Change has become a recognised game-changer for enlightened and progressive businesses. In this series we’ve attempted to define why Purpose and Profits should be linked and explained the importance of building a system to measure the impact Purpose has. In this post, we go further into the notion of Purpose as a catalyst for change.
In the first article in this series on purpose, we looked at the nature of purpose and espoused the view that purpose has two facets: functional (where it describes what the company must get done); and intentional (where it articulates what the company would like to see change in the wider world.) In this article, we look at how purpose and its impacts might be quantified and the benefits that a measurement system might bring.
There are those who continue to frame the role of business in purely commercial terms. Business is hard enough, and the demands of shareholders and the markets so insistent, these people say, that companies need to avoid the ‘distractions’ of infusing a moral platform into what they do. They should just get on with making profits. That’s their purpose. After all that’s what shareholders demand and that’s typically what they’re compensated on.
When Rosser Reeves first proposed the Unique Selling Proposition many decades ago now, the world was a very different place. Products still had the potential to actually be different, advertising was largely confined to mainstream channels and brands were, for the most part, identifiers. But with the evolution of best-practice manufacturing, the fragmentation of channels and the increasing development of brands as monikers for consumer lifestyle, I can’t help wondering whether the USP is now redundant.
Every brand manager would like to believe that the world will love their brand. Given how much time, energy and experience they pour into trying to make that happen, that seems like a reasonable hope. But is that a true measure of the impact of their brand? Is the brand itself what consumers actually respond to?
A culture with purpose doesn’t set and forget all the hard work that got it there in the first place. On the contrary, it continues to build and report on what it has established. Without that impetus, purpose quickly gives way to task and the commitment to deliver change is overtaken by the motivation to just make budget. If you need to convince others in your organisation that the momentum and energy required to stay the course is indeed worth it, consider these observations from Deloitte’s Culture of Purpose 2013 Report.
At some point, a culture that is serious about what it intends must put those intentions in writing. That’s about a lot more than documentation. Declaring what you come to work for collectively amounts to a commitment. So many companies squander this opportunity in my view. They market what is happening rather than explaining it. They expand on what it means for the company rather than how it benefits the individual. They paint a process and not a picture.
Far from increasing the daylight between itself and another brand, companies that are fixated on achieving an objective can do themselves, their brands and their reputations serious harm. Pushing the wrong boundaries can push a brand over the edge. This is of course anathema to conventional management theory which has preached for some time that pushing people to excel brings out the best in them.
It continues to fascinate me how little some businesses still seem to understand their human factors as opposed to their people model. They know how their workforce is organised. They understand where they’re allocated. They know what they cost. They have processes for everything they do. But they still seem to lack the anthropological understanding of how they actually can and need to get on and interact.
There’s a temptation to believe that the sheer logic of a good decision will sway the crowd; that if you make a good case and present it in an inspiring way, you’ve done everything you need to for that idea to gain instant uptake in an organisational culture. I’ve yet to see that happen successfully. I’ve seen it tried often – “now take that idea and apply it to what you do” – but never in ways that live up to expectations.