by Peter A. Arthur-Smith, Leadership Solutions, Inc.®

“It is new world America, where only 14% of those surveyed think that life will be better for their children; and 52% disagree.” From article: ‘A Fading Faith in Capitalism,’ by Tim Montgomerie, Wall Street Journal, Nov. 2015

    Maybe it’s okay to be fixated on this quarter’s company results. But while you’re doing that the bedrock of society could be slipping beneath your children’s feet. Can you ignore the possibility?

According the above quoted article’s author: John Mackey, co-CEO of highly successful Whole Foods, ‘Has long worried about the sustainability of the free enterprise system, if large numbers of voters come to think of businesses as “basically a bunch of psychopaths running around trying to line their own pockets.”‘

Mackey is also eager for businesses to emphasize purpose as much as profit, in order to maximize the engagement of their people. What does the purpose of your organization look like? …Just think about it for a moment. Consider the purpose of these well known organizations:

 » Southwest Airlines – To give more Americans the opportunity to see the world.

» Google – To organize the world’s information so that it’s universally accessible.

 » Whole Foods (Mackey’s own chain) – To help people live longer, healthier lives through better food choices.

  » And your organization…………..?

(Note: The author of the above quoted WSJ article used purpose and mission as different words to mean the same thing. This writer happens to strongly disagree with this habit, since he considers the two to be distinctly different ideas – where purpose is the compelling reason and attractiveness of the organization’s existence. But mission pertains to the step(s) – short or longer term – that an organization pursues to promote, expand its impact, and/or reinforce its purpose.)

For example, Google could have a mission, ‘To introduce a new information service during 2016.’ Or Southwest Airlines could have the mission, ‘To establish a Cessna airline service to connect remote rural areas to its key hubs during the first quarter of 2016.’ Such mission-business expansionary ideas would capture people’s attention in both companies, as well as a range of  likely new customers. What compelling mission could you establish for your organization in the coming year?

Such inspirational thinking is contrary to what most Americans relate to capitalism. According to this WSJ article: 55% believe the rich get richer and the poor get poorer. 65% think most big businesses have dodged taxes, bought favors or polluted. Only 14% believe the next generation will be richer, safer and healthier than the last one. In other words, the workforce at large is concerned about capitalism and its future, especially as so many organizations don’t have a compelling societal purpose.

This is neither encouraging for the future of capitalism nor for attracting talented young people toward the commercial world. How can we change this?

Compelling Purpose – As organization leaders we have to focus on creating and “living” a compelling societal purpose. There’s nothing wrong with creating a healthy profit. Profits are the life-blood of expansion, rewarding your workforce appropriately, investing in your enterprise, and rewarding your investors who put your business into play in the first place. However, if “making money” is your sole purpose for sponsoring and owning shares in your organization, it could easily become a commercial machine full of people just trying to make a living, and nothing more.

          “Mackey is also eager for businesses to emphasize purpose as much as profit.”

On the other hand, if you have compelling purpose like Southwest Airlines, Google or Whole Foods, and really mean it, then this will lift the spirit of those involved so they will rise to the occasion. Workplace people need meaning in their lives. And if that’s just devoted to piling up revenues and profits, things that they don’t directly benefit from, then they won’t be particularly inspired to put their best foot forward.

However, if you squirm when you trot out your purpose (or for some, their inadvertent use of a  mission statement; see earlier note), because you feel it sounds hollow with your people: then you should be honest with them,  namely: “I only trot out these words to make money. I don’t really believe in having a societal or compelling purpose. I’m only in the game for myself.”

For those organizations like Southwest Airlines, Google and Whole Foods, who sincerely believe in their purpose, they have lifted their organizations to dizzy heights. Some would argue that, now they have got there, they have lost some of their earlier zeal because they have lost their sense of purpose. They’ve switched to traditional capitalist  business practices just to satisfy Wall Street, and there’s probably a good deal of truth to that. They likely need to refresh their purpose in some way and reformulate a compatible business framework to reflect that change.

Did you notice how the former soft drinks company, Snapple, thrived on a purpose-driven culture. But when it was bought by the Quaker Oats giant at a stunning price, it lost much of its zeal and growth momentum. Every good business has its price!

It became just part of a ‘money making’ portfolio, and is a prime example of a dynamically led organization that was turned into an efficiently managed money machine. In hindsight, it would be  interesting to have done a survey of Snapple’s earlier workforce culture, and then compare it to the one now under Quaker Oat’s management. It’s likely to be the difference between those who really believed and those who pretend to believe.

If we don’t make a better job of our enterprises and the capitalist belief system, then future generations are facing a lot of turmoil as they seek a better business belief system. We have the opportunity to bequeath them something really good.

  And so as the New Year turns into 2016, it would be appropriate for you and your people to satisfy yourselves that you have a really compelling purpose. And, that you make 2016 a year when that compelling purpose is at least as important as the money you wish to make. If you can then hold that balance throughout the year, you may well be pleased with the outcome a year from now… Maybe you will also begin to restore some people’s confidence in the capitalist system once more.

To learn more about building a compelling purpose, talk with: