Our journey to become purpose-ledand values-driven

Wendy van TolSeptember 30th

1

• Context

• A data-driven method to arrive at new values

• PwC’s practical journey

• Lessons learned

Table ofcontents

2

Context

3

4

Demographicand social

change

Shift in globaleconomic

power

Rapidurbanisation

Resourcescarcity and

climatechange

Technologicalbreakthroughs

Five megatrends

Leader in buildingand sustaining trust-based institutions

Multinodalorganisation

Client service fromstrategy throughexecution

Technology-enabledinnovator

Snapshots of what CEOs say aboutculture

21%strongly agrees thatpurpose comes first intheir company’s decisionmaking during a crisis

67%Of CEOs believepurpose is centred oncreating value for widerstakeholders.

50%Of CEOs highlighted a lackof understanding in thecompany of how totranslate purpose andvalues into concrete actionsand behaviours

75%Of CEOs believebusiness must satisfywider societal needs.

5

75%Of CEOs are changingtheir values and codes ofconduct to respond tostakeholder expectations

75%Of CEOs are changingtheir values and codes ofconduct to respond tostakeholder expectations

28%Of CEOs think thatattracting employees whoare committed to seeing asocial purpose in theirwork was very important

24%say they are fully confidenttheir company wouldreward whistleblowing onbad corporate actions orgoing outside the chain ofcommand to raise aconcern

Organisations focused on values – not rules –perform better

of employees atpurpose-led, values-driven organisations

report highperformance

97%

of employees atrules-based,

process-drivenorganisations

80%

of employees atorganisations drivenby power and tasks

30%

Comparedwith

Source: LRN’s 2016 HOW Report

Businesscase forpurpose

Organisations with a clear purpose are also doing betterfor their shareholders

Cash cow

• Short term

• No societal value

• Not sustainable

P+P Organisation

• Long term positiveimpact

• Long termprofitability

• Long termsustainability

Irrelevant

• Not profitable

• Not purposeful

• Not sustainable

Foundation

• Value add for society

• Funding needed tosurvive

• Difficult to sustain

Pr

ofi

t

PurposeFrom Purpope+

* Identified by Jim Collins: ‘Good to Great’** Represents overall stock market

*** Firms of Endearment: a company that endears itself to stakeholders by bringing the interests of all stakeholder groups into strategic alignment

Purpose-driven firms significantly outperform profit-focused firms

Research done with 22 FoE *** firms , 11 GtG * and 500 firms from the stockmarket ending in 2006

1681%

263%

118%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

1800%

Purpose-inspired firms Good to Greatcompanies*

S&P 500**

Aggregate shareholder return

Purpose-inspired firms Good to Great companies* S&P 500**

Purpose drivenfirms make ~14.2times more profitafter 15 yearscompared to S&P500 firms, whichrepresent theoverall stock market

WhyPurpose

HowValues

WhatVision 2020

Building trust in society andsolving important problems

9

Ourclients

Society

PwC

We realised our potential to create a ripple effect

A data-driven method toarrive at new values

10

Where is the energyin the organisation?What do our peoplewant and need?

• Global ValuesSurvey

• Global PeopleSurvey (GPS)

Who are we now?What are ourcurrent values?

• Existing values• PwC Experience

What do ourclients/ societyexpect of us?

• BHI results• Regulators’

expectations

What is our visionfor the future?

• Purpose

• Vision 2020

PwC valuesand

behaviours

The different angles we have taken

12

United Kingdom

Spain

Korea

Mexico

Switzerland

226.335Employees

156Countries

58.2%Response

What do our people want & need?

Results survey

Being a professionalservices firm

Quality of workexperience

Executing our visions

15

WorkshopsSign-off values& behaviours Launch

Translating values into behavioursThrough co-creation in Values in Action workshops

How do the values resonateacross different cultures andlines of service?

Identifying behaviours thatreflect the values and arecounter to it

Considering the things we need tochange and the things that supportthe values

PwC’s practical journey

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Agreement with StrategyCouncil to focus onvalues as part of ourcultural refresh

PwC Values survey

First iterationand analysisof themeswith SC

Engagement withkey stakeholderswith role to play

Leadershipengagement andcoaching to leadthe journey ahead

Leadership and networkengagement to identifyvalues and behaviours

3 OctSoft launchacross thenetwork

Agreement onglobal values andbehaviours

Embeddingintoterritories

Agreementon thenarrative

PwC’s journey to becomingpurpose led and values driven

2017 >Hard wiredlaunch

January 2016

May

June

July

August

September

October

December February

January 2017

Global ValuesSurvey launchedglobally

Asking our peoplewhat’s importanttothem

Aligning cultureactivities

Introducing a newapproach andgovernance Network leaders

meeting, NYC

Agreeing theway forward

Territory ‘Valuesin Action’workshops

Agreeing thebehaviours behindthe values

Why, How, Whattoolkitshared

Toolkit of strategy map,conversation guide,videos, templates anddesign assets – forpartner and employeeengagement

Values surveyresults

Sharing thesentiment weheard

Overview of ourculture journey

Supporting planningand early framing

GlobalImmersionof values andWhy, How, Whatframework

Digitalactivation

Values jam –focused on onevalue per month

New yearchallenge

To set broader context

with Why, How, What

around individual

engagements during

regular team check-ins

2015 Introduction of Vision 2020

2014 Introduction of Purpose

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Overview of ourculture journey

Supporting planningand early framing

Conversationsfocused on Why,How, WhatOngoing teamconversations to focuson Purpose, valuesand Vision 2020, usingtoolkit to tailormessaging

PwC’s practical journey

Lessons learned

20

Allempoyees

Datadriven

Ownership& coaching

Nextgeneration

Unity&

Diversity

First the shiftthan the

anchoring

Lessons learned

PositiveEvolutionary

Focus oncritical fewbehaviours