Purpose:
“Where each person is a someone, not a something, and the business cares about the impact it has on all who it touches. So, it moves from being a nexus of contracts between self-interested individuals conceived in that narrow economic way to a series of relationships, where the business sees itself dependent on these relationships or wanting to have a positive impact on them.”
The Work Travel Convene Coalition invited Charles Wookey, CEO of a Blueprint for Better Business to talk to coalition members.
What does it mean to be purpose-led?
Firstly, having a purpose related to a better society arising from the business' success. The purpose isn't just a statement on the wall; it shapes what gets done, says Charles Wookey, CEO of a Blueprint for Better Business. The other half of the answer is deeper, where the business sees itself as a social organisation. “Where each person is a someone, not a something, and the business cares about the impact it has on all who it touches,” Charles explains.
The construct becomes: we're not here to maximise shareholder value; we're here to create value for society, which is a broader concept. It includes financial returns, it's not anti-profit, but it means a commitment to not exploiting people or an environment.
“People have divided lives; they leave part of themselves at the virtual office door, and the human costs of that are evident in low morale and mental health problems. The business costs include reduced commitment, productivity, and innovation, and increased regulatory and reputational risks from mistakes, breaches and scandals” Charles says.
How did purpose-led thinking originate?
The dominant view was a business’ purpose was to maximise profit, but Charles argues this has produced a deep disconnect between business and society. “If people aren't happy and fulfilled because of the narrow way in which the appeal is made to them, they won't feel excited and inspired by bouncing out of bed in the morning to maximise somebody else's shareholder value. We thought that there was something deeply missing at a human level, as well as a societal level, about this construct,” he adds.
When Charles started his work, he met quite a lot of resistance. However, he has witnessed a dramatic shift. “There's a much more ready willingness and openness to think about the challenges around purpose and people for businesses, and particularly in people businesses. What has changed in the world which makes this such a current issue and real concern for major companies?” he asks.
One answer is system shift; Charles cites a Conference of Parties document, produced for one of its meetings after the Paris agreement in 2015, which states that we need to move from an economic system optimised for growth and profit to an economic system optimised for human wellbeing and a sustainable ecosystem. “What we need is the growth in profitable businesses that are orientated to solving the problems of people on the planet without adding to those problems,” Charles says. “It orients the thinking around market activity and competitive success in the market towards these broader societal and environmental goals.”
What do people want?
We all want money, security, and we're all malleable. Yet Charles argues that money only takes you so far, and most people are motivated by three other things:
- Meaning - we want to make a positive contribution to the world through our lives.
- Belonging - we want to be part of a caring community, and we don't want to be part of a knowingly exploitive organisation.
- Autonomy - we are beings with potential, and we want to grow and develop.
People are now coming into the workforce questioning: why should I choose to work for you? What are you doing for the greater good, that I should commit my life to work for you? The pandemic has pushed people of all ages to question the value of their work and why they should continue to do it.
“When you give people jobs to do where they can make a human, environmental difference to society and people and create a better business, the returns in terms of people's commitment are enormous,” Charles says.
What makes a good purpose-led leader?
A purpose-led leader is somebody who fundamentally believes that a better business will arise from pursuing that purpose - through the quality of relationships sustained by treating people with respect and dignity, and thinking of the business as a human system, according to Charles.
However, sometimes CEOs are deeply inspired by being purpose-led and want to embed it or roll it out and impose it on a slightly sceptical or unwilling team. “What needs to happen is you need to create a space in which people's own latent desire to do this and a shared understanding about what it means can come to life,” Charles advises.
“The sculpture is already complete within the marble block, before I start my work. It is already there, I just have to chisel away the superfluous material.” ― Michelangelo
Charles argues that Michaelangelo’s sentiment is a great analogy for a purpose-led business. “If you've got unrealised potential in people in the organisation, how do you take away the clutter and the baggage so that the real potential of people to commit to that shared worthwhile endeavour can come to life? People will only do it if they believe it. You have to create the conditions for people to believe this will create a better business,” he says.
How do purpose-led businesses make tough decisions?
Charles has experienced a certain amount of confusion over being purpose-led in times of crisis. “People think being purpose-led just equates to being nice to everybody and that somehow if there’s an existential problem; a business is going to shut something or make something redundant, that means it can no longer be purpose-led.”
He is keen to address this misconception. “Being purpose-led is the fundamental orientation of the business. Unless we survive, unless we're profitable, we cannot deliver the benefits to society that our purpose-led business should be delivering.
People are now coming into the workforce questioning: why should I choose to work for you? What are you doing for the greater good, that I should commit my life to work for you? The pandemic has pushed people of all ages to question the value of their work and why they should continue to do it.
“A difficult situation is crucially what differentiates thoughtful businesses that are purposely facing into issues to do with redundancy and stress in a different way. A way which involves being as open as possible, consultative, compassionate, putting themselves in the position of people who are being let go, thinking about what the consequences are for them and what the business can do to help them.”
“People want to be trusted. They want to be given responsibility. They want to feel that they've got some ownership of their role and are able to act on their own initiative. And I think one of the great things about clarity of purpose is that it creates that kind of permission when it's done well.”
Charles Wookey