‘90% of corporate strategies fail’. Not if you think like an entrepreneur

Reading Time: 1 minute

How can you get people aligned round your strategy? How can you speed up strategic implementation?

61% of C-Suite acknowledge that they fail between strategy formulation and its day-to-day implementation. We can learn a lot from entrepreneurial business. And it’s not hard to replicate their play-book.

In his 2015 book Thirteeners Daniel Prosser claims that 87% of businesses fail to execute or implement their strategy each year. The colossal waste in money, energy and simple human joy behind that statistic is shocking. And it reflects the much-quoted earlier work by Kaplan and Norton (The Execution Premium) that 90% of strategies fail to deliver all their goals.

 

It’s not the formulation of strategy that’s at fault. It’s the inability to execute.

If this is true, just what is going on? How can this be commercially sustainable? How can highly skilled and highly paid executive teams in leading global companies be getting their basic strategy wrong 9 times out of every 10?

The truth, of course, is that they don’t. Both Prosser and Kaplan/Norton are regularly misquoted.  It’s easy to overlook the important little words “execute” and “all of their goals”. But we still have a problem. And, in an increasingly volatile and ambiguous business world, it’s a fatal handicap to future business performance. It’s not the formulation of strategy that’s at fault. It’s the inability to execute.

 

How can we bridge the gap between strategy and implementation?

According to the Economist Intelligence Unit, 87% of CE Suite say executing strategic initiatives successfully will be essential for their organisations’ competitiveness over the next three years.  Yet 61% acknowledge that they struggle to bridge the gap between strategy formulation and its day-to-day implementation.

 

“Having lost sight of our objectives, we redoubled our efforts”

Walt Kelly

In most organisations, a huge amount of energy and investment goes into strategy design and formulation. But that’s not where the problem lies. In almost all cases, it’s in an inability to execute that kills the strategy.

It’s a problem of clarity and prioritisation, with a multiplicity of competing objectives, paralysing management’s ability to act decisively and strategically.

A problem of engagement, with management, overwhelmed and unclear of priorities, disengaged and unwilling to take responsibility for fear of sanction

And a problem of communication, with line management unable to articulate strategy and align staff behind it.

 

“Fewer than 10% of employees report that they understood their company’s strategy”

Kaplan & Norton The Execution Premium

 

It’s not a problem you find in the best entrepreneurially-minded businesses.

Over 20 years of working on strategy with both the best entrepreneurial businesses and the biggest corporate businesses, I have observed a fundamental difference in the cultural approach to strategy between the two.  And I believe that difference is at the heart of the costly execution problem in corporate business.

That difference is as simple as this: fast-moving, entrepreneurially-minded businesses actively engage their people at every level so that they not only clearly understand strategy but take ownership of it.

Of course, that’s easily done in a small or flat structure. But this is not just a matter of structure and scale. It’s a matter of human beliefs and behaviours.  It can and does work in organisations of any size. But it requires a complete change of attitude.

Key to this approach is having management first identify and emotionally engage with the purpose that exists behind the strategy. This starts at the top but ultimately needs to happen at every level required to execute the strategy. It’s a radically different approach to the imposed top-down, ‘strategic launch’ approach of most large companies.

 

“High performance people do better work if they understand the context…the best managers figure out how to get great outcomes by setting the appropriate context, rather than by trying to control their people”.

Reed Hastings, Netflix

 

First, understand the ‘Why?’

By first understanding the context (the ‘why’), it’s far easier to take ownership and responsibility for the strategy (‘what’ needs to be done).  By then working through a structured process of prioritisation it’s possible to see with clarity how this can be achieved.

That resolves the first execution problem of a lack of clarity, with competing objectives paralysing management’s ability to act decisively and with velocity – and that can be critical. As Baum and Wally conclude in their work “Decision Speed and Financial Performance ‘there is a particularly clear association between strategic decision-making speed and subsequent commercial performance’.

 

Build a culture of trust

And there’s a second feature of entrepreneurial management teams that has been lost in traditional corporate hierarchies; trust.   A lack of trust leaves middle management unwilling to take responsibility for fear of sanction. It creates the familiar sclerotic cultures of endless meetings and analysis which are the hallmark of a culture fundamentally unable to take responsibility. After any time spent in a typical UK corporate it will become abundantly clear why high-trust cultures are 50% more productive (Paul Zak).

 

Communicate to inspire

Clarity of context and a culture of trust also resolve the third problem of strategic execution; communication. If management are confused as to the purpose the strategy serves and unwilling to take responsibility for it, they can hardly be effective in communicating it to, and inspiring, their teams. It’s hardly surprising that, in most organisations, the vast majority of employees haven’t the first idea of what the strategy is – and that’s a major disincentive to effort and commitment.

Entrepreneurial management has long been adept at navigating the kind of volatile, uncertain and ambiguous business world corporate organisations are increasingly having to face. In this new world companies with a desire to survive need to learn the lessons of contextual clarity and trust that allow entrepreneurial businesses of any size to be strategically agile, adaptable and fast.

But for that to happen someone in the organisation needs to take some self-responsibility for changing how things are done. And that will never happen….

 

 

If you enjoyed this article you may enjoy these too:

The awesome productive power of keeping the main thing the main thing

How to make your people 30% more engaged, 29% more joyful and 26% more productive. Easily.

How one word helped an ambitious new CEO reinvent his strategy, transform his team and set his business on a path to a €1bn target

 

John Rosling is a writer and lecturer on entrepreneurship, CEO of Contexis and Head of Thought at the Contexis Index; ever curious as to how entrepreneurial thinking is the key to activating purpose, stimulating agility and velocity and fulfilling human and commercial potential in global organisations.

 

Photo by Steven Lelham on Unsplash


Purpose transforms performance. But if you can’t measure it how can you implement it?

Reading Time: 1 minute

How do you know if purpose is working effectively in your culture.  And if it isn’t, why not?

Here’s a promise; purpose can transform your organisation’s performance.  If you get purpose right you can expect to see a gain of at least 30% in engagement, 29% in joy and 26% in productivity, based on your median employee.

It’s a claim we can make based on the impact of purpose on human and business performance in a whole range of companies.  And we’ve seen the same results in companies from global multinationals to fintech entrepreneurs.

Purpose is at the heart of all the best agile, entrepreneurial businesses.  But that is only half the story.

It’s accepted that purpose-led companies are more attractive and empowering places to work.  It’s increasingly claimed that purposeful companies also out-perform their profit-driven peers. But, if so, why?

We’ve always been fascinated with what drives human performance and productive cultures in organisations.  Specifically, in the differences between agile, entrepreneurial businesses and scaled, legacy corporate ones. We have spent years observing and codifying the differences between the entrepreneurial and corporate businesses we work with.  In doing so, we have identified a whole basket of behavioural differences. Fundamentally, they come down to one word – ‘purpose’.  But not in the way you may think.  It’s  not about having a purpose.  But what you do with it.

Yes, the best agile, entrepreneurial businesses are obsessively clear about why they do what they do.  But that’s not the whole story.  They also exhibit a set of specific cultural attributes that activate purpose to drive startling levels of human motivation and performance.  And exactly those same cultural attributes are largely suppressed in most scaled businesses – stunted by time, complexity and legacy.

The cultural attributes that enhance both human meaning and business performance

Developing this model of purpose activation got us wondering.  Is it possible then to measure purpose?  Is is possible to create robust metrics of purpose impact, and could that model show exactly how purpose works to improve performance? If so, could it enable any organisation to emulate the best agile organisational cultures? By adopting the right mix of cultural attributes can any business activate purpose to enhance both human meaning and business performance?

To find out, we teamed up with leading academics and researchers led by Cambridge University and Plymouth University.  Together, we spent two years building just such a measurement process. This is based on assembling, for the first time, world-leading academic scales of performance measurement into one model. The model measures the key human performance factors known to support sustained organisational performance. It then seeks to understand the causality of these by linking each back to purpose through the assessment of a defined set of cultural characteristics.  In this way, the model both measures the impact of purpose and demonstrates how it is working in the organisation.

The model measures the key human performance factors which impact performance and demonstrates how it is working

The Index gathers data from a representative sample of employees via an on-line survey or app.  This is not a subjective, external view of purpose, nor is it based on proxy measures.  It provides a clear metric of purpose performance that can be bench-marked internally, over time and against peer comparitors.  It represents an uncompromisingly accurate view of how purpose is working and where it is blocked in the real business, in real time.  Results are provided by demographics (age, sex, seniority, location etc) via an interactive dashboard and in a detailed report with specific analysis and recommendations.

It’s not purpose but activation that matters

So, what does the model reveal?

Firstly, can you measure purpose?  The answer is absolutely yes.

And can you measure the impact that purpose has on the performance of real businesses in real time, using robust numbers that can be bench-marked over time and between businesses and sectors?  Again, the answer is yes.

It is clear that an activated purpose galvanises specific human behaviours, and it is these behaviours that drive commercial performance. The key question is what characteristics in the organisational culture activates purpose to allow for these performance gains – and what is missing when purpose is suppressed.

One factor dwarfs all others – whether someone considers their employer to be purposeful

There are multiple factors that determine employee performance.  But one factor dwarfs all others.  Those employees who consider their employer to be purposeful score between 25% and 100% more positively than the median employee across a broad range of performance attributes. This includes, of course, engagement but also autonomy, openness, clarity or strategy, velocity, joy and many others.  The are also 30-50% less likely to quit.  And the key cultural factor that activates purpose to achieve these performance gains appears to be the presence of emotional ownership and an assumption of trust.

What this means for you

What this means is that the simple act of engaging all staff with a clear and inspiring purpose will indicatively lead to performance gains of 25%, and in extreme cases 100%, and a reduction of staff turnover by at least 30%.

It shows, for the first time, that the key activator of this effect is not a statement of purpose but may be the creation of a culture of trust and emotional ownership.

And it allows you to identify accurately, and with extraordinary detail, specific communities where the impact of purpose is blocked.  It then allows you to track the impact of interventions or communication on these individuals and and to adapt these in real time to maxmise the effect with real efficiency.

What do the companies who have take the Index so far  have to say?

All the companies who have taken the Index so far have revealed startling new insights into how and where purpose is working and where its effect blocked.

“This has fundamentally changed how we think about our people and their motivation.  The clarity it’s brought  has been extraordinary.” FTSE PharmHealthcare

It has also enabled them to design highly targetted interventions with a great deal of confidence, since they are based on reliable empirical data, and ‘pulse’ survey all or specific groups in the business to assess their impact in real time.

“Without Purpose, a company can only flipflop around without truly consolidated, effective effort.  What Contexis has developed is a very clever way to measure the impact of purpose on performance, enabling companies to really motivate their teams.  Contexis Index did it for us!” Fintech challenger

By undertaking this analysis you will develop remarkable insights into how purpose is working in your organisation and where it is not.  You will also be joining companies around the world in supporting important research into how purpose drives commercial performance by contributing wholly anonymised data to the University of Cambridge.

To find out more about how the Contexis Index can transform the impact of purpose in your business, and how you can help this important research please get in touch.

To find out more about the thinking behind the methodology you might enjoy this short EthWord film

You may also enjoy these articles:

How to make your people 30% more engaged, 29% more joyful and 26% more productive.  Easily.

The Neuroscience of Trust

How one of the world’s largest financial institutions got more than it bargained for in implementing purpose

John Rosling is a writer and lecturer on entrepreneurship, CEO of Contexis and Head of Thought at the Contexis Index; ever curious as to how entrepreneurial thinking is the key to activating purpose, stimulating agility and velocity and fulfilling human and commercial potential in global organisations.


It’s not about having Purpose, it’s what you do with it

Reading Time: 1 minute

What drives high-performing, agile businesses? What do they have that is missing in so many sluggish ‘corporate’ organisations?

It’s a question that we have become obsessed with – and spent the last couple of years researching with leading institutions including the Universities of Cambridge and Plymouth.

It’s a question we think we may just have answered.

The missing link

That answer is rooted in how agile, entrepreneurially-minded organisations behave. Yes, it’s about clarity of purpose. But it’s more nuanced than that. In large organisations, beset by complexity and legacy-thinking, there’s a missing link between Purpose at the top and how it is received in the real business. That gap doesn’t appear in the best entrepreneurial businesses.

There’s a missing link between Purpose at the top and how it is received in the real business

By studying entrepreneurial thinking, combined with cutting-edge academic research, we believe we’ve identified why that is – and codified it into a tool any business can use to transform organisational performance. Our research can show you where this gap exists in your company, however large or complex, and provide the data to support targeted programmes of change.

And in gaining this key insight you are also contributing to important global research.

It’s clear that Purpose-led companies are more attractive and empowering places to work. In some circumstances they can also commercially outperform their profit-led peers. As a result, 90% of CEOs now claim to be actively engaged in implementing or exploring Purpose. And many are finding it’s making not a jot of difference to the beliefs and behaviours of their people.

What has not previously been clear is why the gap between purpose and impact exists, how it can be bridged in the unique circumstances of a particular organisation, and the specific pathways that directly link Purpose to the performance of the business. Without this clarity, it is hard to fully activate Purpose in a business.

The entrepreneurially-minded businesses where this gap does not exist

The Contexis Index® provides this clarity, with robust metrics that reveal how Purpose is working and where its effect is blocked. The Index is the result of research into high performing businesses, and particularly entrepreneurially-minded businesses, by Contexis and researchers at the Universities of Cambridge and Plymouth. It employs rigorous measurement scales to assess a broad range of organisational performance metrics and links these back to Purpose through a defined set of cultural characteristics. The Index provides these metrics, in detail, by demographic (age, sex, seniority, time in business etc.) and location.

The Contexis Index® reveals how Purpose is working and where its effect is blocked.

Data for the Index is gathered via an on-line Survey or smartphone App. Results are provided in an interactive Dashboard that allows you to interrogate the data in real time and compare the performance between demographic groups across the business, or in a detailed Report with data presented graphically together with detailed analysis and recommendations.

And can the gap be bridged?

So far, the results of the initial companies to take the Index whether they are entrepreneurial businesses or complex corporates have been remarkable. Purpose does drive performance. But only where it is activated. Activated purpose leads to an average increase (over the median employee) of 30% in engagement, 36% in openness to new ideas, 29% in joy and 26% in performance. And the results are showing how this activation is achieved and the specific cultural markers that appear to bridge the gap between stating a purpose and bringing it alive in the business.

Purpose does drive performance. But only where it is activated.

As Rupert Lee-Browne, CEO of FX group Caxton, observes “Without Purpose, a company can only flipflop around without truly consolidated, effective effort. What Contexis has developed with its Index is a very clever way to measure the impact of Purpose on Performance, enabling companies to really motivate their teams. Contexis Index did it for Caxton”.

And this is where you come in..

We are now looking to work with a small number of additional companies. We have the research funding to conduct a pro bono analysis of a limited number of organisations and we are looking for specific types and scales of organisations. I’d love to hear from you if you would like to know more.

By undertaking this analysis, you will develop remarkable insights into how purpose is working in your organisation and where it is not. You will also be supporting important research into how ethics drives commercial performance by contributing wholly anonymised date to the University of Cambridge.

To find out more about how the Contexis Index® can transform the impact of Purpose in your business and how you can help in this important research please get in touch.

To find out more about the thinking behind the methodology you might enjoy these short films

John Rosling is a writer and lecturer on entrepreneurship, CEO of Contexis and Head of Thought at the Contexis Index®; ever curious as to how entrepreneurial thinking is the key to activating purpose, stimulating agility and velocity and fulfilling human and commercial potential in global organisations.

Photo by Shirly Niv Marton on Unsplash


How can inspirational entrepreneurs drive social progress?

Reading Time: 1 minute

EY are doing great work spreading the message that purpose is brilliant for business, and we enjoy reading and sharing their insights.

We particularly love this article which brings together purpose and our other passion - entrepreneurship.

Entrepreneurs play a key role in creating a world that works better – through the jobs they create, and through their ingenuity, can-do approach and a focus on leaving a positive legacy

Read the full article here


Purpose drives performance. End of…

Reading Time: 4 minutes

If you are occasionally frustrated by the sometimes woolly debate about Purpose, you are not alone.  It’s made us determined to definitively prove that Purpose-led businesses are better businesses – both ethically and commercially. And to do that we needed to measure exactly how Purpose is working to drive performance in real companies today.

We are determined to definitively prove that Purpose-led businesses are better businesses – both ethically and commercially.

After extensive work with Cambridge University, the University of Plymouth and others we think we’ve cracked it. We think we can now definitively measure the impact of Purpose and, in doing so, help companies to understand how it is working in their business – and where it is not.

We think that this could play a part in promoting a better way to do business. And if that sounds like a useful ambition you can help take this research to the next stage – and, as a bonus, find out how Purpose is really working in your own business.

 

We know Purpose inspires and engages employees. But, if Purpose is driving strategy it also creates clarity and velocity – critical in today’s ambiguous business world.

Employees who get your purpose perform, on average, 26% better than the median employee

The positive benefits of Purpose are clear in terms of employee engagement and wellbeing. But that tells only half the story. Circumstantial evidence has been around for years that Purpose-led businesses can commercially outperform their profit-led peers. But why? What has not previously been clear is why and how Purpose drives this commercial performance; and the specific pathways that directly link Purpose to the performance of the business.

Without this evidential clarity, it is hard for organisations to understand and fully implement and activate Purpose.

 

If you can’t measure it, what’s the incentive to change?

That’s why, working with leading researches and academics, we’ve developed an Index to provide robust metrics that reveal how Purpose is working and where its effect is blocked. The idea is to give companies the evidence that will enable them to run their business more compassionately for their people, more ethically for society and more sustainably for the planet. And to design highly targeted interventions and cultural change programmes with a great deal of confidence since they are based on reliable empirical data.

The new Index employs rigorous measurement scales to assess a broad range of organisational performance metrics and links these back to Purpose through a defined set of cultural characteristics. This provides, for the first time, a comprehensive analysis of the drivers of an activated Purpose on organisational performance. The Index provides these metrics, in detail, by demographic (age, sex, seniority, time in business etc.) and location.

Initial results have been remarkable; and remarkably consistent

In aggregating these metrics, the Index provides a single headline measure of business performance in three defined areas of activity; people, culture and management/leadership. Within each of these areas the Index provides a measure of the specific behavioural characteristics that are known to be primary influencers of performance. The Index then measures the critical moderating characteristics of ownership, trust and contextual clarity that are seen to act as pathways between Purpose and performance outputs.

Data for the Index is gathered via a simple on-line Survey or smartphone App taken by all or a sample of employees. The App also offers the ability to ‘pulse’ survey all or specific groups in real time to assess and test changes as the result of interventions or announcements in the business.

 

And what does it prove..?

It’s early days but initial results have been remarkable; and remarkably consistent whether a small private business or a complex corporate. Purpose drives performance. End of..

Put another way, employees who get your purpose are, on average 30% more engaged, 36% more open to new ideas, 42% stronger in feelings of ownership and self-responsibility and 44% in trust, 29% more joyful – and they perform fully 26% better than the median employee. And the methodology is starting to
show exactly how these impacts can be achieved.

As Rupert Lee-Browne, CEO of FX group Caxton, observes “Without Purpose, a company can only flipflop around without truly consolidated, effective effort. What Contexis has developed with its Index is a very clever way to measure the impact of Purpose on Performance, enabling companies to really motivate their teams. Contexis Index did it for Caxton!”.

 

And now we need your help

You can help take this research to the next stage – and, as a bonus, find out how Purpose is really working in your own business

We are now ready to open the analysis to the next tranche of companies. We have the research funding to conduct a pro bono analysis of a limited number of organisations and we are looking for some very specific types and scales of companies. I’d love to hear from you if you would like to know more.

By undertaking this analysis, you will develop remarkable insights into how purpose is working in your organisation and where it is not. You will also be supporting important research into how ethics drives commercial performance by contributing wholly anonymised data to the University of Cambridge.

To find out more about how the Contexis Index can transform the impact of Purpose in your business and how you can help in this important research please get in touch.

To find out more about the thinking behind the methodology you might enjoy this short EthWord film

 

John Rosling is a writer and lecturer on entrepreneurship, CEO of Contexis and Head of Thought at the Contexis Index; ever curious as to how entrepreneurial thinking is the key to activating purpose, stimulating agility and velocity and fulfilling human and commercial potential in global organisations.

 


Purpose: If you can’t measure it, what’s the incentive to change?

Reading Time: 3 minutes

Our ambition is to measure the commercial impact of Purpose and show specifically how Purpose is acting to change human behaviours and drive business performance.

It’s widely accepted that Purpose-led companies are more attractive and empowering places to work. But can it be indisputably and empirically proved that ethical businesses also commercially outperform their profit-led peers? Is a robust measure of Purpose Efficacy possible?

Can it be indisputably and empirically proved that ethical businesses also commercially outperform their profit-led peers?

A clear set of purpose metrics

If it is, it could have a significant impact on promoting a better way to do business globally. It would enable organisations of all sizes to embed Purpose and ethics into their strategy, confident of the long-term benefits to commercial performance and value creation, based on a clear set of metrics and an understanding of exactly how Purpose can drive performance in their specific organisation. The Contexis Index® solves the measurement problem for the first time, providing credible metrics based on the latest academic thinking on the impact of Purpose on human performance in businesses today and showing how this is working so that you can activate Purpose right across the business to enhance staff and societal wellbeing whilst also supporting long-term value creation.

The Index is the result of research into high performing businesses by Contexis and researchers at the Universities of Cambridge and Plymouth.

The Index is the result of research into high performing businesses by Contexis and researchers at the Universities of Cambridge and Plymouth. It employs rigorous measurement scales to assess a broad range of organisational performance metrics and links these back to Purpose through a defined set of cultural characteristics. This provides, for the first time, a comprehensive analysis of where the gaps exist between Purpose and organisational performance. The Index provides these metrics, in detail, by demographic (age, sex, seniority, time in business etc.) and location.Data for the Index is gathered via an on-line Survey or smartphone App. Results are  provided in a detailed Report with data presented graphically together with detailed analysis and recommendations.

Are you clear as to how purpose is really working in your organisation?

Running the Index through your business will give you a clear understanding of how Purpose is working in your own organisation and where its effect is blocked. It will also enable you to design highly targeted interventions with a great deal of confidence since they are based on reliable empirical data and ‘pulse’ survey all or specific groups in the business to assess their impact in real time.

And in gaining this insight you are also contributing to important global research.

Running the Index through your business will give you a clear understanding of how Purpose is working in your own organisation and where its effect is blocked

We are now ready to open the analysis to the next tranche of companies. We have the research funding to conduct a pro bono analysis of a limited number of organisations and we are looking for some specific types and scales of organisations. I’d love to hear from you if you would like to know more.

By undertaking this analysis, you will be joining companies around the world in supporting important research into how ethics drives commercial performance by contributing wholly anonymised date to the University of Cambridge. You will also develop remarkable insights into how purpose is working in your organisation and where it is not.

To find out more about how the Contexis Index can transform the impact of Purpose in your business and how you can help in this important research please get in touch.

To find out more about the thinking behind the methodology you might enjoy this short EthWord film

 

John Rosling is a writer and lecturer on entrepreneurship, CEO of Contexis and Head of Thought at the Contexis Index; ever curious as to how entrepreneurial thinking is the key to activating purpose, stimulating agility and velocity and fulfilling human and commercial potential in global organisations.

 

Photo by Smart on Unsplash


How to make your people 30% more engaged, 29% more joyful and 26% more productive. Easily.

Reading Time: 3 minutes

What powers the performance of the most successful companies on the planet? What do they know that is lost on so many slow-moving traditional organisations?

It’s a question that we have spent the last couple of years researching with leading institutions including the Universities of Cambridge and Plymouth.

It’s a question we think we may have answered.

The purpose gap

That answer, of course, is rooted in the cultures of these organisations. Culture is unique to a particular organisation and takes years to build. But what if the key elements of how agile entrepreneurially-minded organisations behave could be codified and therefore replicated? What if it could be understood ‘at source’?

 

there’s a missing link between Purpose at the top and how it is received in the real business

Yes, it’s about clarity of purpose and that’s nothing new – 90% of CEOs now claim to be actively engaged in implementing or exploring Purpose. But it’s more nuanced than that. In large organisations, beset by complexity and legacy-thinking, there’s a missing link between Purpose at the top and how it is received in the real business.  That gap doesn’t appear in the best entrepreneurial businesses.

By studying the very best entrepreneurial thinking, combined with cutting-edge academic research, we believe we’ve identified why that is. It’s not about having a social purpose – it’s what you do with it.

Our research identifies 9 key attitudinal behaviours which drive business productivity and performance. And, in entrepreneurial businesses, these behaviours appear to be the outcomes of an actively engaged purpose. The key question is what is the source of these productive behaviours – and what is the missing link in more hierarchical, corporate organisations?

 

It’s not about having a social purpose – it’s what you do with it.

It’s clear that these ‘entrepreneurial’ behaviours are, to some degree, suppressed in most corporate organisations.  And the source of this appears to lie in a weakness in three key cultural markers; ownership, trust and contextual clarity. Research suggests that Purpose in the absence of these is unable support the positive performance behaviours typical in an agile culture.

A lack of ownership, trust and clarity creates a gap between purpose and people in the business.

 

And that’s where the Contexis Index® comes in. By understanding the cultural relationship between purpose and performance and codifying this, our research creates a tool that any business can use to transform its human capital and organisational performance.

The Index is a measurement tool that provides robust metrics that reveal how Purpose is working and where its effect is blocked.  It employs rigorous scales to assess a broad range of organisational performance metrics and links these back to Purpose through a defined set of cultural characteristics. The Index provides these metrics, in detail, by demographic (age, sex, seniority, time in business etc.) and location.

Data for the Index is gathered via a simple on-line Survey. Results are provided in a detailed Report with data presented graphically together with detailed analysis and recommendations. This will enable you to design highly targeted interventions to bridge the gap with a great deal of confidence since they are based on reliable empirical data.

And can the gap be bridged?

So far, the results of the initial companies to take the Index, whether they are entrepreneurial businesses or complex corporates, have been remarkable.

Purpose does drive performance. But only where it is activated.

Activated purpose leads to an average increase (over the median employee) of 30% engagement, 36% in openness to new ideas, 29% in joy and 26% in performance. And the results are showing how this activation is achieved and how to bridge the gap between stating a purpose and bringing it alive in the business.

As Rupert Lee-Browne, CEO of FX group Caxton, observes “Without Purpose, a company can only flipflop around without truly consolidated, effective effort. What Contexis has developed with its Index is a very clever way to measure the impact of Purpose on Performance, enabling companies to really motivate their teams. Contexis Index did it for Caxton”.

And this is where you come in..

We are now ready to open the analysis to the next tranche of companies. We have the research funding to conduct a pro bono analysis of a limited number of organisations and we are looking for some specific types and scales of organisations. I’d love to hear from you if you would like to know more.

By undertaking this analysis, you will develop remarkable insights into how purpose is working in your organisation and to what extent the key markers of ownership, trust and contextual clarity are activating purpose across the business.

You will also be supporting important research by contributing wholly anonymised date to the University of Cambridge.

To find out more about how the Contexis Index can transform the impact of Purpose in your business and how you can help in this important research please contact me at jrosling@contexis.com.

To find out more about the thinking behind the methodology you might enjoy this short EthWord film 

 

John Rosling is a writer and lecturer on entrepreneurship, CEO of Contexis and Head of Thought at the Contexis Index; ever curious as to how entrepreneurial thinking is the key to activating purpose, stimulating agility and velocity and fulfilling human and commercial potential in global organisations.

 

Photo by David Iskander on Unsplash


Our pick of the best FIVE articles for purpose-led leaders in 2017

Reading Time: 2 minutes

Read, digest and critique our pick of the best 5 articles for purpose-led leaders in 201​7.

1.  The Aspen Institute: ​Can We Make It Safe (Again) for CEOs to Lead with Purpose?

Shortly before the end of the second World War, Fortune published a statement by a forward-looking group of American CEOs called A Framework for a Postwar Economy​”​​. The third sentence began, “The Economic system is a tool for achieving the common good..”  Profitability without advancing the common good was failure.

Today’s social and economic context is, once again, forcing business leaders to rethink what they were taught about the purpose of business. ​And CEOs need ​to talk about their company’s purpose, not just as a philosophy, but as a strategic tool that helps guide business choices.

 

2.  ​Havard Business Review: The Neuroscience of Trust

Building a culture of trust makes a meaningful, measurable difference to companies. And according to PwC’s 2016 global CEO survey, 55% of CEOs think that a lack of trust is a threat to their organisation’s growth. But where do you start and how do you avoid ‘karaoke Friday’ and psychological fads?

Paul J Zak has been researching the relationship between trust and economic performance since 2001, both mathematically and behaviourally, and his article for HBR summarises the last ten years of neurological research as well as identifying eight management behaviours that build trust.

 

3. LSE: Performance needs purpos​e

The pay-for-performance practices that dominate the corporate world are built on a foundation of standard economic theory. People act in their own interests, so they’ll work harder if there’s money on the table.

Yeah, right. Just as behavioural economics has shown standard theory to be terrible at predicting human behaviour, there’s little connection between pay for performance and the volumes of academic research on motivation and goal setting…”it’s like we studied human behaviour and flipped the findings on their head.”

James Elfer argues that firms seeking higher performance should look to modern self-determination theory and encourage purposeful work to drive better performance.

4.  EY: How can purpose reveal a path through disruption?

“The human story as it’s unfolding now is a bit of a cliff-hanger,” says Valerie Keller, EY Beacon Institute Global Leader.  “Automotion, digitalization and ongoing economic and political volatility are inspiring a great searching of the corporate soul.  A new idea – and ideal – of successful business in the 21st century is emerging” purposeful business.” 

It is relatively easy for a company to adopt the rhetoric of a feel-good purpose that articulates an aspirational reason for being.  But actually living, breathing and effectively demonstrating a commitment to that purpose is an infinitely larger task.  Yet it is an effort that can pay off substantially in our disrupted world.  

 

5: Huffington Post: Purpose-Driven Business Can Help Rebuild Trust

Ah, trust. That old chestnut. Today, trust in government and other institutions, including business, is at an all-time low. But Paul Polman argues that with the UN Sustainable Development Goals, we have a roadmap for shared purpose, and above all a partnership for the common good. It will take strong leadership and moral courage in order to bring purpose-driven, socially accountable business models from the margins to the mainstream.  If we can, then what better way to restore trust than with purpose? 



Entrepreneurial businesses know a simple truth; people who own also care

Reading Time: 3 minutes

What drives agility in large, complex organisations? Most have spent a great deal of time, trouble and money creating and communicating a clear Purpose. And most are finding it’s making no difference to the behaviours in the organisation. There is a gap between the purpose at Board level and the experience of employees and customers.

Entrepreneurially-minded organisations achieve agility not by having a purpose but what they do with it.  These agile and entrepreneurially-minded businesses exhibit a clearly defined set of drivers within their cultures that are the secret to bridging the Purpose Gap.

The first of these, TRUST, we discussed in our previous article The second is a feeling of, and desire for, OWNERSHIP.

Unless everyone in the organisation feels – and feels allowed to feel – a powerful sense of ownership of the business, it will not flow through into agile employee behaviours.  Organisations in which everyone feels an emotional investment exhibit employee behaviours of alignment and engagement. If you feel you own something you can’t but care strongly about its success, and work enthusiastically towards that goal.

And there’s something even more powerful. People who feel ownership will also act autonomously to serve the good of the company, rather than wait to be directed. Autonomy is the source of agility in a world in which there just isn’t time any more to always be asking the boss.

[pullquote]If you feel you own something you can’t but care strongly about its success, and work enthusiastically towards that goal.[/pullquote]

These cultures find employees going out of their way to service customers beyond the call, find innovative solutions, and protect the company from harm.

Entrepreneurial businesses know a simple truth; people who own also care. Without ownership people agility is weak and customer value compromised.

So, how can complex corporate organisations, in which employees don’t meaningfully own the company, replicate the feeling of ownership typical in entrepreneurial businesses? How can they create Employee Agility through that desire for ownership?
[pullquote]Autonomy is the source of agility in a world in which there just isn’t time any more to always be asking the boss.[/pullquote]

Contexis Purpose Gap_v3_3The critical point is that a feeling of ownership has little to do with who physically owns the stock. It has everything to do with belief. And the simplest and most compelling route to creating a culture of ownership with its attendant benefits of Employee Agility is to create a belief in the ownership of the purpose the organisation serves. In doing so, everyone in the organisation will develop the mindset of the owner and have a sense of responsibility for outcomes.  

So, how is this achieved? By creating a critical shift in how people at every level of the organisation think and behave. The first step to creating a culture of ownership is to develop a culture of TRUST described in my previous article.

It’s then a matter of reframing the relationship between the company and the employees from one of control to one of self responsibility. It’s about creating a new adult-to-adult relationship in which every employee is given the opportunity to accept responsibility for outcomes and in which, in every team, people are acknowledged and rewarded for taking this self-responsibility. The critical building-block of this is in the relationship between each team member and their immediate boss and the way to do this is to provide managers with the skills and awareness of a new way of working. A way much more akin to entrepreneurial management.

This may sound a lot harder than it actually is. Assuming the purpose the business serves is authentic, compelling and well articulated, most people will instinctively feel a sense of ownership. If the business operates in a paradigm of trust (see article), most people will feel empowered to take responsibility. With consistent and effective management the transition from control to self-responsibility will be a natural process and the behaviours of engagement, autonomy and shared commitment will emerge.

And for those who don’t? Well, they leave.

To find out about the other key drivers of entrepreneurial agility in large organisations, read here and here.

You might also enjoy these articles:

‘Most big companies won’t have the velocity to see out the decade’. Survival tips from the ones wearing the running shoes.

How thinking like an entrepreneur could make corporate organisations 26% more productive

Purpose transforms performance. But if you can’t measure it how can you implement it?

 

Photo by Brooke Lark on Unsplash


WE BELIEVE

that when purpose drives strategy in an environment of trust, it creates passionately engaged people, innovative cultures and clear and high-velocity management. We call this entrepreneurial thinking. And it leads to unstoppable change.

STAY WITH US
Contact Us

+44 (0) 207 692 8393
hello@contexis.com

22a St James’s Square
London, SW1Y 4JH