Purpose Pays Magazine

ISSUE

6

Purpose Big Thinking on Why Purpose Pays

PUR POSE S Y PA

Purpose

Purpose Mike Hall always said that “everything should start with a clear end in mind”.

Without this, he argued, it’s easy to lose yourself and others. In my view, this is what having a clear purpose is all about. It’s about knowing why you exist and what it is you do to create value in the world.

Every organisation is dealing with enormous change. Industries are being overhauled as digital transformation takes hold. In a time of continuous upheaval, the certainty of a clear, guiding purpose and set of principles helps keep organisations focused on what matters.

What is exciting, is how digital allows us all to take a wider and a higher-order look at what an organisation actually does and how it can contribute more broadly, beyond the products and services it provides. Kraft’s ‘Everyday Delicious’ initiative delivers beyond the food itself to include recipes, books and digital services through publishing and online content. It’s also a call to action to do something more significant for the wellbeing of others.

Like every brand, purpose needs to be true to the organisation and to the value it creates. It should make sense of everything the organisation does, the talent it needs and the behaviours it encourages. Purpose is not a desire to do good in the world. This is CSR activity, which often gets confused with the intent involved in having a closely defined purpose.

I think if every organisation was more precise about its role in the world, and made this clear to employees and customers, it would be easier to create strong, profitable and engaging brands. Conflict comes when intent and clarity are missing.

Purpose Pays is a collection of views on purpose, the word that seems to be on everyone’s lips and every board agenda. There are many different interpretations.

However, the growing need to define purpose more clearly can only be good.

Vanella Jackson Global CEO vanella.jackson@hallandpartners.com

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

E S O P R PU

S Y PA 5

Highlights » 10

20 Dominik Prinz says jumping on the purpose bandwagon shouldn’t be motivated solely by the bottom line

Paul Rees-Jones says people want something to believe in

50 Monica Skipper and Neil Gibson reveal how FedEx lives and breathes its purpose in everything they do

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Simon McEvoy tells us why purpose is meaningless if it doesn’t engage your consumers or employees

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

60 Tim Lindsay urges agencies to further the importance of purposeful thinking

Contents »

The emotionally driven profit of purpose

10

Paul Rees-Jones

Why purpose pays

14

Andy Milligan

The purpose of purpose

20

Dominik Prinz

Want to make money?

Listen to Pharrell

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34 38

Harlan Kennedy

On purpose Monica Skipper and Neil Gibson

Simon McEvoy

Why ad agencies need to drive the conversation on sustainability

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The selfish corporation’s guide to saving the planet

68

Benny Thomas

Fiona Le Brocq

(Re)finding your purpose

54

Tim Lindsay

Elie Khouri

Why purpose?

How shared value turns brand purpose into measurable actions

50

A note from the Millennials

74

Mads Lindegaard

Being fully engaged with an organisation’s purpose is essential for boards

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Louise McCann

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Contributors »

Andy Milligan is a founder of

Benny Thomas leads

The Caffeine Partnership which

strategy and a team

works with leaders to deliver brand-led growth.

of COGs (Cultural Anthropologists) for Crispin Porter + Bogusky, having previously served as a global lead planner at TBWA\Chiat\Day and Y&R.

Dominik Prinz is Interbrand’s

Elie Khouri heads the

Head of Strategy in New York

Middle East and North

and San Francisco and is

Africa operations of

passionate about connecting an organisation’s business, brand and purpose.

communication agencies OMD, PHD, Resolution and several specialist units.

Fiona Le Brocq was most

Harlan Kennedy spent

recently Director of Marketing

over 17 years as an

at SEEK Limited and, prior to

account planner on

that, Head of Brand at National

the agency side before

Australia Bank. She also spent 15 years in

founding VBP Orange in 2011. He

advertising working for M&C Saatchi, Spinach,

delights in inspiring clients to develop

JWT and DDB.

organisational empathy.

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Louise McCann is a non-

Mads Lindegaard is an Account

executive director with a

Manager at Hall & Partners and

diverse portfolio including technology, media, health, education, accounting and professional

a Millennial with experience of working with purpose-driven marketing in research.

services.

Monica Skipper, a native

Neil Gibson is Vice President

New Orleanian, enjoys

of Corporate Communications

sharing her passion for branding around the world.

for FedEx Services, providing strategic direction for the

As the Vice President of Brand Experience

development and execution of many of the

Marketing she leads the Advertising, Brand

company’s communication strategies.

and Sponsorship teams at FedEx.

Paul Rees-Jones has led

Simon McEvoy is a strategist

Clemenger BBDO Melbourne’s

with over a decade of experience

planning since 2007. He’s

helping blue chip organisations

helped guide the agency to

grow their business. He now runs

being the most awarded agency for creativity

Three Point Zero, which uses ‘Shared Value’

in Australia, and effectiveness across the

methodology to help businesses grow by

APAC region.

tackling social problems.

Tim Lindsay is former Chairman of Publicis UK and, since September 2011, CEO of D&AD, the advertising and design awards and creative education charity. He’s also Non-Executive Chairman of advertising agency network The Gate Worldwide.

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The

emotionally of

Paul Rees-Jones says people want something to believe in A few years ago I came across Daniel

Happiness seems to be an increasingly

Gilbert’s great book Stumbling

important emotion in a world where

on Happiness. It was in fact a

reaching any level of satisfaction,

recommendation from an unlikely

in whatever we do, feels more

source, my not-especially-happy

challenging. Whether it’s in our

accountant, but one that’s proven

personal or especially our working

to be of great value when working

lives, there never seems to be enough

with Clemenger BBDO clients as

time, resources or attention given to

they navigate the challenges of an

things that truly matter.

emerging century of ever-present change and uncertainty.

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

driven

purpose

Gilbert, a Harvard psychologist,

The imagination is something that’s

focused his work around a fascinating

anything but tied down by what we

premise: that human beings are the

know. Rather, it has the ability to draw

only animals that have the ability to

on the subconscious to come up with

think about the future. He explains

something completely original. It’s

that, thanks to the uniqueness of

about what could be, or even should

the human brain, we’re fortunate

be, in this values-driven era where

enough to possess a frontal lobe,

accountability has never been more

something that allows us to learn from

pronounced. Do the right thing, and

experiences we’ve never had, opening

the upside can be felt immediately.

up the concept of imagination. This is

Do the wrong thing, and the impact

interesting, especially as we try to get

can be so quickly damning. This is

to grips with such evolving times, and

something in-touch business leaders

the preparedness of so many to retreat

intuitively understand, and where

to the supposed safety of rational and

organisational purpose has come into

expected solutions that only go on to

a life of its own in recent times.

underwhelm.

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People want something to believe in that helps make sense of things

It was probably almost a decade ago

before ‘how’ or ‘what’. The simple but

that Nikos Mourkogiannis published

effective premise is that the motivation

Purpose – The Starting Point of

for doing the company’s work isn’t

Great Companies. It was one of

about what you do or how you do it;

those business bibles that literally

it’s about why you do it.

appeared overnight, taking pride of place, in plain view, on so many desks. It certainly did in Australia and signalled a leadership ideal founded on a commitment to be authentic and true to company foundations. It became the mantra du jour that was reignited when Simon Sinek took to the TED stage and showcased the oftcited ‘Golden Circle’, and how great leaders inspire action by asking ‘why’,

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

So why has the ‘why’ taken such

After all, we should understand our

hold?

future selves well enough to shape our

Working closely with culturally focused clients, I’ve come to see there’s a very real idealism alive and well in

lives more positively, and that goes for the people we affect with what we make, sell and serve.

so many corporate cultures. It feels

And this is probably the most

like a new-found enthusiasm and

fascinating thing of all about

sense of possibility. At the heart of it

a galvanizing, purpose-driven

is the observation that people want

organisation; that when you get the

something to believe in that helps

money out of the way and and start

make sense of things; something that

being true to who you are, as in life

we want to be true because that’s the

you’re more likely to reap the rewards.

way it should be. It’s the return of a

Because people are emotional wired,

decency – an old-fashioned concept

and that’s something more companies

maybe, but it is in fact remarkably

need to feel in what they do.

modern in its ability to make people feel connected to something of worth, and the future contribution of the work being done.

Paul Rees-Jones Executive Planning Director Clemenger BBDO www.clemengerbbdo.com.au

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Does organisational purpose actually matter to people? Andy Milligan explains why it’s important

“We’re guided by a vision to create a better everyday life for the many people. That is what steers us, motivates us – that is our role…

We feel almost obliged to grow.”

PURPOSE MATTERS TO CONSUMERS More and more, people want to buy brands which not only deliver them value personally but also address the wider societal challenges we all

IKEA Group CEO Peter Agnefjäll thus

face. Michael Porter identified this

set out the interconnected relationship

development in customer motivation;

between purpose and profitable

it led him to establish the ‘Shared

growth. If you have a purpose you’re

Value Initiative’. “The purpose of the

compelled to grow to fulfil it. In fact,

corporation”, he writes, “must be

showing you have an authentic and

redefined as creating shared value,

credible sense of purpose – a reason

not just profit per se. This will drive

‘why’ you exist beyond the desire to

the next wave of innovation and

make profit – drives commercial value

productivity growth in the global

in an increasingly competitive world.

economy.”

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The purpose of the corporation must be redefined as

CRE AT ING

SHARED

VA LUE

The global public relations business,

They concluded that with the limitless

Edelman, conducts an annual survey

options open to consumers they, “are

called the ‘Global Trust Barometer’.

choosing to engage only with content

They look at the importance that

that is personally relevant to them,

people say they ascribe to factors such

their purpose and their passions”.

as ‘the values of an organisation’. The

They summed up their research by

2015 survey found that four in five

saying, “their [the consumers’] path

respondents wanted to see companies

to purchase is actually their path to

pursue a higher purpose, not just

purpose”.

profit.

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That the search for purpose is

Google recently partnered with

becoming a vital factor in the

agencies TNS and Ogilvy to research

consumer’s choice is shown by Havas

how digital platforms and social

Media’s annual survey into ‘Meaningful

media have changed the relationship

Brands’. CEO Paul Frampton

between advertisers and consumers.

introduced the 2013 report by saying,

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Meaningful Brand Index

STOXX 1800 x 120%

FTSE4 Good Index x 175%

“In our survey of 134,000 consumers

and the most consistently profitable

across 23 countries we found real

airline in the world (42 years and

people crying out for brands to have a

counting!), places the recruitment of

purpose, and live that purpose in what

people who share its culture at the

they do”. The report also found that

heart of its business philosophy. As

the meaningful brands outperformed

Herb Kelleher, its CEO and Chairman

the market by 120%. So focusing on

for most of those 42 years, said, “The

purpose makes you more profitable.

business of business is people”. True

PURPOSE MATTERS TO EMPLOYEES

differentiation, he argued, could only come from culture because everything

Employees are, similarly, looking to

else was replicable; as he pointed out

work for companies with which they

in a speech in 2008, “All airlines have

can share a common sense of purpose

planes”.

and derive dignity from their daily work, not just a salary. Southwest Airlines, the largest low-cost carrier

All the companies we feature in our book, On Purpose, have followed the

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Southwest Airlines’ route to success,

company succeed’. Doing the right

be they new brands like Citizen M

thing for the customer is a universal

or Sugro, long-established brands

motivator.

such as Lego or Ikea, or business-tobusiness brands like Liberty Global or Altro.

Now, of course there’s a danger in reporting compelling statistics such as these. As we saw with the rush to

The business benefits of engaged

CSR some years ago, the short-sighted

employees are highlighted in a study

CEO, motivated by the potential to

by the Temkin Group. Looking across

generate positive PR or profit, will

a number of different industries in the

conclude that, ‘we need a purpose

US, they discovered that employees

statement’ and delegate some poor

who were ‘engaged’ (people who

minion to create one; or, perhaps

understood and shared a sense of

even worse, they’ll ask their ad agency

common purpose with the business

to craft some fine words. To do so

and felt empowered to deliver that

misses the point entirely. It’s about

purpose) were more productive, more

the ‘doing’, not the ‘having’. Or, to

loyal, and delivered greater customer

put it another way, purpose only pays

satisfaction than those who were not.

when you act on purpose.

A staggering 99% of employees who worked for businesses that delivered

Andy Milligan

excellent customer experiences agreed

Founder The Caffeine Partnership www.thecaffeinepartnership.com

they were ‘committed to helping their

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

THE BU SINES S OF BU SINES S IS PEOPLE 19

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Dominik Prinz thinks jumping on the purpose bandwagon shouldn’t be motivated solely by the bottom line

Contrary to the popular belief that

But instead of the bourgeoisie, it’s

it was Spider-Man, it’s generally

now businesses that need to reassess

accepted that Voltaire coined the

their critical role in society. A new and

phrase, “With great power comes great

enlightened generation of consumers

responsibility”.

and employees demands them to take

Why did he carefully select these nowfamous words? Because he was deeply

a stand on issues that are crucial in helping society to progress.

disturbed by the abuse of authority

This growing generation is now

and privilege by those in power, while

increasingly rewarding truly purpose-

a large part of France’s population

driven brands: by choosing them over

lived in poverty.

their (less purpose-oriented) peers, by

About 200 years later this statement still stands – especially in a time of economic uncertainty, political turmoil and social unrest.

paying a premium for their products and services, or simply by coming back as loyal customers, over and over again.

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By now, most businesses are beginning to understand this financial upside of being purpose-driven. And herein lie both the opportunity and the dilemma.

Let’s start with the opportunity, since it’s compellingly clear that the economic benefits to operating as a purpose-driven business are manifold:

A PURPOSE-DRIVEN BUSINESS DRIVES CHOICE...

WITH EMPLOYEES

WITH CUSTOMERS

Attracts strong talent and

Attracts an increasing

lowers recruiting cost

number of customers who make purpose part of their purchase decision

CREATES PREMIUM...

ENGENDERS LOYALTY...

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Can allow for lower base

Can allow to charge higher

salaries since purpose

prices since purpose

serves as an additional

serves as an additional

non-monetary incentive

emotional benefit

Fosters retention and, as

Fosters repeat purchase,

a result, lowers cost of

recommendation and

training new employees

overall brand loyalty

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

IT’S NOW BUSINESSES THAT NEED TO REASSESS THEIR CRITICAL ROLE IN SOCIETY So where’s the dilemma if purpose

Today, without a doubt, business

is deeply relevant to people and

and societal impact must go hand in

helps to differentiate a brand in the

hand. Consumers are too informed,

marketplace? Simply put, these two

too connected and too skeptical in

benefits are, for the most part, self-

this information age to fall for a brand

serving.

that claims to be pursuing a profound

If the motivation for jumping on the purpose bandwagon is solely

purpose when what it’s really after is a stronger P&L.

motivated by the bottom line, the

We’re at a critical juncture when

effort is doomed to fail. The key

businesses need to make sure that

to becoming a truly credible and

purpose doesn’t turn into just another

successful purpose-driven brand is

buzzword. No one needs ‘purpose-

authenticity.

washing’ to become the new ‘greenwashing’.

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CONSUMERS KNOW THAT ACTIONS SPEAK LOUDER THAN WORDS The million-dollar question is how do you stay authentic? Three crucial ingredients are needed:

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1) LEADERSHIP

2) TRANSPARENCY

Embracing an organisational purpose

Businesses need to be open about

starts at the top. Starbucks’ Howard

how the purpose they’ve subscribed

Schultz and Virgin’s Richard Branson

to connects to their business, while

have spearheaded efforts to align

at the same time creating a positive

their organisations around ideas that

impact on society. There’s no shame

stretch far beyond business impact.

in that; in fact, people ‘get it’. A sound

The moment the CEO acts as a public

storytelling approach is essential, one

role model and walks the purpose talk,

that clearly and simply paints a picture

employees – and ultimately customers

to explain why shared value creation is

– will believe.

beneficial to everyone involved.

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

TOMS shoes

AT&T’s ‘It Can Wait’ campaign. A simulator mimics the effects of texting while driving.

3) PARTICIPATION Today’s consumers know that actions speak louder than words, and they want their own actions to make a difference. That’s why successful brands invite them in, providing them with opportunities to engage. Warby Parker and TOMS do it with the ‘One for One’ model, where every purchase directly creates impact. AT&T uses

The stakes are high – and so is the responsibility that comes with it. This is the time for businesses to embrace the sphere of influence they have on millions of consumers. By changing their own behaviour they can affect the behaviour of many and mutually create a world that tilts the scale back into balance. Voltaire (and Spider-Man) would like that, for sure.

interactive workshops at colleges to demonstrate the risks of texting while driving in the context of its ‘It Can Wait’ campaign.

Dominik Prinz Head of Strategy Interbrand www.interbrand.com

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N O I ACT

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

THIS IS THE TIME FOR BUSINESSES TO EMBRACE THE SPHERE OF INFLUENCE THEY HAVE ON MILLIONS OF CONSUMERS

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Want to make money?

Listen to Pharrell Elie Khouri tells us how Pharrell Williams hits the nail on the head when it comes to purpose

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“Do everything with intent. Make

their expectations will be at your

sure intention is the number one

peril: a corporate scandal could go

ingredient in your creation.” Speaking

viral at the click of a mouse. Which

at Cannes Lions, the award-winning

is why companies like Unilever and

producer Pharrell Williams touched

PepsiCo have embraced the concept of

on something all businesses should

sustainability as part of their DNA.

always be thinking about.

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Keen to measure up? We apply the

The social landscape as we know it

‘4 Ps’ to cater to this altruistically

is changing primarily because of an

driven group of people. No, not the

increase in consumer preferences

traditional marketing ‘4 Ps’ of price,

towards morality. Millennials aren’t

product, promotion and place. We’ve

afraid to switch jobs or wait longer

created our own: purpose, people,

to get married until they feel their

product and profit. Having the right

career echoes their strong sense of

purpose should lead to getting the

ethics, idealism and community. Ethos

right people who will develop the

determines not only where Millennials

right product or service, which will

want to work but also what they want

eventually lead to profit. It’s simple,

to buy. The young consumers of

but remember it must begin with

today aren’t easily fooled – neglecting

purpose. Here’s how it works:

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

purpose, people, product, profit.

THE RIGHT PURPOSE

Is your company sustainable? Are you doing business with companies who share your values? Are you utilising all your resources responsibly and efficiently? Do you promote a culture of innovation and thought leadership?

Is every aspect of your business doing the right thing for the right reason? Remember: sustainability isn’t just about a donation to a charity or corporate volunteering. It isn’t something you can fake. It embodies literally every part of your business and takes a lot of effort to maintain.

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THE RIGHT people The fact that you value sustainability means a lot to the current working generation. Nowhere is this truer than in the Middle East and in our company, Omnicom Media Group MENA, where the average age of our employees is 27. Millennials really do care about our responsibility to our community – apparent by the active participation of our staff in our sustainability and CSR efforts. Being part of something

THE RIGHT product

larger than quarterly targets gives our employees a sense of engagement and

Having an engaged team leads to a

keeps them motivated and fulfilled.

culture of innovation and an improved service offering. Ultimately, this will help establish your company as an indispensable piece of your clients’ winning equation. Additionally, as more clients commit to sustainability, the more they will want to do business with partners who share similar values.

All of this will lead to the fourth ‘P’.

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

PURPOSE isn't something you can fake THE RIGHT profit This needs little explanation: when you

in the region to be GRI certified. The

have employees who are engaged and

certification is a nod to the years of

motivated, the profit follows shortly.

hard work we’ve put into creating a

I’ve often advised people trying to

holistic sustainable environment. In a

make money to focus on anything but

world of rapid change, your greatest

the money: focus on your purpose and

competitive advantage is your own

everything else will fall into place.

core. Pharrell’s advice to focus on

Just remember, being sustainable is no easy task – it’s taken us a lot of trial and error to perfect the winning formula. We’ve recently

‘intent’ or ‘purpose’ echoes what early adopters are doing to lead the game – don’t take it lightly.

Millennials certainly don’t.

been accredited by the ‘Global Reporting Initiative’, becoming the first marketing communications group

Elie Khouri Chief Executive Officer Omnicom Media Group MENA www.omnicommediagroup.com

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why Fiona Le Brocq shows us that finding a purpose isn’t as daunting as it seems

There’s been nothing more heartening

planning sessions for more than ten

as a marketer than to see the

years and witnessed many blank

increasing interest and commitment

expressions when the group are asked

by organisations to being purpose-led.

to consider this question. With senior

Jim Collins is attributed as one of the earliest proponents of purpose with a very clear definition that your purpose is ‘why you exist beyond making money’. Clarifying this has been a hard

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managers trained to focus on financial goals as a priority, and rewarded for them, there’s been little aperture to expand thinking beyond what we do to get to the why we do it.

nut to crack with many companies – I

I think one of the hurdles for many

know because I’ve facilitated purpose

executives is that purpose seems

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

? lofty, soft and even a luxury – it’s

society. We don’t have to imagine what

anything but. I’ve often used Apple

sort of people are attracted to this

as an example to demonstrate how

type of organisation or the thinking

purpose translates to the bottom line.

and concepting this type of purpose

Apple’s purpose set out by Steve Jobs

will drive – we just have to look at

in 1980 was, “To make a contribution

what it’s delivered in the form of the

to the world by making tools for the

iPod, iPhone and, most recently, the

mind that advance humankind”. Yes,

Apple Watch and acknowledge that

it may sound lofty, but in 2000 the

they are indeed delivering to their

brand was valued at US$6.6bn and in

purpose.

2013 US$98.3bn. They also pipped Google at the post for pole position in BrandZ’s ‘Most Valuable Global Brands’ in 2015.

The rise of employee engagement has also increased understanding of the role purpose can play. We now accept that acknowledging emotions

Apple’s purpose doesn’t talk to unique

in the workplace will actually enhance

features and benefits, but stakes out a

productivity because people don’t

provocative and valued position in our

want to work only for a salary and

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benefits. They want to make a

more succinctly, reciprocity. This was

difference by being part of something

critical for the organisation for which

meaningful, contributing to something

differentiation from the ‘big four’ was

important and bigger than themselves.

the only path to growth. This led us to

The role of purpose in this case is to

develop the positioning of ‘More Give,

connect people emotionally with their

Less Take’ and was the genesis for the

work. They’ll love you, they’ll stay with

world-acclaimed ‘Break Up’ campaign.

you, they’ll be more resilient when

The business results were staggering,

times get tough.

moving preference from No. 3 to No. 1,

To bring this a little closer to home, I had the privilege of working at NAB a few years ago, one of Australia’s ‘big

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and took NAB to No. 1 in customer satisfaction for the first time in ten years.

four’ banks. The business strategy

More recently I was Director of

was ‘Fair Value Exchange’ in which the

Marketing at SEEK Limited, the

purpose was inherent – fair exchange

foremost global online employment

of costs for products and services, or

group. The Exec was committed

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

working lives. This resulted in the highest ever brand engagement score and the strongest lead over SEEK’s competitors.

The 2014 Deloitte ‘Core Beliefs & Culture’ survey explored this new context for business and found that organisations that focus beyond profits, and instill a sense of purpose among their employees, are more likely to find long-term success.

“When it’s understood that purpose brings power and meaning to your employees, driving deeper connection and engagement in their day-toto articulating our purpose as a means of connecting and unifying all employees and having a positive impact on society. SEEK already do this by facilitating matching the right people with the right jobs. But their purpose took this even further: “To help people live more fulfilling and productive working lives and to help organisations succeed”. This led to a

day jobs, then the benefits for most organisations are manifest”, said Punit Renjen, Chairman of the Board at Deloitte. “What companies do for clients, people, communities and society are all interconnected.

A culture of purpose ensures that management and employees alike see each as a reason to go to work every day.”

compelling cultural manifesto which

With this greater understanding, do

has increased employee engagement

we really need to keep asking, “Why

to 80%, and to the ‘Change’ campaign,

purpose”?

encouraging people to embrace change in order that they will thrive rather than just cope with their

Fiona Le Brocq General Manager - Brand & Marketing Medibank flebrocq@gmail.com

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

R Y A E Y

I

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T E T V A T H Y D V L O Y G A P Y P Y N J K L P A H B H U R T Y B G U A F S

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C S D A F H D W O G O G T W L R O F W T F D S L Z E Harlan Kennedy believes you can find your purpose in just three steps

E W D

C T G E G

Y B E L K X K O V R Y X Q 39

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first few pages. It might be called a ‘Mission’.

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B. Ask someone who works at your company. “Hey Nancy, what do you think our purpose is?” Ask three

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point you have several options. I would

to feel a sense of purpose at your new job. “Why do we exist?” “What’s the

purpose of this organisation?” At this

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

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A brand purpose can be like last

AWednesday’s I quinoa E salad.

N At the time it was made it seemed fresh

Dand delicious F and N sustaining B all at once. But now it’s been hiding in its

TTupperware V forStoo long T and seems

not quite right to anyone who bothers

Eto giveSit the sniff T test.EThis isn’t just about being old. Companies change.

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brand that can stick to its guns but, at

Hthe same H time,Ymany great E companies have dramatically evolved their core

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to make soap. Nintendo used to make test and measurement equipment to

TPCs andZprinting Eequipment.

D These are dramatic changes. It’s more likely your

has undergone subtle shifts in Hbrand H Y F its offering that create a disconnect

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GbetweenEits stated G purpose P and its

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actual offering.

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Most large organisations aren’t much They are good at compromise, and

Snuance,Eand making S sure V everyone P B leaves the meeting feeling slightly

K(but not Dtotally)Vdisappointed.

W OThat’sR why your purpose may feel like it has

adjectives, or an ‘and’ Rone tooSmanyH U R E where one shouldn’t be. HarlanCorp

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company does. That said, disregard your customers’ experience at your

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own risk. Many companies think they have an idea of what their customer

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experience is, but they don’t. My

local grocer may think that I go there

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because he has the best produce, but in reality I go there because I enjoy

AmakesFseamless, H high-powered, D N low- Q

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cost, workplace efficiency software

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that makes employees happy. You laugh. I’ve seen worse.

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low-cost office furniture. KennedySoft

D F

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Customers don’t own the purpose. The

makes the world more fun by creating

S S

3. YOUR PURPOSE IS OUT D TOUCH D WITH F YOUR N B OF CUSTOMERS

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how friendly the staff are and how

pleasant they make grocery shopping.

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This misunderstanding might be fine, until my grocer is trying to

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decide where to allocate his precious resources. Does he hire a produce

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consultant who guides me through the

THE BEST BRAND PURPOSE COMMUNICATES A VISION FOR THE WORLD THAT YOU STRIVE EVERYDAY TO MAKE REAL

various options of heirloom tomatoes,

world that you strive everyday to make

or does he hire more generalists in the

real.

store to smile and say, “Hi”? Why his grocery store exists, what role it plays in the world, is his business. But he’d be wise to at least hear what I value about my experience there.

So find one, or rewrite your existing one. Try not to form a committee.

And, above all, make it matter.

That doesn’t mean that your brand purpose has to be about saving the

Searching for your purpose can

world, but it should solve a user need

sometimes feel like it’s the most

for someone. And one last thing:

important challenge facing your

‘maximising shareholder value’ is

organisation. It can feel like a Holy

indeed a purpose. It’s clear, it’s

Grail, a magical phrase carved into

singular, it’s measurable, and it acts

stone. While your brand purpose is

as a reliable filter for the actions of

certainly important, I would caution

the company. But it’s probably not

that it’s not an end in and of itself.

very motivating to your customers or

Rather, a great brand purpose is just

employees.

a tool you can use to stay clear, stay focused, and feel good about whether what you do matters to the people who matter most. The best brand purpose communicates a vision for the

Harlan Kennedy Founder and Director of Strategy VBP Orange venablesbell.com

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OUR PERSPECTIVE ON

E S O P R U P 45

WE LIVE IN A FASTEVOLVING WORLD.

Digital disruption and the rise of the purpose-driven brand

continues to change the way people experience brands.

So, at Hall & Partners over the past six years we’ve been looking at how measures of brand integrity can drive brand relationships.

We’ve discovered that even in these times of rapid evolution, the longstanding fundamentals of brands ‘meaning’ something and products and services ‘doing’ something still ring true. Instinctive, unconscious, emotional relevance remains core to the heart of any successful brand/customer relationship.

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

It may come as no surprise to hear that across a lot of our work we find THREE

RECURRING THEMES:

1

BRANDS WHICH DISPLAY INTEGRITY ALSO HAVE HIGH LEVELS OF CONSIDERATION… …and the majority of today’s consumers profess to engaging with brands that act in the interests of others.

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HOWEVER, WE ALSO FIND THAT…

2 48

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

...the number of people that are most driven by a brand’s broader social purpose, and willing to pay a price premium for this, is actually

RELATIVELY SMALL.

3

FOR THE MAJORITY of people, brands have to deliver first on category expectations of product and brand experience. It’s also imperative that consumers feel brands are connecting individually with them on a ‘do right by me’ basis, before they can focus on ‘do right by everyone’.

AND, BE WARNED. We often find that… …there’s no ‘one size fits all’ rule for brands when it comes to defining a purpose strategy that builds both emotionally and commercially rewarding benefits.

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On

Purpose

It's no accident that our purpose is the heart of the FedEx story

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Monica Skipper and Neil Gibson reveal how FedEx lives and breathes its purpose in everything they do FedEx delivers more than nine million

Connecting people with goods,

packages a day on average. But what

services, ideas and technologies

do we really deliver with each of those

generates opportunities that create

packages?

jobs, build prosperity and lift

We deliver love when we ship flowers for Mother’s Day. We delivered hope to the people of Nepal by flying in urgently needed medical supplies following a devastating earthquake.

These stories, and more, are why we believe a connected world is a better world. That belief is embodied in our purpose statement, “Fedex: We connect people and possibilities around the world�.

communities to higher standards of living. And, by reducing our environmental footprint, we also connect future generations to a promise of a better tomorrow.

Our purpose is essential to our brand and reputation because it puts who we are and what we do in the context of why we matter. As a result, it gives richer meaning to our portfolio of customer services, and it enhances

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We connect people and possibilities around the world our reputation as a great place to work

which documents our contributions

and as a committed global citizen.

to economic development worldwide,

We developed our purpose statement

support for our people, sustainability

to be:

goals and progress, and community

INCLUSIVE Our purpose unifies our stakeholders

SHARED

(team members, customers,

Our purpose has enriched the stories

communities and shareowners) by

we tell the world. We’re proud of the

addressing shared economic, societal

many ways we help our customers

and environmental issues.

grow, and we’re just as passionate

AUTHENTIC Our purpose is backed up by our

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investments worldwide.

about how, together, we make the world a better place.

actions, as highlighted in the ‘Global

Our purpose has launched a

Citizenship Report’ (csr.fedex.com),

transformation that will continue to

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

strengthen our culture. Today, our

as the world changes and FedEx

purpose not only articulates why we

evolves with it. We’d love to hear your

matter; it’s become a competitive

questions and thoughts about the

advantage. It inspires team members

power of purpose in your organisation.

by showing them how they make the world a better place. It helps recruit the right team members, and it resonates with customers who want to do business with companies that share their values.

We’ll continue to look for ways to keep our purpose relevant and engaging

Monica Skipper Vice President Brand Experience Marketing FedEx Services

Neil Gibson Vice President Corporate Communications FedEx Services about.van.fedex.com

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How

SHARED VALUE turns brand purpose into measurable actions

Simon McEvoy tells us why purpose is meaningless if it doesn’t engage your consumers or employees

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I’ve often heard ‘brand purpose’

on consumer trust or employee

touted as the solution to creating

engagement – some of the very

meaningful businesses. Consultants

things it was designed to tackle.

have made million by getting brands

This is because purpose is only

to find their ‘why’ statement, and

worth anything if it’s translated into

brands that engage in this kind of

meaningful actions and programmes.

process proudly claim they’re here

Most brands claim to want to make the

to ‘make the world a better place’ on

world better, but is this really borne

some level.

out by their actions, and do sceptical

However, the trouble with all this

consumers and employees believe it?

‘purpose conceptualising’ is that

Getting brand purpose to live

it hasn’t really shifted the dial

meaningfully across an entire

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organisation is an ambition that

tough, purpose is often an early

still escapes most. The majority of

casualty of ‘rationalisation’.

brands tend to separate the ‘moneymaking’ parts of their business from the ‘doing-good’ parts – with core functions like sales, R&D, marketing and/or retailing on one side and CSR, sustainability and HR on the other.

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However, new thinking on turning brand purpose into meaningful actions has caused some of the world’s largest brands to re-think how their businesses work. With consumers increasingly looking for brands to ‘do

The problem here is that these ‘doing-

good’ as well as run good businesses,

good’ functions are usually the first

the commercial world has started

to be cut when the ‘money-making’

innovating around how these things

parts of the business are struggling or

can work in mutually beneficial ways.

business leadership changes. They’re

How can we create commercial value

typically perceived as cost-centres,

whilst delivering significant social

not value-centres, and as such are

value? This is a methodology called

unsustainable. When the going gets

‘Shared Value’.

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Pioneered by Michael Porter and Mark

value initiatives.2 These innovations

Kramer in the US, ‘Shared Value’ is

included creating less waste, using

now practised by a growing number

less energy and working better with

of businesses all over the world,

local communities. Not only has this

including my own, Three Point Zero.

generated a great deal of commercial

Our belief is that some of society’s

value for Carillion, it’s made them

greatest challenges are, indeed,

more investable and created a happier

also some of our biggest market

place in which to work.

1

opportunities. Areas like housing, education, health and the environment contain huge unmet needs, and there are lucrative as well as helpful roles for brands to play.

Another great example is the engineering giant Siemens which has created the ‘Curiosity Project’ in the UK. This programme is enhancing the quality of teaching in STEM

One of my favourite examples of

(Science, Technology, Engineering &

this is the building firm Carillion,

Mathematics) subjects for 5m young

which generated £27m of profit

people to create more engineers,

in 2014 through its global shared

that are badly needed to help the

1. https://hbr.org/2011/01/the-big-idea-creating-shared-value 2. http://sustainability2014.carillionplc.com/index.html

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Siemens’ ‘Curiosity Project’

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HOW CAN WE CREATE COMMERCIAL VALUE WHILST DELIVERING SOCIAL VALUE? UK engineering sector generate a

By building purpose into clear,

projected additional £27bn by 2022.

business-critical, measurable

Both of these are committed programmes. They not only represent tangible, measurable value for the businesses concerned, but are demonstrably good for society.

And this is the key – these are measurable programmes. They have clearly set objectives, they have KPIs, they have financial value attached

programmes, and re-thinking the role of business in society, ‘Shared Value’ solves the challenge of the value of brand purpose while making business a much more positive force.

And, if your business can do good at the same time as flourishing financially, wouldn’t that be a good thing for all concerned?

to them. They can speak just as compellingly to shareholders and the board as they can to individuals, to regulators, to the media and to society.

Simon McEvoy Founder and CSO Three Point Zero www.threepointzero.org

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Tim Lindsay urges agencies to further the importance of purposeful thinking

The advertising industry is under

that doing the right thing will drive

pressure. Spare some sympathy for

growth and profit – if the improved

the poor ad people? Probably not.

behaviour is real. In fact, many would

But there’s a serious issue here that

argue that the move to ‘doing well by

goes way beyond an understandable

doing good’ will only become truly

distaste for designer spectacles. I’ll try

mainstream when the corporate social

to explain.

responsibility agenda and the growth

The world pretty much agrees that

agenda become one and the same.

businesses have to behave more

The advertising business – despite its

ethically, more sustainably, with more

reputation for louchness and excess

concern for the social and cultural

– is brilliant at one thing: persuading

outcomes from their activities. And

people to change their behaviour.

it doesn’t really matter what the

Often this comes down to making

motivation for this improved behaviour

consumers want product B instead of

is – a genuine concern for the fate

product A.

of the planet or a cynical hunch

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But there’s also a fine record of

the new landscape and discover a

charity, NGO, health and public service

purpose beyond profit for their brands

work that’s brought many benefits to

and businesses. We need new metrics

many people. Political advertising too,

and measurement tools – and new

but let’s not go there.

bonus and remuneration systems to

We’re in a place where major behaviour change is required; and

But here’s the problem. The experts

where governments are too inert/

in behaviour change are under the

broke/ill-intentioned/in thrall to vested

cosh. Client company procurement

interests to take effective action.

departments have systematically

Which is why business and the people

ratcheted down agency compensation

who sustain businesses – us – have to

to the point where talent and resource

take up the challenge.

is thin on the ground – too thin,

And in order to take up the challenge the ad business needs to develop new vocabulary, processes and strategy tools to help their clients understand

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underpin them.

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

in fact, for the necessary ‘R&D’ to happen. In the past, agencies habitually took new ideas and initiatives to their clients. Now, not

so much. Doing the day job is hard

and creative firepower of the big ad

enough. If agencies aren’t getting

agencies. In addition, they often lack

CSR briefs from their clients and

the right client relationships. These

being asked to develop purposeful

conversations need to happen in the

thinking for their brands, who are

offices of the CEO and CMO, not the

they to argue? They’d love to do

CSR department.

more, but it doesn’t pay the bills. The urgent always gets in the way of the important.

If the agencies aren’t initiating the CSR conversation, driving the programme, demonstrating that good behaviour

This has created a capabilities gap.

is also good business, illustrating the

There are, of course, many admirable

points with compelling case histories

companies operating in the CSR space,

and coming to their clients with new

helping clients understand the issues

ideas and programmes, then clients

and stumble towards solutions. But

are going to look elsewhere for their

they are, in the main, small operations,

needs – to the world of consultancy,

and they tend to lack the consumer

design (where these issues have been

understanding, brand expertise

thought about more deeply and for

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longer), media and technology – and to

social enterprise collective Swarm,

their own resources. At the moment,

has recently launched ‘Break the

the client community is further ahead

Silence’ to encourage the ad and

on this than its agency partners.

design industries to start the climate

But the key skills, the necessary skills, still reside in the ad agencies. How, then, to light a fire under the industry, to force it to address the deficiencies and meet the needs of business? There are a number of things happening…

The awards and creative education charity D&AD, in association with

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

change conversation with their clients.

And there’s a cross-industry group of interested planners, strategists, creatives and others that’s beginning the process of identifying the skills and tools gaps and trying to fill them.

But – and here’s the encouraging bit – the biggest pressure is starting to

WE'RE IN A PLACE WHERE MAJOR BEHAVIOUR CHANGE IS REQUIRED

come from people in the business,

There’s a long way to go and a lot

in particular the Millennials, who

to be done. The ad business, with

are often more conscious of the

strategy tools and processes that

issues and more literate about

were, for the most part, developed in

them than their ‘seniors’. This

the ‘60s to accommodate the advent

generation understands the power of

of commercial TV, is a lot closer to

communication to be a force for good,

where we started the journey than

are born social media adepts, and

where we need to get to. But there’s

want at least part of their professional

movement, and that’s good.

life to be focused on the ‘good’ part of ‘doing well by doing good’ – social enterprise and commercial enterprise coming together in a natural and

Tim Lindsay CEO D&AD www.dandad.org

unforced way.

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E U L VA

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TODAY BRANDS NEED TO CONSIDER HOW THEY CAN CREATE COMMERCIAL VALUE WHILST DELIVERING SIGNIFICANT SOCIAL VALUE

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The

selfish

S ’ N O I T A CORPORGuide To

Saving the Planet Benny Thomas believes that sustainability focused marketing is the key to making our parents and children proud

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Can an anti-tobacco campaign help us

the insight that all the talk about

save the planet?

the dangers of smoking was actually

There can be no greater purpose for every man, woman and child on this

making it more attractive to the most vulnerable audience – teenagers.

earth than the preservation of our

Because, of course, teenagers are

planet as we know it. Yet, why is it that

immortal, and the threat of death

when every scientist agrees humans are

simply makes smoking cooler.

responsible for potentially catastrophic climate change, we humans simply ignore it and continue with spewing carbon? It’s quite simple. Telling people something is bad for them doesn’t mean they’ll stop doing it.

So the ‘Truth’ campaign shifted its focus to a completely different aspect of the teenage psyche: their rebellion against authority. In a brilliant twist, the campaign took on not tobacco but the tobacco companies, and

One of the most successful social

showed that they were giant, quasi-

campaigns of all time, ‘Truth’ by

authority figures bent on manipulating

Crispin Porter + Bogusky, began with

the masses into buying their product.

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Telling people something is bad for them doesn’t mean they’ll stop doing it

In an instant, an act of bold, James Dean defiance became seen as obeisance to The Man. It’s a great example of replacing one set of incentives with another of equal power.

Much of the conversation in culture is about consumers doing their bit, but when it comes to climate change, individual action isn’t enough.

We will fail if we don’t act at scale.

Large corporations can be our lever to change the world. But large corporations answer to boards, shareholders and hungry analysts every quarter. To get them to change, we have to stop talking about green action as a moral issue and start talking about it as a way to grow business.

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Walmart did. Their now-famous demand that suppliers cut their packaging by 5% may have done more than any single action by a brand to reduce waste and lighten their footprint. In turn, it helped lower prices further for shoppers. In recent studies, Millennials listed the retail giant as one of their favourite brands, which is a nice side effect. Sustainable strategies impact the bottom line and motivate consumers.

Coca-Cola hit exactly that sweet spot when they went straight to the core of their business and launched an initiative to save water. They’re active in 320 communities in 86 countries, and consumers are noticing – brand scores have never been higher.

Best Buy is another great example of a company that mixes immediate gain with the greater good. Not many know that the company is the biggest e-cycler in the US, handling over one billion pounds of motherboards, chips and once-loved smartphones. They can leverage this to offer trade-ins encouraging consumers to upgrade sooner, setting off a cycle of ‘virtuous consumption’.

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Sustainable strategies impact the bottom line and motivate consumers In each of these cases, the brand

Green loyalty: In the UK, a new

started from selfishness – how do we

programme called ‘Ice’ rewards

cut costs, preserve our raw materials,

shoppers for shopping more

get shoppers to buy more – and

sustainably. If we want to shift the

elevated to a ‘triple bottom line’

way business thinks, let’s think about

strategy of ‘people, plant, profits’

using nature’s principles.

(not necessarily in that order, but who cares?).

Brand it: Lawmakers opposing the extension of cap-and-trade to

There’s no greater challenge for those

transportation fuels in California called

of us in the marketing community than

it a ‘hidden tax’. Why not rebrand it as

finding ways to incentivise consumers,

the ‘Clean Air Vote’ or the ‘Forest Fire

corporations and governments to

Fighter’?

confront climate change. Our efforts thus far have mostly been moralistic finger-wagging that, at best, preaches to Leo DiCaprio and other members of the converted choir. But there are so many levers available to us; here are just a few time-tested ways to get selfishness working for us.

Find your supporters and empower them: There’s a huge army of climate change activists just waiting to be tapped. They’re your children and mine. If we could get their pester power to change mum and dad, not only do we save the planet, we establish connections with a new generation of consumers.

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

Behaviourally speaking, the dice are loaded against our brains absorbing the impact of climate change and acting to reverse it. The good news is that if we stop moralising and start doing our job as marketers, we can save the planet and – a little bonus – make our mums and kids proud.

Benny Thomas Executive Strategy Director Crispin Porter + Bogusky www.cpbgroup.com

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

‘Don’t try fobbing us off with what you think we want to hear. If you’re not 100% true to what you claim, we’ll catch you out…’ warns Millennial, Mads Lindegaard

As most of today’s marketers

overnight – just ask VW – and this is

will be keenly aware, consumers’

because of the constantly evolving

relationships with brands have

ways in which brands develop

changed dramatically in the past

relationships with their consumers.

15 years. Back in the day, brand relationships were built and maintained mainly through strong marketing and PR strategies, and changes in consumer perceptions had long lead times and space for a response. Today, however, a brand and everything surrounding it is under constant scrutiny, with information being available instantly. Changing consumer perceptions can make or break brands and companies almost

A brand relationship used to be built through TV ads, the products the consumer picked up on shelf, or the branch where the service was provided. Relationships now are less driven by these somewhat static and controllable channels and more by the negative or positive buzz surrounding the brand; this buzz comes from myriad different independent and less controllable channels, in particular online media.

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Millennials, in particularly, are likely to

its aspects – and to look beyond the

utilise these new channels, balancing a

agenda a brand is trying to set with its

variety of sources and weighing them

communication strategy.

up against each other, with friends and family indirectly vouching for these through social media sharing.

They’re the first generation to grow up in this brave new world, deviating from a past when consumers had just a couple of sources of information as their trusted go-to points. This dynamic media landscape, and the exchange of information within it, enables Millennials to form a granular and nuanced picture of a brand in all

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

This arena has also helped shape consumer demand for a greater focus on the role brands play in their life, as well as the brand’s wider impact on society; consumers are essentially asking for brands to have a purpose beyond mere profit and shareholder return. It could be said that Millennials have driven this demand for purpose, as they actively seek out all the information that’s available and utilise it, interacting with brands for better

MILLENNIALS ARE THE FIRST GENERATION TO GROW UP IN THIS BRAVE NEW WORLD or worse; this type of participation

But does that mean there’s a trend

is inevitably less prevalent among

to just use old tools to solve new

Generation X, not to mention baby

challenges? Taking a marketing and

boomers.

communication-led approach based on

On the back of this, many organisations are proactively defining their purpose, incorporating it into their company or brand strategy, then specifically aiming their consumer communication to respond to the Millennials’ request. Much of this seems to have been developed with a marketing lens, telling Millennials ‘we understand why we’re here and what we do for you’.

satisfying a group of consumers seems like the wrong way round. And it runs the risk that, from the customer’s point of view, organisations are seen to be doing the same as in the past: that is, creating a perception of what the brand or company is. If this is indeed the case, then they’ve missed the point and don’t stand a chance of giving even Millennials what they want.

And, with the way the world operates

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today, companies will quickly be

and ask: what do consumers really

caught out if they’re not 100% true to

mean by purpose? How should it

what they claim!

manifest itself in a brand? If there’s

So, maybe purpose shouldn’t be seen as something merely to shore up the marketing or communication strategy.

Perhaps it’s time to take a step back

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PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

one thing Millennials have taught us, it’s that companies can only claim to be something if it’s true, and that something has to permeate their corporate DNA.

First and foremost, purpose needs to

and marketing guys can start shouting

be rooted within an organisation. It

about it! This is a tough task indeed,

should start at the highest level and

but it’s an approach worth trying to

flow through the company culture,

take if consumers are to believe in

values and decision making. It should

your purpose and, ultimately, buy into

help to engage employees at all

your brand.

levels. It should frame the company’s approach to business. Only once this has been achieved will a company’s purpose organically form the way it thinks and behaves. And then your PR

Mads Lindegaard Account Manager and a Millennial Hall & Partners m.lindegaard@hallandpartners.com

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Being fully engaged with an

is essential for boards

Louise McCann shares a case study on monitoring and measuring purpose

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PURPOSE IS NOW A

FUNDAMENTAL PART OF

ST RAT EGY

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“The purpose of a business is to create

Purpose is no longer just about brand

and keep a customer.”

execution; it’s now a fundamental part

– Peter Drucker

of strategy. ‘Anytime, anywhere, any

Drucker’s perspective is one that’s

device’ has seen the balance of power

always resonated with the CMO,

in the marketing relationship with

the traditional custodian of an

purpose shift from the organisation to

organisation’s brand and customers. A

the customer; and this has influenced

more global economy, along with the

the need for boards to become

enablement of digital and its ensuing

absolutely engaged with brand and

disruption, has created a significant

purpose in a more meaningful manner.

shift in the ownership of purpose, with

Purpose has become a definitive

the brand and the customer being

statement about the ‘how’ of what

amplified into the boardroom.

an organisation does, and the

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

ANYT IME ANYWHERE ANY DEVICE

‘how’ is intrinsically linked to the

firsthand the backlash of the power of

brand. ‘Belong Anywhere’ is a great

integrity and the consequent impact

expression of Airbnb’s purpose; as

on share price.

is Uber’s ‘Everyone’s Private Driver’.

Indeed, an organisation without purpose would see its workforce simply going through the motions, doing whatever task was at hand without any idea of why they’re actually doing it. Purpose enables employees to focus on the reality that ‘a brand is what a brand does’; and that failure to deliver on the promise will significantly impact the brand’s integrity. VW in the US is experiencing

The evolution of purpose as a single unifying theme allows a workforce to know exactly what they’re working for and how their daily effort contributes.

Chipotle’s ‘Food with Integrity’ extends to every part of the business, including all the other companies that come into contact with Chipotle.

Equally, employees have to deliver consistently on their ‘day after day we’re committed’ promise.

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BIGSMALL AND

With purpose now a key organisational

Promoter Score (NPS); whilst not new

driver, boards must be absolutely

to marketers, it’s only recently been

engaged with it; they must ensure that

understood and embraced by boards.

it’s measured in a meaningful way and can be leveraged to deliver financial, operational and customer outcomes.

Purpose must also form a significant part of the strategic framework so as to ultimately deliver total shareholder return.

An organisation that was an early adopter of NPS, and linked it strategically and operationally to purpose, is Australia’s challenger ISP/Telecom provider iiNet. NPS was used to monitor iiNet’s core purpose of ‘awesome customer service’; with

Big and small data has allowed

every customer interaction being

the measurement of purpose and

measured, NPS was at the heart of the

brand values, once regarded as soft

organisation. Indeed, it became part of

measures, to have metrics that can

iiNet’s cultural DNA.

stand up credibly as well as being correlated to operational outcomes.

One such measure is the Net

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DATA

PURPOSE PAYS » BIG THINKING ON WHY PURPOSE PAYS

When combined with the core service purpose, NPS saw iiNet achieve industry-low churn and significant

HAS ALLOWED T HE

MEASUREMENT

OF PURPOSE customer growth together with a

consistently in the top 20 performing

strong brand and a distinct culture.

companies on the ASX over the last

Their NPS scores in the 60s were

five years. iiNet’s board and CEO

the envy of competitors and other

held a view consistent with Drucker:

service companies. iiNet’s board and

to stand back and watch the power

management drove purpose and NPS

of a collective purpose drive the

through key remuneration drivers,

organisation to realise unmatched

including short- and longer-term

success. The board’s role was to be

incentives, from the CEO through to

engaged and hold management to the

the call centre staff. These featured

core purpose of ‘awesome customer

strongly in the strategic framework

service’ – and, in doing so, create and

and paved the way for continued

keep customers.

operational excellence and innovation. iiNet’s belief in customer service,

Louise McCann

and discipline in deploying NPS as a

Non-Executive Director louise@mccann.net.au

metric of its single unifying ‘awesome customer service’ theme, saw it

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Purpose

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