A purpose-led approach to navigating the covid crisis and beyond

In this article:

• Why purpose matters now more than ever
• Companies purpose-driven responses to COVID-19
• How clarity of purpose can drive value in the short and long term

Purpose and intention are at the heart of my research and work with organisations and individuals.?Its great to see this now reflected in changes to how organisations are operating.?This article was inspired by a recent report by PWC ?It’s an interesting read. In this article I have summarised some of the key finding and added in some information from my research archives.

Individual and Organisational Purpose and Intention

According to PWC “Purpose is an organisation's reason for existing beyond just the financial. It sets out why the organisation matters, building on its core, differentiating capabilities, and articulates the value of the organisation to wider societal stakeholders.” It is why the organisation exists beyond making a profit. If you ask many company leaders why their companies exist, or ask an individual basis why they exist, you will usually be greeted with puzzled or bemused faces. The question is too hard to answer. ?

“Purpose is an organisation's reason for existing beyond just the financial"

Over the years I have simplified my working definitions.

Purpose is simply “your highest intention”. Purpose acts as your roots and is the basis for strong growth and stability.

Intentions are “the things that you really want from life at a deep level” they are the things that above all else are really important in your life. They are the branches that grow from your roots.

Intentions work powerfully to focus your conscious and subconscious attention which results in behaviours and actions that make things happen in the world.

Let me give you two examples that illustrate this.

Organisational Example: IKEA

Like most businesses, IKEA exists to make money.?Setting this universal aside their purpose is “To create a better everyday life for the many people.”?Their intention is to “Offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”

Individual example: Erika – a trainee accountant

In common with most humans, Erika’s purpose is to survive, thrive, and be happy. Her individual purpose at this moment in time is to develop her knowledge and skills, and travel. Her intentions are to qualify as a chartered accountant, find a great job, work less hours, and have a great social life.

The examples above illustrate how purpose and intention focuses attention which in turn influences decisions and actions, creating momentum that delivers the desired results.

Why purpose matters now more than ever

COVID-19 has forced us to examine the relationship between companies, government, society and the public. ?With crisis comes opportunity in the short, medium and long term.

The current disruption is unprecedented but provides businesses with a once in a lifetime opportunity to transform and redefine their organisations for the future, with purpose acting as a guide for planning and decision making. ?With careful management and communication, organisations can emerge realigned and future-proofed.

Purpose is an organisation's reason for existing beyond just the financial. It acts as a lens for every decision a company makes.

Purpose is now reflected in the UK Corporate governance code, US Business roundtable, key themes at Davos and increasing numbers of companies are becoming ‘purpose-led’ – most recently BP and RBS.

In the last 15 years, purpose has gained significant momentum, influencing the thinking of customers, businesses and investors.

• In 2016, PWC reported that 79% of business leaders thought that purpose is central to business success.
• In 2018 EY reported that ?Purposeful organisations out perform the stock market by 42%. In contrast companies without a sense of purpose underperform the stock market by 40%

The COVID-19 pandemic has brought it further up the agenda.

Purpose led organisations benefit from improved decision-making, more motivated employees, and improved customer relationships. ?

Employees are five times more likely to stay working for an organisation when they have a strong connection to their employers purpose.

Companies purpose-driven responses to COVID-19

Many companies have reacted to the Covid crisis with purpose – adapting their services and operating models. The majority of companies have done so primarily because they united around a collective purpose of protecting lives and slowing the spread of Covid. ?Examples of this include:

Financial pledges and aid via funds and donations.

• Armani donated $1.43m to hospitals in Italy
• Carlsberg donated $ 13.8 million to researchers
• BP donated $2 million to theCOVID-19 Solidarity Response Fund
• Netflix – donated ￡1m to BFI and the UK's film and TV charity to support freelance workers.

Customer and supplier support. Priority services are being introduced for vulnerable customers, and alterations made to provide flexibility for people at risk or under financial stress.

• BP – providing free food to emergency services; free delivery of essential goods; free fuel cards to frontline workers
• Aviva – offering breakdown cover for NHS workers and free courtesy cars to any NHS workers, if their car is involved in an accident, plus priority repairs on motor claims
• Morrisons – distribute ￡10m worth of food to the UK’s food banks
• Burberry – repurposing its Yorkshire trench coat factory to make non-surgical gowns and masks
• Ford – make 50K ventilators within 100 days
• Unilever – ￡436m of cash flow relief across its extended supply chain, including early payments to select small and medium suppliers

Raising awareness and upskilling

• Dixon Carphone – partnered with Age UK to deliver digital support to thousands of older people
• LinkedIn – Free learning courses on productivity, digital skills, remote working etc
• NatWest – Useful guides, dedicated support line and information for those self-isolating for health or age related reasons

How clarity of purpose can drive value in the short and long term

The ongoing Covid crisis has thrown up a high volume of critical issues to address including cash flow, supply chain, delivery channels and workforce management. Purpose is needed now more than ever. Why? When under pressure even the best leaders and entrepreneurs can make poor decisions. Companies who are clear on their purpose use it as their ‘North star’ for their crisis-response mode, and for their long term planning, with significant benefits:

Short term: 2-6 months

1. Maintaining and enhancing brand
2. Developing and enhancing culture and employee engagement
3. Strengthening relationships with external stakeholders

Medium to long term: 6-24 months

1. Clarity on what the organisation does and stands for
2. Redefined business model, driven by purpose
3. Opportunity to optimise operating model

In summary

Navigating an organisation through Covid can feel like driving down a very busy motorway in rush hour, in the fog, with all the road signs removed. Purpose may not seem like an obvious thing to focus on when faced with a flurry of critical things to address, but it is a vital survival strategy in the short and medium term. In the long term it has the potential to transform the way your business performs, benefiting stakeholders, employees, the economy, local and global communities for the better.

In the same way that clarity on purpose benefits companies, individuals benefit hugely from being clear on their purpose and intention.

Further reading

PWC’s full report on purpose led organisations response to covid

Information and case studies on individual purpose and intention

Purpose and Intention coaching for individuals

I'm Juliet Adams: A Learning and Development expert, Coach, Author and Speaker I use neuro and behavioural science to enhance performance & unlock potential. I provide leadership coaching and personalised development for busy professionals, and consultancy and training design for organisations. I have been researching, writing about, and coaching on Purpose, Meaning and Intention for over 5 years, helping people identify what really matters and make it happen. I am the Author of Intention Matters.

?? If you want to find out more please pop over to my profile page, and connect with me or....

?? DM me for a chat about how I can help.