When purpose leads, profits follow
A purpose is a mission, a vision, or a roadmap. Aristotle labeled it the “whatness.” Nietzsche called it the “why.” Disney named it “magic.” When you work with purpose, your company will profit in the near term, the next decade, and the world will profit in the long term, over the next century. Doing good deeds can turn into good deals and delivering great service can bring loyalty and love. The purpose of business is not just to create value for itself but also to add value to people’s lives. You must move from a brand to a stand, convert brand purpose into practice, believing that when purpose leads, profits follow.
The book The Story of Purpose: The Path to Creating a Brighter Brand, a Greater Company and a Lasting Legacy by Joey Reiman provides a plan for creating enduring communication and influential actions for both internal and external publics. It helps you discover what makes your company unique and determines the basic power behind your organization that no competitor can imitate or usurp. Key takeaways from the insightful tome cover a wide array of concepts on why brands with purpose do better and matter more.
• A purposeful leader is the moral center of a company. He believes in the principle that a brand with purpose is no longer distinguished by a point of difference but by a point of view. To him, the most valuable products in the marketplace are honesty and authenticity. He leads with clear intentions; he mesmerizes, not manages; and directs crusades, not initiatives. Procter & Gamble CEO Bob McDonald joined the company because he found the purpose and values of the company — “To touch and improve lives” — to be similar to his own. He was measured by what he did for others. And these lessons come across clearly in the company he runs, because this is how he measures his brands and people.
• A master idea expands your thinking and how you embrace the world at large. It must be communicable and lasting. It doesn’t come and go; it comes and stays, and when people hear it, they take it into their lives immediately. You must discover, articulate and activate it; you must create a story for your brand and share it with the world. Ideas are born “drowning,” so make it a point to save one every day. These are idea killers: “It can’t be done,” “It’s not in the budget,” “Impossible,” “Don’t waste my time.” Ideas flourish in: “It’s never been done before,” “We’ll find the money,” “It’s possible,” and “I’ll find the time.”
Starbucks founder and CEO Howard Schultz brought a whole new idea and language for coffee and redefined the role of the server. The barista became the “star” and the “bucks” poured in. Richard Branson created every Virgin enterprise with the ethos of “brand-new.” Virgin Produced, a film development company; Virgin Unite, the group’s charitable organization; and Virgin Galactic, which takes wing in outer space, all create a “Virgin experience.” Indeed, the power of story engages and informs people both inside and outside their organizations.
• Your roots hold the answer to what makes your enterprise distinctive, powerful and precious. The president of Cinnabon, Kat Cole, states, “At Cinnabon we believe that ‘Life Needs Frosting.’ We know our place in the world and the market, and we are proud of it. Our most famous products may be indulgent, but they are good for the soul.” Reconnecting with your business’s genuine purpose will nourish, restore and grow unprecedented emotional, intellectual and financial revenues. By going back to the beginning of the narrative, you can better predict the next chapter of your business. What can be done? Be an archeologist and excavate your philosophy. The Coca-Cola Company’s chief archivist believes that his company’s future is in its history. “Going back to our roots gives us permission to believe and act like much more than a soft drink. We can once again become a symbol of good.”
• Culture is not what you do, but what you have done. It is composed of your brand’s shared beliefs. It creates aliveness. Associates aligned around a common purpose to create an advocacy program. Hyundai, for instance, offers customers the “Walkaway Program,” which allows them to return their Hyundai if they lose their income and cannot make the car payments. Compassion is Hyundai’s culture. USA organic grocer Whole Foods Market counts the planet as a stakeholder. John Mackey is the CEO, but his company’s culture reports to Mother Nature. In this way, culture creates stories.
• Values are the language of an organization. They are industry-specific, memorable and directive. They create highly enthusiastic workers, dramatic profits, and legendary reputations for your business. Those values could include integrity, teamwork, frugality, respect for the individual, and the notion that work should be fun. “If ethics are rules, then values are guides. And they’re hot today. Values are on everyone’s mind,” says renowned marketing guru Philip Kotler. McDonald’s in the US was once the enabler of joys rather than a destination for toys. A simple roadside concept that offered a burger, fries, and a shake to a world that had taken to the road was a big surprise when the company started. But that surprise disappeared at some point. And so went the joy. The treats were good, but there was an aspect of joy that was missing, and the company felt it needed to reenergize the joy part of the equation. Conclusion: get back to joy. Three months into a research project, the company landed on McDonald’s purpose for kids and families: “Fill families with joy.”
• Purpose gives you direction. Strategy gives you the directions. Strategies are timely, while purpose is timeless. Purpose-driven strategy provides associates with both a dream and the plan to get there. Imagine that your strategy for growth focused on two-thirds of the world you had never thought about. Cemex, the largest cement company in the world, did just that. In 1994, after an economic downturn, Cemex was forced to look at its strategy. Leadership soon realized that all but the poorest people were pulling down sales. In other words, those poor people were 40 percent of their business.
Company leadership issued a “declaration of ignorance,” a message to itself that it had better get to know these people better. Managers were sent to shantytowns to see Cemex’s most loyal constituency up close and in person. They learned that it took these no-choice-but-to-do-it-yourselfers 13 years to build a home due to their lack of money. Cemex issued a program that allowed low-income families to obtain access to affordable solutions for building homes. The company had found the mortar for success. By reducing poverty, Cemex had found the riches — spiritual and financial — of mitigating an ill in the world. This was a whole new strategy of incorporating the world’s need into the corporation strategy.
• The brain runs everything, and the heart runs the brain. Purpose moves people from loyalty to love, and there is no greater purpose in the world than love. Do you love your purpose? The answer to this question makes the difference between good marketing and a great one. When you fell in love with your soul mate, what did you tell him or her? “I love you.” Then what did you do? You told everyone else. The best marketing works the same way. And with digital being the new media vehicle, there is no predicting how fast a meaningful message will travel, unless you know the secret.
• Purpose-powered companies take care of their people so that they can take care of their customers. Love begins at home. By living the passion, sharing intimately, and committing to the promise internally, people learn how to execute it externally. Nike’s headquarters translates the passion of its brand through state-of-the-art fitness studios, an Olympic-sized pool, two soccer fields, a basketball court, a 400-meter track, and a putting green. Nordstrom’s success comes from its guiding principle — “The Nordstrom Way.” The retail chain empowers its employees with the freedom to make decisions, and is willing to live with those decisions. Delegating authority and accountability is the ultimate expression of leadership.
• To create a lasting legacy, companies need to find both operation and soulful excellence. The author calls these companies “Camelot.” They are driven by brilliance of mind and compassion for societal concerns. The leaders in these organizations are heroes, not bosses, gurus or generals. They are always in search of what King Arthur called the Holy Grail. The employees are called to these organizations and feel they are on a mission. Decisions are made around the Round Table, and breakthrough thinking is encouraged.
The world of business is looked at open-eyed. They want to be the best for the world, not in the world. Their edge in the competitive marketplace is their distinction for others. They succeed for all, not just the owners, employees, customers, or shareholders. The larger these companies are, the greater their moral imperative is to take responsibility for its impact on the world.
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