Building Sustainable Legacies


The tricky interconnection of values and purpose

Being values-based implies a connection with oneself, a deep inner knowing. Embracing a purpose requires, so I argue here, a connection with the context in which we live and operate, a deep outer knowing. When these two senses are disconnected, we are in trouble, as individuals, as organizations and as societies at large. When the senses are aligned, thriving individually, as an organization and as a global community means thriving at all of these levels for the benefit and well-being of all.

Brené Brown recently said in an interview with Marie Forleo “our worth and our belonging are not negotiated with other people. We carry those inside of our hearts.” Brené is a widely recognized and respected psychologist in the domains of authenticity and vulnerability. She talks about how an individual can find herself, find her roots and core and how to stand up for herself and what matters to her. In many ways what she talks about has to do with finding one’s own purpose and identity or what she calls knowing who you truly are. To her, the importance of knowing who you are is key in living an authentic life as it ensures that you can always belong to yourself, rather than fitting in with what others might expect.

I can resonate with this and I understand the importance of what she says. How are we supposed to know what is right and what is wrong if we don’t know who we are and what that means in the context of what happens around us? This journey of self-knowing, of self-awareness, is a key component in the journey of being a responsible leader. It may well be the first and most important one, the dimension without which all the rest doesn’t really make sense. It certainly is critical to create role models that can serve others to find the courage to adapt their behavior and attitudes in order to re-connect with who they truly are. Or, as Lena Faraguna claims: “Lighthouses don’t go running all over the island looking for boats to save. They just stand there shining.”

Quote and image by Lena Faraguna

Let me zoom out a bit. How would we translate this self-knowing, this inner self of self-belonging in the context of working with others, of teams, and of organizations? How can a sense of belonging among a group of people, be it a family of a company, be created without negotiating with others? How can a group of individuals that belong first and foremost to themselves ever belong to a greater cause? I am troubled when I imagine how a particularly purpose-oriented company, such as those that Kathy Miller described in her last blog, might do if it decides to “not negotiate with others because its self-worth is inside of its own purpose”. Isn’t that what we are accusing the modern corporation of doing? Of putting its own priorities first and to forget about the rest? Where is the line drawn? If investors and owners are part of the inner core, then profit-maximization sure makes sense. If they are not part of it (and how might they not?), then how can a company protect its interest from investors without negotiating? Tricky.

When adding a further dimension and zooming out to an entire society, what changes in that frame? If a society decides that it needs to first and foremost belong to itself, its citizens, and not negotiate with others, what might that mean? Wouldn’t we be moving very close to the explosive sense that nationalists are expressing when they say “my country first”? And when they start protecting themselves from perceived outside threats, such as immigrants, refugees and trade agreements?

There is something dangerous in all of this. And this might well also be the dangerous in purpose-oriented firms. Purpose, after all, means what? The dictionary says purpose is “the reason for which something is done”. Well, and that is the entire problem. That is not good enough. There are excellent reasons to do something and there are incredibly stupid reasons for doing other things. Let me take the three-step zoom back from society, to the organization to the individual.

A society that defines a purpose, or “raison d’être” as something that is distinctive from what is around it, will in the worst case create harm to other societies and possibly even to itself. Global well-being can only be achieved if a society, a nation, embraces the idea that it is fundamentally and indisputably a part of the larger context in which it operates. And finding a purpose that does not take this into account is potentially harmful, as the Swiss President and many other statesmen have pointed out after President Trump gave his disturbing “America First” speak at the UN SDG forum last week.

Zooming now in to an organization or a team, what does this mean? If an organization chooses a purpose that is purely self-serving and that may seem like the best way to survive and ride the increasingly turbulent waves of change, then this organization is also very likely to harm those around it, and as a result, potentially itself. The metaphor is the cancer cell that builds its growth on eating into the very organism that is providing its living substance until that organism has been emptied out and can no longer sustain the ongoing growth of these cells. That sounds ugly and I apologize. What I mean to say is that a purposeful organization is not good enough, if that purpose does not imply taking into account the well-being of the context in which the organization operates.

Further zooming in and back to the individual, I struggle to see how an individual can and should have a sense of identify to herself that is limited to herself only. It appears limiting and potentially dangerous. As it if was necessary to put up guards against something outside. As if that sense of inner belonging needed protecting. An inward journey of discovery will uncover, I am certain, that there is both nothing and everything that can shake you and me in our core. Nothing in the sense that we are who we are irrespective of what happens outside of us, our sense of self is based on how we see and talk to ourselves. Everything in the sense that we are shaped by the events in our lives and we respond to them, in the full understanding that we have no idea what lies ahead of us.

The Circle Model (Katrin Muff 2016)

Let me attempt to conclude. In order for purpose and values to be aligned, an ongoing journey between the inner and the outer world in which we live is needed, allowing an emergent transformation as we advance. This allows a development of the inner knowing and the values we build on. In addition, purpose will need to be defined not just as the “reason for which something is done” but “the reason for which what is done serves the well-being of the next larger holon” or unit. Arthur Koestler coined the term holon (“whole”) as something that “simultanesouly a whole and a part”. Holacracy, which is founded on the principle of Holons, embraces this nicely as an operating system. A holon is a unit that is contained in another holon and that may (or not) contain other holons. Each sub-ordinate holon by definition must embrace the purpose of the holon of which it is a part and the entire system is guides by an overarching missing that should – and here Holacracy stops – again serve the next larger holon. Imagine if individuals would understand that we are holons, as parts of organizations, which in turn are holons as a part of societies, which in turn form a part of a global community, all while being in and of itself a whole that again contains other smaller holons. This understanding would allow an alignment of purpose and values based on the understanding that we are all a part of another, infinitely interconnected.

Author: Katrin Muff, PhD

Active in thought leadership, consulting & applied research in sustainability & responsibility, and directing the DAS & DBA programs

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Pessimism in the developed world runs rampant

This disturbing declaration came from a 2017 study of millennials by Deloitte, a financial and risk management company.  Deloitte has been surveying millennials for the past 6 years and this year they found more general anxiety about the future than ever before.  The concerns expressed included terrorism, income inequality, crime and corruption and climate change.  Interestingly, the participants regard businesses as a force for social impact, however, they believe that companies are falling short in applying their capabilities to alleviating society’s challenges. So where is the disconnect between what millennials believe corporations could contribute versus what they think they are doing to address these overwhelming social issues?

Last month Katrin Muff’s blog was related to this theme.  She wrote about her frustration with companies that cannot see beyond their own short-term self-interest.  Obviously, she is not alone with this grievance.

Over the past few years, the news has been filled with stories about companies that acted solely in their own self-interest with calamitous consequences.  Consider the Volkswagen emissions scandal or BP’s Deepwater Horizon oil spill in the Gulf of Mexico. These companies flagrantly neglected all responsibility to the environment in pursuit of profits.  And, thus, both companies suffered reputation and financial damage.

While most companies do not commit fraud as was the case with VW, many do operate as if their only reason for existing is to create as much wealth as possible for their shareholders. These companies describe themselves by the products they make and the profits they generate. Consequently, they are in danger of becoming irrelevant to customers, employees and investors, all of whom are becoming increasingly impatient with corporations that lack any social purpose.

On the other hand, many companies do take their responsibilities to society very seriously.  Rosabeth Moss Kanter, a widely-recognized expert on organizations, says that an increasing number of successful companies emphasize purpose, values and long-term institution building.  These purpose-driven companies believe that they are inherently connected to society at large, and thus have obligations as members of society beyond mere economic transactions.  That is not to imply that financial success is unimportant to these companies.  In fact, Kanter says that they embrace financial success partly if not wholly so that they can carry out their commitments to society.[1]  And in fact evidence from a 2014 Deloitte study shows that companies focusing on a broader purpose are more likely than others to achieve success for the long-term. The confidence that stakeholders place in these purpose-driven companies tends to lead to investments and growth.

Most of us want to work for companies with a distinct purpose and clear values.  A  2016 study of purpose in the workplace conducted  conducted by the consulting arm of PWC, showed that  a large percentage of all generations in the workforce, not just millennials, want to find purpose in their work. The study emphasized the following:

“A truly purpose-driven company must have purpose as its guidepost for decision-making—including the opportunities it decides to pursue and not pursue—to demonstrate commitment to responsible business leadership.”

Unilever, the company that Katrin cited in her blog last month, serves as a great example of a multinational corporation that lives its purpose every day. Their vision is as follows:

“Unilever has a simple but clear purpose – to make sustainable living commonplace. We believe this is the best long-term way for our business to grow.”

This purpose is embedded in all of Unilever’s decision-making including how they interact with their shareholders, as well as how they develop and package new products.

It is time for all companies to critically examine their roles in society. Certainly, at times our global challenges can seem overwhelming so it is no wonder that we will see alarming headlines about millennials’ pessimism! Nevertheless, we can’t become so discouraged that we are paralyzed.  It is time for all companies to act with purpose.

Of course, the business community alone can’t fix everything.  However, those of us in this community can and should contribute to finding solutions to our world’s challenges, which, at the same time, will help us make our businesses more profitable and sustainable.  And those not working in the business community can and should hold us accountable for more than merely creating wealth for our shareholders.

[1] Kanter, R.M. (2015) How purpose-based companies master change for sustainability. In R. Henderson, R Gulati and M. Tushman (Eds.), Leading Sustainable Change (pp.11-139). Oxford, United Kingdom: Oxford University Press.

Author: Dr. Kathy Miller Perkins 

Dr. Kathy Miller Perkins is a social psychologist and is the CEO and owner of Miller Consultants , a firm specializing in organizational development, executive coaching and change management. Her work involves helping companies create and sustain organizational cultures that are conducive to executing sustainable strategies. She has worked with companies such as Toyota, IBM, Kindred Health, Brown-Forman, Lexmark, Anthem, Ashland Chemical, the U.S. Military and BC Hydro.