The algebra of purpose

I was one of those geeks at school who was naturally good at maths. I would never have admitted it at the time, but I loved those questions where you had to work out what x equalled given any number of other factors. I felt a deep sense of satisfaction in solving those problems as I knew when I’d cracked the code, the answer was always 100% right.

For me, those equations represented opportunities for problems to be neatly solved. Jobs to be completely done.

I’ve been drawn to the beauty of maths as a means of solving problems ever since. And even though I can see the obvious flaws in trying to quantify something that is clearly unquantifiable, my math geekiness likes the attempt.

For example, Charles H. Green’s trust equation;

T = (C + R + I) / S

Where T = Trustworthiness C = Consistency R = Reliability I = Intimacy S = Self-orientation

From a pure maths point of view, the equation doesn’t provide a numerical answer. But in terms of conveying a concept it works. I get what they’re trying to say about trust. How you can evaluate it. How it can be built or destroyed. Problem solved.

Another one is Kathleen Dannemillar’s change formula;

C = (D x V x B x F) > R

Where C = Change D = Dissatisfaction V = Compelling vision B = Believability F = First steps R = Resistance to change

Again, no final number to be had. But I get it. Change is more likely to happen when these factors are aligned. Problem solved.

So, I wondered whether the same approach could be applied to the role purpose plays in business. A concept that is close to my heart and, thankfully, is getting a lot of more attention at the moment.

However, the added attention has brought added confusion. I can’t help but notice that there’s little clarity or consistency in terms of what people are actually talking about when the word ‘purpose’ arises. What do we mean by purpose in a business context? How do we know if a business is purposeful or not?  How would you go about making a business more purposeful?

So, with my geeky maths head on, I have attempted to apply the magic of algebra to this conundrum to provide the world with the answer.

And here it is in all its beautiful, geeky glory.

Simon Farrell’s Purposeful Business Formula.

PB = SS x ES x C? x EP

Where PB = Purposeful Business

           SS = Soulful Solutions

ES = Ethical Standards

           C? = Consciousness x Clarity x Connection x Culture

           EP = Enough Profit

And here’s the definition of terms in a bit more detail.

PB = Purposeful Business

The unquantifiable thing we’re trying to quantify here is just how purposeful a business is. In effect the formula is trying to answer the questions we posed earlier….what do we mean by purpose in a commercial context? How do we know if a business is purposeful or not? How would you go about making your business more purposeful?

But in my mind, there’s a deeper meaning attached to the output of this formula. And that’s  a more holistic measure of success in business. For too long the metrics of a success have been money related. How much profit it can make. How much money it can accumulate for itself.  But being successful shouldn’t mean benefits solely to the business but benefits for everyone around the business. I suggest PB isn’t just a measure of purpose. It’s a measure of true success.

SS = Soulful Solutions

The first factor to consider is what the business sells. But rather than thinking in terms of products and services, I suggest thinking of the business’s output in terms of solutions it produces to tackle some of the problems people and the planet currently face. Soulful Solutions as I’ve called them.

There are obvious Soulful Solutions such as electric cars, vegan restaurants and Carbon Off-setting schemes which would score highly against this factor. There are obvious Destructive Solutions (the opposite of Soulful Solutions) such as oil production, cigarettes and weapon manufacturing which would result in a negative score.

But the interesting thing here this is the debate that opens up when you think about all the products and services that lie somewhere between obviously Soulful and obviously Destructive. And whether they would get a positive or negative score. High Street banks? Large Supermarkets? Fashion brands? There doesn’t appear to be a clear answer.

Take the drinks industry for example. Many beer, wine and spirit businesses are trying very hard to be seen as responsible businesses and investing lots of money in initiatives that address issues such as equality and sustainable sourcing. What’s more, many of them state that their targets are aligned with the UN’s Sustainable Development Goals. Sounds good doesn’t it? But ultimately the products they sell could well be seen as being destructive rather than constructive when viewed through the lens of the problems people currently face. Drinking our worries away is hardly a sustainable solution. And it’s hard to argue that selling bottles of whisky for ￡100s to satisfy ego-centric desires of wealthy businessmen in China is a Soulful Solution.

But maybe I’m wrong. Maybe the scoring of Soulful Solutions sets the bar too high with very few businesses getting a positive score at the first hurdle. Or maybe it helps us quickly discern the businesses that take purpose seriously and those that are using it to ‘join in’.

Let’s have a debate!!! I’d love to hear your thoughts.

ES = Ethical Standards

This is all about conducting business in an ethical way. And the best method of assessing how well you are doing on this front, as far I’m aware, is to use the B-Corps Impact Assessment tool. It covers all the bases; Governance, Workers, Community and Environment. It’s an excellent tool. It’s free. And if you get B-Corps certified you can tell the world you’re well on your way to being a truly purposeful business. In an attempt to quantify the unquantifiable, this is the one part of the equation where a number actually exists. Bingo.

C?= Consciousness x Clarity x Connection x Culture

These four factors have been grouped together to reflect something over and above the nuts and bolts of what businesses do and the way they do it. (And yes it helps that they all start with C). Together they represent the fact that purposeful businesses have a multiplier effect on what they do when they become a beacon for our new definition of success and actively seek to involve others in their purposeful journey.

The first C, Consciousness, relates to a business’s altruistic nature as portrayed in Barrett’s 7 levels of organisational consciousness. Purposeful businesses are genuinely concerned with making a difference and being of service; levels 6 and 7. They are not disproportionately influenced by fear based, ego related measures such as increasing market share, strengthening competitive advantage or delivering this quarters profit figure. Their decisions scream integrity. They raise the bar for everyone else. And they invite us all to follow suit.

The second C, Clarity, demonstrates the value that purposeful businesses place on stating their intent in a clear, unequivocal, transparent way. Whether it’s through purpose, vision, values, mission, beliefs, principles, manifesto, credo, whatever. The format’s not too important. The clear intention is everything. It signals to everyone what this business is all about. What it stands for. And what it won’t stand for. It’s in black and white for all to see and holds the whole business, individually and collectively, accountable to a set of agreed upon principles.

The third C, Connection, signifies how important it is to connect the clear intent to all parts of the business ecosystem; customers, brand, marketing, operations, supply chain, investors, stakeholders, community and so on. It’s amazing how much goodwill and energy can be generated by people who are all genuinely trying to achieve something meaningful together.

The final C, Culture, builds on the Connection element above but is given its very own C simply because it is so important in making things happen. Good products. Good marketing. Good systems. Good intentions. Good leadership. They are all good for nothing if this good stuff doesn’t get done. Culture eats strategy for breakfast in successful businesses. And purposeful businesses are no exception.

EP = Enough Profit

The final factor is profit. Or rather Enough Profit. And this is an important element because we’re talking about self-supporting, sustainable businesses here not charities. And for businesses to survive, thrive and increase the impact they’re making they have to make a profit. Not maximising profit to return to shareholders as less-purposeful businesses do. And not scraping by with minimal profits which creates uncertainty and instability. But enough profit to invest in creating and delivering more and more Soulful Solutions. And this means investment in innovation, people development and creating a learning organisation.

So there we have it. The Simon Farrell Purposeful Business Formula. Problem solved. Job done.

Well almost.

The interesting thing from this exercise is not so much what the different elements are or aren’t, or whether they are multiplied or added together. The interesting thing is that whichever way you look at it we end up with a spectrum of being purposeful. It isn’t a binary thing.  It’s not a case of being purposeful or not. Some businesses at one end. Lots in the middle. And some at the other end.

The point is that being purposeful, or rather becoming more purposeful, is a journey. It’s an adventure.

An adventure where pretty much every day you and your team can do that little bit more on one of the elements in the formula to make your business that little bit more purposeful.

An adventure where you’re making your business part of the Soulful Solution that people and the planet so desperately need.

An adventure where you’re doing your bit to make business an irresistible force for good.

An adventure that will help you be successful in the truest sense of the word.