Giving Values a Purpose and Purpose Value

The Harvard Business Review defines purpose as “what gives your work and life meaning and importance – a sense of impact, depth and direction”.

We wouldn’t disagree. Merely add, that to put it another way, it’s the ‘why’ of what you do. And that to execute the why, you need values directing your behaviour.

So, a purpose contains and is motivated by values. As described by some, purpose and values are the glue that holds the family generations together, the family business together, and populates the SDG / ESG commitments the values have inspired.

Why does this matter?

Firstly let’s make no distinction between family office and family. Then see the following in that context.

Only 12% of family businesses survive to the third generation of ownership. The difference between survival and failure is today seen as down to the existence of strong shared values. Their ability to engage the next generation and enrol them in a family wide purpose is seen as crucial.

Likewise, getting involved in sustainable or SDG / ESG investments is currently happening at just 36% of family offices.

Put simply, the payback for investing in your values in a sustainable way is massive financially. It is also strategically and personally rewarding by giving the next gen a genuine involvement and voice in the future.

And that’s where the future of the family itself is.

Values also decide the philanthropic, social and environmental initiatives the family will commit to. We don’t need to explain initiatives here, just underline that without values and purpose there would be none. And therefore, no impact on some of the world’s most pressing issues.

As we’ve said, values need a place in which to work, and that is purpose. But a word or two of warning.  In the corporate brand world, purpose has lost some support. In a bit of a muddle, promise and mission have also lost value. Some people seem to be happy to have no explanation why a brand exists other than to make money.  As short-sighted as that view is, much of this disenchantment has been driven by the brands themselves.

For instance the manifestly cynical Tesla purpose: “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”  Or the obvious nonsense of Starbucks: “To inspire and nurture the human spirit — one person, one cup and one neighbourhood at a time.“  Neither withstand much scrutiny.

Compare them to the simple and truthful Patogonia: “build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”  Then do the simple thing and live up to it. Patagonia’s repair service is a brilliant example.

The purpose hasn’t lost ground because it is wrong. It has fallen out of favour because a generally younger, educated, informed and media savvy audience has seen through those who are just pretending. Especially in the case of sustainability and environmental issues.

Our view is straightforward. Trust and believe in your values and put them to work with an honest, clear and simple purpose.  No matter how challenging that might be.

It’s the role of the Itriom platform after all.