A lot has been written here and elsewhere about the concept of “thick”/shared value – the reconnection of business strategy to delivering social progress.
As I wrote on the Guardian’s Sustainable Business blog a few months back, business must now operate within a completely different set of frame conditions, encompassing the combined forces not only of climate change, population growth and diminishing natural resources, but also (among others) the ascent of Generation Y and increased public scrutiny in the wake of the financial crisis.
To achieve longevity, business needs to recognise these seismic shifts and re-imagine them, not as constraints on business as usual, but as the perfect opportunity to reconnect with disillusioned customers and employees by designing something better.
More than ever before, the business that wants to achieve long-term success must earth itself in a sure sense of why it exists, what it stands for, and why it matters (beyond making money). And that purpose should be self-evident in the very products and services it provides, how it organises itself, and how it conducts its daily business.
- Purpose is the key to creating shared value – not some warm and woolly expression of values, but the ‘north star’ around which to build a strategy for enduring growth, based on improving people’s lives.
- Purpose is the only sustainable way to recruit, unite and motivate all the people a business touches because – while business models may come and go – it’s that essential ‘reason for being’ that remains constant.
- And it’s purpose (IMNSHO) that now represents the most powerful lever business leaders can pull to achieve competitive advantage – the single best way to demonstrate relevance in an ever changing world, and to build deeper, more lasting relationships with customers and employees who share your beliefs in their very bones.
On that last point, it’s worth drawing attention to the big news at EY last week – the formal accession of Mark Weinberger as Chairman and CEO, accompanied by a rejuvenated brand identity and, in particular, the clearly articulated purpose that forms the new tagline of “Building a better working world”.
Cards on the table, I’m an EY employee, so I’m hardly an impartial observer, but I’m massively excited by this.
An organisation I work for is really putting purpose front and centre – not in a superficial way, but based on deep thought about the essential function of a professional services firm in promoting long-term growth, through providing timely and transparent information that contributes to the critical functioning of the world’s capital markets, for example, and supporting and stimulating entrepreneurship as a key to local economic health.
I hope my colleagues and EY’s clients will feel the same intuitive resonance with this purpose as I do. In any event, I think it’s a bold move that deserves a lot of credit – especially in a heavily regulated industry that naturally tends to inspire a degree of risk aversion and conservatism.
As Simon Sinek hints at in one of my favourite TED talks, most organisations – indeed most people – are perfectly comfortable describing what they do; maybe (at a push) what it is about how they do it that sets them apart from all the rest. But very few nail their colours to the mast of why they do it.
Of course, that’s precisely why it’s such fertile territory for differentiation.