The Power of Purpose: A Deep Dive into the 5Ps Framework 🚀
"Your company’s purpose strengthens resilience and creates value—if it’s genuine."
The 5Ps of Purpose 🌟
McKinsey & Company's More than a mission statement: How the 5Ps embed purpose to deliver value discussses the power of purpose in business and how it can be effectively embedded using a 5Ps framework.
The 5Ps framework consists of Portfolio strategy and products, People and culture, Processes and systems, Performance metrics, and Positions and engagement. These elements are crucial in making purpose a reality within an organization. They help steer clear of potential vulnerabilities and unlock meaningful value.
Portfolio Strategy and Products 📚
The first P refers to your organization'sorganization's products and services and the strategic choices you make to serve your customers best. A real-life example of this is the transformation of British Petroleum (bp). The company has pivoted sharply, adopting as its purpose "reimagining energy for people and planet." It has announced a plan to shrink its legacy oil and gas businesses by 40 percent by 2030, to scale up its low-carbon energy businesses significantly, and to put itself on a path to become a net-zero carbon emitter by 2050 or sooner.
People and Culture 👥
The second P emphasizes the importance of aligning purpose with your people and culture. This starts with hiring individuals who share the values that support the company's purpose and extends to people'speople's development and career pathways.
Processes and Systems ⚙️
The third P addresses the operational initiatives, incentives, and governance mechanisms your firm relies upon to create value and realize its purpose.
Performance Metrics 📈
The fourth P emphasizes the importance of identifying the key performance indicators that tie to your company's-company's purpose, tracking them over time, and incentivizing your organization to meet purpose targets.
Positions and Engagement 🤝
The final P emphasizes the importance of embedding purpose into how your organization conveys information to and engages with the public.
The Beauty of Purpose in the Beauty Industry 💄
Now, let's look at a real-life example from the beauty industry. Lush Cosmetics is a brand that has truly embraced the power of purpose. They aim to "make good, natural products that do the right thing for people, animals, and the environment." This purpose is embedded in every aspect of their business, from product development to employee engagement.
Lush's products are 100% vegetarian and fight against animal testing. They prioritize ethical buying and use minimal packaging to reduce environmental impact. They also strongly focus on their people and culture, with a commitment to diversity and inclusion and a strong emphasis on employee wellbeing.
Lush's purpose is also reflected in its performance metrics. They track their progress towards their purpose goals and share this information transparently with their customers. They also engage with their customers and the wider community to promote their purpose and values.
You can read more about Lush's purpose-driven approach here.
Wrapping Up 🎁
The purpose is more than just a mission statement. It'sIt's a guiding principle that can drive an organization to reach higher and achieve more. By embedding purpose throughout your organization using the 5Ps framework, you can create a company that delivers value and positively impacts the world.