PURPOSE-DRIVEN LEADERSHIP FOR THE 21ST CENTURY: HOW CORPORATE PURPOSE IS FUNDAMENTAL TO REIMAGINING CAPITALISM

2017-2019 GLOBAL CEO STUDY -

LEADERS AT THE FOREFRONT of a THE NEW BUSINESS LOGIC

In-Depth Conversations with 30 CEOs of

Global Companies PROVIDE FRESH INSIGHT ON THE NEW ROLE OF BUSINESS in SOCIETY

There’s been significant uptick in discourse around the ROLE OF CAPITALSM in society and questions about whether the economic system is under threat.

 

THIS SUMMER 2019  - The 2019 Leaders on Purpose CEO study, which includes interviews with CEOs from BMW, PayPal, L'Oreal, Procter and Gamble, Kohler and others, provides new insight into the challenging and changing role of business in society and can serve as a model for capitalism. Coupled with the 2018 study, 30 CEOs share tangible examples of the impact of their decision to embrace and anchor their business around PURPOSE.

 

First insights indicate and elaborate in-depth on 

PURPOSE IS THE AMBITION TO CREATE VALUE BY CONTRIBUTING TO THE WELFARE OF SOCIETY

There’s been a significant uptick in the discourse around the ROLE OF CAPITALISM in society and questions about whether the economic system is under threat.

 

THE LEADERS ON PURPOSE CEO STUDY 2019 REINFORCES THE ROLE CORPORATE PURPOSE PLAYS FOR NEXT GEN CAPITALISM. This report demonstrates actionable and concrete ways that CEOs and corporate leaders are leveraging their purpose to advance the dual ambitions of promoting business success and social wellbeing.  Each of our four chapters facilitates a deep dive into areas that identify and analyze examples of actionable corporate purpose in practice:

THE NEW BUSINESS LOGIC

The emergent pillars of what we call the 'New Business Logic’ -  Uncovering six fundamental themes. This section frames how business leaders today place purpose at the core of corporate strategy, pushing the boundaries of traditional business models towards a corporate purpose anchored approach.  

Partnerships for collective impact

Purpose-driven partnerships for impact address interrelated challenges -  A ‘checklist’ for the most important attributes leading to successful partnerships. These include the readiness of the organization, shared purpose, partner characteristics, operational

alignment, and robust communication.

FIT FOR THE FUTURE

Techniques for unleashing purpose and promoting skill sets of the future - In addition to addressing short-termism and other challenges, it is critical that organizations are Fit for the Future. This section explores how leaders can cultivate serendipity to capitalize on unexpected events.

ORGANIZATIONAL AGILITY AND FLOW

Organizational design is evolving in service of a new purpose-driven business model -

How CEOs are unleashing human potential and improving the flow of information, ideas, energy, capital, and material to better serve their stakeholders and the global context.  

participant ceos in 2018-2019 

Hubert Joly
CEO, Best Buy
Harald Krueger
CEO, BMW
Remi Eriksen
CEO, DNV-GL
Jay Gould
CEO, Interface
Barri Rafferty
CEO, Ketchum
David Kohler
CEO, Kohler
Laura Kohler
Member BOD, Kohler
Jean Paul Agon
CEO, L’Oréal
Anand Mahindra
CEO, Mahindra & Mahindra
Dan Schulman
CEO, Paypal
Frans van Houten
CEO, Philips
David Taylor
CEO, Procter & Gamble
Bill McDermott
CEO, SAP
Johan Torgeby
CEO, SEB
Kaan Terzioğlu
CEO, Turkcell
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participant ceos in 2017-2018 

Pablo Isla
CEO, Inditex
Lorna Donatone
CEO, Geographic Regions - Sodexo
John Fallon
CEO, Pearson
Feike Sijbesma
CEO, DSM
Brian Duperreault
CEO, AIG
Carlos Brito
CEO, AB InBev
Ajay Banga
CEO, Mastercard
Sir Martin Sorrell
CEO, WPP
Tom Linebarger
CEO, Cummins
Emmanuel Faber
CEO, Danone
Grant Reid
CEO, Mars
Joe Kaeser
CEO, Siemens
Denis Machuel
CEO, Sodexo
Zhang Ruimin
CEO, Haier
Lars R. Sorensen
CEO, Novo Nordisk
Peter Agnefjall
CEO, IKEA
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KEY FINDINGS LEADERS ON PURPOSE CEO STUDY 2018

PURPOSE
ACTIVATION

The leaders we interviewed are creating purpose-driven cultures, aligning, empowering and incentivizing employees under an overarching organizational purpose that is resonant with the values of their employees. This is generating increased levels of employee engagement and creativity.

ORGANIZATIONAL 

AGILITY

Purposeful businesses are evolving into more fluid organizational structures that have increased agility. The leaders in this study are using the creative tension of being purpose-driven to overcome organizational inertia and activate increased rates of innovation to deliver on their North Star purpose.

GLOBAL CONTEXT 
AWARENESS

NEW BUSINESS
LOGIC

NORTH STAR 

PURPOSE

It is increasingly evident that achieving and sustaining corporate success is linked to a commitment to solving societal problems. Forward-thinking CEOs are paying close attention to broader strategic contexts in order to make sense of rapid and unpredictable developments.  risks and opportunities arising  as a result of increased global complexity are met with a new mindset as well as innovative collaborations. 

Leaders are transcending business models geared toward generating quick profits at the expense of sustainable development by advancing a new business logic that contexts and times. underpins responsible long-term growth and adaptive business models for constantly changing contexts and times. 

The leaders in our study tend to galvanize their workforce around social and environmental value creation informed by the global context and long-term thinking. We call this shared goal their “North Star.” This ideological beacon gives stakeholders something to strive for and allows them to leverage their organizations’ core competencies to create positive change.

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 Leaders on Purpose ©2019

John Fallon

CEO, Pearson