NON-CONFIDENTIAL AND ENTIRELY SHAREABLEPurpose+, Amstel 95, Amsterdam, The Netherlands
Organisations
Visual 87: Automation will impact certain professions directly
Source: The Future of Employment: How Susceptible are Jobs to Computerisation? Frey, Osborne (2013)
0.0030.0040.0070.0080.02
0.060.17
0.370.4
0.430.55
0.650.81
0.860.89
0.920.94
0.99
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Recreational therapistsDentists
Athletic trainersClergy
Chemical engineersEditors
FirefightersActors
Health technologistsEconomists
Commercial pilotsMachinists
Word processors and typistsReal-estate sales agents
Technical writersRetail salespeople
Accountants and auditorsTelemarketers
Probability of computerisation, 2013, 1 = certain
Visual 88: Partial automation will be the norm
1
8
18
26
34
42
51
62
73
91
100
0 10 20 30 40 50 60 70 80 90 100
100%
>90%
>80%
>70%
>60%
>50%
>40%
>30%
>20%
>10%
>0%
Share of all roles, %
Tech
nolo
gica
l aut
omat
ion
pote
ntia
l, %
Source: McKinsey Global Institute (2017), A future that works: Automation, employment and productivity; US Bureau of LaborStatistics
* 820 roles examined
Sewing machine operators, graders,
and sorters of agricultural products
Stock clerks, travel agents, watch
repairers
Chemical technicians, nursing assistants, Web developers
Fashion designers, chief executives,
statisticians
Psychiatrists, legislators
Example jobs
Visual 89: The best earn (way) more than the rest
Source: Bloomberg, IMF (2016)
541.4483.06
298.98228.7
202.98179.34
175.65172.42172.32
119.42113.98113.07
100.9982.07
74.9567.6566.266.0364.8962.3361.2
46.5743
23.943.94
0 100 200 300 400 500 600
South AfricaIndiaU.S.U.K.
CanadaSwitzerland
GermanySpain
NetherlandsIsrael
South KoreaAustraliaNorway
DenmarkSwedenFrance
Hong KongMalaysia
SingaporeJapan
FinlandAustriaChina
PolandThailand
Pay ratio, CEO to average worker
Visual 90: Ultra-transparency is coming
Source: APCO, Emotional Linking Index (2013); Lady Geek, Global Empathy Rankings 2015; Newsweek and Ethical company data from Information is Beautiful database
71.5 72 72.5 73 73.5 74 74.5 75
The Walt Disney CompanyYahoo!Google
SonyNestlé
AuchanNetflix
Whole FoodsApple
Emotional linking index score
From ‘emotional linking’ indexes published by APCO...
0 20 40 60 80 100
MicrosoftFacebook
TeslaAlphabet
P&GApple
Johnson&JohnsonWalt Disney
Prudential1Audi
Global Empathy index, Lady Geek ranking
...to empathy indexes, published by Lady Geek in HBR…
…to ‘green indexes’ published by Newsweek... ...and comprehensive, total indexes published by multiple parties*
68 70 72 74 76 78 80 82 84
International Bus. Machines (IBM)Hewlett-Packard
Sprint Nextel Corp.CA, Inc.Dell Inc.
Nvidia CorporationIntel Corp.
Staples Inc.EMC Corp.
Microsoft Corp.
Green score (Newsweek Green Ranking, 2012
* Example through an ‘ethical calculation’: Charity donations + Ecological performance + Executive diversity + LGBT policy + Toxic waste + Best places to work index + Most admired index + Subsidiaris in tax havens
0 10 20 30 40 50 60 70 80
GoogleStarbucks
Whole Foods MarketMacy's
NordstromIntuit
Walt DisneySouthwest Airlines
Adobe SystemsKroger Co.
Ethical company score*
Visual 91: Creative destruction is speeding up
55
31.6
0
10
20
30
40
50
60
1970 1975 1980 1985 1990 1995 2000 2005 2010
Aver
age
age
at w
hich
U.S
. com
pani
es w
ere
delis
ted
Source: Martin Reeves, Simon Levin, Daichi Ueda (The Biology of Corporate Survival, HBR, 2016)
Average age at which U.S. public companies were delisted, by year
Visual 92: Platforms and peer to peer ecosystems are on the rise
Linear value chains Horizontal platforms Peer to peer ecosystems
Companies that have delisted since 2002...
Source: Innosight
...and companies that have listed since 2002
Visual 93: Positive contribution to society is critical for future success
68%86%
83%80%
78%77%77%
74%72%
68%68%
67%66%
65%65%
64%64%
62%62%
61%61%
60%55%
49%
20%10%
13%12%17%
16%17%
16%20%
22%22%
21%23%
20%23%
22%22%
23%22%
23%25%
24%29%
26%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
TotalIndonesia
IndiaChina
TurkeySouth AfricaSouth Korea
BrazilPeru
ArgentinaMexico
United StatesCanada
AustraliaGermany
ItalyRussiaFrance
SwedenPolandSpain
Great BritainBelgium
Japan
Agree Disagree
Answers to the statement ’In the future, the most successful brands will be those that make the most positive contribution to society beyond just providing good services and products’
Source: Ipsos Global Trends Survey, October 2016, N = 18,180
Visual 94: Talent increasingly prefers values over money
Source: PwC , 19th Annual Global CEO Survey, 2016 (People and Purpose)
34%
47%
49%
50%
53%
59%
67%
68%
70%
78%
90%
4%
3%
4%
4%
3%
3%
3%
5%
4%
4%
1%
62%
50%
47%
46%
44%
38%
30%
27%
26%
18%
9%
Russia
South Africa
Middle East
UK
India
Global
China
Italy
Denmark
Australia
Japan
49%
53%
53%
55%
54%
59%
68%
69%
69%
73%
76%
1%
2%
2%
3%
5%
3%
2%
6%
5%
0%
0%
50%
45%
45%
42%
41%
38%
30%
25%
26%
27%
24%
Asset Management
Banking
Hospitality and leisure
Energy
Entertainment & media
Global
Metals
Industrial manufacturing
Health care
Forestry, paper and packaging
Pharma
Competitive pay is most important factorDon’t know
Top talent would rather work for organizations with social values aligned to their own
By country... ...and by sector
Visual 95: Capital is no longer scarce
Source: Clayton Christensen, Harvard Business School; Bain macrotrends group; HBR,
Market-creating innovations
Sustaining innovations Efficiency innovations
221
393
600
900
0
100
200
300
400
500
600
700
800
900
1000
1990 2000 2010 2020
Tota
l fin
anci
al ca
pita
l, wor
ld, tr
illio
ns
Visual 96: The five main players to influence human progress
Sources used: Angus Maddison, World Bank, Herman Daly, Purpose+ team
Countries/regions
Indu
strie
s
Governments
Supranational institutions
For profit organisations
Individuals (consumers, households)
Not for profit organisations
Visual 97: Organisations and governments are the key influencers (1/2)
Source: Purpose+
Tectonic shifts for the 21st century I FPO NFPO SNI G
Re-balancing of the economic growth engine
Rising levels of inequality
The slowdown of productivity growth
The increasing emotional disconnect for investors
The middle-class fuelled consumption boost
China as the new largest economy
The race for diversification for commodity exporters
The diffusion of power
The global trust deficit
Rising anti-globalisation sentiments
The philosophical void in societal politics
The rise of the strongman leader
Rising international tensions
The great divide between the elite and the rest
The regional surge in population growth
I = individuals, FPO = for profit organisations, NFPO = not for profit organisations, SNI = supranational institutions, G = governments
Visual 97: Organisations and governments are the key influencers (2/2)
Source: Purpose+
Tectonic shifts for the 21st century I FPO NFPO SNI G
The rising numbers of forcibly displaced people
The great urban migration
The rise of the well-educated
The ageing society
The religious tipping point
The rise of the robots
The great decoupling
The rise of the winner-takes-all models
The rise of the automated trust technology
The rise of artificial intelligence
The rising temperatures
The increased likelihood of natural disasters
The depletion of non-living resources
The declining biodiversity
The rising waste pile from human consumption
I = individuals, FPO = for profit organisations, NFPO = not for profit organisations, SNI = supranational institutions, G = governments
1681%
263%
118%
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
1800%
Firms of Endearment Good to Great companies* S&P 500
* Identified by Jim Collins in the book ‘Good to Great’ (2001)
Sources: Sisodia, Wolfe, Sheth (2007). Firms of Endearment. Firms of Endearment used are the companiies identified in the U.S.
14,2x
Visual 98: Aligning stakeholders is good for businessC
umul
ativ
e pe
rform
ance
ove
r 15
year
s
Visual 99: Executives belief purpose relates to other business outcomes
90% 91% 89%
79%
94%
65%61%
38%
19%
63%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
'Over the past year, my company has performed
well financially'
'My company has a dinstinct brand that stands
out among competitors'
'My company has a clearly defined culture and
values/beliefs system'
'My company has strong employee satisfaction'
'My company has strong customer satisfaction'
'My company has a strong sense of purpose' 'My company has a weak sense of purpose'
Source: Deloitte, Culture of purpose: a business imperative, 2013 core beliefs and culture survey. Survey conducted in US with 1310 adults (298 executives)
Visual 100: Organisations see huge gaps between theory and reality
89%
85%
84%
84%
81%
80%
50%
46%
41%
38%
37%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
An organization with shared pupose will have employee satisfaction
I'm more likely to recommend a company with strong purpose to others
Our business transformation efforts will have greater success if integrated with purpose
An organization that has shared purpose will be more successful in transformation efforts
Purpose-driven firms deliver higher-quality products/services
An organization with shared purpose will have greater customer loyalty
Our organization's strategy is reflective of our sense of purpose
My organization has a strong sense of purpose
There is a disconnect between our senior executives and our employees over purpose
Our staff have clear understanding of organizational purpose and commitment to core values/beliefs
Our business model and operations are well-aligned with our purpose
Source: EY, Harvard, The Business Case for Purpose (2015)
Purpose in theory Purpose in reality
Visual 101: Organisations that prioritize purpose grow faster
15%19%
42%
25%29%
16%
58%
51%
42%
0%
10%
20%
30%
40%
50%
60%
70%
Prioritizers Developers Laggards
Flat/decline 0-10% growth >10% growth
-27% chance of flat/declining growth
+16% chance of >10% growth
Source: EY, Harvard, The Business Case for Purpose (2015) * Note: visual shows financial performance of organisations that either prioritize, develop, or lag, in the purpose space (N = 474)
Visual 102: There are regional differences around the purpose experience
Source: Imperative, Global Purpose Index (2016)
United States: 40%
North Africa: 28%Saudi Arabia: 23%
Kuwait: 26%Qatar: 28%UAE: 28%
Global average: 37%
Sweden: 53%Germany: 50%
Netherlands: 50%Belgium: 49%Poland: 48%
Visual 103: Inspired employees are most productive
Source: Bain & Company (2015); featured in the Harvard Business Review article Engaging Your Employees is Good, but Don’t Stop There.
Have a safe work
environment
Have the tools, training and
resources to do the job well
Can get their jobs done efficiently
without excess bureaucracy
Are valued and rewarded fairly
Are part of an
extraordinary team
Have autonomy to do their jobs
Learn and grow every
day
Make a difference
and have an impact
Get meaning and inspiration from their company’s mission
Are inspired by the leaders in their
company
Satisfied employees...
Engaged employees...
Inspired employees...
71%
100%
144%
225%
0%
50%
100%
150%
200%
250%
Prod
uctiv
e ou
tput
Source: 1 HBR/The Energy Project, Human era at work (2014); 2 Gallup - State of the global workplace (2013); 3 Imperative and New York University, Workforce Purpose Index (2015); 4 HBR/EY, The business case for purpose (2015); 5 Deloitte, Core beliefs culture survey (2013); 6 Raj Sisodia, Firms of Endearment (2013); 7 Havas, Meaningful Brands Index (2013); 8 Edelman, Trust Barometer Global (2016); 8 PwC Tax CEO survey (2016); 9 Bain & Company; 10 McKinsey Quarterly, Measuring the economic impact of short-termism (2017)
Visual 104: The writing on the wall echoes similar ideas everywhere
Executives believe that purpose-driven companies will deliver higher quality of products and services for their clients.4
81%
Executives that are more likely to recommend a company with purpose to others.4
85%
Executives of purpose-driven companies say their company has strong customer satisfaction5
94%Customer centricity
People who see work as a calling are 50% more likely to have a top position in the firm.3
50%
People who experience purpose at work are 2.3 times as likely to be engaged.1
2.3x
People with purpose at work are 2.8 times as likely to stay.1
2.8x
Employees who are inspired are 2.25x as productive as the ‘satisfied’ ones.9
2.25x
People engagement
Of people believe that CEO’s should be personally visible in discussing societal issues.8
Of CEOs agree that they will have to address wider stakeholder needs in five years’ time.8
80%
85%
Risk Management
Of executives believe that business transformations will have greater success if integrated with purpose.4
Of executives belief that a clear purpose is a good guide/inspiration to future innovation of products and services.4
84%
89%
Innovation/Transformation
Profitability in the long run
Executives believe that companies perform best over time if purpose goes beyond profit.4
87% More revenue for firms in with a long-term view of value creation in a 13-year period.10
47% Greater likelihood to end in the top decile or quarter for shareholder returns.10
50% Trillion USD in potential value in the past decade if companies would choose a long term approach.10
1
For more information
• Rens ter Weijde• Mail: [email protected]• LinkedIn: www.linkedin.com/in/rensterweijde