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The Purpose Gap; making agility reality

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The Purpose Gap; making agility reality

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Purpose-led organisations out-perform profit-led on EVERY metric. Yet most companies will fail to convert purpose to reality. And that's a costly problem. Why does this PURPOSE GAP exist; why doesn't it show up in entrepreneurial businesses; what can you learn from them; and how can you bridge the GAP in your own company or team.

Purpose-led organisations out-perform profit-led on EVERY metric. Yet most companies will fail to convert purpose to reality. And that's a costly problem. Why does this PURPOSE GAP exist; why doesn't it show up in entrepreneurial businesses; what can you learn from them; and how can you bridge the GAP in your own company or team.

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The Purpose Gap; making agility reality

  1. 1. The Purpose Gap making agility reality Tool 1: Becoming a leader of clarity
  2. 2. Purpose has the potential to change the world
  3. 3. Imagine if organisations all over the world really started to prioritise purpose over profit How amazing that would be
  4. 4. and it’s already happening..
  5. 5. Let’s start with what we know..
  6. 6. Purpose beats profit
  7. 7. • Purpose-led organisations (and purpose-led teams) out-perform profit-led organisations on every metric .
  8. 8. • Purpose-led organisations (and purpose-led teams) out-perform profit-led organisations on every metric . • “Meaningful brands connected to purpose outperformed stockmarket peers by 120%” Source: Havas Meaningful Brand Index 2014
  9. 9. • Purpose-led organisations (and purpose-led teams) out-perform profit-led organisations on every metric • “89% of customers think purpose-led companies deliver better products & services”
  10. 10. • Purpose-led organisations (and purpose-led teams) out-perform profit-led organisations on every metric • “a strong and well communicated corporate purpose can impact financial performance by up to 17%” (5 year RoI) Burson-Marstellar and IMD Business School
  11. 11. • Purpose-led organisations (and purpose-led teams) out-perform profit-led organisations on every metric • “purpose driven brands are growing ahead of the market .. accounted for half our growth in 2014 and grew at twice the rate of the rest of the business”. Paul Polman CEO, Unilever •
  12. 12. • Purpose-led organisations (and purpose-led teams) out-perform profit-led organisations on every metric • “87% of business leaders believe that companies perform best over time if their purpose goes beyond profit”
  13. 13. Convinced?.. More facts?..
  14. 14. • 77% of interviewees joined their current employer partially because of the company’s sense of purpose Deloitte • 62% of millennials want to work for an organisation that benefits society. 50% would sacrifice salary for meaning Global Tolerance • People are 40% more engaged, 70% more satisfied, 300% more likely to stay 12% more productive in purpose-led companies University of Warwick & The Energy Project 2013
  15. 15. So, genuinely purpose- led companies: recruit and retain talent, delight customers, make more money - and are worth more...
  16. 16. And this is not a fringe belief anymore.. Purpose is the new business orthodoxy..
  17. 17. “Answering why your organization exists and transforming through your purpose is the key to success in business in the 21st century”Ernst & Young
  18. 18. In 2014, Cranfield School of Management conducted a survey of European CEOs and future leaders.. 88% of CEOs and 90% of future leaders stated that a business must have a social purpose.
  19. 19. Fantastic!
  20. 20. But..
  21. 21. But.. Only 37% of these CEOs say their business strategy is actually aligned with their purpose
  22. 22. Most corporate organisations will utterly fail to convert purpose to meaningful change ..
  23. 23. In corporate organisations there is a gaping chasm between the Purpose articulated by the Board and the reality experienced by people in the organisation
  24. 24. What is purpose supposed to deliver?
  25. 25. Purpose Staff Capability Cultural Capability Management Capability Customer satisfaction Shareholder Value
  26. 26. Purpose Aligned Autonomous Engaged Empathetic Open Innovative Velocity Clarity Agility Staff Capability Cultural Capability Management Capability
  27. 27. In corporate organisations there is a gaping chasm between the Purpose articulated by the Board and the reality experienced by people in the organisation
  28. 28. Purpose Aligned Autonomous Engaged Empathetic Open Innovative Velocity Clarity Agility Staff Capability Cultural Capability Management Capability GAP
  29. 29. This GAP doesn’t happen in agile, entrepreneurial organisations.. What can we learn from entrepreneurs..?
  30. 30. In agile, entrepreneurial organisations three critical beliefs bridge the gap between Purpose and Experience: • Ownership • Trust • Context
  31. 31. These beliefs are rare in large corporate organisations • Ownership Heirachi • Trust Control (fear) • Context (why) Content (how)
  32. 32. Aligned Autonomous Engaged Empathetic Open Innovative Velocity Clarity Agility Ownership Trust Context
  33. 33. Misaligned Directed Disengaged Formulaic Closed Fearful Lethargic Muddled Slow to react Heirachi Control (fear) Content
  34. 34. • Ownership • Trust • Context
  35. 35. 1. Context
  36. 36. • Context: Becoming a leader of clarity • the most powerful leadership tool and the secret to making purpose a reality in your team, division or organisation • The source of agility, velocity and clarity.
  37. 37. • Context: Becoming a leader of clarity • the most powerful leadership tool and the secret to marking purpose a reality in your team, division or organisation • The source of agility, velocity and clarity. • So, what is context..?
  38. 38. Context. kɒntɛkst. noun. ‘the circumstances that form the setting for an idea, and in terms of which it can be fully understood or clarify its meaning’. Simply: • What gives meaning • The wood from the trees
  39. 39. Purpose gives meaning Purpose is WHY Purpose is Context
  40. 40. “If you want to build a ship, don't drum up the people to gather wood, divide the work, and give orders. Instead, teach them to yearn for the vast and endless sea.” Antoine De Saint-Exupery
  41. 41. Use Purpose to manage in context not control.. How does the Purpose of the organisation (articulated by the Board) provide context for your team? How can you interpret that context to be relevant and inspiring to your team?
  42. 42. To help people live well and die old Innocent To make sustainable living commonplace Unilever To put a ding in the universe Apple To give people the freedom to be extraordinary Onefish2fish We believe an outdoor life is a life well lived REI To create opportunities for everyone to be brilliant at work Chemistry To create the future with our clients AKQA Enable businesses to thrive and economies to prosper, helping people fulfil their hopes and dreams HSBC
  43. 43. “when you are tempted to control your people ask yourself what context you could set instead. Are you articulate and inspiring enough about goals and strategies?” Reed Hastings, CEO Netflix
  44. 44. Purpose is Context Context is not always purpose..
  45. 45. “The best managers figure out how to get great outcomes by setting the appropriate context rather than trying to control their people” Reed Hastings.
  46. 46. Context is clarity.. • What ONE WORD gives meaning to.. • My role.. • Me
  47. 47. Context is clarity.. • What is my context – what is my Purpose.. what is my WHY? • Your purpose gives you drive
  48. 48. “high-performance people will do better work if they understand the context” Reed Hastings.
  49. 49. How aligned is my personal purpose (my context) with the purpose of my organisation Do I feel inspired As a leader, how can I inspire others
  50. 50. Let’s end with what we know ..
  51. 51. • Purpose leads profit •
  52. 52. • Purpose leads profit • But.. there’s often a yawning gap between purpose and reality
  53. 53. • Purpose leads profit • But.. there’s often a yawning gap between purpose and reality • Good leaders understand how to bridge that gap by understanding context
  54. 54. • Context creates meaning & clarity
  55. 55. • Context creates meaning & clarity • Purpose is context – how can I interpret our Purpose for my team?
  56. 56. • Context creates meaning & clarity • Purpose is context – how can I interpret our Purpose for my team? • Context is not always purpose – how can I manage in context not control?
  57. 57. • Context creates meaning & clarity • Purpose is context – how can I interpret our Purpose for my team? • Context is not always purpose – how can I manage in context not control? • What ONE WORD gives meaning to..
  58. 58. • What is my personal context?
  59. 59. • What is my personal context? • How aligned is that purpose with my organisation’s?
  60. 60. • What is my personal context? • How aligned is that purpose with my organisation’s? • Am I ‘articulate and inspiring enough about our goals and strategies’?
  61. 61. Join the debate.. www.contexis.com @jrosling Look out for our next Webinar on bridging the Purpose Gap through building a belief in OWNERSHIP.

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