Dear reader,
This is the last edition of 2022.
The year that had its high highs and low lows.
To me, it was one of deep reflection. Hence, when I thought about what my last note to you should be, ‘purpose’ was the first thing that came to my mind.
I, for one, have lived my life believing my professional purpose was my life’s goal. Only (and thankfully) to be disillusioned continuously over the years.
This piece summarises why.
It also lends for us to reflect on what is purpose, instead? Maybe, I will write that as a sequel soon. Until then. See you on the other side.
Nisha
Robert Delaunay, 1912–13, Le Premier Disque
If you work at a startup, you have either heard whispers of change, trepidation, cost cutting or worse still, layoffs. The scenario, if anything, resembles a war room where everyone has rifles charged - either at each other, at market conditions or just as a metaphor to cope. In such a situation, everyone is thinking of personal survival. The singular goal is, 'how do I* exist'. I, here, can mean anything (the individual employee, the manager, the CEO or even the company). Perfect setting to unleash human survival instincts where vision and purpose take a backseat.
Now, I am no cynic. I like speaking the truth and saying what everyone is thinking about, but not voicing. A McKinsey and Co article states that only 7 percent of Fortune 500 CEOs believe their companies should “mainly focus on making profits and not be distracted by social goals". However, in a war room set up like some companies today, this statement can very well be eaten for breakfast. Purpose, like love or care, is not something you talk about, it is something you demonstrate (especially when the going gets tough). Are we seeing it in action today? I will leave this to your imagination.
Let us take a step back and study how purpose made its way to the boardroom.
The history of Corporate Purpose.
Just like in the 1980s companies were challenged to have clear mission statements, so were they to articulate their purpose in the late 1990s and early 2000s. Taking from a Harvard Business Review article, ‘the role of corporations in the economy and broader society has many positive aspects, a risk is that speed, shortcuts, and spin may take precedence over authentic action,’ and hence slowly it became imperative for companies to go beyond just mission or profit statements to define what their purpose/ vision or contribution to society would be.
Further, purpose or vision statements became a part of the pitch for startups/ Founders when describing their idea to a prospective investor or employee. Statements like - ‘a vision statement must be timeless – something that transcends changing technologies, trends or social media. That’s why Google doesn’t mention search, Amazon doesn’t mention books, and Twitter says nothing about apps or tweets’ are now commonplace - but with a caveat - they are marketing gems and nowhere really do they speak of intent or purpose. Worse still, when the times get tough, you never see them demonstrating these lofty statements.
How many companies can you think of that genuinely care? They live to their purpose and also empower each employee to live their dream? In a war room resources are hard to come by and everyone puts themselves first. How then, can a large cause, vision or purpose take precedence? A Deloitte report found that 28% consumers buy from companies that treat their own employees well, 20% consumers care about how the company treats the environment and 19% about how the company supports communities. I find this ironic. Why? In a hard time, the first thing every company thinks of is to fire its people.
The Purpose Matrix:
Recently, McKinsey has featured an article titled, ‘help your employees find their purpose or watch them leave’ where they have spoken about employees seeking a ‘significant sense of purpose’ from their jobs as the focus or core of life has shifted during the pandemic. The relationship between an employee, their work and their personal selves is highly nuanced and while McKinsey has put together the following chart, I tend to believe that purpose from work cannot sit in a neat illustration like the one below. For example, who is that meaning for - for me as an employee or for the organization - is it serving the right intent - is it capitalistic in nature (no harm if it is), but is it really ‘purpose’ then? What does meaning at work mean - is it a sense of being or it is more money? I don’t have straight answers.
Maybe we have to question fundamentals?
Blitzscaling is a fashionable word. In fact, you can call it a status symbol or a chip many companies wear on their shoulders. But, if you think deeply and dare to question, it is a flawed concept. Companies hire to show growth/ scale. This hiring is done in a rush, with very few bars on talent quality. When times are great, this talent gets unimaginable perks (now I don’t have to tell you what), but when the scales are down, instead of going back to the boardroom and trying to question fundamentals of business operations, RIF (reduction in force) seems like an easier solution. Who is really thinking of what happens after the lay off? Who cares about how they pay their bills - they joined for the vision and purpose too. Does the purpose then help them pay bills?
Conversely, bootstrapped and constrained businesses (that may not make much noise), are still sailing and have balanced scales. Their metrics are purely cash flows and they manage bottom lines without flashy expenses. When the chips are down, they are affected too, but you don’t read of many layoffs there.
Should purpose really matter at work?
In a world where marketing rules our mind and actions, this is the right time to take a step back and think. What do you see around you - the first thing a company does when its existence is questioned is to lay people off. Is that fulfilling a purpose? Sure, you can argue startups are risky and they are built on narrative and stories more than reality and revenue - I will take it. But what I question is the need for purpose when there is n’t any. The ‘building the larger picture’ and ‘living the dream’ when at grim times, the first thing they do is to sacrifice people who trusted their ‘purpose’ ‘vision’ ‘story’ or call it what you may; doesn't sound very promising to me. Does it to you?
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