We chatted to Craig Drummond, who took over as Managing Director and CEO of Medibank in July 2016, about the power of purpose and why he thought
Most of us have an inner yearning for meaning and purpose but not many of us find that meaning and purpose in our workplaces. But that will have to change if we want our organisations to stay relevant in the future and be a winner in the war for talent.
Purpose that is well embedded shapes a whole new organisational identity from the inside out and becomes a magnet that attracts employees who are looking for a company with a higher order purpose.
Most organisations are bereft of purpose
Whilst some organisations may have had a higher order purpose at some point in their past, for many it has since withered and died. Many other organisations have been bereft of purpose from the beginning. But not many employees these days are motivated to come to work simply to make more money for their boss or their company’s shareholders. The younger generations, in particular, want much more than that.
In the absence of purpose, organisations inevitably become focused on metrics expressed as financial targets or growth objectives. Whilst an objective of maximising earnings can drive short term results, it misses our human need for purpose and the desire of most employees to engage in meaningful work. That is why an objective of simply maximising earnings is ultimately not sustainable.
Not just another “me too” organisation
Companies that seek the best and the brightest recognise that they need to demonstrate they are not just another “me too” organisation. They understand that they will need to demonstrate how they are special, different or unique and for many that will be achieved by shaping a unique organisational character that is purpose-driven and values-led.
Four stages to your purpose journey
Organisations typically go through four stages on their purpose journey. The first is to commit to the journey and get the entire Leadership Team on board before you press the “go” button. Then you go about discovering your purpose is an inclusive way knowing that you shouldn’t try to force a pre-determined outcome.
Thirdly you engage your employees in the purpose that is discovered, make it real for them and bring it to life. Lastly and most importantly you commit to embed purpose and sustain that commitment until purpose becomes your new way of organisational life.
Four critical ingredients to a successful purpose journey
There are four critical ingredients to a successful purpose journey
A. A genuine desire to make a difference
If you don’t have a genuine desire to make a difference and to make a contribution that is greater than yourself you shouldn’t even start the process. Don’t try and fake it until you make it. Aussies can pick a fake a mile off.
If however you have a genuine desire to find something that is worthy to serve beyond yourself including to improve the working lives of your people then your employees will also notice and they will back you in your endeavours.
B. Your CEO must sponsor the journey
Because purpose will impact every part of your organisation and everything it does, only your CEO or equivalent has the authority, credibility and influence to sponsor a purpose journey. If you delegate it to your Marketing or People and Culture team don’t be surprised if it doesn’t get traction. Some even delegate it even further down the line without any sponsorship or backing from the CEO. Don’t do this.
C. An inclusive and participatory process
A “top down” project in which purpose is delivered Moses-like from the mountain almost inevitably fails as employees feel like it is being done “to” them rather than “with” them. Ideally you should try to create opportunities for all employees to actively participate in the discovery of your purpose so they feel it is done “by” them and that they own the purpose.
D. A genuine and sustained leadership commitment
Purpose is not a short-term fix, nor is it something that can be delivered in a tight timeframe. It requires a genuine and sustained leadership commitment for it to be meaningfully embedded within your culture and become your organisation’s new way of life.
You can read more about purpose in Insync CEO Nicholas Barnett’s new book, co-authored with Rodney Howard, “Why Purpose Matters: and how it can transform your organisation”.