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

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

A Personal Encounter with Purpose

The Flight Experience

  • In 2019, the speaker boarded a flight from Atlanta to New York City, being the first passenger on board.
  • A brief interaction with a young flight attendant revealed her exhaustion from an early shift; they exchanged light-hearted jokes.
  • After landing, the flight attendant handed the speaker a heavy plastic bag filled with snacks as a thoughtful gesture.

The Meaningful Note

  • Inside the bag were 30 packets of almonds and a note expressing gratitude for being a loyal customer and acknowledging dietary preferences.
  • The note exemplified purpose in action, reflecting Delta Airlines' ethos that had been articulated over 15 years prior.

Understanding Corporate Purpose

Historical Context of Delta Airlines

  • In 2003, Delta was undergoing significant transformation post-9/11 and seeking direction amidst financial struggles.
  • By 2019, purpose had become ingrained in Delta's culture, demonstrated through employee actions like those of the flight attendant.

Distinction Between Mission, Vision, and Purpose

  • The speaker clarifies that mission (what you do), vision (where you're headed), and purpose (your "why") serve different roles within an organization.
  • Unlike mission and vision which can change frequently due to external factors, purpose is timeless and rooted in organizational ethos.

The Value of Embedded Purpose

Benefits of Well-Embedded Purpose

  • Research indicates that organizations with strong embedded purposes experience higher shareholder returns, employee engagement, retention rates, and productivity.

CEO Perspectives on Purpose

  • CEOs typically inquire about how to effectively embed their established purpose across their organizations rather than questioning its necessity.

Authenticity in Defining Purpose

Key Characteristics of Authentic Purpose

  • Authenticity requires that purpose be rooted in an organization's ethos and consistent with stakeholder values.
  • Example: Kelly Bayer Rosmarin’s leadership at Optus reflects authentic purpose by aligning internal practices with external messaging.

Challenges in Establishing Authenticity

  • A contrasting example highlights pitfalls when companies attempt to adopt purposes misaligned with their actual practices or capabilities.

Excavating Organizational Purpose

The Process of Discovering True Purpose

  • Excavating purpose involves navigating discomfort between idealism versus realism regarding organizational identity and capabilities.

Long-Term Commitment to Purpose

Purpose in Organizations: A Comprehensive Overview

The Role of Purpose Across Organizational Levels

  • Purpose as a Unifying Construct: Purpose should encompass the entire organization, serving not just as a legacy for CEOs but as a guiding principle that aligns mission, vision, and strategic agenda.
  • Middle Management's Clarity and Authority: For middle managers, purpose provides essential clarity and authority amidst competing stakeholder demands, helping them prioritize decisions that align with organizational goals.
  • Impact on Daily Decisions: Clear purpose-driven expectations empower middle managers to make informed micro-decisions that contribute positively to the organization's overall success.
  • Front-line Employee Engagement: When purpose is effectively communicated from top to bottom, front-line employees feel valued and understand how their contributions support the company's objectives.
  • The NASA Janitor Story: The anecdote about JFK and the NASA janitor illustrates how understanding one's role within a larger mission fosters engagement and commitment among employees at all levels.

Embedding Purpose into Organizational Culture

Channel: TED
Video description

What's a company's purpose? It's not the same as mission or vision, which change when leadership changes. Strategist Ashley M. Grice explains the power of purpose to push boundaries of innovation and bring clarity to every aspect of an organization, from the top floor to the shop floor. If you love watching TED Talks like this one, become a TED Member to support our mission of spreading ideas: http://ted.com/membership Follow TED! Twitter: http://twitter.com/TEDTalks Instagram: https://www.instagram.com/ted Facebook: http://facebook.com/TED LinkedIn: https://www.linkedin.com/company/ted-conferences TikTok: https://www.tiktok.com/@tedtoks The TED Talks channel features talks, performances and original series from the world's leading thinkers and doers. Subscribe to our channel for videos on Technology, Entertainment and Design — plus science, business, global issues, the arts and more. Visit http://TED.com to get our entire library of TED Talks, transcripts, translations, personalized talk recommendations and more. Watch more: https://go.ted.com/ashleymgrice https://youtu.be/j4QlG5jKpio TED's videos may be used for non-commercial purposes under a Creative Commons License, Attribution–Non Commercial–No Derivatives (or the CC BY – NC – ND 4.0 International) and in accordance with our TED Talks Usage Policy (https://www.ted.com/about/our-organization/our-policies-terms/ted-talks-usage-policy). For more information on using TED for commercial purposes (e.g. employee learning, in a film or online course), please submit a Media Request at https://media-requests.ted.com