THE PURPOSE TAKES OFF IN SPANISH COMPANIES
Management posture or commitment?
Although 70% of companies have a defined Business Purpose, there is still a lot to do. Establish a Purpose measurement system to evaluate its degree of achievement, to share it with the entire organization and to incorporate it as a management tool, even as part of variable compensation, are some of the challenges that lie ahead.
A lot has happened in the last 16 months that have changed us all. And companies are no exception. The Purpose that drives them already seemed like an important concept before the pandemic. But now, more than half of managers believe that the Purpose is more relevant due to the COVID crisis and the planet's environmental problems. This is one of the results that the first Barometer on Business Purpose in Spain, which we have done APD and Transcendent.
But what is Purpose? , How do you activate it?, How is it measured? Who should lead it? Although we know that companies are moving in the direction of becoming sustainable from their own businesses, we wanted to address what is really happening with this survey of almost 300 managers.
The results are thought-provoking. 70% of companies say they have a defined purpose. 84% of them are written and shared with employees and almost 9 out of 10 believe that they add value to the business and contribute to improving the company's profitability.
Therefore, there is a widespread perception that the Purpose is profitable for the company. However, 40% of respondents confuse Purpose with vision and mission.
Purpose is the “why” of a company, its reason for existing, which is not just earning money, but doing so by contributing to solving a social or environmental problem from the center of its activity.
Define and activate the Purpose should be a rigorous exercise that involves measuring its degree of achievement with appropriate indicators. And for this reason the Business Purpose in Spain it is not, nor should it be, simply a slogan or a marketing claim.
We prefer to work in purpose-driven companies
Does the Purpose generate commitment with employees? Definitely, yes. 80% of executives prefer to work in a Purposeful company and one in four would be willing to change jobs, even assuming a salary reduction. Purpose is becoming a powerful tool for attracting and retaining talent.
Another of the most revealing conclusions has been that for 9 out of 10 respondents, Purpose contributes to establishing a company culture. Purpose is perceived not only as a strategic business lever but as a tool that reinforces company culture.
And who should lead this transformation? The answer leaves no room for doubt. For 72% of the respondents, the management team is responsible for integrating the Purpose.
The barometer also sheds light on the changes that are taking place. In 2017, only 25% of IBEX companies had a defined Purpose oriented to the common good, and today they are already 77%.
Consumers, investors, employees, and leaders themselves increasingly value that the company has an activated Purpose.
But there is still a long way to go. Establishing a measurement system to evaluate its degree of achievement, sharing it with the entire organization, incorporating it as a management tool, even as part of variable remuneration, and having a legal figure for purposeful companies are some of the challenges that lie ahead.
Some companies are already taking it seriously and others are still communicating it in a way that seems more postural than real commitment.
Well used, Purpose is an accelerator of the business impact journey that all companies are embarking on.
