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The Purpose Gap
making agility reality
Tool 1: Becoming a leader of clarity
Purpose has the
potential to change
the world
Imagine if organisations all over the world
really started to prioritise purpose over profit
How amazing that would be
and it’s already
happening..
Let’s start with
what we know..
Purpose
beats profit
• Purpose-led organisations (and purpose-led
teams) out-perform profit-led organisations
on every metric .
• 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
• 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”
• 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
• 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
•
• 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”
Convinced?..
More facts?..
• 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
So, genuinely purpose-
led companies: recruit
and retain talent, delight
customers, make more
money - and are worth
more...
And this is not a fringe
belief anymore..
Purpose is the new
business orthodoxy..
“Answering why your organization exists and
transforming through your purpose is the key
to success in business in the 21st century”Ernst
& Young
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.
Fantastic!
But..
But..
Only 37% of these CEOs say
their business strategy is
actually aligned with their
purpose
Most corporate
organisations will
utterly fail to convert
purpose to
meaningful change ..
In corporate organisations there is a
gaping chasm between the Purpose
articulated by the Board and the reality
experienced by people in the
organisation
What is purpose supposed to deliver?
Purpose
Staff
Capability
Cultural
Capability
Management
Capability
Customer
satisfaction
Shareholder
Value
Purpose
Aligned
Autonomous
Engaged
Empathetic
Open
Innovative
Velocity
Clarity
Agility
Staff
Capability
Cultural
Capability
Management
Capability
In corporate organisations there is a
gaping chasm between the Purpose
articulated by the Board and the reality
experienced by people in the
organisation
Purpose
Aligned
Autonomous
Engaged
Empathetic
Open
Innovative
Velocity
Clarity
Agility
Staff
Capability
Cultural
Capability
Management
Capability
GAP
This GAP doesn’t happen in agile,
entrepreneurial organisations..
What can we learn from
entrepreneurs..?
In agile, entrepreneurial organisations
three critical beliefs bridge the gap
between Purpose and Experience:
• Ownership
• Trust
• Context
These beliefs are rare in large corporate
organisations
• Ownership Heirachi
• Trust Control (fear)
• Context (why) Content (how)
Aligned
Autonomous
Engaged
Empathetic
Open
Innovative
Velocity
Clarity
Agility
Ownership
Trust
Context
Misaligned
Directed
Disengaged
Formulaic
Closed
Fearful
Lethargic
Muddled
Slow to react
Heirachi
Control
(fear)
Content
• Ownership
• Trust
• Context
1. Context
• 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.
• 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..?
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
Purpose gives meaning
Purpose is WHY
Purpose is Context
“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
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?
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
“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
Purpose is Context
Context is not always
purpose..
“The best managers figure out how to
get great outcomes by setting the
appropriate context rather than trying
to control their people”
Reed Hastings.
Context is clarity..
• What ONE WORD gives meaning
to..
• My role..
• Me
Context is clarity..
• What is my context – what is my
Purpose.. what is my WHY?
• Your purpose gives you drive
“high-performance people will do
better work if they understand the
context”
Reed Hastings.
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
Let’s end with
what we know
..
• Purpose leads profit
•
• Purpose leads profit
• But.. there’s often a yawning
gap between purpose and
reality
• 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
• Context creates meaning & clarity
• Context creates meaning & clarity
• Purpose is context – how can I
interpret our Purpose for my team?
• 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?
• 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..
• What is my personal context?
• What is my personal context?
• How aligned is that purpose with
my organisation’s?
• 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’?
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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