What is it and how to activate Purpose in a company?

Without a doubt, we are in the era of purpose. In an era in which purpose and financial results are not found but on the contrary, purpose is the path to better financial results. It has been proven that those companies that focus on employees, customers, communities and the environment have a better return for its shareholders. So what is it and how can we Activate the purpose in a company?

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What is the purpose of a company?

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It's a real commitment. When we talk about purpose, we go far beyond an inspirational phrase, a Claim of marketing or a headline in a press release. When we talk about purpose we are talking about a commitment that has to be authentic.

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Create value

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The purpose is the raison d'être of a company. What helps to solve a social and environmental problem while creating financial value for the company itself.

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Differential value

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It is intrinsically linked to what the company does in a differential way, focusing on the “for what”, differentiating itself from mission (what), vision (how far) and values (how).

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The key is its activation, not its definition

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For the purpose to be a real lever for the improved financial performance, the key is not in its definition but in its activation. How the company is able to incorporate that purpose into its business strategy, in its products and services, in its culture, in its processes, in its relationship with its suppliers and the communities where it is present.

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It must be activated by the leader

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And this is where the link between the Purpose with leadership. A good leader is essential for the purpose to evolve from a phrase to action and to integrate into the heart of a company.

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Requires measurement

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That leader must first understand the opportunity to”professionalize” that purpose and to act with conviction and courage for its start-up and activation in the company. And as part of that professionalization, measurement is key.

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Purposeful leadership in the Unilever case

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A clear example of purposeful leadership It's the one from Paul Polman, CEO of Unilever for 10 years. Polman began the company's transformation journey with the plan Sustainable Living Brands.

Along these lines, and to achieve this, Polman was able to break with the internal dynamics of your company. So much so that on his first day as CEO, and with the objective of fleeing short-termism, he announced that he would no longer issue guidelines or quarterly reports on stocks. Despite how controversial this measure could be, at the end of its term, Unilever generated a return for its shareholders of 290%.

The purpose is still a path that many companies have to travel, and there is no doubt that in the post-COVID 19 era the purposeful leadership will be more important than ever.