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.