purpose led transformation - tlc-global · the goodpurpose study, 2013 3. raj sisodia, firms of...
TRANSCRIPT
Purpose Led Transformation September 29, 2015
Page 2
Purpose galvanizes people to ignite long-lasting positive change and fuels sustaining growth and innovation
Purpose is an aspirational reason for being that is grounded in humanity and which inspires and calls to action
“Purpose activated” is EY’s transformation objective for our clients
Page 3
Organizations that embody “purpose” see significant, measurable results
Sources: 1. The Energy Project, What Is Your Quality of Life at Work, 2013 2. Edelman, The goodpurpose study, 2013
3. Raj Sisodia, Firms of Endearment, 2007 4. Havas, Meaningful Brands Index, 2013
1.4 times more engaged and 1.7 times more satisfied1
3 times more likely to stay1
$
Purpose-led companies outperformed the S&P 500 by 10 times between
1996 and 20113
Of clients believe a purpose-driven company will
deliver the highest quality products/services
89 %
Of global consumers would recommend a
company with a purpose, a 39% increase from 20082
72 %
Of emerging market consumers make cause related
purchases at least annually2
84 %
10 x
‘Meaningful brands’ connected to human well-being outperformed the stock market by
120% in 20134
$ 120 %
1.4 x
3 x
Get (and keep) the best employees
Attract, retain and engage customers
Increase returns for shareholders
Page 4
Beverage Company
“Inspire and nurture the
human spirit – one person, one
cup and one neighborhood at
a time”
The most successful companies are Describing ‘why’ they exist with an Activated Purpose statement
Technology Company
“We believe in challenging the status quo. We
believe in thinking
differently”
Consumer Products Company
“…improving
the lives of the world’s
consumers now and in the future…”
Consumer Products Company
“Making
sustainable living
commonplace”
Automotive Company
“Fulfill dreams
of personal freedom”
Media & Entertainment
Company
“Promote and spread
happiness”
Apparel Company
“One for One”
Food manufacturing
Company
“Treat People like Royalty”
Machinery Company
“Better me,
better we, better world!
Plumbing Company
“Reduce waste-based disease in the world ”
Hand Tools Company
“Passion Cuts
Through”
Oil & Gas Company
“Thrive on the challenge to
provide safety and satisfaction”
Page 5
Starbucks - Activated Purpose
Inspire and nurture the human spirit – one person, one cup and one neighborhood at a time
Purpose
10,000 Hire
Youth not in school and not employed
25,000 Graduate
Partners through Beverage Company’s
college plan
10,000 Hire
Veterans and military spouses
The company is on the way to
“Opportunity for all"
Page 6
Purpose Definition: Nike vs. Adidas
Aspirational and belief-driven
Applicable to all stakeholders
Humanistic
Unique to the company Simple
Resonates with the company
Long-term Action oriented
Outwardly focused
Bring inspiration and innovation to every athlete* in the world….
*If you have a body you are an athlete
Strive to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle
Page 7
EY is under going our Own Purpose Led Transformation
Building a Better Working World Purpose (The WHY)
By.. wining in the marketplace, building the highest performing teams, and global/local focus
Strategy (THE HOW)
Vision (THE WHAT) To become the world’s most exceptional client services firm by 2020
Page 8
EY Beacon Institute
Vision Powered by purpose, we are creating an ecosystem of C-suite connections, driving a modern conversation on how leading organizations are transforming, innovating and growing.
Page 9
We launched the EY Beacon Institute in Davos via a panel on Purposeful Transformation with distinguished CEOs
CONFIDENTIAL – For Internal Use Only - Not for External Distribution
Page 10
Beacon’s Research w/ Oxford and HBR Analytics found that purpose is underleveraged by business today
There is a strong interest and understanding of the benefits of Purpose but most organizations are not activated
Page 11
EY has been working in 3 areas to Support the market’s current focus on Purpose
Purpose Creates a burning ambition to guide strategy, brand, culture and leadership toward a new future
People and Culture
Alignment Bottom Line Improvement
Sustainable Growth
Business Model
Innovation
Align leadership and sharpen priorities
Transform at an agile business pace
Mobilize the full culture Unlock strategic thinking and innovation
Portfolio Rationalization
Purpose Definition
Purpose Activation
Purpose Assessment
Page 12
The Transformation Spectrum™ provides the ‘lenses’ to align purpose to execution levers
Improve workflow, increase skills, and develop new capabilities
Drive efficiency and effectiveness
Streamline organization, drive out costs, and improve/align accountability
Align model with priorities and enable strategy execution
Promote growth, innovation, and long-term profitability
Define and deliver on a new brand promise and purpose
Obj
ectiv
es
Capability Identity
Innovate Grow Optimize
Protect
Process and
function
Organization structure
Operating model
Business model
Lens
es
Tools and technology Purpose
At any given time, an organization is going through some type of transformation and is therefore operating somewhere in this
spectrum – if not in multiple points along the spectrum
Page 13
Purpose Activation Framework
5 Main Steps for Purpose Activation 1. Determine Purpose Metric Set 2. Infuse Purpose throughout the
Corporate DNA 3. Translate Fit for Purpose into
Stakeholder Experiences 4. Develop Activation Roadmap to
create Purpose-aligned experiences 5. Activate program in an agile way
Page 14
To understand how well a company’s purpose has been defined and activated, we use the Purpose 2x2 Matrix
► Aspirational, belief-driven ► Humanistic ► Resonates with the
company ► Applicable to all
stakeholders ► Simple, easily understood ► Unique to the company ► Long-term ► Action-oriented ► Outwardly focused
Criteria of a Good Purpose Statement
Purpose strongly defined and articulated
Purpose lacking z
Page 15
To understand how well a company’s purpose has been defined and activated, we use the Purpose 2x2 Matrix
► Market share ► Consumer loyalty ► Employee retention ► Net Promoter Score ► Social media fan volume ► Revenue growth in emerging
markets ► % Organic/natural/real products ► Regulation compliance ► Degree of trust
Sample Activation Metrics Aligned to Market Forces
Page 16
4
Plotting Purpose: Food Companies
1
2
3 5
7 6
8
9 10
12
13
15 14 11
Positive movement Negative movement Mixed movement
Page 17
Plotting Purpose: Household/Personal Care Companies
A
B
C
D
E F
G H
I
J K
Positive movement Negative movement Mixed movement
Page 18
Purpose has become a powerful innovation and strategy lever for lean and six sigma
Lean Six Sigma
Lean and Six Sigma philosophies and methods created a new “standard” in operations by combining Both philosophies are not high intensive
in sophisticated technologies or automation devices,… but far more on educating, empowering and engaging people
Continuous Improvement / Management System
Lean Six Sigma
Purpose
Innovation, Strategy and Execution
Purpose brings an updated perspective… turning this “triad“ into a powerful management system for innovation, strategy and execution. The key remains the same: the people,
but in a much higher level of engagement and understanding of human needs.
Page 19
Lean/Purpose Case study: Brazil food company serving hospitals
Production team at Company A that produces food for patients defined the purpose for their food production team – “Food for soul” – and made it a mandatory topic in the Kaizen and DMAIC.
Source: http://spaceskills.org/wp-content/uploads/2014/06/VacuumSealedChips.jpg
As an example of that, today the food plastic bags are printed with QR codes
With a link to a video where the people from supply,
production and logistics wish a quick recovery for their
consumers as well as send positive vibes to their families
Recognized the need for a change and defined their purpose
Living up to its purpose Realizing great returns
Research has started to observe that the purpose has had a positive impact on the treatment of the patients in comparison to traditional food
Every employee now understands why they produce the food. Innovation and engagement do not stop to grow, as well as the results!
Page 20
Food for Thought?
► How well defined is your company’s purpose?
► Is the purpose message cascaded through the organization and applicable to all?
► Is purpose activated through your processes, products, decisions?
► Do you personally embody and live your own purpose? Are you perceived as a purposeful leader?
► Can it help your Lean programs thrive?
Page 22