The power of Purpose. Victorian TAFE Association Presented 23 rd February 2015

Transcription

1 The power of Purpose Victorian TAFE Association Presented 23 rd February 2015

2 Our view on brands Brands needs a new compass

3 Branding, it s about meaning, not$marke*ng.$about$deep$company$ logic.$it s$ceo$job$#1.$employees$need$it.$ Consumers$buy$into$it. Tom$Peters.$ReBimagine!$

4 Purpose Who are you? Why are you here? Why do you matter? Meaning is about brands finding and living their purpose. It s about answering some fundamental questions. Questions that define the very essence of a company and its brand. It s the way to greatness. It s the way to achieving greater profits and growth.

5 Profits come from purpose A study of 1,435 Fortune 500 companies found 11 went from good to great. They found many things made a difference between the good and great: Product, NPD, Operations, Marketing, Sales, Brand, People and culture and Vision and leadership. But they found one key and important difference The great companies had an extra dimension a guiding philosophy consisting of a core purpose, a reason for being beyond just making money. (1) Source: (1) Good To Great.

6 But a Purpose is not about profits Obliquity. The most profitable companies are not the most profit-oriented. The truth is, if business is your main focus, that is, growth and profits, you ll ultimately perform worse than those that have a higher purpose. There is no doubt this thinking is paradoxical. For years we ve been trained to pursue profits. To define our destination based on some financial or market share metric. John Kay, one of Britain s leading economists, refers to this paradox as Obliquity. He shows that the most profitable companies are not the most profit-oriented. And the most profitable companies are the ones that pursue a purpose that means more for their constituents. Source: John Kay, Financial Times, 17 January 2004 Purpose Brand Profits

7 Merck s purpose is to make people better, they ve outperformed Pfizer. Obliquity in practice. Good. Great. PURPOSE So far as humanly possible, we aim to get profit out of everything we do PURPOSE We try never to forget that medicine is for the people. It is not for profits.

8 Purpose makes for great brands To enrich lives everyday. To create a better everyday for people. To bring happiness to millions. To champion the athlete within. To see creative diversity thriving. Purpose. It s what motivates, galvanises and inspires greatness.

9 Purpose. It resides in the hearts and minds of people, most importantly our staff and our consumers. Staff need purpose Most people can t bear to devote their lives to companies who only purpose is to make a profit. They need a sense of higher purpose. (1) Consumers need purpose Consumers are actively looking for a new framework material, moral, emotional and spiritual to help them provide meaning. People are looking for a guiding path. (2) Source: (1) Authenticity, 2004; (2) AMR, 2003

10 Purpose means your staff live the brand. Get it. Live it. Sell it.

11 Brands who have embraced Purpose

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13 $500m sales a year. ¼ moisturising cream

14 We believe in real beauty. Our purpose is to make more women feel more beautiful everyday. For too long, beauty has been defined by narrow, unattainable stereotypes. It s time to change all that. Because Dove believes real beauty comes in many shapes, sizes, colours and ages. It s why we started the campaign for real beauty. And why we hope you ll take part. Together, let s think, talk, debate and learn how to make beauty real again.

15 Dove is for women; real beauty

16 Our purpose Purpose in everything To champion real beauty. What we value Beauty comes in all ages, shapes, sizes, races How we deliver it Culture. Office. Staff. Uniforms. Sales. Merchandising. Sub-brands. Products. NPD. Operations. Supply chain. HR. Digital. Sponsorships. Philanthropy. Events. PR. Research

17 NPD in real beauty. There is something to be said for looking great, but looking your age Our purpose To champion real beauty. What we value Dove is not anti-age. Dove is pro-age. Because beauty has no age limit. Beauty comes in all ages, shapes, sizes, races How we deliver it Culture. Office. Staff. Uniforms. Sales. Merchandising. Sub-brands. Products. NPD. Operations. Supply chain. HR. Digital. Sponsorships. Philanthropy. Events. PR. Research

18 NPD in real beauty. There is something to be said for looking great, but looking your age Our purpose To champion real beauty. What we value Dove is not anti-age. Dove is pro-age. Because beauty has no age limit. Beauty comes in all ages, shapes, sizes, races How we deliver it Culture. Office. Staff. Uniforms. Sales. Merchandising. Sub-brands. Products. NPD. Operations. Supply chain. HR. Digital. Sponsorships. Philanthropy. Events. PR. Research

19 $500m sales a year. $1bn sales a year. ¼ moisturising cream Real beauty

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21 Founded in 1932 by Ole Kirk Christiansen 5,500 employees Godtfred Kirk Christiansen launches the first Lego block in Lego blocks for every person on earth Largest tyre manufacturer in the world Kjeld Kirk Kristiansen, 3 rd Generation CEO / Thomas Kirk Kristiansen, 4 th Generation Vice President of the Board 46m Google hits / 165,000 fan videos on YouTube / 393,000 pieces on Flickr

22 2004 on the verge of bankruptcy loss leading products chased directionless innovation e.g. products containing no Lego blocks actively stopped listening to consumers no product hits in 7 years CEO s - founding family members

23 The first non-founding family CEO, ever Jørgen$Vig$Knudstorp,$LEGO$CEO

24 Discovered the root of problem lay in two distinct areas Fiscal The LEGO company at that stage had no idea how much it cost to manufacture the majority of their bricks, they had no idea how much certain sets made. The most shocking finding was about sets that included the LEGO micro-motor and fibre-optic kits in both cases it cost LEGO more to source these parts then [sic] the whole set was being sold for everyone of these sets was a massive loss leader and no one actually knew Creative. a decision to retire a large number of the LEGO designers who had created the sets from the late 70 s through the 80 s and into the 90 s and replace them with 30 innovators who were the top graduates from the best design colleges around Europe Lego s chief marketing officer Mads Nipper speak about the terrible period between 1999 and 2003

25 Purpose: Inspire and develop the builders of tomorrow Our ultimate purpose is to inspire and develop children to think creatively, reason systematically and release their potential to shape their own future - experiencing the endless human possibility. Vision: Inventing the future of play We want to pioneer new ways of playing, play materials and the business models of play - leveraging globalisation and digitalisation...it is not just about products, it is about realising the human possibility.

26 Creative control was put into the hands of hardcore fans of the brand rather than in those of top designers who had skills Designers - I was one of the new 11 LEGO adorer designers hired at that time these guys loved the product & they knew the customers as they had grown up playing with LEGO. They comprised several kid focused design graduates and a few AFOLs (adult fans of LEGO), of which I was one Lego Designer, Mark Stafford (a fan who was recruited to help rethink the company s products

27 Purpose sits at the core of the Lego brand experience

28 .and inspires new companies.

29 The best proof of Lego s turnaround is captured by the new movie For me it s been an absolutely fantastic seven years so far and I see all of the work and principles these guys have created as the message of The LEGO Movie, it s not just a toy, it s a tool for creation and imagination and getting LEGO bricks into the hands of kids is the only aim of everything we do. I m so proud of being even a tiny bit involved in it! Lego Designer, Mark Stafford (a fan who was recruited to help rethink the company s products

30 But the company that is perhaps the most successful in embedding its good into a total experience is Harley Davidson. How many company logos do you find tattooed on users bodies? Source: The Experience Economy, B. Joseph Pine II, James H Gilmore.

31 But the company that is perhaps the most successful in embedding its good into a total experience is Harley Davidson. How many company logos do you find tattooed on users bodies? Source: The Experience Economy, B. Joseph Pine II, James H Gilmore.

32 Hot off the press. Lego is the most powerful brand globally The 12 brands to achieve the top AAA+ ranking were Lego with a score of 93.4, followed by PwC (91.8), Red Bull (91.1), Unilever (90.1), McKinsey & Company (90.1), Burberry (89.7), Rolex (89.7), L'Oréal (89.7), Coca-Cola (89.6), Ferrari (89.6), Nike (89.6) and Disney (89.5) Brand Finance Brand Strength Index (BSI) takes into account factors such familiarity, loyalty, promotion, marketing investment, staff satisfaction and corporate reputation.

33 Brands who have embraced Purpose - locally

34 Rewarding hard earned thirsts To mobilise the Wildlife Warrior in all of us. To celebrate Australia s can do attitude Choose short sighted financial gain changed the recipe, making the product less rewarding Steve s untimely death who are we without Steve? Apathy, and too much can t / too hard Apologised and re-instated the original recipe Create platforms to recruit Warriors globally now in 4 countries and growing Reinvigorated and grew participation 12% nationally

35 One must be something, in order to do something GOETHE

36 Thank You