Centrepoint

Purpose Washing: What Is It, And Why Does It Matter?

Jon Duschinsky — Wed, 14 Aug 2024 17:50:08 +0000

“Authenticity in branding isn’t just about what you say; it’s about what you do. It’s the bridge between your promises and your actions, where true connection is built and trust is earned.”

— Jon Duschinsky

Key Insight : Doing good and making money can not only be highly compatible, they are becoming more and more congruent every day.

Food for Thought

Remember “greenwashing”?

It’s a term used to describe marketing campaigns that are designed to give the impression that a company’s products are environmentally responsible, when in reality they are not. Or not really.

It has a lesser known equivalent in the purpose-driven economy.

Purpose Washing is a term that has emerged as a contemporary analog to greenwashing. It refers to the practice of businesses claiming to have a significant social purpose but failing to back up these claims with action.

So, here we go again, right? Are we back in the same place of corporations trying to put a halo on their products without doing the work to earn it?

Well, as the purpose economy movement gains steam, corporations are increasingly seeking to associate themselves with social issues in order to improve their brand image and appeal to consumers, particularly younger demographics that place a higher priority on corporate responsibility.

Which is why it is so important to start to put some structure and frameworks about what we are talking about when we use the words “purpose, driven and economy”.

Enter the Canadian Purpose-Driven Economy Project (CPEP), a relatively recent initiative borne out of work led by Coro Strandberg and United Way in Vancouver, Canada.

CPEP’s purpose is to encourage the transformation of the Canadian economy into one that is based around social impact. It is providing a space for this nascent industry to work together to set parameters, best practices and figure out how to prevent companies taking advantage of the moniker of purpose to just bolster their bottom line.

And from its work to date comes a three-point framework which involves purpose integration as well as transparency and accountability.

Social Purpose Business Adoption: By 2030, CPEP wants to have at least 25% of Canadian companies adopt, reveal, and really integrate a social purpose. This entails incorporating social goals into their fundamental interactions and operations in order to promote a culture of accountability and influence among the corporate community.

Collaboration and Ecosystem Building: CPEP is all about bringing together different stakeholders, such as corporations, the government, and civil society, to figure out the pathway to a purpose economy in partnership. And it also recognizes the importance of building capacity and an ecosystem in which purpose becomes the norm, not the exception.

Metrics and Accountability: The Nobel Prize winning economist Joseph Stiglitz famously said “You strive for what you can measure”. CPEP embodies this notion, helping define the metrics used to measure purpose and creating instruments and procedures that assist companies in quantifying their contributions to societal well-being

The work of CPEP in Canada offers a north star (no pun intended!) for what a purpose-driven economy can look like. And this collaborative model is starting to get traction in other markets as part of a global movement to set standards and frameworks that help reduce purpose-washing.

This work is both important and urgent. 56% of global opinion now believes that capitalism is causing more harm than good.

I’m now off for a few days to pick my kids up from camp up in unspoilt northern Ontario — a land of lakes and forests. And I can promise you one thing: when my girls reach my age, there will only be one type of business — purpose-driven business. The idea that making money and making a difference to society could be two different things will be as much anathema to them as driving without a seat belt is to us today.

So history has already been written.

The question is, which side of it do you want to be on?

Embracing Purpose: The New Rules for Success

Jon Duschinsky — Wed, 31 Jul 2024 17:55:28 +0000

“Purpose-driven businesses aren’t just changing the world. They’re rewriting the rules of success. When you lead with purpose, everything you do has a foundation built to outlast the competition.“

— Jon Duschinsky

Key Insight : No matter how competitive your market is, you can’t afford not to embrace purpose in your business.

Food for Thought

Check out this article.

In this edition of the centrepoint, let’s do a quick thought experiment.

Let’s imagine a world where all organizations (regardless of whether they are companies or non-profits) actively work to make the world a better place. It sounds like a fairy tale, right?

Well, buckle up, because this isn’t just some idealistic fantasy. This is a business model that smart organizations are embracing right now—and are beating their competitors with in the process.

Welcome to the Purpose Economy, where doing good and doing well go hand in hand. These aren’t 20th Century paternalistic, button-down organizations. We’re talking about companies that are rewriting the rules of the game, proving that you can have your cake and eat it too—or, in this case, make the world a better place while making healthy and growing profits.

Now, I know what you’re thinking. “Sure, it sounds great on paper, but Purpose Economy smacks of another marketing gimmick.” And perhaps: “It’s all just virtue signaling and inauthenticity!”

I hear you. And there is nothing wrong with being skeptical.

But while it’s true that some organizations might try to jump on the purpose bandwagon without really walking the talk, the real deal stands out from the crowd in a very good way. Customers, investors, and supporters alike take notice.

It’s not a flash-in-the-pan trend either—here today, gone tomorrow. Rather, while Purpose is still on the margins today, your kids and grandkids will be baffled at the idea that companies in the early 21st century just made money.

Take Lush Cosmetics. Since 1995, these folks have been walking the walk when it comes to ethical sourcing and sustainable practices. They’re not just selling soap. They’re selling a revolution in recyclable packaging. Which often translates to much less packaging. And guess what? Customers have been lathering it up for decades now.

Or consider Nudie Jeans, the denim company that’s giving fast fashion a run for its money. Free repairs? Check. Product take-back program? You bet. They’re not just selling jeans. They’re selling a whole new way of thinking about fast fashion vs. sustainable clothing. And consumers are queuing up to buy into it, with revenues growing to near half a billion.

“But what about the bottom line? Purpose is great, but it doesn’t pay the bills.”

Okay, let’s consider some cold, hard facts. Purpose-driven companies are growing three times faster than their competitors. They have a history of outperforming the market by up to 42%. And get this: today’s consumers are four to six times more likely to buy from, protect, and even champion these brands. That’s why savvy investors love these companies.

Still not convinced? How about this? A significant portion of consumers—especially Gen Zers and Millennials—are willing to pay more for products from companies committed to positive social impact. Yes, that’s the sound of ringing cash registers.

“Sounds great for big corporations, but what about us little guys?”

Size doesn’t matter when it comes to purpose. Just look at Ecosia, the little search engine that could. They’re using their profits to plant trees that they’ll never take shade beneath. And they’re not just doing the thing; they’re showing their work with transparent reporting it uses to help build trust trust much faster than it takes for actual trees to grow.

What’s more, building purpose-driven leadership into the DNA of your company leads to much faster growth, so you may not be so little for very long.

“But it’s so complicated to implement!”

Sure, change can be tough. But you know what’s tougher? Watching your competitors leave you in the dust.

Purpose-driven companies are magnets for top talent, especially among today’s young workforce. They’re hotbeds of innovation, with up to 30% higher levels of innovation. And it stands to reason, this all adds up to a happier, more engaging company culture, right?

Look at Bombas, the sock company with a simple yet powerful mission: to help those in need. For every pair of socks sold, Bombas donates a pair to homeless shelters. They’ve expanded this model to include other clothing items, donating over 50 million items to date. Bombas proves that even everyday products can be vehicles for significant social change.

“We can’t afford to focus on purpose in our cutthroat industry.”

Can’t afford it? Really, you can’t afford not to. In today’s marketplace, purpose is your competitive advantage. It’s your differentiator, your brand builder, and your customer loyalty program all rolled into one. Just ask Impossible Foods how being purpose-driven is working out for them in the cutthroat food industry.

And, finally, let’s talk talent.

In the war for the best and brightest, purpose is your secret weapon. Millennials and Gen Z aren’t just looking for a paycheck; they’re looking for a cause. Give them purpose, and they’ll bring innovation to the table every day of the week. Having a clear and activated purpose can be the deal clincher to bringing their talent to your company—and not to the competition.

The verdict?

Purpose isn’t just a nice-to-have. It’s your shield against economic uncertainty, your magnet for customer loyalty, your fountain of innovation, and your money in the bank.

Drop me a line at jon@jonduschinsky.com.

Or, book an appointment here.

Generation Next: Deloitte’s Insights into the Attitudes Shaping the Future of Work

Jon Duschinsky — Wed, 10 Jul 2024 23:18:39 +0000

“The best time to embrace Purpose was yesterday. The second best time is today.”

—Jon Duschinsky

Key Insight: Purpose-driven businesses have a clear competitive advantage over traditional business models.

Food for Thought:

Check out Deloitte’s full report here.

In this issue of the centrepoint, we discuss Deloitte’s 2024 Gen Z and Millennial Survey and what it means for you and your business or career.

Disruption.

It’s a buzzword that for some businesses is their reason for being. The products and services they sell seek to unseat incumbents with challenger offerings that undermine the competition.

The word can also strike fear in the hearts of many an established C-Suite executive because it represents an existential threat to their firms and their careers.

Yes, getting blindsided by an upstart threatening to eat your lunch has been a reality of the marketplace from time immemorial.

But never as much as today, with AI and other disruptive technologies reaching critical mass.

And it doesn’t stop there. Disruption can take many forms. Sometimes it can emerge from the characteristics and values of a new generation of team-members.

Employers are facing increasing expectations from Gen Z and Millennials, which is tilting the playing field toward a more committed, productive, and adaptable workforce ready for a world that is changing fast.

That’s because great numbers of Millennials and Gen Zs seek employment that is driven by a Higher Purpose, and they are not afraid to decline jobs that don’t fit with their ideals, or leave jobs where companies are not walking the talk.

The experts at Deloitte have taken perhaps the deepest dive ever into the trends of an emerging workforce. For 13 years its Gen Z and Millennial Survey has monitored the attitudes and trends influencing these generations. Elections, pandemics, and worldwide crises have all been tracked in the survey participants’ lives and occupations.

Deloitte’s study tracked 22,841 people from 44 countries—including North America, Latin America, Western and Eastern Europe, the Middle East, Africa, and Asia-Pacific—who were questioned for Deloitte’s 2024 Gen Z and Millennial Survey. The respondents included secondary school pupils, gig economy workers, executives, and students. While millennials were born between 1983 and 1994, Gen Z respondents were born between 1995 and 2005.

The upshot?

You can be sure that Generation Z and millennials will demand that companies are socially and environmentally responsible and expect them to have a positive impact on the world’s pressing problems. Additionally, they seek flexible work schedules, supportive work environments, opportunities for career growth, and competitive pay and benefits.

This is a highly disruptive trend for businesses who cling to old, top-down leadership models and business models that are all about the almighty dollar. BUT it represents a major opportunity for those who lean into the new cultural norms.

The massive upside to this generational disruption is that purpose-driven employees are more likely to perform at their best, be more inventive, creative, and passionate, and stick with the company longer when they arrive at work feeling that they’re not just contributing to something that matters to their superiors – but also to something that matters to them on an emotional and spiritual level.

Deloitte’s survey clearly demonstrates that companies hiring today need to embrace Purpose in order to have a workforce that is adaptable, productive, engaged, and happy. Furthermore, a comparable proportion (26%) of Gen Z and 32% of millennials report that their top leaders don’t discuss how important mental health is to their companies. This represents another opening for companies willing to invest in their employees’ well-being.

For both Gen Z and millennials, environmental sustainability is still a major worry; in the last month, 62% of Gen Zers and 59% of millennials reported feeling nervous or concerned about climate change. Both generations actively work to reduce their environmental impact. They urge businesses to support consumers in making more sustainable decisions and for governments to press companies to take greater climate action.

And the employment choices and purchasing habits of millennials and Gen Zs show this. In order to better match their employment with their environmental beliefs, two out of every ten Gen Zers and millennials have already changed careers or industries, and a further quarter of both cohorts plan to do so in the future. In addition, they actively investigate the environmental policies of the businesses they do business with and are prepared to pay a premium for sustainable goods.

While many may curse under their breath about this massive cultural shift, the astute among us will see Purpose as an engine that can bring a competitive advantage – one that just might decide who wins and loses in the coming years.

A feeling of purpose, according to the majority of Gen Zers (86%) and millennials (89%) is crucial to their general job happiness and well-being. Furthermore, the willingness of these generations to turn off jobs or employers that don’t share their ideals is growing.

In order to reap the most from their human capital, the smart leaders are listening.

Are you ready to ride this wave of disruption and make it work for you? We here at centrepoint have the expertise, trainings, and experience to provide clarity of purpose to businesses, executives, team leaders, right down to the rank-and-file. It’s what we do.

Drop me a line at jon@jonduschinsky.com.

Or, book an appointment here.

Purpose Congruence: What Is It, And Why Should You Care?

Jon Duschinsky — Wed, 26 Jun 2024 17:49:42 +0000

“Purpose Congruence should permeate your whole organization and become a core part of how you hire and build teams. Getting this right is like found money.”

—Jon Duschinsky

Key Insight: Purpose Congruence is a new term that refers to the alignment of each individual team member’s Purpose with that of the organization.

Food for Thought:

State of Purpose Governance in Canada

Purpose Congruence: What Is It And Why Should You Care?

Purpose Congruence is the alignment of individual and organizational Purpose.

It is the term that has emerged in the last few months to describe the state where the purpose of someone working for an organization intersects with the purpose of that organization.

The reason that matters is that if you come to work feeling like you’re not just contributing to something that is important to your bosses but is also important to you — on an emotional and spiritual level — then you’re more likely to bring your A-game, be more creative, innovative, passionate and stay with the organization for longer.

And all of that translates into productivity, performance and impact for the employer.

Sounds pretty simple.

But it’s not.

Lots of organizations have invested in articulating what they stand for. It’s fairly well understood across boardrooms in both for-profit and nonprofit organizations that if you clearly articulate what you stand for and take action to generate the change you want to see in the world, then you will attract more customers, donors, supporters and fans.

But in my experience, the same level of understanding does not exist around the importance of giving each person in the organization the chance to articulate what they stand for – and crucially, then helping them figure out how that intersects with the organization’s purpose.

I know, a lot of this can sound rather conceptual. Here’s a true story to illustrate it.

Sophie works in marketing and sales at a travel company whose purpose is to bring fun and adventure into people’s lives. She’s in her mid-20s and enjoys the job. The people she works with are generally fun and she gets to take at least one big trip every year.

Sophie likes her work, she’s generally happy, but she isn’t overly passionate about what she does. It’s a good job, it’s fun but if she got a better offer to work at a competitor she’d not feel too compelled to stay.

The company then invests in giving Sophie a chance to reveal her own personal purpose.

They do this through a coaching and transformation program, perhaps like our own Purpose-Driven Leadership Journey. As Sophie goes through this process she understands that what truly lights her up is teaching and inspiring kids, helping them build self-belief.

Sophie’s boss invites her to spend some time with the teams that develop new tours in Asia, and suggest that together, they might explore how to align her purpose with the purpose of the company — to create fun and adventure.

Sophie is given a few hours each week to explore and pursue this and within a few months, the team have developed a series of tours that engage with local educational NGOs and support projects working with kids.

When these tours are launched, they turn out to be some of the best selling products the company has ever run.

When the CEO looks at the numbers he finds that Sophie and the small group of the sales team that work with her are responsible for almost all those sales.

He pops by her desk to find out more and learns that her passion for these projects and for the impact they are creating has inspired others around her. The way Sophie and her friends at work talk about these projects to future clients on the phone is so compelling and authentic that they are selling them like hot cakes.

Fast forward to today, Sophie leads a team that creates social impact travel programs at this company. She has no intention of ever finding another job – at least not any time soon. And the programs that her team creates remain among the highest performing of the company.

What this story illustrates is the power of aligning an organization’s purpose and an employee’s purpose.

Here at centrepoint, we call this unique space where the two overlap the Zone of Leadership Excellence (ZLE), because it is where each of us can make our greatest contribution.

Now, what is fascinating is that most of us do not spend the majority of our time in our ZLE.

Actually, after observing and working with hundreds and hundreds of leaders and team members, we think that the percentage of time most employees spend in their ZLE is closer to 25%, sometimes less.

Now, if you pause to think about this for a moment, it’s quite baffling.

Because what this means is that if you have someone working for you who is only spending 25% of their time in their ZLE then you are only realizing 25% of the potential value of their contribution to your organization.

Why would you pay someone a full salary and only get a quarter of their value?

In a world where turnover is high, conscious quitting remains a thing and the challenges of finding and keeping good people is among the things keeping CEOs awake at night, it astounds me that we perpetuate a system where the majority of employees only deliver a fraction of their value and feel little to no emotional connection to the purpose of the company they work for.

This is why Purpose Congruence matters.

In my experience you’ll never get to 100% of time spent in a Zone of Leadership Excellence. But can you move to 50%, or even 70%? Sure. Sophie was at about 25% at the start of the story. She’s probably around 60% today, but look at the impact. Imagine if you could do that for every one of your team members?

And then, you can think about how this can also drive recruiting strategies. Rather than selecting candidates only on the basis of how they meet job descriptions, companies that prioritize Purpose Congruence can look for people whose goals in life are ready-made aligned with the business.

Having a lit up, purpose-congruent workforce demands more than just a purpose statement that is perfectly captured by a sign on a wall. It means investing in your team, giving them the chance to see how their individual purpose can integrate into the purpose of the company.

The result can be like found money.

If you are intrigued and want to explore how you could invest in your teams to get the same results as the company in this piece, then drop us a line and we would be happy to jump on a call.

Why Simply Having a Purpose is Not Enough

Jon Duschinsky — Wed, 05 Jun 2024 23:30:25 +0000

“There is nothing wrong with feel-good wordsmithing and catchy PR slogans, but you’re kidding yourself if you think that alone will change your organization. You really need to get down to business and do the work.”

— Jon Duschinsky

Key Insight: Only 24% of companies who embrace Purpose embed it into their business model (and therefore reap the benefits)!

Food for thought:

Check out this article.

In this issue of the centrepoint we discuss why it’s so important to ACTIVATE your purpose—and why you’re just spinning your wheels if you don’t take this step in your purpose journey.

Your company’s purpose statement must be more than just a catchy slogan on the office wall.

As we often say here at centrepoint, having a purpose is not a differentiator. Activating one is.

Anyone can spend a few hours in a boardroom and come up with a nifty seven-word phrase that sounds great. But actually bringing it to life in an authentic way across all facets of the organization – that’s the work. But it’s also where the benefits are.

And the benefits are HUGE.

A recent global study by Zeno showed that consumers say they are six times more likely to defend a purpose-driven company in case of a public misstep, and they are 4.5 times more likely to advocate for the company and recommend it to friends and family.

Now, these data points are about declared future intentions, and if I’ve learnt one thing over the years about people declaring their future intentions, it’s that they lie. Notwithstanding that, the point remains that people are much more likely to want to do right by a company or organization that it feels does right by them.

And this gives me the chance to bring out one of my favourite quotes: if people know what you stand for, they can stand with you. And when things hit the fan, which they inevitably will at some point, to know that you have customers, fans, suppliers, and more who will stand by you when it matters….well, there’s almost no price you can put on that.

Both my inbox and internet bookmarks are full to overflowing with surveys and studies that show how purpose-driven organizations have stronger brand reputations, more motivated employees, higher levels of innovation and creativity, a lower cost of capital, lower operating ratios, and so on and so on.

And C-suites are paying attention. More and more organizations are claiming that they have a purpose. And they may be right. They may have come up with a purpose. They may even have stuck it on the wall.

But they are not purpose-driven. To earn that distinction, you need to do the work. And it’s not easy.

It requires visionary and strong leadership. It requires courage. It requires time and patience. And investment. It requires governance. And the participation of every single person in the organization.

But when you do the work? Well, then you get the benefits!

We’ve tried to make it as simple as possible.

That’s why we developed the Purpose Paradigm, as a proven framework for activating purpose.

And the Paradigm Audit, which evaluates your company against each of the pieces of this framework so you can see where the gaps are and what you need to focus on.

But they only work if you have the vision and courage to recognise that purpose is more than just a catchy slogan on the office wall….

If you want to find out more about the Purpose Paradigm or the Paradigm Audit, and activate purpose authentically in your organization, let us know. We’d be happy to help.

Drop me a line at jon@jonduschinsky.com.

Or, book an appointment here.

How Purpose Can Help Prevent the High Cost of Burnout

Jon Duschinsky — Tue, 21 May 2024 17:29:20 +0000

“Burnout is not merely a measure of hours worked, but a reflection of the connection we feel to our purpose; when our work aligns with our passions, we find resilience even in the face of relentless demands.”

Key Insight: A clear sense of shared purpose within a team can significantly alleviate burnout by providing direction, drive, and resilience, ultimately enhancing productivity and engagement.

Food for Thought:

Check out this article.

In today’s work environments, change is the only constant and many of us are struggling to keep up.

Burnout is becoming more widespread, particularly since the pandemic. And while the end-stages of burnout are well known and recognized, the earlier phases tend to fly a little more under the radar and get mistaken for skepticism and general negativity.

These kinds of attitudes among your team members can sabotage projects and undercut performance. That’s why a clear sense of shared purpose — both as a group and individually can be one of the best antidotes.

While purpose won’t cure burnout, there is increasing evidence to show that it lifts people up, giving them drive, resilience and perseverance in the face of ongoing change.

Catching It Early In Your Teams

Emotional fatigue is one of the classic signs of burnout. You may then start to see signs of increasing cynicism and detachment in your team members. Pay attention to people growing increasingly apathetic toward their jobs, coworkers, and obligations.

According to the work of leading psychologists, when people are in the early stages of burnout, a process begins where disengagement leads to feelings of inadequacy, which in turn lead to a sense of being less successful or effective. And this can snowball quickly, having a really destructive effect on both the individual and the organization as a whole.

Why This Matters

It’s fairly obvious from both an individual perspective that burn out can have a seriously deleterious impact for individuals. But leaders often underestimate the impact it can have on the broader team.

I often say to leaders that the person with the biggest context in the room always wins. Another way of saying this is that the person who is most committed to the way they are showing up is the one who will dictate how the rest of the room shows up.

If the person with the strongest context is inspired, connected to their purpose, passionate and operating in what I call their zone of leadership excellence (ZLE)–the space where your personal purpose intersects with that of the organization as a whole–then the rest of the team will show up in a similar way. But if the person with the strongest context is negative, skeptical and disengaged, then that attitude will spread across the rest of the team like a virus.

Productivity, performance, retention and more all suffer. And this happens quickly. Much more quickly than most leaders believe.

As the person facing burnout struggles to balance the demands of their work with their decreasing mental (and possibly physical) health, then absenteeism increases. One or two sick days taken here or there do not tend to overly impact co-workers. But when a colleague is starting to be off-work regularly, then the rest of the team has to step up. And that can breed resentment and become a trigger of burnout in other team members.

And, finally, while there has been much debate about Conscious Quitting, one of the trends behind this phenomenon is younger team members choosing to prioritize their own health and well-being because they feel their employer will not. If your team does not have faith that you have their back then they really have no reason to stay and work for you.

How Purpose Alleviates Burnout

Purpose is a powerful tool to include in your toolbox. Not the only one, by any means, but a pretty effective one.

Why? A well-defined sense of purpose helps shield people from burnout by giving people direction, drive, and resilience in the face of seemingly endless challenges. Purpose-driven people are more likely to find fulfillment in their work and be satisfied, engaged, and well-off at work.

There is one thing I’ve observed about burnout which makes me believe that purpose is really important here. Burnout is not — in my experience — just about the number of hours worked. It is actually more about the state of mind and relationship to the work itself.

Now, for sure, if you’re working 85 hour weeks for months on end with no break then you’re clearly increasing your risk. But I’ve seen leaders put in hard slogs and still feel lit up, energized and passionate about what they are doing, just as I’ve seen others find it increasingly hard to just do the bare minimum to keep up.

As a result, I have come to believe that the level of connection that you feel to your purpose, and then the way that purpose lines up with your work, are both significant contributors to a propensity to burnout.

Three Things To Do to Prevent Burnout

If you are a leader in an environment where change is relentless (and who isn’t?!), it’s becoming increasingly important to do three things:

Firstly, give your team members the opportunity to get clear on their purpose (if they are not already). Programs like our Purpose-Driven Leadership Journey exist to do just that, creating spaces for team members to figure out what is “calling them”. You also want to help them identify their Superpowers — the three or four areas where they truly excel and which align naturally with their purpose.

Secondly, as part of your ongoing employee evaluation processes, work proactively to align your team members’ purposes with their job descriptions. This may involve shifting some things around — workflows may change, and roles may even evolve.

Thirdly, ensure every team member is clear on their zone of leadership excellence, or where their purpose intersects with that of the organization. This will be a unique space for each person. And this of course precludes the fact that your organization is clear on its purpose.

If you happen to be among the many at risk of burnout at work, or the leader of a team that wants to learn more, I’m hosting a free webinar this Wednesday, May 22 at Noon EST.

And you can register right here.

If you can’t attend the webinar and want to talk more about how burnout is affecting your team and how bringing a more purpose-driven approach to your team could help build resiliency, performance and profitability/impact — please reach out.