PEOPLE AND PURPOSE ARE THE DRIVERS OF PERFORMANCE, YET MOST IGNORED.
PURPOSE-DRIVEN COMPANIES PROVIDED RETURNS OF 1,646%
between 1996 and 2011. This is staggering growth when compared to 157% for the S&P 500 and 178% for the firms featured in Jim Collins' bestselling book, Good to Great.
APPLE, THE ULTIMATE PURPOSE-DRIVEN PHENOMENON, REPLACES AT&T
on the 119 year-old Dow Jones – with $18b in quarterly income.
Southwest Airlines rallies its 46,000 employees around a common purpose resulting in
40 YEARS OF CONSECUTIVE PROFITABILITY.
COSTCO RANKS #29 IN REVENUE AMONG US COMPANIES,
it outperforms Wal-Mart and Target on top and bottom line for past 5 years (delivering net income growth of 76.98% versus 19.56% for Wal-Mart, and decline of 7.69% for Target.)
77% OF CEOS BELIEVE EMBEDDING SOCIAL ENGAGEMENT
into the business and organizational structure is the most important action to take to prepare for 2020.
Neurologist Larry Rosen states that the average office worker
CAN ONLY FOCUS FOR 7 MINUTES AT A TIME BEFORE
they either switch windows or check Facebook.
And this research also shows that
65% OF BUSINESSES AND HR LEADERS RATE THIS AS AN IMPORTANT OR URGENT CHALLENGE,
yet fewer than 10% of organizations know what to do about it. And this problem impacts more than our work life, it impacts our personal lives, our children, and our families.
2/3RDS OF TODAY'S EMPLOYEES FEEL "OVERWHELMED"
– the concepts of work-life balance have been lost, thanks to a proliferation of technology.
EMPLOYEE TURNOVER RATES WILL INCREASE TO OVER 25% IN 2015.
62% OF MILLENNIALS
feel that current organizations are not making the best use of their skills.
30.7 MILLION MILLENNIALS ADMIT EDUCATION DID NOT PREPARE THEM
for life after school.
OVER 50% OF 18-35 YEAR-OLDS
participate in lifelong learning.
MORE THAN 30% BELIEVE
they’ll be working someplace else inside of 12 months.
MORE THAN 40% DON'T RESPECT
the person they report to.
MORE THAN 50% SAY THEY HAVE DIFFERENT VALUES
than their employer.
MORE THAN 60% DON'T FEEL THEIR CAREER GOALS
are aligned with the plans their employers have for them.
MORE THAN 70% DON'T FEEL APPRECIATED
or valued by their employer.
ORGANIZATIONAL BEHAVIOR CAN INHIBIT OR ENCOURAGE PERFORMANCE.
84% OF EXECUTIVES BELIEVE CULTURE
is critical to business success.
say culture is more important than corporate strategy or the operating model.
say culture is not effectively managed or not on the leadership agenda.
6 OUT OF 10 PEOPLE WILL PAY MORE
for reputable brands.
71% OF MILLENNIALS WOULD LIKELY CHOOSE A JOB
with a company with a commitment to the community if all other factors were the same.
66% OF CONSUMERS SAY THEIR PERCEPTION OF CEOS
affects their opinion of a company's reputation.
87% BELIEVE COMPANIES PERFORM BEST OVER TIME IF THEIR PURPOSE GOES BEYOND PROFIT
– because corporate purpose goes beyond financial results.
Purpose-driven organizations are believed to have better results across a variety of measures:
89% SAY THEY ENCOURAGE GREATER EMPLOYEE SATISFACTION,
85% BETTER CUSTOMER ADVOCACY
AND 81% HIGHER QUALITY PRODUCTS AND SERVICES.
Purpose is viewed as a driver of innovation and transformation:
84% BELIEVE THEIR TRANSFORMATION EFFORTS
will be more successful if integrated with purpose.
PURPOSE IS BEING UNDER LEVERAGED:
only 37% say their business model and operations are well aligned with their purpose.
FEWER THAN 20% OF LEADERS HAVE A STRONG SENSE
of their own individual purpose.
A poll about employees getting respect from their leaders (with 800 managers and employees in 17 industries) reported
- 56% BETTER HEALTH AND WELL-BEING.
- 1.72 X MORE TRUST AND SAFETY.
- 89% GREATER ENJOYMENT + SATISFACTION WITH THEIR JOBS.
- 92% GREATER FOCUS AND PRIORITIZATION.
- 1.26 X MORE MEANING AND SIGNIFICANCE.
- 1.1 X MORE LIKELY TO STAY WITH THE ORGANIZATION.
Incivility also affects the bottom line:
- 50% OF EMPLOYEES DELIBERATELY DECREASE EFFORT/QUALITY OF WORK.
- PEOPLE ARE LESS LIKELY TO BUY FROM A COMPANY WITH AN EMPLOYEE THEY PERCEIVE AS RUDE.
- WITNESSING 1 SHORT NEGATIVE INTERACTION ERODES CUSTOMER OPINION.
Managers at Fortune 1000 firms spend the equivalent of
7 WEEKS A YEAR DEALING WITH THE AFTERMATH OF INCIVILITY.
Sources: CECP's Shaping the Future: Solving Social Problems through Business Strategy – based on research by McKinsey & Company; Mind The Gaps, The 2015 Deloitte Millennial Survey; Deloitte's Global Human Capital Trends 2014; Gallup’s State of the Global Workplace Report; Forbes' Why Companies Fail To Engage Today's Workforce: The Overwhelmed Employee; Forbes' What Organizations Need Now From Human Resources; EY Beacon Institute; Raj Sisodia’s Firms of Endearment; Sherpa’s Executive Coaching Survey; 2007 Market Data Report; Pew Research; Booz' The Global Innovation 1000 Study: Why Culture Is Key; Fast Company's Purpose: How Truly Great Leaders Measure Their Companies; HBR Jan-Feb 2013: The Price of Incivility by Christine Porath & Christine Pearson; Fortune: A study conducted by Accountemps; The Muse: Shocking Stats About Employee Engagement