In conversation with Charles Wookey
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In conversation with Charles WookeyCEO, A Blueprint for Better Business |
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Here we present a short Q&A interview with Charles Wookey, CEO of A Blueprint for Better Businesses, on why it is important for a common understanding of what being purpose-driven means, some of the challenges for business along the way and how our latest research paper is a useful tool and contributes to the landscape.
Click here to view the full report.
REGENERATE (RG): CHARLES, YOU WENT FROM BEING AN ACCOUNTANT AT KPMG TO BEING A LEADING FIGURE HELPING SOME MAJOR COMPANIES SUCH AS RBS/NATWEST TRY TO OPERATE IN A "PURPOSE-DRIVEN" WAY". WHAT INSPIRED YOU TO GET INVOLVED IN THIS WORK?
Charles Wookey (CW): After the financial crisis, I was involved in helping organise two seminars for City leaders, where we also brought into the room a powerful societal challenge based on human dignity and the common good. Those encounters opened my eyes to the power of dominant ideas in shaping business culture, and how so much of what had happened was due to their powerful grip - especially the idea that the purpose of business is just to maximise shareholder value.
After that, I was lucky enough to work with a wonderful group, drawing on wisdom from philosophy and faith traditions as well as economics and business. We explored in more depth how different ideas - an understanding of business purpose beyond profit, and human motivation beyond pure self-interest- could help reconnect business, society and people in a deep way, to the benefit of all three. Seeing the power of that connection really excited me and others, and led to the charity A Blueprint for Better Business being formed in 2014.
RG: HOW DO YOU DEFINE WHAT IT MEANS FOR A COMPANY TO BE DRIVEN OR LED BY THEIR PURPOSE?
CW: All organisations have a purpose of some kind, even if it is not explicitly stated. So the question really is what is a good purpose, and how do you live it.
In our view for a business to be ‘purpose led’ is two things. First is a clear reason for being in terms of the positive impact the business has in the world, and which is then reflected in what it says, what it does and how it does it. Profit is vital but it is an outcome and not the purpose. Second, it is about seeing the business as a series of relationships where each person is a “someone, not a something” and people are at the heart of business success. This is important as you can have a good purpose but then pursue it in an exploitative way. In our view, it is the mind set about both purpose and people that shapes how an organisation shows up in the world. Moreover, the key is that it is both an organisational and a personal challenge, and choice, about committing to be part of a shared worthwhile endeavour.
RG: WHEN YOU GO INTO A BUSINESS, DO YOU FIND THAT THEY ARE OFTEN WARM TO THE IDEA OF HAVING A PURPOSE BEYOND PROFIT, OR IS THERE OFTEN A LOT OF SKEPTICISM?
CW: Yes. Over the last year or two, the conversation has very much shifted away from questions about why business needs purpose, and instead people are more interested in how they can become more purpose led as an organisation, and how you assess progress.
That is not to say that there aren’t sceptics, and people are rightly sceptical when the approaches which end up with just a veneer of change. Interestingly though we find the sceptics rarely oppose the principle ideas behind purpose, but rather have questions about implementation. Treating people respectfully and running your business in a way that benefits society strikes many as obvious and doesn’t offer much to argue against. Nevertheless, changing mind-sets about purpose and people - especially in a large company is a huge challenge, and takes leadership at many levels.
RG: WHAT DO YOU THINK ARE SOME OF THE HARDEST THINGS THAT GET IN THE WAY OF BUSINESSES BEING PURPOSE-DRIVEN?
CW: I’ve put together a list of 5 don’ts and 3 dos when it comes to putting purpose into practice, based on the experience we have had. Essentially if purpose becomes a project and is siloed within one function or area of the business then it’s a problem, and in large companies this is hard to avoid. Purpose is not a project - it is about the core and enduring identity of the business expressed in what it says, what it does and how it does it.
We are mainly working with large companies and the hardest thing is to have the time and space in the minds of the CEO and leadership team for the right conversations about existing mind-set within the business as a whole, and the potential for change given the external environment. What needs to be created first is a shared belief within the leadership team that becoming purpose-led will in fact create a better business, as well as serve society better, and agreement about what it means in practice and what has to change. That takes time and careful thought, and a quality of engagement with people inside and outside the business. It also means then resisting traditional “roll outs” which typically do not enable or support the mind set change about people which is at the heart of this. So that’s another barrier as people often want to rush and assume you have to tell rather than ask.
We have heard from a number of listed companies that investors can be a challenge when it comes to implementing these ideas. However, there are promising signs that investors are increasingly interested in purpose, including the activism by shareholders on environmental and other issues. in 2018 worked with a group of leading assets managers who are interested in proactively engaging with boards and companies around purpose. Together we drafted eight questions which can help them understand if an organisation is purpose-led.
RG: HOW CONCERNED ARE YOU ABOUT COMPANIES PRETENDING TO BE PURPOSE-DRIVEN WHEN THEY AREN'T, JUST TO BOOST THEIR PROFITABILITY? IS IT A BIG ISSUE IN THE UK?
CW: Firstly, we should say that focussing on boosting profitability isn’t a problem – only when it is the sole focus and purpose is being instrumentalised. A business needs to make a profit otherwise it cannot survive – but making a profit is not the purpose of business.
Purpose-wash is challenging because of the damage it does for genuine organisations. Overall we are not that worried, but it is something people should be conscious of. We think that it is quickly evident when companies are using the language of purpose but their activities do not reflect these practices. It is certainly something that has been seen in the UK. Social media makes it harder for companies to hide - the say/do gap easily becomes public.
RG: REFLECTING UPON THE RECENT ANNOUNCEMENT RELATING TO THE 20% DROP IN GDP IS THERE EVIDENCE THAT PURPOSE-DRIVEN ORGANISATIONS CAN BE MORE RESILIENT THAN OTHERS. IN OTHER WORDS, IS PURPOSE-DRIVEN BUSINESS GOOD BUSINESS?
CW: Clearly much of the post covid-19 drop in GDP reflects the differential impacts on different sectors. However, it is also true there is growing evidence that operating to a purpose that serves society can help restore a business’ license to operate with its employees, customers, suppliers and wider society AND help long term sustainable performance.
A growing number of academic studies such as those done by Prof Alex Edmans at London Business school set out the case linking purpose and performance. These studies confirm evidence cited by companies themselves, such as for example, Unilever, whose Sustainable Living brands are growing 69% faster than the rest of the business and delivering 75% of the company’s growth.
One factor driving this long-term sustainable performance is improved employee recruitment and retention, as well as increased employee engagement and motivation which lead to higher productivity.
RG: ENVIRONMENTALLY SPEAKING, IN RELATION TO HARDSHIPS NOW BEING FELT AS RESULT OF CLIMATE CHANGE AND THIS ONLY BEING THE START, IS IT TOO LITTLE TOO LATE?
CW: I’ve just been reading Christiana Figueres excellent book “The Future we choose”. She describes herself as a “stubborn optimist” with very much a can-do attitude.
Clearly we are at a late stage but she emphasises there is a huge amount to play for, in particular halving global greenhouse gas emissions by 2030 to keep us on track for net zero by 2050. She sets out the business opportunities ahead, and also makes the point that we all need to be catalysts for change by how we show up, and what we bring to the task. Moreover, she says “the most important thing we can bring is our state of mind”.
RG: IN RELATION TO OTHER IMMEDIATE CHALLENGES, HOW CAN PURPOSE-DRIVEN BUSINESSES CONTRIBUTE TO THE REBUILDING OF THE UK AND GLOBAL ECONOMY?
CW: The Black Lives Matter movement has underlined how important the actions businesses take – or don’t take - is, and how public and employee expectations of business are changing. The wider role of business in society has suddenly become very visible. We are all aware that what business does matters. We are currently facing complex social and environmental issues. If we are to strive for the creation of a sustainable, just and equal society, business leaders must recognise their role in tackling such issues. The management guru Peter Drucker said Every single social and global issue of our day is a business opportunity in disguise. There are huge business opportunities ahead in tackling the problems of people and planet in innovative ways. The UN report Better business better world identified $12tn of opportunities and 380m jobs.
RG: AND FINALLY, HOW DO YOU THINK OUR REPORT 'WHAT IS A PURPOSE-DRIVEN BUSINESS?' CONTRIBUTE?
CW: It’s very helpful. It is a clear, short and accessible report, which I hope will encourage more people to think about how business and society both benefit from a change of mind-set about purpose and people.
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Sincere thanks to Charles Wookey for taking the time to speak with us.
Click here to view the full report.
