Business Revolution or Evolution?

There is a business movement that is gaining momentum all the time, a movement that embraces profit in a socially, economically and environmentally responsible context. That values-driven businesses out-perform their competitors by up to 750% (Harvard Business School research) is testament to the value of getting clarity on the purpose, principles and values that belie an organisation.

The work of visionaries like Neil Crofts (Authentic Business – www.authenticbusiness.co.uk) has done much to take forward the concepts of “authentic business”, “purpose-driven” and “values-driven” business. Innocent, Neal’s Yard Remedies and Yeo Valley Farm are examples of the phenomenal success that can be achieved by taking on this approach.

Old business hands will be familiar with “mission statements” and the often shallow impact they have had on businesses in the past. These are not the same as businesses that are purpose – and values-driven: being purpose and values driven requires reassessment of every aspect of an organisation in order to ensure that it is consistent with the purpose and values. It is that that radiates out and shines, inspiring the customer base and producing outstanding results.

Once the purpose and values have been identified, assessing an organisation’s position in relation to all its stakeholders, not just its shareholders, is an essential step. This involves looking at the nature of the relationship with everyone having an interest in the business, from the shareholders to the employees, from suppliers to customers, from founders to the public at large.

In assessing existing relationships (as well as new ones), the organisation has to look at whether it “walks the talk” in everything it says and does. This includes the shareholders agreements, joint venture agreements, employment contracts, terms and conditions of business and any other representation of the relationship between the organisation and its stakeholders. The challenge is then to re-create those documents that are inconsistent and to do so in a manner that reflects the purpose and values of the organisation.

Making the commitment to the purpose and values instantly highlights the shortfall in ones relationships from the ideal and allows one to start the process of “walking the talk”. This takes place over time and it should be properly considered and not rushed into. However, once it has been done, the organisation experiences a boost in morale and clarity of focus.