The Purpose Effect: Building Meaning In Yourself, Your role, and Your Organization

Early praise for The Purpose Effect

As the sense of meaning in the corporate world continues to plummet, the shortage of clear and comprehensive thinking on solutions has become acute. Dan Pontefract rides to the rescue with The Purpose Effect, providing a well-argued and detailed framework for organizations and their people to find and maintain their purpose sweet spot.

—Roger L. Martin, author and Institute Director, Martin Prosperity Institute, Rotman School of Management

The Purpose Effect helps individuals and leaders connect the dots between the personal, professional, and organizational. Dan Pontefract makes a strong case that we shouldn’t check our core values in life at the office door.

—Adam Grant, Wharton professor and New York Times bestselling author of Give and Take and Originals

A compelling thesis on how purpose can drive not only personal fulfillment but also lead to more stable, cohesive and higher performing organizations. The Purpose Effect is a must-read for any who doubt the impact of purpose on organizational stability and performance.

—Paul Polman, Chief Executive Officer, Unilever

Purpose has never been more important in the world. If the workplace is truly going to be 100% human, it has to start with purpose, for individuals and for the organisation. Dan Pontefract takes you on a journey on how to make this a reality for yourself and your organisation.

—Jean Oelwang, President and Trustee, Virgin Unite

We are at a momentous inflection point. Income inequality, plummeting levels of trust in major institutions, the disillusionment of a generation of young people and a sense that for many, the future is going to be less secure and predictable than the past are leading to a deep hunger for fresh ideas for a new social compact. The Purpose Effect presents a marvelous and optimistic approach to achieving this. For many who are discouraged by the emptiness of organizational life, this readable, practical guide is an antidote to disengagement and cynicism at work and in society. I am delighted to see such a powerful guide to how each of us can proactively take charge of making sure that our lives have meaning.

—Rita Gunther McGrath, Associate Professor, Columbia Business School and author of The End Of Competitive Advantage

Hollywood and popular literature would lead you to believe that big business and a meaningful life don’t mix. Not so, says Dan Pontefract. When we align our purpose with that of our job and our organization, we can have, as Studs Terkel said, astonishment rather than torpor…life rather than a Monday through Friday sort of dying. Read The Purpose Effect to find your astonishment.

—Karie Willyerd, author of The 2020 Workplace and Stretch, Workplace Futurist, SAP SuccessFactors

Dan Pontefract brings us back to the principles of purpose. The Purpose Effect helps professionals and leaders from all sectors know how to connect the dots between purpose and positive results.

—Don Tapscott, author, CEO of The Tapscott Group Inc., and Inaugural Fellow, Martin Prosperity Institute, Rotman School of Management

In our quest to grow our careers, advance and develop our skills, we often forget the importance of purpose. The Purpose Effect is a wonderful book that reminds us how important it is to look within, and find purpose in our jobs, careers and organizations.

—Josh Bersin, HR Industry Analyst, Principal and Founder, Bersin by Deloitte

Purpose mobilizes people in a way that profits alone never will. Dan Pontefract’s The Purpose Effect shows why and how, lifting the discussion of this crucial ingredient to a whole new level of clarity.

—Herminia Ibarra, The Cora Chaired Professor of Leadership and Learning, INSEAD and author of If You Act Like A Leader You Will Think Like A Leader

Dan Pontefract raises the discussion of purpose to the next level using his three-category model with the sweet spot, looking at it holistically and its impact on individuals, organizations and society as a whole. This book is loaded with examples that take it from what might seem as a nice-to-have, to a must-have in order to maximize impact, engagement and contribution.

—Tony Bingham, President and Chief Executive Officer, Association for Talent Development

Building on the insights into organizational culture that he developed in Flat Army, Dan Pontefract takes us on a journey that explores one of the most fundamental questions of the ages: how do we make our lives matter? Through sharing his personal experiences and those of many others, Dan makes a compelling case for the need to align our personal values with those of the organizations where we choose to work and the roles we perform. The result is not only personal fulfilment, but also superior organizational performance and societal progress.

—Saul Klein, Dean & Lansdowne Professor of International Business at the Peter B. Gustavson School of Business, University of Victoria

Individuals spend a significant majority of their adult lives at work. Looking in the mirror at the end of a day, month and year should result in recognition that the time investment has been worthwhile at a very human level. This requires intrinsic attention to purpose and meaning from each of us, individually, and as teams and communities. In The Purpose Effect Dan Pontefract shares years of wisdom for how to cultivate this sweet spot leading to more individual and organizational satisfaction and success.

—Karen Kocher, Chief Learning Officer, Cigna

Dan Pontefract provides a powerful framework to make work deeply fulfilling and productive for the most valuable members of the workforce, those that are purpose-oriented.

—Aaron Hurst, Chief Executive Officer, Imperative and author of The Purpose Economy

Engagement research is clear: people want to work for a purpose, not just a paycheck. The Purpose Effect should be required reading for anyone who wants to find and develop meaning in their life, their role and throughout their company. A great read for anyone who is looking to get the most from their career and life.

—Kevin Kruse, New York Times bestselling author of Employee Engagement 2.0

The Purpose Effect should become a go-to resource for all leaders who want to drive a purposeful and meaningful organizational culture. The ever-changing workplace demands direction for how to encourage people to live out their purpose; this book explains how to do so in a way that positively impacts the individual, workplace and overall organization.

—Meghan M. Biro, Founder and CEO, TalentCulture

The separation of personal purpose from our professional lives limits our perception of success. In examining the benefits of uniting personal and professional with organizational purpose, Dan Pontefract has built a three-legged machine around the principles of purpose.

—Faisal Hoque, founder of SHADOKA and author of Everything Connects and Survive to Thrive

The separation of personal purpose from our professional lives limits our perception of success. For leaders who want to understand how employee purpose impacts an organization, The Purpose Effect stands alone as a guiding instrument.

—Jeff Booth, Co-Founder, President and CEO of BuildDirect

Dan Pontefract’s The Purpose Effect is a challenge to both the worker and the leader to find the winning trifecta-a combination of a personal sense of purpose, an organizational purpose and a role purpose.

—Dee Ann Turner, VP, Chick-fil-A and author of It’s My Pleasure

With The Purpose Effect, Dan Pontefract addresses a key organizational and human challenge for today’s leaders. As Peter Drucker noted already in his early writings on management, the purpose and meaning that organizations convey are not only essential for economic performance but represent a key contribution to the coherence of society.

—Richard Straub, President of Peter Drucker Society Europe and Associate Director of EFMD

Thankfully, momentum is building against the maximize shareholder value mindset that has undermined the long-term health of so many companies and done so much damage to society. Dan Pontefract’s The Purpose Effect is sure to become an important part of this movement, for it makes abundantly clear that corporations—and all of their team members—are far happier and perform better when they remember that what they do affects customers, colleagues, the community and owners alike. As Dan shows, profit is actually higher, and certainly more sustainable, when it’s linked with purpose.

—Rick Wartzman, Senior Advisor, The Drucker Institute

While educators are driven by passion, until we intentionally outline why we do our work, we won’t achieve our goals for every student in every school. The Purpose Effect offers a compelling rationale to define our purpose in ways that will increase our effectiveness both individually and collectively, and to hold ourselves accountable for what really matters.

—Stephanie Hirsh, Executive Director of Learning Forward

As robotics, artificial intelligence and cheap computing power drive us toward a large disruption in the world of work, it is time to think of the question, why do we work? The Purpose Effect tells us how to discover the answer in today’s context. The sweet spot lies at the intersection of one’s own purpose with the purpose of the organization and the purpose of the role we have.

—Abhijit Bhaduri, author and Chief Learning Officer, Wipro

Good things happen when people are connected with purpose. In The Purpose Effect, Dan Pontefract challenges both leaders and individuals to find their purpose and use their workplace to live it out.

—David Burkus, author of Under New Management and Associate Professor of Management at Oral Roberts University

The Purpose Effect Scorecard is possibly the most valuable tool for any business leader picking up Dan Pontefract’s insightful book. Start with the end in mind:

1.Know what you are going to measure to shift your organisation’s results;

2.Decide what numbers you want to see on that scorecard; and

3.Follow his advice to connect your organisation’s purpose with your employees’ purpose and role purpose to get there.

—Annalie Killian, partner at Alchemy, Creative Director at Spark Labs and Founder of Amplify Festival

Brilliant, practical, inspiring. Higher Calling meets Daily To-Dos and creates your awesome Sweet Spot. In The Purpose Effect, Dan Pontefract has delivered that sweet spot to you, simply, clearly, deliciously. Get this book now and lead, live and work on purpose, every day!

—Bill Jensen, author of Future Strong and Disrupt!

The Purpose Effect is the reminder to everyone in your organization that good things happen when we work with purpose. Dan Pontefract’s challenge to all of us: determine your purpose and then watch how society can flourish.

—Peter Johnston, author of Negotiating with Giants

Original copyright © 2016 by Dan Pontefract. New edition published in 2018.

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior written consent of the publisher or a licence from the Canadian Copyright Licensing Agency (Access Copyright). For a copyright licence, visit www.accesscopyright.ca or call toll-free to 1-800-893-5777.

Cataloguing data is available from Library and Archives Canada


ISBN 978-1-77327-056-2 (pbk.)

ISBN 978-1-77327-057-9 (ebook)

ISBN 978-1-77327-058-6 (pdf)

Cover design by Naomi MacDougall

Editing by Richard Martin

Distributed internationally by Publishers Group West

Figure 1 Publishing Inc.


Vancouver BC Canada


www.figure1publishing.com

For Claire, Cole and Cate,

You are three shining beacons of tenderness, curiosity and hope. May the entirety of your lives be filled with meaning and purpose, through your chosen calling.

Love is life. All, everything that I understand, I only understand because I love.

Love always, Daddio

DESIDERATA

Go placidly amid the noise and haste, and remember what peace there may be in silence. As far as possible without surrender be on good terms with all persons.

Speak your truth quietly and clearly; and listen to others, even the dull and ignorant; they too have their story.

Avoid loud and aggressive persons, they are vexations to the spirit. If you compare yourself with others, you may become vain and bitter; for always there will be greater and lesser persons than yourself.

Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time.

Exercise caution in your business affairs—for the world is full of trickery. But let this not blind you to what virtue there is; many persons strive for high ideals, and everywhere life is full of heroism.

Be yourself. Especially do not feign affection.

Neither be cynical about love; for in the face of all aridity and disenchantment, it is as perennial as the grass.

Take kindly the counsel of the years, gracefully surrendering the things of youth.

Nurture strength of spirit to shield you in sudden misfortune. But do not distress yourself with dark imaginings. Many fears are born of fatigue and loneliness.

Beyond a wholesome discipline, be gentle with yourself. You are a child of the universe, no less than the trees and the stars; you have a right to be here.

And whether or not it is clear to you, no doubt the universe is unfolding as it should. Therefore be at peace with God, whatever you conceive Him to be. And whatever your labors and aspirations, in the noisy confusion of life, keep peace in your soul. With all its sham, drudgery and broken dreams, it is still a beautiful world. Be careful. Strive to be happy.¹

Max Ehrmann 1927

CONTENTS

Preface

Foreword

Introduction

Part I

Chapter 1: The Purpose of Purpose

Chapter 2: Moral Purpose

Part II

Chapter 3: Not On Purpose

Chapter 4: Purpose Mismatch

Part III

Chapter 5: Creating a Personal Sense of Purpose

Chapter 6: Developing Organizational Purpose

Chapter 7: Establishing Role-Based Purpose

Part IV

Chapter 8: Communitas—A Community of Purpose

Chapter 9: Sweet Spot Guidance

Acknowledgments

References

Index

About the Author

PREFACE

In mid-2013 when I set out to write The Purpose Effect, I started from a place of frustration. Not the ideal spot to begin the book writing process.

My first book, Flat Army: Creating a Connected and Engaged Organization, was released earlier that year. It detailed the actions an organization ought to take to become better at collaboration, be less hierarchical, and to have employees engaged in more fruitful daily operations. As I wrote on the back cover of the book, my aim for Flat Army was for organizations to operate in an unobstructed flow of corporate commonality.

My frustration stemmed from an observation that arose right after Flat Army was published. In my line of work, I have the privilege of discussing the topics of culture, engagement, and leadership almost every day with people. Be it through interviews, meetings, consulting, facilitation or keynote speaking, I have the luxury of capturing and listening to all kinds of opinions. The feedback I unearth varies from CEOs up to frontline team members. The frustration? I realized that not only was organizational culture continuing to suffer in the aftermath of Flat Army, a sense of purpose was lacking too. Employee disengagement remained rampant, but it also dawned on me that organizations were not operating with purpose.

I began to connect a few more dots. If organizations did not operate with a higher sense of purpose—delivering service that benefits all stakeholders as opposed to solely seeking a profit or merely pleasing shareholders—how were they ever going to engage their employees? Also, why would customers want to buy their product or service? Furthermore, many of the issues about power, control, and workplace bullying that occur in today’s organizations were a result of one thing: people more interested in climbing the career ladder (or staying on top of it) rather than a willingness to make others feel valued. I recognized that there were also mounting issues with role-based purpose.

But if I can provide one tip to aspiring authors, it’s this: never write a book when you are coming at things from a place of frustration or resentment.

About 18 months after I had finished writing the first draft of this book, I sent it off to several people for their input. One in particular—author Roger L. Martin, who happens to hold the top spot on the prestigious Thinkers50 list—was blunt in his assessment. I like you and your work, Dan, he said. But this book is not good enough. You need to rethink it.

Roger was spot-on. The book was initially titled Dual Purpose. That first draft was dark and unhelpful. I took my frustrations about the current state of our workplaces—and their utter lack of purpose—and wrote a book that tried to puncture the jugular of corporate malfeasance and purpose mismanagement. While the underlying thesis—that organizations and employees ought to act with a higher sense of purpose—was fair, the way I had described the current situation and the resulting requirements for change was rather gloomy.

Meet me in San Francisco, Roger followed up, and we’ll sort it out.

Roger L. Martin, the author of such best-selling books as The Opposable Mind, Playing to Win, and Fixing the Game, wanted to help me write a better book devoted to purpose. And so we met.

The result of that exchange, a new editor (the ever incredible Richard Martin, no relation to Roger) and several more months of interviews, research, and rewriting gave birth to the book you are about to read. The original manuscript was (mostly) thrown away. Dual Purpose became The Purpose Effect: Building Meaning in Yourself, Your Role, and Your Organization. It is now in its second print run as a paperback as well as continuing in electronic form.

The time I spent with Roger and Richard, in addition to the extra months of thinking, synthesizing, interviewing, and writing, not only helped me write a better book, it also made me a better writer. For that, I am eternally grateful to them both.

On the plus side, since The Purpose Effect was first published in May of 2016, I have witnessed some glimmers of hope and signs of change. For example, what has happened at RBC, Canada’s largest bank. In 2018 it unveiled RBC Future Launch, a commitment to invest $500 million in helping young people prepare for the future of work. As the bank stated, When young people succeed, we all succeed. That’s committing to being an organization with a higher sense of purpose as opposed to solely looking at its margins and shareholder return.

Columbus-based Hot Chicken Takeover opened in Ohio to serve the sweet smells and tastes of Nashville’s famous hot-chicken culture. It did so to make a profit, sure, but it also aimed to give people a second chance. HCT, as it’s known, offers employment to men and women who need a fair chance at work. Seventy percent of the staff have spent time in prison. Many used to be homeless. HCT hires people to help get them back on their feet, pushing them to set their sights on what’s next. Profit is vital, but so too is operating with a higher purpose. The company is set to open its fourth location in 2018.

Katlin Smith is the CEO of Simple Mills, a company she founded to make simple, healthy, and delicious food. Katlin recognized that foosball tables and a misaligned purpose do nothing to grow the business or help society. She realized that purpose is much more than a fixation on profit. Katlin writes:

It starts with purpose. At Simple Mills, we are here to positively impact the way food is made, enriching lives and bodies through delicious, convenient foods made from clean, nutritious ingredients. This is the first and most important component of our company and culture. Every piece, every person, must be centered on fueling our mission – from hiring criteria to the way we source ingredients, to the products we make. We focus on the right priorities, at the right time, with the right resources.

Larry Fink is the CEO and chairperson of New York-based BlackRock, a global investment management firm that manages more than $6 trillion in assets. Because of its sheer size, The Economist once referred to BlackRock as the world’s largest shadow bank. But Fink has also seen the light when it comes to what ails society and many organizations. Fink titled his 2018 annual letter to CEOs A Sense of Purpose. Indeed, perhaps change is afoot. He wrote:

Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.

Fortunately, more research is also now beginning to surface to bolster my argument for purpose. Alyson Daichendt, managing director at Deloitte’s Human Capital Consulting Practice, for example, helped write a report titled The Impact Project. She discovered that companies that possess an exceptional brand have a deeply embedded sense of purpose in their organization, giving their employees a sense of meaning and deeply influencing decision making. As I often say in my keynotes, employees want to feel valued by their leader, team, and organization. They must be allowed to create value, and they also need to be confident that their efforts are valuable.

Research has also proven that purpose-driven organizations are more successful if they operate with the long term in mind. Serving all stakeholders (customers, team members, partners, suppliers, community, and environment) and being ethical in all actions is essential. Another critical aspect is to refrain from managing for the short term, often referred to as short-termism. A study conducted by McKinsey Global Institute with FCLT Global showed that firms focusing their business on the long term had 47 percent higher revenues and 36 percent greater earnings. Furthermore, over a 14-year period, these firms added 12,000 more jobs on average than their peers. The study went on to suggest that if all organizations had acted in this manner, the U.S. economy would have grown $1 trillion, creating more than 5 million jobs.

The stories and research above are of course good news, but the unfortunate reality is that we remain mired in a world where purpose is considered a third-class afterthought. Often it’s paid lip service. Or dismissed altogether.

For every RBC, HCT, Simple Mills, or BlackRock that has incorporated a purpose mindset in their organization—to the benefit of society, team members, and customers—countless others continue to practice purpose-less habits.

Volkswagen lied to both the public and regulators and became ensnarled in a diesel-fuel-emissions scandal. Wells Fargo employees falsely opened millions of personal banking accounts, unbeknownst to its customers, and were fined millions of dollars. A German pharmacist went on trial accused of preparing watered-down cancer prescriptions for personal financial gain. Even Apple was caught intentionally slowing down older iPhone models to compensate for decaying batteries.

When I reworked the first version of this book, which eventually became The Purpose Effect, one of the most significant changes was in the model of purpose itself. Purpose starts with you asking yourself what you’re made of, who you’re trying to become, and how you want to be known when you leave a room. That theory remains as clear as ever. If you don’t love yourself first—if you do not live a life of purpose—you end up negatively affecting yourself and society alike, just as the examples from above demonstrate.

If my frustrations surrounding the appalling state of purpose in our organizations caused me to write a first draft that was initially rather dark, it was also partially because I was missing the most vital aspect of purpose: ourselves.

I had to recall how I had chosen to live my life. It starts with my declaration of purpose, which is as follows:

We’re not here to see through each other; we’re here to see each other