often it is a thin veneer of paint on the surface and and not deeply intertwined into the internal brand and company architecture or cultureAreas that brands can align with which are critical but not politically fraughtThere are three places that brands can help that arenamp8217t politically drivenHelping people grow old All over the world except for Africa every country is aging fast The elderly or the quotseasonedquot in many countries have many challenges from companionship to the need for medicines to financial constraintsEverybody regardless of political affiliation sexual preference or gender identity is going to grow oldHelping people who are hungry Organizations like Feeding America to local soup kitchens to food banks to school programs all serve humans in need People in need Regardless of one39s beliefsHelping people learn Brands and companies have great resources not just in money but the talent in the companies technology and much more Today like never before learning is key And learning can be everything from internships to mentorship to coaching and much more Most countries and areas are struggling with education which in many cases is too expensive too degreeoriented and too exclusionary Imagine what any company can do in their markets to lift peoples39 skills which helps both the people and the company by having more people to hireWhat will purpose look like in the future Often today purpose is like soufflamp233 at a fancy restaurant It39s basically puffed sugar like expensive candy floss And a firm often has many purposes all different flavors of candy flossThe future will be more singleminded and unified in purpose that links to your product shows how you look after your employees with it and shows customers that because of that they will feel better about your product or serviceBrands today are built on three criteriaThe first is delivery of benefits If you clearly can do something particularly well that39s what you39re supposed to be doing Authentic Real Aligned with the businessThe second is purpose which will require one to have happy employees Companies who do not look to create joyful employees will not be believed about some mumbo jumbo purpose Who cares how you source your product or how you will save the climate when you care and look after your employeesThe third is is the purpose measurably helping people feel better about your product or serviceThe future of purpose highly measurable and very much aligned with the companyamp8217s customers employees and communityPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNet

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Re-Thinking Purpose

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Rishad Tobaccowala

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