Four stages to transform into a meaningful business

VISITFLANDERS, with a mission to sustainably develop travel in and to Flanders, made the point in its new 5-year policy recommendation: we've entered the new era of 'the economy of meaning'. The transformation is happening as we speak: from more to value, from financial ROI to social ROI. Today, travelers look beyond shopping, services and experiences to the next frontier: meaning. (thanks to @elkedens)

HAVAS researched what people consider as a meaningful brand. Extending from brand to business, a meaningful business should answer three questions: do we deliver a functional benefit, do we improve people's lives and do we fulfill our role in the wider society? (thanks to @marcwellens)

A meaningful business brings together today's left-brain logic of function and customer value with the right-brain imagination of a better world and a meaningful life. Marrying left- and right-brain thinking will transform businesses into a source of meaning: in sync with the most authentic business reality of all - the wider society.

The Four Stages

The road to a meaningful business where all stakeholders thrive, will take us along four successive stages: framing your Purpose, designing a Strategy, creating the Culture to make it happen, and finally cultivating the right Leadership.

Stage 1: Frame your Purpose

The first stage is the vector that will propel your journey in the right direction. It's the stage, where we radically think through thé question: "Why do we exist as a business?". Or put differently: “What would the world lose if your company disappeared?”

An easy question for a start-up about to fly, it may be a baffling question for those businesses, where the years have obscured the original intent. What was the business idea that sparked off the founding fathers to give up everything and go for it? It’s not a product. All started with an insight: a problem no one managed to solve.

Purpose is an eternal source to come back to. Still, it does require re-formulation, re-connecting with today's consumers. Nike's purpose is a great example: "Our purpose is to unite the world through sport, to create a healthy planet, active communities and an equal playing field for all." Back in 1964, Nike was about innovation for athletes that ran marathons on leather shoe soles. Today, the brand sees a far richer role in the wider society.

"Why do we exist as a business?". Or put differently: “What would the world lose if your company disappeared?”

Stage 2: Design your Strategy

Purpose is good. Strategy makes it tangible. Coming from the old Greek, strategy means 'what generals do'. Generals set out the few strategic directions, where people and resources will focus on for years to come. So, let’s embed purpose in those strategic initiatives, and give it roots in day-to-day business. Purpose that sits in a side-vehicle -how ambitious it may be- quickly goes down as un-authentic, un-truthful, un-existing.

Re-formulating your purpose for meaning will inevitably lead to re-designing your business model. Applying Business Model Canvas helps to re-think how you create value for your customer: what assets and resources do you uniquely hold, what partnerships may reinforce your offering, what kind of relationship will make customers love you, and -even better- to what new customer value does your purpose lead you?

To what new customer value does your purpose lead you?

Just the product

By far the most immediate manner to bring Purpose, Strategy and Culture together is your product. All connects when your people are mad about your product and passionately tell your product stories to friends, family and - oh yes - customers. Just the product does that.

One condition though: your product should genuinely reflect your purpose. A little purpose infusion to start, but you can grow gradually. Not all businesses were founded as sustainable, conscious, beautifully white unicorns. We all know the unicorns like Patagonia and Tesla. A far greater achievement is done by those who successfully re-purposed themselves. Unilever embedding ‘green’ in every single of their 400 brands, BP saying goodbye to oil, Umicore doing mining without mines.

We all know the unicorns like Patagonia and Tesla. A far greater achievement is done by those who successfully re-purposed themselves.

Stage 3: Create the Culture

Culture eats strategy for breakfast, we all know it. But do we really? McKinsey writes: "About 70 percent of transformations fail to reach their stated goals, in large measure because they fail to change—and sometimes fail to even think of changing—the mindsets and behaviors of employees."

Strategy and culture are two sides of the same coin:

• Strategy is words, culture is behavior.
• Strategy is brilliant insights, culture is decisions and action.
• The one is outside in, the other inside out.

Culture is the norms, values, rituals and symbols shared in the organization or team. A collective mindset that impacts performance in a positive -and sometimes negative- way.

Here purpose can do, what strategy can't. Purpose is rational, but also magically emotional. Employees at purpose-driven companies are four times more engaged at work, research shows. Purpose will drive good decision making, healthy group behavior and a wholehearted culture.

It takes a village to raise a child. The same goes for a business and a team member.

Employees at purpose-driven companies are four times more engaged at work, research shows.

Culture in action

How then to go beyond pinning ‘purpose’ on the wall? First, translate purpose in clear reporting lines, formal goal-setting and solid labor agreements. Un-inspiring -I know- but fundamental. Then, add imagination.

Nike's purpose means nothing without the singular Nike performance review. Performance rating is only 50% based on individual performance. The other 50% is your performance within the team. On top, Nike drives a rigorous 360 review: everyone gives feedback -anonymously- about the direct manager (n+1) to his/her manager (n+2).

Imaginative policies like Nike’s foster team collaboration and contain personal interests. They also stimulate good leadership, since no bad leader can hide.

Stage 4: Cultivate Leadership

The trend in leadership definitely is to bring meaning to the floor: values-driven leadership, un-bossing, humility in leadership. Recently, I learned about host leadership (thanks to Evelien Verschroeven). The host is a great metaphor and deeply embedded in human behavior. In service of others, a host steps back, encourages, gives space, just joins in when needed.

Strategic directions, goal-setting and imaginative culture can not cover all. In the end, it's leaders that make trade-offs. Do we continue with a supplier despite violation of our code of conduct? Do we pass over an opportunity breaching our purpose?

The high road to meaning

Have your customer show the high road to a meaningful business. At this stage a design sprint helps to re-think products, services, experiences, and ultimately your leadership.

It starts with digging for deep customer insights and ends with a prototype tested with real customers. Meanwhile, the sprint breaks down the walls between your departments, and exposes your leaders’ strengths and shortcomings in re-imagining a meaningful business.

A design sprint breaks down the walls between your departments, and exposes your leaders’ strengths and shortcomings in re-imagining a meaningful business.

Left brain marries right brain

With Purpose, Strategy, Culture and Leadership -and a few a's- we have PaSCaL. Just an easy acronym? Well, there is a good story to it.

Blaise Pascal (1623-1662) was both a man of science and philosophy. He gave us the unit of pressure (Pa), but he also made a point of consistently questioning his own scientific assumptions. He called it 'the philosophy of mathematics'. Pascal would be an exceptional thinker in today's world, where left-brain science overshadows right-brain philosophy.

Creating a meaningful business is exactly this: merging left-brain science with right-brain philosophy.

The science of Strategy and Leadership in smart goals, data and insights equals the imagination of bold Purpose and wholehearted Culture, doing good to all.

Transforming businesses into a source of meaning, in sync with the most authentic business reality of all - the wider society.

Transforming businesses into a source of meaning, in sync with the most authentic business reality of all - the wider society.

Creating a meaningful business today? Feedback and insights?

I'd love to hear from you.

#meaningfulbusiness

#purpose

#strategy

#culture

#leadership

#leftbrainrightbrain

#rightbrainthinking