Business leaders are talking more than ever about finding the right balance between the profit motive in business and a heightened sense of purpose that runs through the C-suite.
They provide a guiding set of principles that have a lasting impact when supported by strategic planning and the right skills.
We explore five principles for pursuing purpose:
- Be specific about your values: codify them, write them down and act on them. Do this with the full involvement of family members, so you contribute to family cohesion and increase the likelihood of better decisions for the family business as a whole. Think of your values as giving you a ‘licence to operate’ that goes beyond making money.
- Communicate your values internally and externally to activate your potential family business advantage. Many family businesses have values, but they don’t always bring them to others’ attention. You can’t get value from your values if you don’t communicate them.
- Develop a tool, or compass, that brings your values to life. This helps open doors for new business partners who are more likely to see you for the reliable and trustworthy partner you are. It gives you competitive advantage at a time when trust is at a premium in the business environment. For example, you might apply corporate social responsibility principles and associated KPIs to make better long-term decisions, which in turn can enhance your business performance and company brand.
- Put values at the forefront of your recruitment efforts as you seek to bring the best talent to your business. Displaying your values is a good way to attract – and keep – skilled and capable people. Embed your values into your workplace and employee career and incentive systems. Engender and encourage behaviours such as honesty, transparency and treating people with respect.
- Think about ways to include your values compass in arrangements and dealings with your supply chain, such as ensuring that you work according to shared ethical standards. Focus on value creation along the entire value chain. Your values have a mutually reinforcing impact beyond your own business, into and out of the ecosystem in which you operate
