In a world where trust in financial institutions is being shaken up and consumers have more options than ever, organizations must tap into their purpose to assure they can be counted on for more than high-quality products and services.  

As Prophet’s Vice Chairman David Aaker states in his latest book, “The new purpose-driven revolution is leading firms beyond a focus on growing sales, profits, and shareholder return to having a business purpose that does more.” This shift should come as no surprise given what we know about purpose’s powerful influence on business outcomes: Purpose-driven companies witness higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction.  

Research shows that purpose-related drivers rise to the top in motivating consumer choice – especially in financial services. Prophet’s 2023 Relentlessly Relevant Brands report found that consumers are shifting to brands that spark an emotional connection—reaching beyond functional needs. And we’re not the only ones tracking this trend: IBM and the National Retail Federation found that, for the first time, more consumers are driven by purpose than by value. 

But simply having a purpose does not move the needle. To effectively build trust and harness the power of purpose, organizations must amplify their purpose. It must be fully integrated into the business, showing up in key moments and being championed authentically by employees—otherwise, it’s just lip service that leaves consumers doubting that the organization truly delivers on its promises.  

In our research, we found there are four key imperatives financial services organizations must work toward to effectively amplify and deliver on their purpose: 

1. Have a clear and inspiring purpose. 

Taking the first step means clearly defining your organization’s purpose. It should be both authentic while also being aspirational, meaningful, and engaging for all relevant stakeholders (e.g., consumers, investors, and employees). Your organization’s purpose should be clear enough that it can be used as a locus for decision-making. Once it’s clearly defined, time and resources must be invested to socialize it internally. Employees should be able to not only understand your organization’s purpose, but easily reference and use it in their daily work.  

What this looks like: 

Edward Jones recently made a significant investment in defining their purpose, working to create an authentic, clear, and compelling North star for their organization. Beyond just crafting an inspiring purpose statement, they Identified clear purpose impact areas to focus their work. 

Edward Jones’ purpose is to “partner for positive impact by improving the lives of their clients and colleagues and bettering their communities and society.” They achieve this by focusing on three key areas: partnering for lasting financial strength, promoting healthier futures, and advancing inclusive growth.  

Questions you might ask about your organization’s purpose: 

• Is it clearly defined? 
• Is it relevant to key stakeholders? 
• Is it clear enough to guide decision making? 
• Do employees know it and understand how their role contributes to delivering against it? 

2. Own your purpose. 

Don’t outsource purpose through philanthropy. Instead, embed it across the organization and ways of working. Leaders at all levels should be taking actionable steps to integrate your organization’s purpose into everyday operations, making it easy for employees to action against it in their daily lives. Purpose should be inherent to each project and every team, not a siloed effort or initiative.  

What this looks like: 

FinTech Current’s purpose is to “create better financial outcomes for more people.” They don’t just talk about it—they deliver on it through their product. Believing that legacy banks constrain consumers, Current moves consumers forward by helping them make the most of what they have, specifically by removing all fees (minimum fees, overdraft fees, transfer fees, ATM fees, etc.), expediting direct deposits and simplifying saving through Savings Pods and Round-Ups. 

Questions you might ask about your organization’s purpose: 

• Is it being outsourced (e.g., focused on delivery through philanthropic donations alone)? 
• How is it being actioned against in day-to-day operations?
• Are there metrics in place to measure progress as it relates to delivering on purpose?  

3. Build the capabilities to deliver on your purpose. 

Purpose must be engrained into your organization’s operating model, guiding each change and transformation. The operating model should be organized to hold leaders and teams accountable for delivering on purpose through incentives and business structures. Additionally, employees should be equipped with the right tools and skillsets to effectively live out the organization’s purpose.  

What this looks like: 

Mastercard’s purpose is “connecting everyone to priceless possibilities.” To help employees deliver on their purpose, Mastercard created a new compensation model that ties bonus calculations to the organization’s performance on purpose across three key areas: carbon neutrality, financial inclusion, and gender pay parity.   

Questions you might ask about your organization’s purpose: 

• Are employees adequately incentivized to deliver on it? 
• What tools and skills are needed to equip employees to deliver on it?  
• Is it a central consideration in business decisions? 

4. Ensure that your purpose shows up in key moments. 

After establishing purpose as a foundational component to how your organization operates, it’s time for stakeholders to feel its impact. Employees, consumers, and investors should be able to experience your organization’s purpose firsthand—whether through communications, experiences or other touchpoints. When purpose shows up in key moments, internal and external stakeholders are inspired to join in, contribute and learn more.  

What this looks like: 

USAA’s purpose is to “empower members to achieve financial security through highly competitive products, exceptional service and trusted advice,” and “be the #1 choice for the military community and their families.” One way they bring this to life is through their annual Poppy Wall of Honor and other Memorial Day-related installations. Aligning closely with their purpose, USAA uses their Poppy Wall of Honor to help raise awareness of the true meaning of Memorial Day and provide visitors of the National Mall an opportunity to remember the service members who have died in service to our nation since World War I. Throughout the year, USAA’s Memorial Day microsite allows users to remember heroes, visit the virtual Poppy Wall and honor heroes through action.  

Questions you might ask yourself: 

• How is it being activated with both internal and external stakeholders? 
• How does it show up in the moments that matter for employees, investors and consumers? 

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For years, the workforce has accepted the dichotomy known as “work/life balance”: A fiction that these were two separate domains, compartmentalized from one another. Over the past two years, this illusion has been shattered. The pandemic collapsed domains of work, family, school, relaxation and wellness into a single reality. Knowledge workers were no longer able to easily compartmentalize their feelings about their work environments when there was no longer a physical separation for them to draw an imaginary line.  

Naturally, something had to give. For front-line “essential” workers, it was jobs that didn’t pay enough to compensate for the risk they assumed. For knowledge workers, it was employers who were inflexible; who were misaligned with their personal beliefs or values; or whose purpose no longer felt meaningful enough. Subsequently, large portions of the workforce recognized the illusion of work/life balance for what it was. And they recognized the truth hiding behind it: It’s ALL life. 

With that newfound clarity, a collective re-prioritization has been shifting the relationship and expectations people have with their jobs and their life. This has been variously named the Great Resignation, the Great Retirement and, perhaps most accurately in our view, the Great Reprioritization. Because in the end, that’s what is happening. The workforce is re-examining their priorities in relation to work and to employers. Now more than ever, there is a deep need to integrate personal values into the professional aspects of one’s life. But what is it that employees want?  

“We find that relentlessly relevant brands appeal to consumers simultaneously in the head and the heart—these brands, their products and experiences are pragmatic and innovative, personal and inspired.”

Prophet’s 2022 Brand Relevance Index® (BRI) and annual Organization & Culture research series, Catalysts, reveal a compelling story at the intersection of consumer brands and employee experiences. We find that relentlessly relevant brands appeal to consumers simultaneously in the head and the heart—these brands, their products and experiences are pragmatic and innovative, personal and inspired.  

We also find that the best employer brands are those that appeal to the heart and the head. These are organizations that have a clear purpose and values, and the ways of working, operating model, and training help employees accomplish their personal purposes. And it is the organizations appealing to employees’ hearts and heads that are coming out ahead in the face of the Great Reprioritization.  

The Head, Heart and Human-Centered Transformation Model   

At Prophet, we describe the organization as a macrocosm of the individual. Its DNA includes its brand purpose and values; its Mind is comprised of its talent; its Body is the operating model that creates value; and its Soul arises out of the mindsets, behaviors, stories and symbols that generate belief in its DNA. Whether you wish to forge a heart or a head brand, you must think holistically about how best to align your firm’s DNA, Body, Mind and Soul to achieve the desired outcome. The greater the misalignments, the more room for a competitor to win and you to lose your customers…and your talent. 

Take USAA, for example, a Top 10 brand in this year’s BRI. USAA has relative strengths in the heart and head—namely in trust and dependability, meeting an important need and upholding beliefs and values that align with those of its consumers. In looking through the lens of Prophet’s Human-Centered Transformation Model we see USAA appeals to the heart and head by aligning the core elements of the organization.  

DNA 

For 99 years, USAA has been singularly focused on helping military families build financial security. Many employees seek out working for USAA to fulfill their desire to serve those who have served. Across sources such as Glassdoor, Indeed and Niche, employees remark how the company mission permeates operations and that employees are well taken care of “to encourage them to do the same for members.” As a result, 82% of employees at USAA say it is a great place to work compared to 57% of employees at a typical U.S.-based company according to Great Place to Work. 

Mind   

USAA has been a leader in digital member experience and was able to leverage such capabilities to keep members and employees safe throughout the pandemic. While doing so it also improved the efficacy of training. One example of this is USAA’s piloting the use of augmented reality-enabled glasses with field adjusters. This technology allows adjusters’ managers to see the damage without physically being present, thus eliminating dozens of hours of travel time for adjusters and enabling more efficient, practical training for new employees.  

More widely known might be the extensive and immersive training USAA employees go through which covers not only the fundamentals of their position but also helps employees understand the military culture. Prior to the pandemic, employees embarked on a boot camp-like training that simulates challenges military personnel experience regularly—such as eating meals-ready-to-eat (MREs) for lunch. The training is intended to give employees a better understanding of members’ perspectives and help them deliver more empathetic and effective service on the job. 

Body  

USAA has famously realigned the customer-facing components of the organization intuitively along the journey of its members. This effectively reduced the complexity and distraction of the full product portfolio to ensure that members are exposed to the products and bundles most relevant to their immediate needs.  

Internally, USAA is committed to leveraging technology to free up capacity for employees so they’re able to focus on service, not paperwork. For instance, USAA has deployed machine learning to digitize paper medical records and create materials for life insurance underwriting. The previous manual approach could take up to five days, whereas machine learning has reduced the time to just one day and has improved accuracy and capacity.  

Soul  

USAA’s commitment to immersing employees in the member experience is also embedded in the mindsets, behaviors, stories and rituals of the organization. One particular ritual is referred to as a “Mission Moment.” At the start of a meeting, an employee will share a story about a member. This story can be anything from their background, service, or interaction with USAA in moments that mattered along their journey. This seemingly simple story frames the rest of the meeting in a more member-centric mindset.  

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You’ve invested untold fortunes to create a customer experience that cements loyalty in your brand. You’ve invested a similar fortune building an employee experience to attract the best and brightest and become an employer of choice. But are you telling a consistent story? Do your external and internal brands share the same DNA? Are your customers inspired in the same way as your employees? Or do you feel at risk when your employees talk to customers?

Prophet is in a unique position to answer these questions. Our Prophet Brand Relevance Index ® (BRI), a survey of over 13,000 consumers rating 228 brands across 25 industries, provides a proprietary view of the brands most relevant to consumers’ lives. And at the same time, we’ve leveraged open API data by Glassdoor, the independent authority on employer ratings, to track data for over 750 companies across 50+ industries. Plotted together, they tell a fascinating story.

The Customer – Employer Brand Connection

As you might expect, companies with strong customer brands tend to have strong employer brands. Think Apple and Google. And vice versa: weak customer brands tend to have weak employer brands. Think most convenience retail and quick-serve restaurant brands (although not all).

Arguably the key to Southwest’s success – and 40 straight years of profitability – is how tightly employee purpose is woven into the very fabric of the customer experience. In stark contrast, Uber’s journey in its early days is a cautionary tale: despite owning over 80 percent of the rideshare market, #deleteUBER was born when the company was perceived to be mishandling employee engagement.

We believe a major driver of this relationship is what business columnist David Mattin calls a glass box. Whether it’s by choice or brute force, customers have unprecedented access to a brand’s inner workings – its finances, its operations, its people. And now more than ever consumers are looking for and influenced by, their clear view. In Edelman’s 2020 Trust Barometer Study, 90 percent of customers agree brands must protect the well-being and financial security of their employees and their suppliers, even if it means suffering big financial losses until the pandemic ends.

“90 percent of customers agree brands must protect the well-being and financial security of their employees and their suppliers, even if it means suffering big financial losses until the pandemic ends”

Where Does Your Brand Sit?

We have plotted customer brand strength, as measured by the 2021 Prophet BRI against employer brand strength, as measured by Glassdoor’s overall company rating to produce the chart below.

The model produces four scenarios worth exploring to understand what it might mean if your brand sits in one of these quadrants:

Virtuous Cycle (top right)

These brands have it down. They inspire and deliver. They disrupt, with purpose. Visionaries who never lose sight of what matters. With a focus on delighting customers and employees, from the inside out, it’s no surprise that brands like Apple, Google, Southwest and Lemonade have hit the bullseye of relevance.  

Relevance Challenged (bottom left)  

In the other corner, brands like Dollar General, Walgreens, Popeyes and Burger King are struggling to get points on the board. If there is one thing that healthcare, retail and quick-service restaurant brands have in common, it’s that they seem to be in a constant state of disruption – kicking up a cloud of confusion on all sides. Customers like navigating new user experiences and revolving doors of discounts as much as employees like enforcing them.    

Danger Zone (top left)

While happy customers are the key to a brand’s growth, unsatisfied employees can be its undoing. For companies in this quadrant, there is a fundamental disconnect: what should be a point of pride around customer excitement is not translating into employee excitement. Many of the brands in the danger zone are renowned for innovation, taking risks to accelerate value in the customer experience. But the employee experience has not kept pace, creating extreme risks for brands with high-touch customer interactions.

The Untold Story (bottom right)

Given the recent scrutiny of social media brands, it may seem surprising to see Twitter and Facebook stay strong in the hearts of employees. But despite intense external pressure, employees remain committed to the company’s purpose. We see an opportunity: to uncover what is driving employees; frame that passion for customers and help them see the brand in a new light. When the brand’s story is aligned with a passion in the culture, both employees and customers become brand advocates and vested in the success of the business.

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Businesses have been using purpose-driven strategies for years, but recent events are testing those missions like never before. Between the pandemic, political polarization and all-new virtual connections, organizations see that just having a purpose is not enough. They need one that is durable, flexible and completely human. And they realize that leading with purpose, an all-important North Star, is their best chance to stay relevant to customers and employees.

Prophet’s Purpose Diagnostic enables companies to assess the strength of their purpose in four critical dimensions, measuring whether it is…

• Authentic (how does it tie to what you do?)
• Inspiring (how does it connect with employees and customers emotionally?)
• Shared (how does it create connection and build community?)
• Actionable (how do you live your purpose every day?)

We analyzed the diagnostic results, which now include responses from over 150 leaders in more than 20 countries, and discovered common pain points where companies are falling behind. These insights also highlight the best ways to close gaps, so companies can focus on strengthening purpose in ways that engage stakeholders, build relevance and unlock uncommon growth.

The Biggest Challenge? Putting Purpose to Work

The toughest element to get right is making purpose actionable–bringing it to life in steady, meaningful ways. Overall, 28 percent of leaders reported this as the most problematic. But authenticity and the ability to share purpose are close behind.

Action is critical. If organizations can’t deliver on purpose, it doesn’t matter how inspiring, authentic or shared it is. It just becomes another empty promise. When companies fail to act, organizations lose the trust of customers and employees looking to brands to play a critical role in addressing social challenges. Purpose must be integrated into all aspects of how companies do business. It’s the way they show up in the world. This was especially true at the director, vice president and managerial level, and lower rungs in the organization. That makes sense: Those with the most accountability for how well their purpose is put into action, within a specific business area, are most likely to acknowledge weaknesses.

“If organizations can’t deliver on purpose, it doesn’t matter how inspiring, authentic or shared it is. It just becomes another empty promise.”

But developing an authentic purpose, one that feels uniquely it’s own rather than generic, is also daunting. That is particularly true in the C-suite. These executives are most likely to say their purpose lacks authenticity. They believe purpose feels less connected to their business and isn’t specific enough to their company.

And those in manager-level positions and below are most likely to say their purpose isn’t shared, likely because they have the closest understanding of how the broader organization experiences the purpose. To them, this inability to communicate purpose is as problematic as making it actionable.

C-Suite execs worry most about authenticity

Directors and VPs struggle to put purpose in action

For the rank-and-file, it’s hardest to share purpose, and put it into action

Overcoming Stumbling Blocks

There are no short cuts to strengthen and deepen an enterprise’s purpose. To function as a true North Star, a beacon that rallies all stakeholders and sparks exceptional growth, companies must continually nurture and manage their purpose. But our findings do point to specific steps to bolster each dimension.

If a company’s purpose needs to be more…

Actionable

Companies must act on purpose and measure the impact of those actions. The biggest failing among our respondents is the lack of metrics. They say they don’t have direct, or even indirect, ways to measure whether they deliver. Without such a measurement, it’s difficult to assess progress.

• To improve:
  • Develop performance metrics aligned to the purpose to hold leaders accountable
  • Lead by example, using purpose to guide decision-making and taking action in the market
  • Tie purpose to employee behaviors and competencies, and make sure they are visible to all

Authentic

When purpose lacks authenticity, the biggest challenge leaders face is differentiating themselves from competitors. “Our purpose is unique to our company” received the lowest score of all authenticity measures. Leaders need to drive greater relevance with their customers and employees: What does this brand do that others don’t? How does it add value to peoples’ lives? The more specific the purpose, the more relevant and authentic it is to the company.

• To improve:
  • Determine what sets the company apart and creates a unique value. Make sure those differences anchor the purpose
  • Make the company’s purpose reflect cultural strengths

Shared

When a purpose is genuinely shared, it’s easier to build bridges and start conversations. Whether it’s with shareholders, employees or customers, the right purpose forges a common bond. It fosters connection and demonstrates a clear understanding of what employees and customers need. Our research uncovered two fundamental weaknesses in this domain, with “Employees at all levels are familiar with the purpose” and “Our purpose cultivates a community and creates a dialogue” earning the lowest scores.

• To improve:
  • Listen to what customers are saying and deliver value in ways that align
  • Weave purpose into rituals and communications with employees
  • Link it to employee’s day-to-day experiences
  • Make sure messages to shareholders and community partners reflect purpose-related efforts

Inspiring

Purpose-led businesses aim to make a difference in the world.  And they need to elevate the stories that demonstrate how they help society. Without consistent reinforcements of a company’s impact, employees and customers can forget what it stands for and why it matters. While just 20% of respondents said this was the most problematic area, all brands need to question whether their purpose is bold enough. Otherwise, it can’t inspire the storytelling required to spread the word. In our research, the ability to mobilize stories to demonstrate a lived purpose was identified as a key challenge.

• To improve:
  • Tell signature stories that bring purpose to life, and share them regularly with employees and customers
  • Link environmental, social, and corporate efforts directly to purpose

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Crisis like COVID-19 is a touchstone for companies. Customers and employees are looking to their favorite brands to help solve problems, creating an enormous opportunity for companies who are purpose-driven.

But while purpose is essential for any brand today, just having one is not enough: Brands are on trial. Stakeholders are calling brands out on hypocrisy, mixed messages and failed initiatives. Even companies that thought they had a clear purpose need to prove they are investing in substantial change and not just “woke washing.”

“Customers and employees are looking to their favorite brands to help solve problems.”

Defining and living your organization’s purpose is hard. It’s messy. And it’s never-ending. But the most successful companies in these trying times will derive their purpose from shared human values, stay true to what they do and relevant to what their stakeholders need. And they’ll act on it every day.

These four companies are using purpose in powerful ways, and working hard to live it in challenging times:

Grab: Empowering communities with technology

Grab’s purpose started with a question – how can we empower individuals and better people’s lives and local communities through technology? This aspiration became more important than ever as the economic impact of the pandemic shook its employees, customers and neighborhoods.

Facing the crisis, Grab stepped up. On top of financial contributions to various COVID-19 community funds and meal schemes, Grab introduced over 100 initiatives that leverage its technology, ride-hailing and food delivery networks to support and safeguard its users, partners, communities and frontliners. For example, GrabCare is an around-the-clock, on-demand service enabling healthcare professionals to travel to and from medical facilities seamlessly.

Committed to empowering local communities, Grab accelerated its merchant-partner onboarding processes to help over 78 thousand small traditional businesses go online. The company also encouraged the community to help each other. Through its new “Meal for your driver” feature, Grab users purchased more than 700 thousand meals for its delivery partners and drivers. “Only when we come together and support one another, can we then overcome this challenging time together,” said Yee Wee Tang, Managing Director of Grab Singapore.

Airbnb: Deepening authenticity

When a company’s purpose ties directly to what it does, brands feel more authentic. This becomes even more important during times of change. Airbnb exists to “create a world where you can belong anywhere.” With sweeping travel restrictions and lockdowns, the company had to pivot quickly to find new ways to express hospitality. Open Homes for COVID-19 frontline workers gave hosts an immediate way to help. And it began creating online experiences that allow guests to learn new activities and meet people from around the world. By enabling people to connect, even while stuck at home, Airbnb is finding new ways to stay relevant.

Glossier: Listening builds a shared community

Shared purposes are not just relevant to one audience, they are felt deeply by each–employees, customers and communities. That calls for genuine listening to make sure that actions, products and services align with the values and beliefs of those stakeholders. Glossier’s purpose is “to give voice through beauty” by “leveraging the power of the personal narrative.” Throughout the COVID-19 crisis, Glossier’s most frequent request was for a product to help with increased irritated skin from repeated handwashing. Inspired by stories and comments, Glossier quickly developed a hand cream, donating thousands of units to first responders.

The company is also recognizing that obsession with that external community has a downside, leading it to prioritize the needs of customers over that of its own workers, especially people of color. When shoppers engage in racist behavior, for example, the company’s “the customer is always right” stance gets toxic. Glossier isn’t running away from that dissonance but trying to learn. The lesson? Make sure your purpose is grounded in shared human values–including employees–and take responsibility when things go wrong.

Super Monkey: Energizing your life with fitness

The final dimension emerges when companies demonstrate that purpose is not just an empty promise. If companies can’t deliver, it doesn’t matter how inspiring or authentic they are.

Chinese fitness chain Super Monkey is known for its exceptional community-based experiences as well as a near-perfect retention rate of coaches. The company became an industry disruptor with its innovative business models known as “Urban Spot in Motion” and drop-in classes that can be booked directly via WeChat. All of its initiatives are rooted in Super Monkey’s brand purpose of “integrating sports into life,” or making fitness accessible for everyone.

COVID-19 has put Super Monkey’s purpose to the test. The company first offered a 10,000 yuan interest-free loan to every coach, in order to protect the normalcy of their life. Two days later, Super Monkey quickly launched free live-streamed fitness classes, dubbed “Super Monkey At-Home Squats,” in an effort to deepen connection with members and encourage them to stay active. More than 170,000 people joined its first session. To go a step further, Super Monkey continued to create more innovative fitness routines so that members could encourage their family members, no matter old or young, to exercise together – integrating sports into everyone’s life.

Despite the crisis, Super Monkey has reinforced its brand purpose with action, outshining the competition. During its recent Singles’ Day sales event, Super Monkey sold store credits worth over 100 million yuan in 24 hours, a testament that Super Monkey is becoming a synonym for a fit and energetic lifestyle in China.

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“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly.” 

This exchange takes place between characters in Hemmingway’s “The Sun Also Rises,” sitting outside a cafe in 1920’s Spain. But it could just as easily describe how large established companies like Toys “R” Us, Nokia and Yahoo! were caught flat-footed in today’s Digital Age. In fact, only 54 companies remain today from the original 1955 Fortune 500 list.

As customer needs evolve at a rapid pace and technology pushes the boundaries of the possible, “organizational agility” is increasingly critical. Organizational agility is the ability to sense and respond to the market quickly. And companies without a finger on the pulse of customer needs will see their businesses suffer – first gradually, then suddenly.

With the global pandemic, economic downturn and social justice movement, organizational agility around your purpose is more relevant than ever before. And there are a number of approaches and frameworks – from SAFe to LeSS – that are helping large organizations become smarter, faster and more responsive at scale. But while they’re helpful, they’re not enough. To transform, companies need more than just an upgrade to their org structures and processes (what we call an organization’s “Body.”) They need to reach deep into their DNA. They need purpose.

Truly agile organizations measure success in terms of their purpose – higher-level goals that are meaningful both to the company and to its customers. Purpose doesn’t just make an appearance in ad campaigns or lobby walls – it’s infused into employees’ day-to-day work. Purpose enables employees to deliver better experiences, attract talent, and create platforms for growth through new products, services and business models. And as a result, it gives these organizations a competitive advantage in the Digital Age.

Using purpose to drive organizational agility

To drive agility, an organization’s purpose needs to be more than just lip service. It needs to play an active role in the business. Prophet’s research report “Becoming Purposeful” found that successful, “purposeful” organizations apply their purpose to everyday operations. This helps create faster, smarter, more nimble enterprises in three important ways:

• Purpose can help distributed teams navigate decisions quickly. One of the principal differences of agile methods is a focus on self-organizing, autonomous teams. Spotify, for example, published a two-part overview of how its own “pods and squads” organizational structure works. Unlike traditional command-and-control or hierarchical organization structures, agile teams are empowered to make decisions and take action quickly. This helps them get solutions to market faster by avoiding the game of telephone as information flows up and down the chain of command. Purpose can create a “north star” for decentralized decision-making by clarifying the outcomes and experiences the organization aims to create.
• Agile teams thrive on top talent, and purpose plays a critical role. In a recent study of Millennial attitudes by American Express, 74 percent believed that successful businesses in the future would need a genuine purpose that resonates with people. And 62 percent said that they are motivated by making a positive difference in the world. A clearly articulated purpose helps create a more compelling employee value proposition for potential recruits. And it helps retain existing top performers. A study by Indeed found that top performers were 46 percent more likely to be attracted away by a new company’s mission, and at the same time were 10 percent less likely than others to switch for compensation reasons.
• Purpose creates agile business models. Simon Sinek’s now famous TED talk “Start with Why” explained how purpose-driven brands transcend boundaries and credibly enter new markets. Patagonia’s commitment to sustainability is central to its brand in the outdoor apparel business. But its purpose has enabled it to extend into an entirely new product category: packaged food. In 2017, the company launched Patagonia Provisions, to “repair the chain” of how humans grow and consume food. It is now one of Patagonia’s fastest growing businesses, in part because its purpose gave it consumer credibility.

Putting purposeful organizational agility into practice

Aligning on a brand’s purpose is hard enough; it takes even more effort to put it into action. Creating purposeful organizational agility requires sustained attention to significant changes at all levels of the organization.

To start, leaders need to be clear about what the organization and its brand stand for. It needs to be authentic, unique and differentiating in the market. It needs to resonate with both customers and employees. Top to bottom, inside to out, internal and external messaging needs to be aligned.

“As customer needs evolve at a rapid pace and technology pushes the boundaries of the possible, “organizational agility” is increasingly critical.”

But purpose can’t just be communicated; it needs to be wired into the operating model. This means a sustained change management effort that looks at organizational structures, roles, policies, processes, incentives, and governance models. For example, restructuring how product teams develop and bring new solutions to market. And these changes need to be adopted by employees so that they become “business as usual.” Digging into the operating model signals that the company is indeed serious about change.

And finally, purposeful agility requires leadership. One might assume autonomous agile teams require less of senior leaders. In fact, it’s the opposite. While there is less day-to-day interaction from senior leaders, agile teams require greater clarity and strategic framing. Senior leaders are the torchbearers for the company’s purpose and strategic direction. This means that senior leaders need to be more visibly active coaches, “spiritual” leaders, and storytellers – and less of order givers and decision-makers.

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Sixty-two percent of global consumers say their country will not make it through the current crises if companies don’t step up. Customers and employees are looking to their favorite brands to help solve problems, creating an enormous opportunity for companies that are purpose-driven.

But while purpose is essential for any brand today, just having one is not enough: Brands are on trial. Stakeholders are calling brands out on hypocrisy, mixed messages and failed initiatives. Even companies that thought they had a clear purpose need to prove they are investing in substantial change and not just “woke washing.”

Defining and living your organization’s purpose is hard. It’s messy. And it’s never-ending. But the most successful companies in these trying times will derive their purpose from shared human values, stay true to what they do and be relevant to what their stakeholders need. And they’ll act on it every day.

“Make sure your purpose is grounded in shared human values–including employees–and take responsibility when things go wrong.”

These four companies are using purpose in powerful ways, and working hard to live it in challenging times:

Citi: Inspiring growth and progress

Citi’s purpose–to provide financial services that “enable growth and progress”–took on electrifying new meaning as the economic impact of the pandemic shook its employees, customers and neighborhoods. Citi went beyond what most banks did – loan forgiveness and mortgage relief– to not just delay devastation but truly deliver on that purpose. “Citi’s mission and purpose have long been rooted in enabling growth and progress. As the world continues to search for solutions to address the global pandemic, racism, and more, at Citi we know that our role is to identify issues to stand for and influence in order to enable relevant and meaningful progress for our clients, colleagues and communities,” said Mary Ann Villanueva, Director of Citi’s Brand Culture and Engagement.

Efforts included committing $100 million in support aimed directly at that promise of progress, launching Restarting Together to encourage startups supporting society through the crisis, helping customers secure PPP loans, and helping those most impacted by the pandemic including the World Central Kitchen and National Disability Institute and many more. Citi has also expanded beyond financial progress to support racial equality through recent campaigns and commitments to the Black Lives Matter movement, including investing in Community Development Financial Institutions, which play a vital role in low-income communities and communities of color.

Airbnb: Deepening authenticity

When a company’s purpose ties directly to what it does, brands feel more authentic. This becomes even more important during times of change. Airbnb exists to “create a world where you can belong anywhere.” With sweeping travel restrictions and lockdowns, the company had to pivot quickly to find new ways to express hospitality. Open Homes for COVID-19 frontline workers gave hosts an immediate way to help. And it began creating online experiences that allow guests to learn new activities and meet people from around the world. By enabling people to connect, even while stuck at home, Airbnb is finding new ways to stay relevant.

Glossier: Listening builds a shared community

Shared purposes are not just relevant to one audience, they are felt deeply by each–employees, customers and communities. That calls for genuine listening to make sure that actions, products and services align with the values and beliefs of those stakeholders. Glossier’s purpose is “to give voice through beauty” by “leveraging the power of the personal narrative.” Throughout the COVID-19 crisis, Glossier’s most frequent request was for a product to help with increased irritated skin from repeated handwashing. Inspired by stories and comments, Glossier quickly developed a hand cream, donating thousands of units to first responders.

The company is also recognizing that obsession with that external community has a downside, leading it to prioritize the needs of customers over that of its own workers, especially people of color. When shoppers engage in racist behavior, for example, the company’s “the customer is always right” stance gets toxic. Glossier isn’t running away from that dissonance but trying to learn. The lesson? Make sure your purpose is grounded in shared human values–including employees–and take responsibility when things go wrong.

Walmart: So actionable, it’s indispensable

The final dimension emerges when companies demonstrate that purpose is not just an empty promise. If companies can’t deliver, it doesn’t matter how inspiring or authentic they are. People pay attention to what brands do, not what they say. Walmart has long struggled with negative perceptions. But it continues to make progress through finding new ways to act on “saving people money so they can live better.”

Because of its vast size, it pays great attention to subtleties and the importance of multiple actions. Among the steady drumbeats that help all people “live better”? In addition to cash bonuses for employees, it’s closing all locations this Thanksgiving to show gratitude. It introduced Express delivery so customers can avoid crowds. It turned parking lots into drive-in theaters, showing movies for free. And in requiring all employees and shoppers to wear masks and supporting expanded testing efforts, it’s helping everyone.

Just as people look to friends, family, and government during hard times, they are holding a magnifying glass up to businesses. Customers expect companies to treat people well, engage the community and evolve to meet a changing world. Workers are questioning employee value propositions. They want businesses to put people over profit. Words and actions matter.

Does your purpose…

• Make the world better? Even companies with a pragmatic purpose can inspire others.
• Create believers? When businesses connect purpose to the way they earn money, it’s authentic and makes perfect sense.
• Apply to all audiences? The right purpose resonates with employees, customers, communities and investors.
• Translate into action? If an organization can’t deliver on promises, everything else is pointless. Enabled by leaders, companies constantly need to bring their purpose to life.

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Businesses have been leaning into purpose-driven strategies for years, but recent events have tested them as never before. Whether responding to the worldwide pandemic, new ways of working, racial protests or political polarization, we’ve seen that companies with a purpose centered on shared human values rather than business goals are the ones more capable of acting swiftly and effectively. Purpose doesn’t just help these businesses decide what to do, it guides them in the best ways to do it.

This purpose is the North Star that steers actions and decision-making on a day-to-day basis. And it guides all elements of the company’s DNA, including its brands, strategy and employee value proposition.

And those without a well-articulated and actionable purpose? They’re struggling. When companies shout out hollow words on social media, customers abandon them, and brands lose their relevance. When we surveyed consumers in April, 58 percent said that in order to earn or keep their trust, it was very-to-extremely important for a brand to offer a relevant set of beliefs and values. By June, this number had jumped to 69 percent.

“When companies shout out hollow words on social media, customers abandon them, and brands lose their relevance.”

Prophet developed a diagnostic to assess how durable your company’s purpose is across four key dimensions (authentic, inspiring, shared, actionable). The custom analysis produces results that let you know where you may have a weak spot and where you might take your purpose next.

Our diagnostic will help you make brand purpose more powerful and tell you what to do if your company’s purpose isn’t…

Inspiring

It’s likely your mission isn’t ambitious enough or has been defined too narrowly. Brands like Disney, NPR and Spotify are endlessly uplifting because their purpose speaks to shared human values; they know how their products and services make a difference in the world and in people’s lives. But even companies with a fairly pragmatic purpose can be more aspirational.

To be more inspiring:

• Look for cultural symbols and rituals among stakeholder groups
• Find signature stories that are so compelling they make people question, reflect and want to share them with others

Authentic

When companies connect their purpose to the way they earn money, it makes perfect sense. Google, for instance, exists to “organize the world’s information,” which clicks with anyone who’s ever used a search engine. But when an oil and gas company misses the mark completely by saying its focus is protecting the environment, or a soft-drink brand claims to be committed to health, there’s an immediate disconnect.

To be more authentic:

• Realign the business model, or find a purpose that fits
• Isolate the organization’s unique assets to solve a challenge, not easily copied by a competitor

Shared

The right purpose feels true and important with every audience–employees, customers and communities. It must be understood and pervasive, felt by every stakeholder. And it contributes to the overall betterment of society. For Patagonia, nothing matters more than fiercely protecting the environment. At Nike, the commitment to racial injustice, which connects so deeply with its customers and athlete spokespeople, is more believable. If your company’s purpose doesn’t feel urgent to each group you’re targeting, it’s likely the wrong ambition.

To find a genuinely shared purpose:

• Sharpen listening skills. What are customers and employees really saying?
• Explore the intersections of our stakeholder groups, finding new ways to ask, “What shared human value is most relevant?”

Actionable

Of the four traits, this is the last mile. If your organization can’t deliver on its purpose–no matter how inspiring or authentic–everything else is pointless. Purpose needs to be enabled by leaders: Their actions and decisions serves as the role-model to the entire organization.

Recent months have shown what happens when purpose is just an empty promise. Those include companies parroting “We’re in this together” messages, only to be called out for endangering employees, or jumping on “Black Lives Matters” platforms, even while actively discriminating against employees and customers.

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Glug glug. The proverbial watercooler.

It’s where employees take a pause and engage in small talk. It’s where employees keep up to date on the latest developments. And it’s where many of the most innovative ideas first get floated. When employees can casually congregate at the watercooler, cafeteria or ping pong table, it breaks down formal barriers and encourages employees to bond with co-workers outside of their immediate working team. These personal connections not only build comradery but also enable trust and open communications, which are cornerstones to a healthy culture.

But with so many of us now working remotely, interactions with co-workers have become more transactional and largely only with those on our team or within our department or function. Save the occasional Zoom cocktail hour, serendipitous conversations are becoming virtually non-existent. A recent report found that virtual work now accounts for 62% of the workforce, and for many, work-from-home is here to stay. Although the world has adapted almost overnight to working remotely, organizations are now asking what impact this is having on their culture. Case in point: how can organizations recreate unplanned watercooler moments in a virtual work environment?

Creating the Right Environment

Remote work has forced us to think about new ways to support our people as they try to remain productive while feeling isolated and overwhelmed. Ensuring teams have the right digital tools, technology and access to the information they need to do their jobs are table stakes in virtual work. Preserving informal conversations and informal networking takes a bit more thought, especially without physical spaces like the coffee counter, lunchroom or Vinnie’s Pizzeria around the corner.

In a physical environment, the culture encourages watercooler moments through symbols, rituals and artifacts – naming the snack area, choosing unique furniture styles, and allowing personalization of meeting spaces. In a virtual environment, we have to be more overt about the watercooler moment to encourage organic interactions and fight the tendency to easily disconnect. Before looking at solutions to the problem, let’s define the qualities of a great watercooler moment:

• It’s a safe space. Trust is pervasive to the experience. Employees need to feel they can ask questions, share ideas and be “wrong” without repercussion. Employees will avoid the company’s intranet for informal communications if it leaves a trail.
• It’s casual and organic. Informal moments happen in the normal course of the day, on the way between tasks, or in scheduled breaks (i.e. lunch). It shouldn’t feel like another item on the “to-do” list.  Make it fun and easy to slip in and out of.
• It’s acknowledged. While rarely explicit, unplanned interactions are acknowledged as essential to the culture. Successful leaders model desired behaviors by seeking out casual conversations, and encouraging their teams to do the same.
• It’s iterative. Watercooler moments are just one step in a consensus-building process, that builds on and carries forward a continuing conversation. They don’t require hard inputs and don’t expect hard outcomes. It’s about the journey, not the destination.

“Personal connections not only build comradery but also enable trust and open communications, which are cornerstones to a healthy culture.”

Simple Ideas to Get Started

In some ways, virtual work has already begun to break down traditional organizational norms. Despite the lack of a corporate campus, decisions are being made and operations are proceeding, in some cases faster than ever before. The pandemic has created a rapid test-and-learn environment for new ways of working, and is a great opportunity to help your employees connect in new, more meaningful and personal ways despite the distance:

Leverage Technology:

• Consider tools like the Slack app Donut that automate virtual coffee chats by pairing co-workers from different parts of the organization at regular intervals.
• Encourage employees to stay logged into their virtual meeting apps (i.e. Zoom) during the workday and “drop in” for a quick conversation or brainstorm.
• Conduct informal polls for favorite summer cocktails, recipes or outings; enable a comment feature to allow for additional interaction about the poll topic.
• Create an #aboutme hashtag on the intranet where employees can share their hobbies, interests and passions and build affinity groups.

Create Collaboration Moments:

• Form cross-functional working teams from different geographies, levels and skill sets to address social issues (i.e. community outreach, LGBQT, BLM).
• Set up group chats on a messaging platform to discuss non-business topics like trending pop culture, parenting, fashion or music.
• Host virtual brown-bag lunches to cook, share, eat and chat informally.

Have Fun:

• Host a virtual concert where employees and their families can perform a song, play an instrument or do karaoke.
• Encourage book or movie clubs where employees can share and discuss their latest Netflix binges.
• Run a virtual game night where teams play a board game or on-line video game.

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We are all learning to adjust to a new reality: adding new skills; making new connections; uncovering new opportunities; adapting to be more present virtually – and none of it is easy.

At Prophet, our culture is stronger than ever because our teams are stronger than ever. It can be difficult to know how to keep your teams inspired and engaged at these times, so I asked the leaders at Prophet to share their secrets to success. Here is what they are saying to their teams right now:

1. You first

You can’t take care of others if you can’t take care of yourself. Encourage your team to get the basics sorted out, take breaks and center themselves. Sometimes the best way to connect is to disconnect. Make sure they know that their well-being is paramount.

2. You are not alone

We are all in this together. Check in on everyone on a regular basis. Share online resources on new ways of working. Recognize what’s working well. Try daily stand-ups: they are a great way to actively listen, prioritize and understand what’s standing in your team’s way.

3. What we do still matters

The need for purpose does not go away, in fact, it may be more meaningful than ever. Spend some time with your team discussing your organization’s purpose. Remind each and every one of them of the key role they play in delivering on it and explore ways to refresh it in the current context.

4. Uncertainty is the new normal

Working from home is going to continue indefinitely. Be prepared for change and don’t be unnerved by it, we’re seeing a huge economic impact with revenue streams in extraordinary flux. Take the time to highlight moments where the team has successfully adapted to the unknown.

5. Patience is a virtue

Homeschooling, elderly parents, cranky roommates: you may not understand everything your teams are going through – or how much longer routine tasks take. Allow extra time to get things done. Pair teammates with similar challenges to troubleshoot.

“We are all learning to adjust to a new reality.”

6. Don’t be afraid to ask for (and give) help

Reassuring employees that they are covered on their health insurance can go a long way to reducing anxiety. Point employees to assistance programs where they can get help. And encourage teams to offer help to each other and to their community. Generosity combats anxiety.

7. Soft skills matter more than ever

We are living online, from dawn to dusk. Pierce the virtual wall by starting or finishing every conversation with something personal. How are you feeling? What’s on your mind? How can we help? Not only does this give people a sense of community, but it also teaches them new skills, which we may all be needing for a while.

8. Look for the opportunities

Your teams are close to customers. They see what competitors are doing. They have ideas on how to respond. Find the time to brainstorm on the market opportunities that are emerging from the COVID-19 crisis. It will be fun and potentially profitable.

9. Well done

Recognizing contribution and celebrating progress are essential in these tough times. We need these rays of light to shine through in what can only be classed as a less than bright period. See it as more than a pat on the back, it’s a great way to extract learnings and replicate success.

10. What do you think?

Include teams in your decision-making. If your organization needs ideas for quick wins, run a digital hackathon. If you are thinking about shifting roles and responsibilities, share a Google worksheet. If you are thinking about a workforce reduction, ask employees how they might approach it.

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Every time consumers open their wallets, they show their preference for the brands they trust.  A key driver of relevance is the values brands stand for and the way they bring those values to life in the customer experience.

The 2019 Prophet Brand Relevance Index® gives us a unique view into how brands today stay relevant to consumers. To determine relevance, Prophet surveyed 13,500 U.S. consumers about more than 225 brands across 27 industries. It measured four brand principles: customer obsession, ruthless pragmatism, pervasive innovation and distinctive inspiration. Within these principles, we measured how customers rated brands on a set of values and beliefs that align with their own.

The study reinforced a strong correlation between relevance and values (R²=0.55), suggesting that brands that effectively demonstrate strong values externally have greater relevance with the consumers they are engaging.  Said another way, consumers place greater weight on how brands demonstrate and live their values rather than the specific values themselves. We can look to brands that perform highly on “has a set of values and beliefs that align with my own” to learn how to help drive greater relevance in the market.

 The Importance of Brand Values

To have a lasting impact, brand values need to be more than words on a wall – they need to come to life across touchpoints, internally and externally. Internally, values can engage, empower and equip. They form the foundation of a company’s culture, defining behavioral standards, unifying employees, boosting morale and helping employees work towards a shared vision. When employees enthusiastically live the company’s values, those values radiate externally and can be felt by customers.

Brands that turn their commitment to values inside out create deeper relationships with consumers who share those values and believe in the brand’s bigger purpose. Brands with weaker values – or those that don’t live up to their values – can have negative impacts on customers’ perceptions of the brand. To see the impact values can have on brand perceptions, we studied brands that are winning with customers and employees around a shared set of beliefs and values.

1. USAA – Values That Build Empathy

USAA, #46 in the BRI overall, brings their values to life for employees, empowering them and transforming how they engage with customers. The company starts by reinforcing its values internally, providing employees with a USAA membership and conducting extensive training. Through USAA’s “Surround Sound” approach, trainees read deployment letters from soldiers and even practice carrying a 65-lb backpack. These values-driven experiences enable employees to see their work through the customers’ eyes, creating a connection between the employee and the needs of the customer. As a result, customers feel that USAA employees truly understand their needs, which are rooted in their personal beliefs and values.

“When employees enthusiastically live the company’s values, those values radiate externally and can be felt by customers.”

2. Disney – Values Motivate at Every Touchpoint

Disney, #5 in the BRI overall, has beliefs that are continuously reinforced throughout the organization – through how leaders communicate, to how performance is measured, to how employees are recognized and rewarded. Disney’s professional development team, Disney Institute, showcases the “business behind the magic” as a resource for companies across industries. One feature, “Disney’s Approach to Employee Engagement,” explains the company’s commitment to selecting the right people and retaining them. A key aspect of this commitment? Reiterating the brand’s core purpose – to create happiness – and empowering each employee from the start to provide outstanding service to guests with this purpose in mind. This constant reinforcement and clear communication of expectations create an intentional culture where decisions are rooted in those beliefs. And customers feel the values as the magic of Disney is brought to life across channels and touchpoints.

3. Chick-fil-A – Values Drive Consistent, Quality Experiences

Chick-fil-A, #27 in the BRI overall, has values that are an integral part of their company, with each team member – from corporate leaders to frontline employees – living them every day. Unlike the rest of the QSR industry which largely takes a transactional approach to customers and employees, Chick-fil-A has constructed an intentional culture rooted in family values with a “servant leadership” mindset. This is nurtured in the culture across every touchpoint, from how they recruit talent (e.g., observing how potential hires interact with employees) to how they engage with customers (e.g., closed on Sundays and saying “it’s my pleasure” when serving customers), and ensures employees truly live the culture and values every day.

Chick-fil-A’s values are so deeply engrained in employees’ lives, that they permeate into customers’ experiences. The chain has established a high bar for what customers will experience at any of their restaurants in the country, and with values that are instilled on the individual level, the brand consistently delivers.

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