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The coronavirus crisis has simultaneously taken the wind out of the sails of media hyperventilation about the vital need for companies to have a defined purpose, even while it’s driven a natural increased corporate focus on the well-being of employees and the communities in which their businesses operate. Now could be a golden opportunity for companies to take on defining that purpose.
For manufacturers, that could mean closing a gap with the broader business community–albeit a small one. “86% of all companies and 84% of manufacturers say they have a purpose,” explained Carol Cone, founder and CEO of Carol Cone ON PURPOSE, a global social impact consultancy. “But if you peel back the onion and ask how they define that, only 24% of all companies, and just 18% of manufacturers, have a truly activated purpose in place.” Cone’s research here is spelled out in detail in her report, The B2B Purpose Paradox: How Purpose Powers Business-to-Business Growth.
Image courtesy Carol Cone ON PURPOSE
According to Cone, manufacturers have both a big disadvantage and a big advantage compared with other businesses when it comes to purpose. “Manufacturing is not glamorous,” she said. “That causes some people struggle with defining a worthwhile purpose–they worry about how to engage with their younger leaders, and how to make it attractive in building a talent pipeline.”
But they may be overcomplicating things in Cone’s view. “Manufacturers have a tremendous advantage in that they make things,” she said. “That naturally offers a tremendous point of pride for employees. Leaders need to think about the power of that pride–in a B2B world, that’s an incredible asset.”
One shining example of that to Cone is GAF, a leading home and commercial roofing systems maker. Established in 1886 and headquartered in Parsippany, New Jersey, GAF has more than 30 manufacturing operations in 26 states. The company has over 3,700 employees and generates over $3 billion in annual revenues, and proudly points out that one in four U.S. homes is covered by a GAF roof. “GAF has a beautiful purpose statement,” said Cone. “’We Protect What Matters Most’–it’s authentic with what they do.”
For Andy Hilton, GAF’s Chief Communications Officer and Head of Corporate Social Responsibility, the work that went into defining the company’s purpose has truly paid off. “One of the biggest outcomes of our purpose work has been the engagement it’s driven with our employees and with the community,” he said.
Hilton thinks the purpose statement gives GAF a leg up in a changing business environment. “It allows us to connect on a more emotional level,” he explained. “That’s a benefit with all our employees, but especially with our younger demographic, who are looking for transparency and that tie between what we make and why we exist. Our leadership team thinks it speaks to a broader group of stakeholders, too. That’s more important now, as the decisions on roofing materials that used to be made solely by contractors are changing to involve homeowners too. And it’s important for communities, too–we used to keep a low profile, but expectations are changing there as well. There’s an interest in what’s going on inside our four walls.”
Image courtesy Carol Cone ON PURPOSE
Cone and Hilton are in agreement on the process for a company to define an authentic purpose statement. “It starts with active listening,” said Cone. “You need to engage your employees first–hourly, executive, and everyone in between. The whole thing is a journey.”
“For us, it was an organic, internal process,” added Hilton. “We made sure to engage with all our stakeholders to get their perspective. That’s critical–what matters might be different from community to community.”
“You know you’re doing it wrong if the senior leadership team goes off on a retreat and makes it up,” Cone said. “The result is hollow. The process of discovering it is equally important as the purpose itself.”
Formulating the purpose statement is only the first step. “Embedding it can be difficult,” said Cone. “You’re modeling new behaviors. It needs to be built into your KPIs, it needs to be part of how you start your meetings, and it needs to be a piece of all your activities.”
“We’re just getting started,” said Hilton. “Now it’s a matter of scaling it across the communities where we live and work, and engaging all employees to be part. But it’s already rolled back into our day-to-day, whether in our program for volunteer time off, matching charitable gifts, our work with Habitat for Humanity, or our disaster relief and response. We’re bringing our purpose to life across all of our stakeholders.”
Hilton believes the efforts were worth it. “It takes time to get it right. If the words around your purpose aren’t authentic, the whole thing falls apart. But when it’s authentic, when it’s believable to all your employees and resonates with them, then the true power comes out. Then you really start to make a big impact.”
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