The role of "purpose" in creating value; Merkityksen arvotuloksenteossa
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Merkityksen arvo tuloksenteossa Minna-Maari Harmaala HAAGA-HELIA AMK 30.05.2013
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Transcript of The role of "purpose" in creating value; Merkityksen arvotuloksenteossa
Merkityksen arvo tuloksenteossa
Minna-Maari Harmaala HAAGA-HELIA AMK
30.05.2013
Presenter
Presentation Notes
Vain yksi viesti MIKSI Yrityksellä kolme tehtävää Houkutella parhaat Pitää parhaat Saada parhaat antamaan parhaansa Miten tämä onnistuu? MIKSI
”If you stand for nothing, you will fall for anything.”
- Rosa Parks (1913-2005)
“We need red blood cells to live (the same way a business needs profits to live), but the purpose of life is more than to make red blood cells (the same way the purpose of business is more than simply to generate profits).” - Ed Freeman
Beliefs about the role of business in society
2013 CONE Communications / ECHO Global CSR study
The ONE issue consumers want most companies to address:
2013 CONE Communications / ECHO Global CSR study
”People don’t buy what you do, they buy why
you do it.”
Simon Sinek – Start with Why
Why
How
What
Presenter
Presentation Notes
TED talk of Simon Sinek (http://www.consciouscapitalism.org/node/145) Why are some companies more successful than others? There is a pattern! All the successful companies follow it; and it’s the complete opposite to the unsuccesful ones. What- Every organisation knows this How - some know how they do this; proprietary technology etc. Why- profit is always a result; purpose, belief, why do you get out of bed in the morning Inspired organisations, think, act and communicate from the inside out Apple: If they were like everyone else; their marketing message may sound like this ”we make great computers” (what) ”they are beautifully designed and user friendly” (how) Wanna buy one? – maybe, not Car; mileage leather seats Instead Apple: everything we do, we believe in challenging the status quo; in thinking differently; how we do this is by revolutionising design; making design user friendly; we just happen to make great computers; wanna buy one? Apple is not structurally different; they are not technologically superior Reverse the order of the information that you give! The goal is to do business with people who believe what you believe! Relates to the structure of the brain; the part of the brain that controls the decision-making does not control language; facts and figures appeal to the part that controls language and logic We follow those who lead, not because we have to but because we want to; we follow them for ourselves
Purpose
• Activates and motivates • Sustains when times are tough • Serves as a compass or guiding star
• A business with a purpose
– Inspires, engages and energises stakeholders
Heroes
Presenter
Presentation Notes
Martin Luther King Jr. I have a dream vs. I have a plan…
Heroes • Accomplish extraordinary things • Champion fairness, fight injustice • Are uncompromising • Fight for their cause • Stick to their guts in the face of adversity • Easy to recognise • Public in their actions; never hide from doing what
is right • Never a talk hero; always an action hero!
Source: The Hero’s handbook
Presenter
Presentation Notes
Saavuttavat uskomattomia asioita Ajavat reiluutta, taistelevat epäoikeudenmukaisuutta Eivät tee kompromisseja Taistelevat uskomuksensa/ asiansa puolesta Eivät lannistu Ovat helposti tunnistettavia Teot ovat julkisia Toimintasankareita, ei puhesankareita
Born or made heroes?
• Born hero brands (Body Shop, Patagonia, Howies…)
• Made hero brands (Timberland, GE, Unilever, Nestlé, Novartis…)
• Born villain brands (Chipotle…)
Presenter
Presentation Notes
To become a hero: Choose a problem to tackle that is relevant to your business Be clear in your cause! Recognize the risks and tackle them Don’t be shy but don’t be caught “half-assed” (George W. Bush “Mission accomplished”) Recognize your sins, make corrections and start talking about it Differentiate from competition; don’t be a second; set the stage Coherent and consistent communication & more importantly action Measure! “Show me the money!” If something negative happens, be the first one to start the conversation be transparent You can still buy media, but you have to earn attention If you want employees to feel passionate about your business, be the kind of business people get excited about working for
Pick a cause…
Yhteystiedot KTT / Ph.D. Minna-Maari Harmaala Yliopettaja / Principal Lecturer Vastuullinen liiketoiminta / Corporate Responsibility HAAGA-HELIA AMK / University of Applied Sciences Tel.: +358 50 547 5947 [email protected] Seuraa minua twitterissä @MinttuHarmaala Tutustu LinkedIn -profiiliini
BACK-UP SLIDES
The Flying Machine
• Samuel Pierpont Langley – Resources – Money – Market – The desire to be rich and famous
• Wilbur & Orville Wright – Why; the desire to change the world – 17.12.1903 The first controlled, powered and
sustained human flight
Presenter
Presentation Notes
Other teams better qualified, better funded but the Wright borthers beat them to it. The pursuit of the manned flight was like to dotcom of the age Samuel P Langley 50.000 USD to figure this out Seat at Harvard, well connected Hired the best minds money could find and buy Market conditions were extraordinary Langley quit the minute he figured out he was not going to be first Wright Had nothing, no money, had a bicycle shop Not a single person had a university education Were driven by a cause, by a purpose If they can figure this out, it will change the course of the world Their followers were working with blood, sweat and tears: not money
Shared value
• Making good business sense while at the same time solving some social or environmental problem
Shared value: HBR, January 2011, Michael E.Porter & Mark Kramer
“We did it from a business standpoint from Day 1. It was never about corporate social responsibility.”
— Jeffrey R. Immelt, CEO of General Electric on Ecomagination
Some existing examples (1/2)
Coca-Cola and youth emploment KPI’s 1. Youth job
placement 2. Youth self-
esteem 3. Company sales
(regional) 4. Brand
connection
Existing examples (2/2) Novo Nordisk – Blueprint for change;
changing diabetes care in China
• A vast array of indicators such as Business KPI’s Societal KPI’s
Market share, % # of jobs created
# units of drug sold # of extra life-years created
Company ranking amongst physicians and patients
Lifetime societal savings; i.e. money (DKK) saved by society from better diagnosis and treatment
No need to be a lone hero!
• The Lone Nut; Derek Sivers on how to start a movement (http://www.ted.com/talks/derek_sivers_how_to_start_a_movement.html )
Diffusion of innovation (Everett Rogers)
He who has a why to live can bear almost any how.
- Friedrich Nietzsche
