PURPOSE     A sense of purpose is increasingly        recognised as essential for      business and personal success.© Cop...
Purpose, defined by Douglas Ready   and Emily Stecker Truelove is “the company’s reason for being;why it exists; its core ...
Nikos Mourkogiannis, author of  Purpose: The Starting Point of      Great Companies says   successful companies define   p...
Discovery - This type of purpose involves a love of the 1       new and innovative, and it animates many         technolog...
Excellence - Excellent businesses prefer to turn away2     customers than compromise their quality standards.BUSINESS STRA...
Heroism - Think of Henry Ford’s creation of his world-3     changing motor company or Bill Gates’ Microsoft.BUSINESS STRAT...
Altruism - This purpose could take the form of4     personal service beyond that normally expected,      delivering produc...
Purpose in numbersBUSINESS STRATEGY REVIEW   7
A strong, strategically coherentand well communicated corporatepurpose is associated with up to17% better financial perfor...
Only 10% of managers take purposefulaction — a powerful combination ofenergy and focus. Meanwhile, 30% ofmanagers procrast...
“Management was, is, and always will be the same thing: the art of getting things done.” Bob Eccles and Nitin Nohria, Beyo...
Only 40% of employees understandtheir organisation’s strategy.Accenture High Performance Workplace StudyBUSINESS STRATEGY ...
88% of highly engaged employeesbelieve they can positively impactthe quality of their organisation’sproducts; only 38% of ...
“You cannot foster true innovationwithout engaged employees.”Julian Birkinshaw, MLab and London Business SchoolBUSINESS ST...
Only 4% of UK workers exhibit thehighest level of engagement withtheir work.Corporate Leadership CouncilBUSINESS STRATEGY ...
“The purpose of business is to      create a customer.”      Peter DruckerBUSINESS STRATEGY REVIEW               15
40% of a company’s reputation is   determined by its purpose and   60% by performance.   Burson Marsteller/Penn, Schoen & ...
This report was part of Business Strategy Review,  Volume 22 – Issue 3 2011  Visit our website www.london.edu/bsrBUSINESS ...
Upcoming SlideShare
Loading in...5
×

The importance of the sense of company purpose – London Business School BSR

2,807

Published on

Successful companies define their purpose in 4 different ways. But does this effort of defining a purpose translate in better financial performance? Also, do employees generally engage with a company's purpose?

Published in: Business, Education
0 Comments
6 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,807
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
50
Comments
0
Likes
6
Embeds 0
No embeds

No notes for slide

The importance of the sense of company purpose – London Business School BSR

  1. 1. PURPOSE A sense of purpose is increasingly recognised as essential for business and personal success.© Copyright 2012 London Business School
  2. 2. Purpose, defined by Douglas Ready and Emily Stecker Truelove is “the company’s reason for being;why it exists; its core mission as an enterprise”.BUSINESS STRATEGY REVIEW 1
  3. 3. Nikos Mourkogiannis, author of Purpose: The Starting Point of Great Companies says successful companies define purpose in one of four ways. 1 2 3 4BUSINESS STRATEGY REVIEW 2
  4. 4. Discovery - This type of purpose involves a love of the 1 new and innovative, and it animates many technological businesses. Seeking the new does not mean constantly changing course.BUSINESS STRATEGY REVIEW 3
  5. 5. Excellence - Excellent businesses prefer to turn away2 customers than compromise their quality standards.BUSINESS STRATEGY REVIEW 4
  6. 6. Heroism - Think of Henry Ford’s creation of his world-3 changing motor company or Bill Gates’ Microsoft.BUSINESS STRATEGY REVIEW 5
  7. 7. Altruism - This purpose could take the form of4 personal service beyond that normally expected, delivering products at affordable prices, or using technology and ideas to improve lives.BUSINESS STRATEGY REVIEW 6
  8. 8. Purpose in numbersBUSINESS STRATEGY REVIEW 7
  9. 9. A strong, strategically coherentand well communicated corporatepurpose is associated with up to17% better financial performance.IMD/Burson Marsteller Corporate Purpose Impact Study 2010BUSINESS STRATEGY REVIEW 8
  10. 10. Only 10% of managers take purposefulaction — a powerful combination ofenergy and focus. Meanwhile, 30% ofmanagers procrastinate, 20% showdetached behaviour and 40% exhibitdistracted behaviour.Sumantra Ghoshal and Heike Bruch BUSINESS STRATEGY REVIEW 9
  11. 11. “Management was, is, and always will be the same thing: the art of getting things done.” Bob Eccles and Nitin Nohria, Beyond the Hype.BUSINESS STRATEGY REVIEW 10
  12. 12. Only 40% of employees understandtheir organisation’s strategy.Accenture High Performance Workplace StudyBUSINESS STRATEGY REVIEW 11
  13. 13. 88% of highly engaged employeesbelieve they can positively impactthe quality of their organisation’sproducts; only 38% of disengagedemployees think so.Towers Perrin 2008BUSINESS STRATEGY REVIEW 12
  14. 14. “You cannot foster true innovationwithout engaged employees.”Julian Birkinshaw, MLab and London Business SchoolBUSINESS STRATEGY REVIEW 13
  15. 15. Only 4% of UK workers exhibit thehighest level of engagement withtheir work.Corporate Leadership CouncilBUSINESS STRATEGY REVIEW 14
  16. 16. “The purpose of business is to create a customer.” Peter DruckerBUSINESS STRATEGY REVIEW 15
  17. 17. 40% of a company’s reputation is determined by its purpose and 60% by performance. Burson Marsteller/Penn, Schoen & Berland, 2008BUSINESS STRATEGY REVIEW 16
  18. 18. This report was part of Business Strategy Review, Volume 22 – Issue 3 2011 Visit our website www.london.edu/bsrBUSINESS STRATEGY REVIEW 17
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×