In this month's issue, we are handing over to our colleague Franzi who developed a super practical and easy-to-use tool for purpose-driven businesses to tackle their intention-action gap. What's that, you ask? Well, scroll down to learn more:
In today's newsletter, I am thrilled to present to you my graduation project! This project grew out of my passion for the purpose economy as well as my frustration with the fast fashion industry and the profit-first capitalist system. Over a course of six months, I asked myself what the real causes and consequences of the intention-action gap in purpose-oriented business contexts are. And through literature reviews and expert interviews with colleagues and BoP members – shout out to Victoria Loomes, Karry Schwettmann, Thomas Klaffke, and Jonah Lewis –, I consequently developed a simple tool to guide and inspire businesses to turn purpose intention into action:
The Purpose Circle by Franziska Füsting!
What's The Purpose Gap?
The intention-action gap of corporate purpose
Literature and experts, like Carol Cone, Ranjay Gulati, and BoP members, have revealed an intention-action gap of corporate purpose in business practices. While there has recently been lots of movement when it comes to purpose-driven business, with many companies reflecting on their role and redefining their purpose to integrate new ideals of sustainability and social justice, many organizations still struggle to transition from genuine intention to real action. Consistent adoption and enactment of the purpose statement, from top management to all levels and disciplines, and from inside the organization to all external stakeholders, is often left behind. That then results in the so-called Purpose Gap! And it’s also notable in numbers:
How Can Businesses Tackle The Purpose Gap?
The Purpose Circle gives any company guidance and inspiration to move from their purpose statement to meaningful impact
Tackling the Purpose Gap is beneficial for organizations in multiple ways: customers are more loyal, employees are more engaged, the business generates a regenerative return on investment, and it increases efficiency and agility. But various barriers inhibit organizations from turning intentions into actions. Based on eight identified barriers, I developed ThePurpose Circle to identify the root causes of the Purpose Gap(s) in organizations through a quick- and easy-to-use employee survey.
The Purpose Circle includes four stages with each having two barriers to adopting purpose:
Intention
Understand – the meaning and practice of purpose (e.g. the PurposeNow conference)
Believe – in the success and relevance of purpose (e.g. Business of Purpose's community)
Measure – impact on people, planet, and profit (e.g. Zegna linking executive bonuses to ESG goals)
Reflect – on the progress of purpose adoption (e.g. Ganni reflecting on its purpose progress on Ganni Lab)
Based on an employee survey with questions designed to evaluate how a company scores with regard to the eight barriers, the tool includes a customizable radar chart to assess the average purpose sentiment across all departments and levels from 1 to 5, with 5 being the highest level of purpose adoption. The completed radar chart then helps to identify an organization's root causes of the Purpose Gap(s) giving management a quick and easy-to-use starting point to initiate and prioritize the adequate steps to purpose enactment across the company.
Does it actually work?Yes, I tested it with TrendWatching! In June 2022, employees took the sentiment survey by which TrendWatching reached an average score of 3.75 out of 5. As TrendWatching is grounded in purpose, the organization performs well in the Intention and Ideation stages but leaves room for improvement in the stages of Implementation and Impact. The largest barrier for TrendWatching is in the Measure category but the good news is that we are working on it 😉!
But enough of me explaining the tool. Now it's your turn to use The Purpose Circle and evaluate the intention-action gap within your company:
