"You have to live attitude"

m&kAmazon was recently in the media because founder Jeff Bezos donated 10 billion dollars to environmental protection - but his employees reacted anything but enthusiastically: that was just hypocrisy and greenwashing. This example shows that it is no longer easy to look good as a company. Is purpose marketing in crisis?

Alexander Haldemann: That example goes right to the heart of the problem. Purpose marketing has the great difficulty of being truly credible. At MetaDesign, we like to say: "It's not important to have a purpose, it's important to live a purpose. Many miss this first hurdle of getting employees to buy in. But I'm gracious to companies like Amazon. I think a purpose can also have an ambition for the future and not just describe what you already are today.

In theory, such an ambition was probably Bezos' goal.

A big announcement is rarely enough to achieve real acceptance internally. We've all been there: management retreats to nature for a weekend with the self-declared goal: "We need a Purpose!" They deal with the topic between two other agenda items, agree on a definition and finally - worst case scenario - publish on the intranet right next to the weekly menu and anniversaries: "In the future, we stand for X and believe in Y." Employees can only laugh at this. And the intended effect fizzles out as a headline on the intranet.

What makes a good approach the other way around?

To develop a Purpose, management must look at itself and its identity. It is important to answer the following questions: Who are we? What do we stand for, where do we come from, and who do we want to be in the future? The best way to gain understanding and acceptance within the organization is to involve employees in the development of the Purpose.

How can this be implemented in practice?

It needs the right balance. On the one hand, I believe that purpose development is not a democratic process. At the same time, everyone must be heard. Because involvement is the only way to create commitment. The question "Who are we?" should therefore involve all business units, all regions and all hierarchies throughout the organization. I believe this is crucial - especially in larger, global companies. Nevertheless, at the end of the day it is the strong decision of those responsible: This is our purpose, and we are now bringing this attitude into the organization.

Do you have an example in mind where that worked?

If you measure Purpose by results, namely how strongly it permeates the entire company - and over a longer period of time - then I think Ikea is an excellent example. The company stands for a clear stance and pursues a goal. Ikea wants to make the well-designed and functional home accessible to everyone. This democratization of design has long been a hallmark of the furniture store.

Alexander Haldemann: "Purpose is a leadership issue and does not belong solely in the marketing and communications department."

Recently, German sociologist Jo Reichertz wrote in a book on the subject that many customers increasingly view morally charged marketing strategies as façade communication, as fake news.

I can only agree with Jo Reichertz. It sometimes hurts to see how many companies desperately try to portray themselves as do-gooders. This is certainly to be judged against the background of social development - keyword: Triple Bottom Line, i.e. the harmony of social, economic and ecological aspects. However, one may critically ask whether any company - such as a manufacturer of screws or a financial services provider - is really capable of satisfying this expectation.

From my perspective, a purpose does not necessarily have to be a contribution to improving the world. Rather, it is a question of what long-term, higher purpose one places at the center as a company. Simon Sinek, who launched Purpose Marketing in 2009
got rolling with his "Why, How, What" model, said something like, "Companies need to start thinking not about what they do or how they do it, but why they do something. In a world of permanent change, people believe those who have a clear point of view." This focus helps companies succeed in the long run. I am convinced of that.

What can a company do that doesn't have do-gooder purpose in its DNA?

Companies should consider: What do we do for our customers and what do we do for our employees? What would the world be missing if we weren't here?

Do you have an example?

Let's take an international fashion brand. Of course, I expect every haute couture company to look at how it can make its products more environmentally friendly. And every hotel should think about how to improve its carbon footprint. But do I expect these companies to become do-gooders? No. Perhaps the purpose of a hotel is simply to provide travelers with unforgettable experiences. And the purpose of the fashion brand is to clarify how people can identify with fashion.

What mistakes do companies make when it comes to Purpose?

In practice, I observe two mistakes in particular. First, in many companies and organizations there is not just one Purpose. I often see that each department, each business idea and even each workshop is assigned its own purpose. As a result, the Purpose loses its actual purpose. Namely: to define a central attitude that guides the entire organization in its thinking and actions.

And secondly?

The second mistake is the convulsive attempt by many companies to force themselves into a higher purpose. Don't get me wrong: I think it's enormously important for companies to think about how they can get involved in a socially meaningful way. But I take a critical view of the fact that the marketing of the attitude often comes to the fore. In our industry, you now come across statements like "We advertise for a better world" or "We consult to make a difference for mankind." That's not credible internally, and it's not credible externally anyway.

Let's go back to the beginning of the conversation: What could Jeff Bezos have done better?

This is difficult to judge from the outside. It is generally advisable to inspire employees before making external announcements. If they have been involved in the process of purpose development, no one will ask at the end: Where did this suddenly come from, our reality is completely different? Purpose is a fantastic tool for transforming companies. Management realizes: we are not here just to maximize profits. Instead, we carry a greater purpose into the organization.