The Power of Purpose in Business | Ashley M. Grice | TED

Summary

In this inspiring talk, the speaker recounts a personal experience with Delta Airlines that exemplifies the power of a well-embedded company purpose. Despite a rushed flight, a flight attendant's thoughtful gesture of providing almonds and a heartfelt note reflects the airline's ethos and its impact on employees. The speaker, who helped define Delta's purpose years prior, emphasizes the importance of authenticity, internal excavation, and organizational-wide application of purpose to create a lasting cultural norm that drives value and engagement.

Takeaways

• 🛫 The speaker recounts a personal experience on a Delta Airlines flight where a flight attendant's kindness left a lasting impression.
• 🙂 The flight attendant's action of providing almonds to the speaker symbolizes the embodiment of Delta's purpose in action.
• 📝 The note from the flight attendant highlights the importance of recognizing and appreciating loyal customers, reflecting Delta's ethos.
• 🔍 The speaker's professional role involves helping companies define and execute their purpose, which was also the case with Delta Airlines in 2003.
• 🌟 The concept of 'purpose' is distinguished from 'mission' and 'vision', emphasizing its role as the 'why' behind an organization's actions.
• 🕰 The speaker mentions that purpose is timeless and should be rooted in the company's ethos, unlike mission and vision which can change over time.
• 📈 Data suggests that a well-embedded purpose can lead to increased shareholder returns, employee engagement, retention, and productivity.
• 🔑 Authenticity is key to purpose; it must be genuine, distinctive, and consistent with the company's values and aspirations.
• 🛠 Purpose should be uncomfortable, as it challenges the status quo and introduces tension between idealism and realism within an organization.
• 👥 Purpose must be applicable and relevant at all levels of an organization, from the C-suite to front-line employees, to be truly effective.
• 📚 The story of JFK and the NASA janitor illustrates the power of purpose when it is understood and internalized by every member of an organization.

Q & A

What is the main anecdote described in the transcript?

The main anecdote describes the speaker's interaction with a Delta flight attendant named Sarah, who, upon learning that the speaker was cutting it close for a speech and had no time for lunch, packed a bag filled with packets of almonds and a note for the speaker.

How does the speaker relate the anecdote to the concept of purpose?

The speaker relates the anecdote to the concept of purpose by highlighting that the flight attendant's kind gesture exemplified Delta Airlines' embedded purpose of customer care and service, demonstrating how deeply ingrained purpose can manifest in everyday actions.

What distinction does the speaker make between mission, vision, and purpose?

The speaker distinguishes mission as what a company does every day, vision as where a company is headed, and purpose as the underlying 'why'—a timeless ethos that guides a company's role in the world and its aspirational identity.

Why does the speaker believe that purpose must be authentic?

The speaker believes that purpose must be authentic because it needs to be rooted in the company's ethos, distinctive to its brand, meaningful to stakeholders, and consistent with its values. Authentic purpose resonates more deeply and is more sustainable.

What example does the speaker provide to illustrate the importance of authenticity in purpose?

The speaker provides the example of Kelly Bayer Rosmarin, CEO of Optus, who speaks convincingly about her company's purpose of 'powering optimism with options,' because it aligns authentically with Optus' identity as a challenger brand and its positive brand platform.

What advice does the speaker give to CEOs about embedding purpose in their organizations?

The speaker advises CEOs that purpose must be authentic, critically excavated from the inside out, and apply to the whole organization. It should not be a vanity project but a unifying construct that guides strategic decisions, clarifies middle-management roles, and makes front-line employees feel seen and valued.

How does the speaker define the discomfort associated with purpose?

The speaker defines the discomfort associated with purpose as the tension between idealism and realism—what the company aspires to be versus what it is currently capable of. This discomfort is part of the process of aligning the company's actions with its deeper purpose.

What historical anecdote does the speaker reference to illustrate the power of well-embedded purpose?

The speaker references the story of John F. Kennedy and the NASA janitor, where the janitor, when asked by JFK what he does, replied that he was 'putting a man on the moon,' illustrating how well-embedded purpose can give every employee a sense of contribution to a larger goal.

Why does the speaker mention Delta Airlines' strategic transformation in 2003?

The speaker mentions Delta Airlines' strategic transformation in 2003 to provide context for the company's long-term commitment to embedding purpose. This transformation helped the company navigate through challenges and embed a customer-focused purpose that still resonates with employees years later.

What impact does the speaker suggest well-embedded purpose can have on a company?

The speaker suggests that well-embedded purpose can lead to increased total shareholder return, higher employee engagement and retention, and greater productivity. It aligns and motivates the organization, making purpose-driven actions a cultural norm.

Outlines

00:00

🤝 The Power of Purpose: A Flight Attendant's Gesture

The speaker recounts a personal experience from a 2019 flight to New York City, where a young flight attendant named Sarah provided exceptional service by giving them a bag of almonds due to their tight schedule. This act of kindness was not only appreciated but also highlighted the power of a well-embedded company purpose. The speaker, having helped Delta Airlines articulate its purpose years before, reflects on how Sarah's actions exemplified that purpose, which had become a cultural norm and 'muscle memory' within the company. The narrative emphasizes the impact of an authentic and timeless purpose on employee behavior and customer experience.

05:02

🌱 Embedding Purpose: Authenticity and Organizational Impact

The speaker delves into the concept of embedding purpose within an organization, distinguishing it from mission and vision, which are more temporal and subject to change. They argue that purpose is a company's 'why', deeply rooted in its ethos and aspirations, and should be timeless. The speaker shares insights from their experience, emphasizing the importance of authenticity in a company's purpose, as illustrated by the example of Optus's CEO and their commitment to 'powering optimism with options'. They also discuss the discomfort that comes with purpose due to the tension between idealism and realism, and the necessity for purpose to permeate every level of an organization, from the C-suite to front-line employees. The speaker concludes with the anecdote of JFK and the NASA janitor, illustrating how well-embedded purpose can make every employee feel valued and integral to the company's overall mission.

Keywords

💡Purpose

Purpose refers to the underlying 'why' of an organization, encapsulating its core values and the role it aims to play in the world. In the script, the concept of purpose is illustrated through the flight attendant's actions and the overall mission of Delta Airlines, highlighting how deeply embedded purpose drives meaningful interactions and guides the company through challenging times.

💡Mission

Mission is what an organization does on a daily basis, distinct from its purpose. The speaker emphasizes that while mission can change over time due to various factors, purpose remains constant. In the script, Delta's mission might involve day-to-day airline operations, but its purpose is about creating positive experiences for customers.

💡Vision

Vision refers to where an organization aims to go in the future. Unlike purpose, which is timeless, vision is more dynamic and can evolve with changes in leadership and market conditions. In the context of the script, Delta's vision would be its future aspirations and strategic goals.

💡Authenticity

Authenticity in the context of purpose means that it is genuine and rooted in the company's core values and ethos. The speaker stresses the importance of an authentic purpose, using Optus as an example of a company with a purpose that aligns perfectly with its brand identity.

💡Stakeholders

Stakeholders are individuals or groups that have an interest in the company's activities and outcomes. In the script, purpose must be meaningful to all stakeholders, including employees, customers, and shareholders. The flight attendant's actions reflect Delta's commitment to serving its stakeholders with care and empathy.

💡Cultural Norm

A cultural norm is a behavior or practice that becomes standard within an organization. The speaker describes how Delta's purpose has become a cultural norm, with employees like the flight attendant naturally embodying the company's values in their everyday actions.

💡Middle Management

Middle management refers to the layer of managers between the executives and the front-line employees. The script highlights the importance of clarity and authority for middle managers to ensure that they can align their decisions with the company's purpose and strategic goals.

💡Front-line Employees

Front-line employees are those who interact directly with customers or handle the core operations of the business. The script emphasizes the role of purpose in helping these employees feel valued and understand how their work contributes to the company's overall mission, as exemplified by the flight attendant.

💡Shareholder Return

Shareholder return refers to the financial benefits received by shareholders, such as dividends and stock price appreciation. The speaker mentions studies linking well-embedded purpose to increased shareholder return, suggesting that a strong sense of purpose can enhance a company's financial performance.

💡Ethos

Ethos is the characteristic spirit and beliefs of an organization. The speaker defines purpose as being derived from the company's ethos, reflecting its values and aspirations. Delta's ethos of customer care and service is evident in the actions of the flight attendant who went out of her way to support the speaker.

Highlights

In 2019, the speaker took a 9am flight from Atlanta to New York City and was the first person to board.

The flight attendant, appearing tired, smiled and greeted the speaker warmly despite her early day.

During the flight, the flight attendant and the speaker exchanged pleasantries, leading to a meaningful interaction.

The flight attendant gave the speaker a bag filled with packets of almonds and a note of encouragement.

The note expressed gratitude for the speaker's kindness and acknowledged her dietary needs.

The speaker connects this act of kindness to Delta's corporate purpose, which she helped articulate years ago.

Delta Airlines' purpose was to serve as a guiding principle during challenging times, including post-9/11 and Chapter 11 bankruptcy.

Purpose at Delta has become ingrained in the company culture, reflecting in employees' actions like those of the flight attendant.

The speaker distinguishes between mission, vision, and purpose, emphasizing that purpose is the 'why' and is timeless.

Purpose should be authentic, rooted in a company's ethos, and meaningful to all stakeholders.

Authenticity in purpose can be seen in companies like Optus, whose purpose aligns with their brand identity.

Purpose must be excavated from within and can be uncomfortable as it introduces a tension between idealism and realism.

Purpose applies to the whole organization and is not just a vanity project for CEOs.

Front-line employees understanding their role in the company's purpose can lead to stories like the NASA janitor's 'putting a man on the moon'.

Well-embedded purpose encourages actions that create meaningful stories and loyalty from customers.

The story concludes with a thank you to Sarah, the flight attendant, for making the speaker's day better with her kind gesture.

Transcripts

In 2019,

I took a 9am flight from Atlanta to New York City.

I was the first person to board that day.

So as I death-gripped my phone to step over that little crack

that leads to the runway,

I caught a glimpse of the flight attendant.

Head in her hand, like this, eyes closed.

The moment she heard me, she looked up,

she put a smile on her face and she said, "Good morning."

"This is not your first flight of the day, is it?" I asked.

"No," she said,

"it had been a really early one."

I made some silly sleep joke and she laughed,

and I went to go sit in my seat.

She couldn't have been more than 25 years old.

During the flight, we exchanged pleasantries,

and at one point she came to offer me a snack,

and she asked me what I was going to New York to do.

I said that I was going to deliver a speech

and that honestly, I was cutting it kind of close.

"No time for lunch?" she asked.

“No time for lunch,” I said,

and I took a bag of almonds

and I tucked it into the pocket of my backpack.

After the flight landed,

I was on my way out of the plane, and she stopped me for a moment,

and she handed me a plastic bag.

It was about this big and it was weirdly heavy.

She said, "I know you didn't have a lot of time today, so I packed you this.

Good luck."

That was nice.

So as I'm walking through LaGuardia with my bag and my bag,

I peer inside

and there are about 30 packets of almonds inside that bag.

It was a bag of bags.

And when I was in the taxi on the way to the speech,

I found this little note tucked inside:

“Ms. Grice, thank you for coming on

and putting a smile on our faces with your sweet words.

You have been so kind,

and we are very lucky to have you as a loyal Delta customer.

Thank you.

I know you are gluten-free

so here are some almonds for the road!

Thank you for your kindness!

It goes a long way!

Sarah, Delta flight attendant."

Now reading this, my heart gave a little jolt.

My day job is to help companies excavate and execute their purpose.

And this little note on this little napkin was purpose in action,

specifically that airline’s purpose.

And I know because I had helped to articulate it over 15 years before.

In 2003, purpose was just one element

of a much larger strategic transformation that Delta Airlines undertook.

It was a company still reeling from the aftereffects of 9/11

and one looking for a North Star to guide them through

would eventually become Chapter 11 bankruptcy.

But in 2019,

for a flight attendant who was maybe in elementary school

at the time that purpose was articulated,

it was some almonds for a hungry customer.

It may be that Sarah never saw that purpose line we articulated,

but no matter, she didn't need to,

because purpose was alive and well at Delta.

It had become muscle memory.

It had become cultural norm.

Now let me be clear in what I'm talking about here,

I'm talking about embedding purpose.

I'm not talking about your mission,

which is what you do every day,

or your vision, which is where you are headed.

Both mission and vision are important corporate drivers,

but they play a different role in purpose.

And mission and vision will change with changes in leadership,

corporate contacts, competitive landscape, merger and acquisition.

They are important, but they are also temporal.

In my experience,

they often have a time horizon of, say, three to five years.

But purpose is your "why."

It is found at the intersection of who you are at your very best

and the role in the world that you are meant to play.

It comes from your ethos.

It is married to your aspiration,

and because it is ethotic, it is also timeless.

Now, there are plenty of data out there to say

that well-embedded purpose across organizations brings immense value.

Studies that will link well-embedded purpose

to elevated total shareholder return over 10 years,

increased employee engagement, retention,

even higher levels of productivity.

Because of all this data,

it is rare in my work that a CEO will come to me and say,

"Ashley, what is purpose" or "Why do I need to do it?"

Instead, what they will ask is "When I have my purpose,

how do I embed it across my organization so well

that it brings the most value,

that it becomes muscle memory?"

As I've been doing this work for almost 20 years at this point,

I have a ready answer.

First, I tell them it needs to be authentic.

Purpose that is rooted in your ethos,

distinctive to your brand,

meaningful to all of your stakeholders

and consistent with your values

is authentic.

Kelly Bayer Rosmarin, the CEO of Optus,

a Sydney, Australia-based telecommunications company,

can speak to her company’s purpose --

powering optimism with options -- with conviction,

because it is authentic.

Optus is, by its very nature, a challenger brand,

and it is a brand synonymous with a brand platform of positivity

since options breed action

and optimism breeds hope.

How they pull their internal relations together

with their external reach-out to customers

is very consistent and incredibly authentic.

Now on the other end of the authenticity scale,

I once worked with a CEO

who really wanted purpose to be about environmental sustainability.

"That is great," I said,

"except for your company struggles to even recycle in your offices.

I know, I've been there."

While they admire the aspiration,

if we had come up with a purpose line

that was solely about environmental sustainability,

it would have been dead on arrival.

Specifically with employees.

Secondly, I tell CEOs that they must be critical

in excavating purpose from the inside out.

Purpose is uncomfortable.

It should be,

because you are introducing a tension between idealism and realism:

who you really want to be and who you are capable of being,

today and in the future,

based on competencies and ethos.

And purpose can be particularly discomforting

because even once you have it,

it takes a while to implement it.

In fact, you may set your purpose once

and spend your entire career living up to it.

Now, purpose is particularly uncomfortable for companies

who are on a forced evolution of change,

companies in industries like oil and gas, for example,

or for companies who maybe have bad behaviors they need to leave behind.

Finally, I tell CEOs that purpose must apply

to the whole of the organization.

Purpose is not a CEO vanity project.

Sure, it may help cement the legacy of the CEO

who is in charge at the time it's articulated,

but it's not about them,

it’s not about him or her.

It’s about the value the company brings.

It is about the role in the world that it’s meant to play.

Now purpose at the C-suite level should be a unifying construct

that brings together mission and vision

and influences your strategic agenda.

It should help CEOs think about how they redefine metrics for success,

what types of topics they may want to speak with analysts about,

or maybe most importantly,

how the board ought to hold them accountable as managers.

Purpose at the middle-management level

is about much needed clarity and authority.

The middle-management layer of any organization

is often the most difficult to motivate

because they have so many different stakeholders to please.

But by bringing clarity

with purpose-driven expectations and guardrails,

it allows middle managers to understand which battles to pick

and that the micro decisions they make on a daily basis

affect the company [as] a whole.

Finally, front-line employee purpose helps employees at that level ensure

that they are seen.

When purpose is excavated and executed top floor to shop floor,

those on the shop floor understand that their work matters

and how it adds up to the overall value for the company.

Well-embedded front-line purpose is the tenet behind that legendary story

of John F. Kennedy and the NASA janitor

back in 1962.

You know, the one where JFK supposedly asked the janitor,

"What do you do for NASA?"

And the janitor said,

"I'm putting a man on the moon."

In this story, the janitor understood that his role was to prepare the building

for the engineers who were going to come in and crank on the math.

But he also understood the importance of that role

to the overall vision and objectives of NASA.

That janitor understood his role in the universe,

so to speak.

So many iconic business stories begin on the back of a cocktail napkin.

But it wasn't just this napkin or even the nuts

that caused me pause that day.

It was the sentiment behind it.

It was the idea if you execute purpose across culture

and strategy and brand consistently for years,

it does become muscle memory.

It becomes a cultural norm.

And it is that norm that encourages an employee to make a gift,

which becomes a story

which then a very loyal customer tells to the world.

So since I am here, Sarah,

thank you for your kind words that day,

and for the almonds.

You helped make it a great day

because you were right,

I was hungry.

Thank you.

(Applause)