Episode 7
People Podcast – The purpose-driven organization
The episode covers the topic of purpose-driven organizations. What does it mean to have a purpose-driven organization, and why is it important? Apart from diving into these questions, Dorna and Cecilia discuss what can happen when an employee’s individual sense of purpose in life overlaps with his or her organization's purpose. Tune in to learn more!
Transcript
At Atlas Copco, we strive to be the most attractive industry company in our segments and target markets.
Speaker:Our strong culture of innovation is a result of having great people on board, committed and encouraged to grow and reach their full potential with the belief that passionate people makes the difference.
Speaker:The People Podcast is one channel where we get to explore and deep dive into topics within people and culture.
Speaker:For those of you who listened to our previous episodes, welcome back.
Speaker:We release new episodes on a quarterly basis, and the program today is our 7th release.
Speaker:I'm Cecilia Sandberg, head of HR for the Atlas Copco Group.
Speaker:And with me, I have Dorna Ericksson Shafiei, VP talent management for the Group.
Speaker:Our topic for today will be enabling a purpose driven organization and why it matters how to link your individual purpose with the organizational purpose, inspiring innovation, collaboration and overall performance and engagement.
Speaker:So please join us.
Speaker:Dorna,
Speaker:Most welcome.
Speaker:Thank you, Cecilia.
Speaker:So in a world that's evolving faster than ever before, one question is repeatedly asked 'why' we start to wonder why, as children signaling curiosity and the need to understand the world around us, but the need to know why never goes away, even though sometimes we forget to ask, in fact, the desire to make meaning of the world and to find a purpose within it is intrinsically human.
Speaker:So what are your reflections here, Dorna? Well, I guess individual purpose can be thought of as an enduring, overarching sense of what matters in a person's life.
Speaker:So people experience purposefulness when striving towards something significant and meaningful to them.
Speaker:There are clear patterns that help organizations categorize what people find meaningful, but ultimately someone's purpose can be as varied as people themselves.
Speaker:I think that's so true.
Speaker:But let's start with the basics.
Speaker:What does it mean to have a purpose driven organization? What's your take on that, Dorna? So first, I believe we can all agree that people want to work for and with companies that have purpose at their core.
Speaker:So companies that align with their values and allow their employees to feel part of something bigger.
Speaker:An organization's purpose is then defined as the reason for the business to exist.
Speaker:So it needs to go beyond creating owner and shareholder value and profit and extend to deliver a broader benefit for society.
Speaker:For sure, purpose should not only be aligned with our business strategy but also at the center of our culture, like the spinal cord that connects the brain with the rest of the body.
Speaker:An organizational purpose connects employees, customers, and services to each other.
Speaker:So how can we embrace the individual need for purpose while aligning that with the organizational need? A big and important question for sure.
Speaker:And I believe that a starting point here is to just be authentic.
Speaker:So a purpose needs to be aligned with the company's core business rooted in your history, embedded in your present and, of course, valid for the future.
Speaker:So simply telling the story where we came from and where we're going.
Speaker:Right? Exactly.
Speaker:An interesting research conducted by McKinsey in 2021 actually found that 70% of employees say that their sense of purpose is defined by their work.
Speaker:So like it or not, as a company and as leaders, we play an important part in helping our employees find their purpose and live it.
Speaker:And if we get that right, we can tap the enormous business potential of a purposeful workforce aligned with a purpose driven organization.
Speaker:I find that's very interesting.
Speaker:I'm also a strong believer of finding your ambassadors, leveraging those purpose driven employees as your role models for making your purpose come alive.
Speaker:Absolutely.
Speaker:I think we can all relate to those passionate colleagues out there with a story to tell and reflected by authentic actions.
Speaker:So let's take a closer look at the definition of purpose.
Speaker:To me.
Speaker:Purpose guides culture and creates connections through shared values, which aligns the organization to clearly articulate your purpose and link it to actions will be vital to ensure a purpose driven employee experience.
Speaker:Our people are strongest advocates and Champions, and they will tell if we succeed or not.
Speaker:Very true.
Speaker:And how can we then encourage our people to really embrace their own and the organizational purpose? What are your thoughts here, Cecilia? Well, one way of doing it would be to ask for and gather purpose driven stories to share, asking ourselves, what does purpose driven work mean to me? Engagement happens when individuals connect their own purpose to organizational purpose by addressing this simple but very important question.
Speaker:Why is the work I do important? A powerful question, indeed.
Speaker:And I also see the link between purpose and our strong mission culture.
Speaker:So at Atlas Copco you start your learning journey by setting your mission.
Speaker:So what is it that you would like to accomplish? And how will you do that? And then you drive your own learning journey by being curious and open for new challenges and opportunities that will then help you grow towards your professional and personal purpose.
Speaker:I really like that connection.
Speaker:Your individual purpose as the foundation for your learning journey.
Speaker:Exactly.
Speaker:So how do you see the role of leadership come into play here? Cecilia? As leaders, we need to go beyond talking points to live our organizational purpose.
Speaker:Even if I'm comfortable being authentic and transparent is essential.
Speaker:If we, as leaders, can't tell the story what the purpose means, we can't expect our people to do.
Speaker:Very true.
Speaker:I also believe that you need to make it personal.
Speaker:So the purpose is such written down will theoretically be understood, of course.
Speaker:But when you create your own flavor to it, that's when it really comes to life.
Speaker:Yeah, indeed.
Speaker:And this is, of course, not only applicable for leaders, but for all of us.
Speaker:Imagine the impact of collecting 40,000 employee stories conveying our people's sense of personal identity and professional purpose.
Speaker:How about that.
Speaker:That would be powerful indeed.
Speaker:And stories should not only be told once, so we need to repeatedly tell and retell them.
Speaker:And a great example of this is our Atlas Copco book.
Speaker:I mean, it's all about telling the story where we came from, where we are going and why.
Speaker:I think that's such a great example.
Speaker:When we tell genuine stories around our purpose, the organization recognizes that commitment and we start to believe in the purpose as well.
Speaker:If it's clearly signal from the top, then it naturally unfolds from the bottom.
Speaker:So Dorna, is it possible to talk about a purpose driven organization without mentioning the next generation? What are your thoughts here? I guess not.
Speaker:I mean, millennials are driving the trend and they make up for more than 40% of all consumers today.
Speaker:So they play a vital part and to succeed as a company for the future, profit with purpose will be the new norm.
Speaker:And as a company, you then need to be recognized as a force for good.
Speaker:Very true.
Speaker:I also believe the Pandemic has shown that governments and civil society alone will not be able to solve pressing problems here.
Speaker:I think we can pitch in as a company from reducing environmental impact to offering secure workplaces and development opportunities and combining profit and purpose.
Speaker:Together we can achieve something greater.
Speaker:And I believe it is expected from all our employees, investors, and customers that we commit to greater good in line with our purpose.
Speaker:So we talked about a purpose driven organization, but what is actually a purpose driven employee? What are your reflections here, Dorna? I guess a good example of that is when you say that this is not just any job, it's my job, and when you own the problem or the challenge, and you also own the solution.
Speaker:So when responsibility and the accountability to act goes hand in hand, I mean, after all, if you're clear on your purpose, you're better positioned to navigate and achieve success in an uncertain world.
Speaker:And you're also better able to manage complexity, cope with stress and rise above challenging times.
Speaker:Exactly.
Speaker:Personal purpose provides an anchor in a fast changing environment, a core principle to serve as your north star.
Speaker:I believe that we embrace the notion of accountability in one of our core beliefs.
Speaker:Being the one closest to the problem is the one closest to the solution.
Speaker:In a decentralized organization, this is key to success.
Speaker:I fully agree, and when people find meaning and are encouraged to act, energy and dedication is unleashed.
Speaker:So we have an organization that learns and grows rather than stagnates.
Speaker:I think that's so true.
Speaker:By tapping into the power of doing more and doing it better, we will transform the whole organization for greater good.
Speaker:So Dorna, we're getting closer to the end when we have been talking about how to enable a purpose driven organization, why it matters, and how to link your individual purpose with the organizational purpose and how it helps inspire innovation, collaboration, and improve overall performance and engagement.
Speaker:Should we give it a try to summarize and leave our listeners with some practical takeaways? For sure! So to summarize, then companies with an activated organizational purpose that also encourage employees to activate their own personal purpose will attract and retain great talent.
Speaker:When filled with purpose, employees show renewable energy and motivation and also perform better on the job, achieving beyond what is expected.
Speaker:So when personal and organizational purpose overlap and action is tied to meaning, innovation is often the result. Well said.
Speaker:And one action I would challenge all of us with is to spend some time with our teams, reflecting on the impact the company has on the world and the society.
Speaker:We know from research that reflections on the bigger picture can inspire a sense of purpose.
Speaker:When employees have a chance to reflect on their own purpose and how it connects to the company's purpose, good things happen indeed, and leaders, of course, must be prepared to share their own purpose with others and be vulnerable in ways that they're likely not used to in order to role model these skills and pass them along to colleagues.
Speaker:So as a leader, ask yourself, is my team comfortable sharing personal things with me? So a few things are more personal than one's purpose in life, right? And many people spend the majority of their waking hours at work, so creating space for the little things to become purposeful can quickly snowball into better work experiences and better work environments for everyone.
Speaker:Well put in a perfect ending, right.
Speaker:Thank you so much, Dorna
Speaker:For joining me today.
Speaker:Thank you so much for having me and to our listeners.
Speaker:Thanks for joining us.
