Three Insights for Finding Your Organisational Purpose
Part of the “Worth Your Time” Series — December 2019 Edition
2020 and the start of a new decade is just around the corner, and as we prepare to head into a new year many of us take the opportunity to reflect on where we’ve been and where we want to go. During 2019, our adventures within the “Future of Work” brushed past a topic that we can’t ignore as we head into the 20’s: Organisational Purpose.
So in preparation for this important topic, our final “Worth Your Time” of 2019 focuses on why organisational purpose is important for the organisation itself and society as a whole, plus a few highlights on how to co-create your own organisation’s purpose.
Purposeful Organisations — Better for business
“At companies that have clearly defined and communicated how they create value, 63% of employees say they’re motivated, versus 31% at other companies; 65% say they’re passionate about their work, versus 32% at other companies. And these purpose-driven organizations reap substantial benefits: More than 90% of them deliver growth and profits at or above the industry average, according to Strategy& research and analyses.”
This article, from the October-November 2019 HBR, outlines the benefits to be gained by organisations through having a well-formulated purpose statement.
Purposeful Business — For the sake of society
As part of the “Future of the Corporation” publication by the British Academy, the following report brings insights that have been gathered through a major research programme examining the purpose of business and its role in society. The content moves beyond looking at only the organisation and extends into the changes that will be required at an eco-system level from changes in the way that we regulate organisations, to the way we invest and govern organisations (to name a few).
“We concluded that the purpose of business is to solve the problems of people and planet profitably, and not profit from causing problems.”
“We proposed a framework for 21st century business based on corporate purposes; commitments to trustworthiness; and ethical corporate cultures.”
A Movement Already in Motion
The ball is already rolling. In August 2019, Business Roundtable announced the release of a new Statement in the Purpose of a Corporation signed by 181 CEOs representing a wide range of US companies from Apple to Coca-Cola to the Bank of America. Each signature, represents a commitment to delivering value to customers, investing in employees, dealing fairly and ethically with suppliers, supporting communities, and generating long-term value for shareholders (who provide the capital that allows companies to invest, grow and innovate).
The Purpose of YOUR Organisation
As part of our work with the Nordic Management Lab, we have been fortunate to be a part of the formulation of purpose statements on organisational and team levels with companies ranging from small to multi-national. And we’ve found that despite best intentions, coming up with a great purpose statement can be tricky. So as you contemplate your organisational purpose, here are some of our biggest learnings.
CLARIFY THE LANGUAGE: Purpose vs Vision vs Mission vs Strategy
Purpose:
- Why does our organisation’s existence matter?
- Why are we important to the people we serve?
- Why would anyone dedicate their time and passion to our company?
- What would be lost in the world if we no longer existed?
Vision:
- What do we aspire to be?
- What do we hope to achieve in the future?
- What will our impact be?
Mission:
- How will we get there?
- What do we focus on along the way?
- What is our core business?
Strategy:
- What is the plan of action to get to the above?
- Where should we play to win?
- What is the framework to guide our business decisions?
SANITY CHECK your purpose statement
Make sure that it is:
- Inspiring to those inside the company.
- Inspiring to your key stakeholders.
- Something that’s as valid 100 years from now as it is today.
- A statement that helps you see possibilities about what you could do.
- Truly authentic to your company.
CO-CREATE the purpose statement
Co-creating your purpose statement, rather than cascading it, takes a lot of effort and will be a “bumpy” road with disagreements along the way… but it is SO worth it for the common pride you’ll have in why you collectively spend your time, energy and passion with each other most days of the year.
We could write a whole article on “how to co-create your purpose statement” but just to get started, here are some of our favourite ways to co-creatively build a purpose statement:
- Gather a representative group (diversity of functions, seniority levels, gender, etc.) to meet and iterate.
- Individual reflection initially plays a role in each person formulating their own understanding of the purpose.
- A purpose tournament is a way to build on each other’s ideas. The first round brings together two people with their individual ideas and the outcome is a new, common proposal. Those two people meet another two in the next round and so on until everyone has been involved in creating the final statement. We suggest keeping the first few rounds word-free by illustrating the purpose.
- Finally, test the wording with customers and colleagues to check for a common understanding of the words and their meaning.
Do you have any other favourites when it comes to co-creating a purpose statement? We’d love to hear from you in the comment field.
We wish you a purposeful 2020 and look forward to exploring more of the Future of Organisations with you in the coming year!
