Violins on Television and Purpose in Business
A Closer Look at the Evolving Definition of Purpose and How to Apply It in Your Company
There’s a lot of talk about purpose in business today.
It reminds me of Gilda Radner as Emily Litella on Saturday Night Live’s Weekend Update skit. As part of an editorial reply, she asks, “What’s all this fuss I keep hearing about violins on television?” She was concerned that if they only showed violins after 10 pm, “all the babies would be asleep” and wouldn’t learn any music appreciation. Chevy Chase points out the original report was about violence on television. Emily says, “Oh, that’s very different.” and signs off with her trademark phase, “Never mind.”
Even in this lighthearted example, the message is the same: words matter. Given the amount of discussion around purpose in business today, let’s take a closer look.
For World War II veterans returning to business, “mission” became a way of mapping out what the company would do to earn revenue so they could distribute profit to shareholders. Leaders and managers used the mission to direct how the troops — oops, I mean team — would carry it out, which they did, as they rebuilt their post-war country.
In this context, it becomes easier to see why a company’s mission was critical.
By the 1980’s, having a clearly-defined mission statement was all the rage. If a company didn’t have one, a consultant was nearby who could advise the best ways to “get” one.
As the mission statement grew in popularity, it stretched beyond its intent, especially when businesses started launching websites. Including a mission statement on a business website was an essential and safe decision while people figured out what else they needed online. Businesses were reaching more prospective clients and customers than ever before, but those same decision-makers had more options than ever before.
To differentiate, companies started adding their values and vision to the mission statement, circa late 1990’s. Talking about values and vision had traditionally been reserved for internal discussions only, so it was an uncomfortable next step for business leaders who disliked ambiguous situations.
It helps to explains why many mission statements were rather non-descript, such as:
“We value our clients and strive to be the best widget producer in the Northeast, delivering our products on time and providing superior client service.”
Internally directional? Absolutely. Helpful to prospective clients and customers? Could be. Compelling? Not so much.
Aside from the larger conversation we could have on the long-term and wide-range implications of the Internet, in this sense, it replaced brand image with brand reality.
In an informed, connected, and transparent market in which we all operate, it’s a reality that needs to be compelling.
As Simon Sinek encourages, purpose helps us answer the “why” question. An authentic purpose compels people to buy or hire, become employees, enter into partnerships and approve loans because they have a higher level of comfort with the company’s intent to do no harm.
Companies that go beyond doing no harm to intentionally doing good in business as part of their core activities will be more successful in the long term.
It’s why Larry Fink, the CEO of BlackRock wrote in his January 2018 letter to CEOs that “every company must not only deliver financial performance, but also show how it makes a positive contribution to society.”
How can business leaders elevate purpose in their companies?
→ Develop a genuine intention to create real value for others. Determine how your company can be most useful or improve the lives of others with what you make or do — without harming people and the planet, while still earning profitable returns. If you’re a big-picture thinker, this is your time to envision what can be.
→ Demonstrate your company’s purpose with verifiable business practices that consider all of its stakeholders a.k.a. all of the people essential to the company’s success. If you crave the mental stimulation of being creative, inventive, or resourceful, you are going to love thinking of ways to do this. Two quick examples -
o If having a diverse team is vital to your company’s purpose, align your recruiting and hiring practices to achieve it. Look for niche advertising opportunities in diverse communities.
o If supporting the local community is central to your company’s purpose, then spend on local suppliers, even if they’re not the lowest-cost providers.
→ Measure the results of the business practices you put in place. Purpose is about what the company intends to do, so you need to measure what happens as a result. It’s the proof in the pudding. If you like to capture and track data, you’ll be happy to know there are two ways to measure results related to purpose. Measure business outcomes, i.e. changes in the sales cycle, length of time to hire, and energy costs to name a few. Measure impact. How much more vibrant is the local community since your company started spending on local suppliers and/or employing chronically unemployed workers? Measuring impact relies on external data, so it requires extra planning and tenacity, but in the end it’s worth it, because it positions your company to take the next step.
→ Be transparent about the business outcomes and broader impact your company is making. When your company operates with a genuine purpose, has verifiable practices in place to achieve it, and measures its results, you can be transparent. Being transparent is about being accountable, which helps to develop one of the most vital ingredients for success today — trust. Those with a fiduciary mindset understand that having an authentic, demonstrated purpose creates a stable relationship with stakeholders that, over time, becomes a reliable predictor of future results.
Always proactively ask, “What can we do?” instead of reactively asking, “What do we do now?” because we know that words matter in changing expectations and outcomes.
