CEO report 24

A pivotal moment for purpose

THE CEO REPORT 2024

A pivotal moment for purpose

CONTENTS

Contents

CEO voices

A pivotal moment for purpose In today’s complex environment, our findings reveal how purpose-led leadership can guide organizations toward meaningful impact and long-term value.

James Ainscough OBE Chief Executive Royal Albert Hall

CEO challenges

Scott Kirby CEO United Airlines

Matt McCarty Former Chief Strategy & Marketing Officer Clario

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Resilience remains the biggest challenge for leaders in 2024 who also express concern around supply chain disruption and sustainability. Purpose as a strategic tool to navigate a complex business landscape

Paul Donovan Venture Philanthropist

Nick Barter CEO & Founder Future Normal

Matthew Wenger CEO Relevate Power

Purpose has evolved from a lofty ideal to a strategic business tool, helping companies navigate complexity for long- term resilience explains Dave Allen.

Francesca Lagerberg CEO Baker Tilly

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CONTENTS

Contents

PART ONE Business Performance

PART TWO People

PART THREE Brand

46 48

26 28

14 18

Research findings

Unifying cultures to create a market leader

Research findings

Connecting purpose to defy

Transforming employee engagement at United Airlines

Aligning purpose and brand to elevate a business for growth

cynicism in healthcare US healthcare can often feel laced in negativity—Chartis is helping fight through the cynicism through its purpose.

Relevate Power’s bold rebrand has allowed the business to secure investment so they can continue helping local life flourish.

How Clario's purpose, "The power of certainty," drove successful cultural integration, unifying two diverse cultures for lasting impact. The Legacy of Purpose-Driven Leadership Purpose-driven leadership transforms organizations by prioritizing people, culture, and shared success over numbers. Paul Donovan shares insights from his career. Future generations and the risk of not thinking long-term

You have a purpose - now what?

Building a

United Airlines CEO Scott Kirby motivates employees by aligning purpose to foster pride for lasting business impact.

How can businesses operationalize purpose to drive growth, foster alignment, and create lasting impact?

brand that delivers

It's time to connect the dots. How to build resilience through a purpose-powered brand strategy. Harnessing purpose to create a future-facing brand Baker Tilly harnesses

employees

Open doors for all Royal Albert Hall CEO James Ainscough inspires his team to "create the amazing" through purpose- driven collaboration and innovation.

through purpose

Purpose is a strategic tool that motivates, inspires, and drives action— yet businesses are still failing to embrace it organization-wide, missing an opportunity to power performance from within.

As CEOs focus on short- term pressures, they risk undermining long-term

purpose to unify global firms, drive growth, and embrace technology to build a resilient future- facing brand.

resilience and loyalty, crucial for future generations' success.

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FOREWORD

Consequently, a company’s purpose, its “why,” is crucial, it is a key foundation stone to driving results.

A pivotal moment for purpose In today’s complex environment, our findings reveal how purpose-led leadership can guide organizations toward meaningful impact and long-term value.

PURPOSE IN NUMBERS 62 % of CEOs state that resilience and agility are their biggest challenges.

does rather than why it does it, are more common in the USA. Both mission and purpose are integral to a company’s identity, but while mission statements address the present, purpose statements drive a more enduring emotional connection that motivates. As indicated above, the purpose of an organization is key to motivating stakeholders, driving long- term value, and developing strategies and tactics. Strategies and tactics in turn shape market position, brand development, employee value propositions, innovations, and more. At this time of major geopolitical and macroeconomic challenges, the need for CEOs and the C-suite to bring meaning to their organizations through purpose is crucial. EMBEDDING PURPOSE However, as this report indicates, many organizations struggle to translate purpose from the leadership team to all organizational layers. There are many reasons for this from not having a purpose that resonates to more simply leaders not engaging in “constant gardening”—the regular act of discussing how the team's efforts support the company’s purpose. A company’s story, its “why,” is only relevant and motivating if it is regularly discussed. Without this, other, less productive discussions will fill the space and to stay in the metaphor grow like weeds. Therefore, the key for CEOs and all chief meaning makers is to move beyond purpose being mere words on a wall and bring the story alive in the organisation through talking about it. This latest CEO report highlights that while purpose is accepted within the broader business context, companies must further unlock the power of purpose and their organisational story to deliver long- term value through challenging times. The report offers strategies and case studies illustrating how leaders and their businesses can thrive by integrating purpose into their meaning-making. In conclusion, while leaders are essential, they are nothing without followers. Followers deliver outcomes, and they need purposeful stories to truly perform.

may prompt calls for new leadership, new meaning makers. Consequently, a company’s purpose, its “why,” is crucial, it is a key foundation stone to driving results, underscoring the importance of this latest CEO Purpose Report by Brandpie. PURPOSE IMPROVES PERFORMANCE Brandpie has been at the leading edge of research into organizational purpose and its impact on performance for many years. Their work shows that purpose is increasingly used by companies and correlates with superior financial outcomes. For example, a recent report on the FTSE350 revealed that 78% of companies have a purpose statement, and that these companies outperform those without one in two key ways: (1) they achieve superior Returns on Equity (ROE) and Returns on Assets (ROA), and (2) they excel in ESG (Environmental, Social, and Governance) metrics. Similarly, the report on the ASX100 found that 72% of companies have a purpose statement, and those with one outperform those without across ROE, ROA, and ESG metrics. These results highlight how companies with purpose statements are more efficiently using their assets and equity to realize returns and gain investor confidence through their ESG performance. The reports argue that these outcomes are achieved because individuals in the organisation understand the company’s “why”—its reason for being—thanks to the clarity provided by the chief meaning makers. While purpose statements are prevalent in companies on the FTSE and ASX, this is not the case in the USA. For instance, only 41% of companies in the S&P100 have a publicly stated purpose statement, and there is no clear correlation to superior outcomes. This lower prevalence of purpose in the USA persists despite the Business Roundtable’s 2019 statement that the purpose of an organisation should extend beyond maximizing shareholder returns to include serving shareholders, employees, suppliers, and communities. Instead, mission statements, which focus on what a company

7/10 CEOs understand the importance of purpose as a strategic driver of

business benefits. 24 %

O ne often overlooked aspect of CEOs and the C-suite is that regardless of their specific roles—whether they are chief executive, chief marketing, or chief finance officers—they are all chief meaning makers for their teams, the broader organization, and its stakeholders. In this regard, these leaders are crucial, though not the sole keepers of the organisation’s story. A story we typically call the company’s strategy, which is built from the base that is the company’s narrative framework (purpose, values, mission, and vision/ambition). Further, the chiefs’ belief in, and alignment with the story is continually tested and discussed. Every move and utterance by these leaders are scrutinized by their teams to determine if anything is changing or not and this is the fuel for organisational gossip and culture. This is where purpose comes in. Purpose matters because it reinforces and drives belief, which in turn drives behaviours and loyalties, resulting in outcomes. Outcomes that are measured by accountants become the organization’s results. In turn, results that exceed expectations reinforce the power of the chief meaning makers, while those that fall short

Nick Barter CEO & Founder Future Normal Professor in Strategy & Sustainability Griffith University

of CEOs believe that their front-line employees have fully embraced purpose. 74 % of CEOs agree that purpose can help activate their brand, a 42% increase on last year.

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BUSINESS CHALLENGES

What are the greatest challenges facing your business over the next 12 months?

Ensuring business resilience and agility

50 %

Managing supply chain disruptions

42 %

Meeting sustainability commitments

62 %

41 %

Keeping up with the pace of digital transformation

37 %

Attracting and retaining talent

34 %

Meeting changing customer expectations

34 %

Meeting financial targets

of CEOs state that resilience and agility is their biggest challenge Resilience remains the biggest challenge for leaders in 2024, who also express concern around supply chain disruption and sustainability.

31 %

Responding to changing expectations around leadership

31 %

Navigating disruption caused by AI

29 %

Navigating geopolitical uncertainty

26 %

Managing macroeconomic pressures

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EXECUTIVE SUMMARY

As we look to the future, integrating purpose in businesses will become even more critical.

Dave Allen Founder Brandpie

I n the past 40 years, the concept of purpose has evolved from a philosophical ideal to a strategic imperative for businesses. The seeds of this shift were planted in the early 1990s with the groundbreaking work of Jim Collins and Jerry Porras in their seminal book Built to Last. Collins and Porras introduced the idea that visionary companies are driven by core ideologies—a blend of core values and purpose that transcend purely financial goals. This early recognition of purpose as a guiding force laid the foundation for a significant shift in how businesses define success and plan for the future. Built to Last made the case that successful companies are those that embed purpose into their core. Collins and Porras argued that such companies, rather than being solely driven by profit, pursued a “Big Hairy Audacious Goal” (BHAG)—an ambitious, often seemingly unreachable objective that serves as a unifying rallying point for the organization. This approach aligns a company’s long-term vision with a larger purpose, creating a powerful motivator for employees, stakeholders, and customers alike. PURPOSE AS A STRATEGIC TOOL In the decades that followed, the business landscape continued to evolve. Purpose was recognized not just as a moral compass, but as a tool that could drive performance, innovation, and resilience. The turning point came in 2017, when Larry Fink, CEO of BlackRock, one of the world’s largest asset management firms, issued a public letter to CEOs emphasizing that “without a sense of purpose, no company, either public or private, can achieve its full potential.” Fink’s call to action highlighted that purpose was no longer optional; it was essential for long-term value creation.

Fink’s message set a new tone for corporate governance and strategic planning. It was a bold statement that companies should not only pursue financial returns but also contribute positively to society. This dual focus on profit and purpose is increasingly relevant in today’s environment, where businesses face complex challenges—from climate change to social inequality, and now the rapid emergence of artificial intelligence (AI). To navigate this new terrain, companies need more than traditional strategies—they need a clear, compelling purpose, serving as a North Star, guiding companies through the dilemmas that a complex landscape brings. Purpose, when strategically integrated, offers a framework that balances ambition with a commitment to a greater good. This approach enables businesses to align their operations, innovations, and stakeholder engagements with their overarching mission. By anchoring their strategies in a purpose that reflects societal needs, companies can build trust, foster loyalty, and drive sustainable growth. THE ROAD AHEAD As we look to the future, integrating purpose in businesses will become even more critical. As a complex landscape and AI continue to transform industries, the companies that thrive will be those that can balance their pursuit of innovation with a commitment to positive impact—maintaining trust and accountability. The evolution of purpose from a core ideology in Built to Last to a central strategic tool demonstrates its enduring relevance. By embracing a big ambition and a motivation greater than profit, businesses can create a resilient and adaptable framework that not only addresses the challenges of today but also prepares them for the uncertainties of tomorrow.

Purpose as a strategic tool to

Purpose has evolved from a lofty ideal to a strategic business tool, helping companies navigate complexity for long-term resilience. navigate a complex business landscape

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Business performance PART ONE

Against a backdrop of increasing instability and a tougher operating environment, it’s no surprise that CEOs are looking to improve resilience and business performance—something that purpose can help deliver. Purpose can help deliver the organizational clarity and alignment needed to drive performance, business growth, and employee engagement, among a long list of strategic outcomes— something that we evidenced recently in our review of the FTSE350 and the role of purpose in performance. It’s nice to see that there is no longer a debate about the benefits of purpose. Nearly all large organizations have a purpose and they can see its value—both in financial and non-financial outcomes. But it still remains elusive in terms of harnessing its value from the inside out. In this chapter, we explore the role of purpose and how it can be operationalized to drive business performance and wider societal impact.

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THE FINDINGS

Seven out of ten CEOs understand the importance of purpose as a strategic driver of business benefits.

The majority of CEOs recognize the positive impact of purpose on every business outcome.

DO YOU BELIEVE THAT YOUR ORGANIZATION'S PURPOSE HELPS YOU DO THE FOLLOWING?

DO YOU BELIEVE PURPOSE HAS A POSITIVE IMPACT ON THE FOLLOWING BUSINESS OUTCOMES?

74 %

Guide and activate your brand

Customer loyalty

73 %

71 %

Engage your customers

Customer attraction

Long-term company valuec 65% Financial performance 63% Business resilience 69% Customer attraction 71% Customer loyalty 74% Employee attraction 62% Employee loyalty 66% Brand perception 62%

69 %

73 %

Make strategic business decisions

Business resilience

72 %

Integrate sustainability into your core strategy

66 %

Employee loyalty

Empower and mobilize your employees

72 %

65 %

Long-term company value

Align your senior leaders to lead and operate the business

71 %

63 %

Financial performance

Advocate for change on important topics

71 %

62 %

Employee attraction

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THE FINDINGS

Our FTSE 350 findings show that businesses with a strong purpose statement outperform on various business metrics, such as higher on ROE and ROA. Read more >

More than half agree that purpose impacts positively on business performance and societal impact.

But at the same time, they are struggling with key challenges that purpose can help solve.

TO WHAT EXTENT DO YOU AGREE WITH THE FOLLOWING STATEMENTS?

58 %

64 %

Businesses with purpose have a more positive impact on future generations

I struggle to instill a clear vision in my organization

64 %

53 %

I struggle to build momentum behind initiatives and programs

Businesses with purpose are better able to navigate uncertainty

Long-term company valuec 65% Financial performance 63% Business resilience 69% Customer attraction 71% Customer loyalty 74% Employee attraction 62% Employee loyalty 66% Brand perception 62% I struggle to build alignment among my senior leaders 45 %

49 %

63 %

Businesses with purpose have higher levels of innovation

I struggle to get my teams to innovate as quickly as they need to

62 %

Businesses with purpose are better for society

59 %

Businesses with purpose outperform those without on financial metrics

56 %

Businesses with purpose outperform those without on non-financial metrics (e.g. ESG)

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BELIEVE IN BETTER

Against the industry's cynicism, an optimistic message resonates better

Connecting purpose to defy cynicism in healthcare

US healthcare can often feel laced in negativity— Chartis is helping fight through the cynicism through its purpose.

I n US healthcare, it can often feel like the negatives outweigh the ever-changing government assistance plans—not to mention the rules—make the landscape incredibly complex. Because of this, cynicism has crept in. A recent Harris Poll survey found that 70% of US adults feel their healthcare system has failed them. And it's not just patients who harbor this cynicism—employees feel pessimistic about the industry too. A report by Deloitte found that only 45% of frontline clinicians trust their organization's leadership to do what's right for patients, while even fewer (23%) trust their leadership to do what's right for workers. In an industry that has people’s lives in its hands, trust is crucial. Cynicism is the enemy of progress; without the belief that the industry can improve, people and companies will give up trying. positives. From insurance companies to complicated health systems, pharmaceutical companies, and

revolved around a purely rational message. “Healthcare organizations all talk about being trusted advisors who will drive business impact,” explains Rik Haslam, Brandpie’s Executive Creative Partner. “That feels quite cold and rational in a space ripe for something different.” Through research, it became clear that there was a powerful opportunity for Chartis to connect its brand with the purpose and mission driving its people, and cut through the sea of sameness. Together, we introduced a new positioning to take into the market: “Believe in better”. That statement combines the rational side of the business (delivering “better”) and the emotional side (the “belief” that things can improve). The healthcare industry doesn’t have to resign itself to defeat. The industry indeed has challenges to overcome, and trust is a hard-earned commodity in that environment. But emotionally-driven, purpose-focused messaging can be the key to cutting through that negativity and winning the trust of patients and business partners alike. “Against the industry's dysfunction and cynicism, a more optimistic message resonates better,” Rik says. “It’s a much- needed story, and it’s something much more hopeful for all of us.”

Rik Haslam Executive Creative Partner Brandpie

INSPIRING CHANGE THROUGH PURPOSE AND BELIEF

To win clients, Chartis needs to create belief that things can change for the better and show this externally by connecting its brand with its purpose. Yet, like many businesses in the healthcare advisory space, its positioning

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PURPOSE AS AN INPUT TO BETTER BUSINESS

By thinking of purpose as an input to existing activity, it has a strategic seat at the table in every conversation.

You have a purpose

—now

what?

THINK ABOUT YOUR OWN PURPOSE….

— How is it enabling you to grow, align your teams, and create clarity? Is it working in unison with your ambition and strategy? — How is it enabling you to mobilize action, change behaviours, and empower your people? — How is it enabling you to shift perceptions, win hearts and minds, lead your industry, and embrace new opportunities and sources of value? — How is it enabling you to advocate for what matters, engage new stakeholders, and solve challenges in new ways?

of purpose has become complicated. (Not) used, abused and confused—not to mention hijacked by marketers, brand managers, and sustainability professionals along the way. Purpose was historically seen an output, a "thing" in its own right. AN INPUT TO BETTER BUSINESS Purpose has finally found its rightful home in the C-Suite, and it needs a new approach to leverage its true value. Operationalizing purpose in the business is as much a mindset shift as it is a physical action. It’s no longer an "output" but an "input" to better business. Purpose should be the lens you apply to your existing business strategy—not a separate action. At Brandpie, we created a model to help CEOs and their leadership teams systematically work through where their purpose can take them. Though it appears simple, its strength lies in asking tough questions, ideating at the fifty-thousand-foot level, prioritizing for impact, and establishing clear senior ownership based on those insights. By thinking of purpose as an input to existing activity, it has a strategic seat at the table in every conversation. It’s not an add on or a "cost" to the business. It’s not something complex or scary. It’s a simple change of behavior. This is the fastest way to close the gap between believing in the power of purpose on business outcomes, and actually driving them from the center.

PURPOSE OPERATING MODEL

I n the six years we have been asking CEOs what purpose means to them, it’s gone from being niche to norm—with its adoption and perceived value steadily growing. This year, sentiment has moved even more positively towards purpose-driven business, supported by an ever-growing body of evidence showing that businesses who embrace purpose as a strategic lever outperform those businesses who don’t. Even against challenging business headwinds, the majority of CEOs we surveyed could see a clear link between purpose and a wide range of positive business outcomes. So why is it still so hard to connect purpose’s perceived benefit to business action? One of the key reasons is because the concept

How can businesses operationalize purpose to drive growth, foster alignment, and create lasting impact?

How is your purpose enabling you to…

Joanne Kerr Purpose & Strategy Adviser

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VOICES: JAMES AINSCOUGH OBE

Every member of staff not only needs to understand their job, but also how their job delivers on our mission.

> Subscribe to our Pivot Point podcast to listen to the full interview with James

Opening doors for all Royal Albert Hall CEO James Ainscough inspires his team to "create the amazing" through purpose-driven collaboration and innovation.

James Ainscough OBE

J ames Ainscough leverages Royal Albert Hall's vision—“To be the home of breathtaking the amazing”—as a guiding principle for motivating his team and creating exceptional guest experiences. Through fostering a culture of empowerment, clarity, and collaboration that aligns every team member with the organization's purpose, it helps open doors for all. James aims to ensure that every staff moments and lasting memories, for everyone. Together, we create member clearly understands how their role contributes directly to the larger goals of the Royal Albert Hall, building a sense of ownership and empowerment that drives performance. “Every member of staff not only needs to understand their job, but also how their job delivers on our mission,” he says. A key approach James employs is linking day-to-day activities to the strategic objective of delivering breathtaking moments and lasting memories. He ensures that every employee, from senior managers to frontline stewards, knows that their work directly impacts the experience of audiences and artists alike. For instance, he emphasizes how even the warmth of the initial greetings by stewards can influence a guest’s perception and enjoyment of an event. This kind of clarity helps align individual contributions to the broader mission, fostering a culture of purpose. James also aims to cultivate an environment where mistakes are learning

opportunities. He believes strongly that “Mistakes need to be addressed, but there's no kind of punishment for giving it your best shot.” This approach empowers his staff and encourages innovation. Such an environment builds both confidence and loyalty, which are critical to sustained performance. His leadership is characterized by a balance between decisiveness and collaboration, ensuring that all employees are not only informed but also actively engaged in shaping the organization's direction. By involving the team in decision-making processes, James ensures alignment with the strategic vision and builds deeper commitment. As CEO, James places significant HOW PURPOSE DRIVES BUSINESS VISION emphasis on morale, recognizing that a motivated workforce is crucial for long term success. His passion for the Royal Albert Hall’s mission is contagious, setting a tone that energizes his team and reinforces their commitment to delivering world-class experiences: “If you have enthusiasm, it is infectious and will drench the organization”. A thriving culture is crucial for motivating employees to work together to reach the business vision. Embedding purpose throughout the business and connecting it to employees’ roles helps empower teams and cultivate passion, which are critical factors for an organization’s success and resilience.

Chief Executive Royal Albert Hall

James Ainscough OBE is the current Chief Executive of the Royal Albert Hall, a position he took up in May 2023. His career spans various leadership roles in the music, commercial, and charity sectors. James has also been recognized for his charitable efforts, being awarded the OBE in the 2024 New Year’s Honours List for services to music and musicians.

jamesainscough www.royalalberthall.com

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People PART TWO

Purpose is recognized as a driver of performance across industries, and yet it often fails to resonate beyond senior leadership. Our study reveals that while 72% of CEOs believe purpose can empower employees, only 24% think their front-line employees have fully embraced it. This disconnect critically affects employee motivation and, as a direct consequence, customer service. 73% of CEOs agree that purpose plays a critical role in engaging customers but the challenge lies in cascading it effectively throughout the organization. To bridge this gap, businesses need to engage employees in meaningful conversations about purpose, connecting it to their day- to-day work. When done well, purpose can drive unity, productivity, and transform business performance.

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Brandpie CEO Report 2024 A pivotal moment for purpose

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THE FINDINGS

Our findings show there is a considerable gap between the benefits CEOs can see and the reality on the ground.

And yet only 24 %

Customers and employees are the most important stakeholders for CEOs.

of CEOs believe that their front-line employees have fully embraced purpose.

WHO DO YOU CONSIDER THE MOST IMPORTANT STAKEHOLDERS FOR THE LONG-TERM SUCCESS OF YOUR BUSINESS?

1 2 3 4 5 6

By front-line teams

Future generations

Employees

Customers

Society

Shareholders and investors

Business partners and suppliers

HAS YOUR PURPOSE BEEN FULLY EMBRACED...

43 %

THE MAJORITY OF CEOS AGREE ON HOW PURPOSE HAS A STRATEGIC ROLE IN BOTH CULTURE AND CUSTOMER ENGAGEMENT. 72 % 73 %

52 %

By the board

69 %

By the executive leadership team

Agree or strongly agree that purpose can empower employees

Agree or strongly agree that purpose can engage customers

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VOICES: SCOTT KIRBY

How purpose transformed employee engagement at United Airlines * United Airlines CEO Scott Kirby motivates employees by aligning purpose to foster pride for lasting business impact.

Scott Kirby

CEO United Airlines Scott Kirby is Chief Executive Officer at United Airlines. He served as the company’s president from 2016 to 2020 and was responsible for United’s operations, marketing, sales, alliances, network planning and revenue management. As president, he played a pivotal role in enabling United’s cultural transformation and executing the company’s strategic growth plan.

I n an era where customer experience is paramount, United Airlines has charted a remarkable course of transformation by aligning its core business strategy with a clear sense of purpose. Under the leadership of CEO Scott Kirby, United Airlines has embraced a philosophy that connects its strategic objectives with the very heart of its workforce. The company’s purpose—"Connecting people, uniting the world"—has not only reshaped the airline’s external image but also acted as a key driver of employee engagement. Scott shares his insights on how United Airlines effectively leverages its purpose to boost employee morale and performance, creating a company culture grounded in pride and belonging. >

jscott-kirby www.united.com

* The views expressed in this article are taken from the transcript of the Power of Purpose webinar between United Airlines CEO, Scott Kirby, and Dave Allen, CEO, Brandpie.

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VOICES: SCOTT KIRBY

I really only have one responsibility, and that is to create a company that [employees] are proud of.

supplies to the U.S. to flying vaccines around the globe, United’s workers saw firsthand how their contributions were making a difference. "In those moments that matter, we're not just a business; we're making a difference in the world," Scott remarks. This not only reinforced the company’s purpose but also strengthened employees’ sense of meaning in their roles. The pride employees felt in being part of a company that played a critical role in global recovery contributed to the positive shift in customer service, as frequent flyers and industry observers alike began to notice a change in United’s workforce. BUILDING A CULTURE OF LEADERSHIP AND OWNERSHIP Central to United’s strategy is empowering employees to feel like stakeholders in the company’s future. Scott encouraged a leadership culture that celebrated taking risks and embracing innovation, all while aligning with the company’s overarching purpose. He speaks candidly about how important it was for the company to foster a sense of ownership among its employees, stating, "When they feel that way, it gets the ball gets rolling and they become unstoppable". Scott's emphasis on risk-taking and innovation helped shift United’s internal culture, fostering pride not only in the company’s growth but also in the airline’s pioneering mindset. Employees took pride in United’s bold initiatives, such as its leadership in sustainability and its massive investments in new aircrafts during the pandemic, which positioned the airline for future growth. PURPOSE AS A SUSTAINABLE ADVANTAGE United Airlines’ focus on purpose has not only revitalized its internal culture but also laid the groundwork for sustained success. By aligning its employee engagement strategy with a higher mission, United has tapped into a powerful source of motivation that goes beyond traditional incentives or training programs. The result is an airline where employees are not just doing their jobs—they are living the company’s purpose. As Scott remarks: "When employees know that what they're doing isn’t just about business, that it really makes a difference in people’s lives, it helps them live the purpose of 'Connecting people and uniting the world'. It doesn’t feel like a slogan—it feels like what they are doing every day".

> PURPOSE AS A CORE DRIVER OF ENGAGEMENT At the heart of United Airlines’ employee engagement strategy is the belief that pride in one’s work and company is the cornerstone of performance. Since joining the company, Scott has made it clear that his primary objective as a leader is to ensure employees are proud to be part of the United team. "I really only have one responsibility," Scott says, "and that is to create a company, an airline, that they are proud of. If the 100,000 employees at United are proud of the company, they're going to take care of everything else." This focus on cultivating pride has proven to be a game-changer, effectively turning United’s employees into ambassadors of the company’s mission. Historically, customer service in airlines has been driven by tactical training and compliance measures, such as "smile training," which often fail to generate authentic engagement. Scott rejects this approach,

employees, with over 90% of the workforce tuning in to hear about the airline’s future. Scott's candor and consistency built trust at a time when employees were unsure of their futures. "We were the only people—the only airline—who thought COVID was going to be deep and last for a couple of years from the very beginning," Scott shares. While this foresight initially drew criticism, it ultimately earned credibility with employees; laying the foundation for a level of trust and engagement that would be crucial for United’s recovery. Beyond crisis management, United Airlines has actively connected its purpose to employees’ day- to-day experiences. The airline’s “Connecting people, uniting the world” purpose became more authentic during the pandemic, as employees played a key role in critical missions. From transporting medical PURPOSE IN ACTION: FROM CRISIS TO INNOVATION

believing that true service excellence can only arise from a deep connection to the company’s purpose. "Service excellence will never happen if employees are angry at the company, if they think we don't care," he explains. "It doesn't matter how much we tell them to smile. But if they feel good about the company, they'll deliver." TRUST AND TRANSPARENCY AMID CRISIS United Airlines’ focus on purpose-driven engagement was most evident during the COVID-19 pandemic. Taking over as CEO in May 2020, Scott led the airline through one of the most turbulent periods in aviation history. During this crisis, transparent communication and a sense of shared purpose became the foundation of United's employee engagement strategy. In the early days of the pandemic, Scott adopted a direct communication style, frequently releasing video updates known as "Straight from Scott." These updates quickly became essential touchpoints for

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MOBILIZING EMPLOYEES

employees

through purpose

T here are several reports that show engage your people). But there’s an uncomfortable truth. Our findings show purpose is a motivator for senior leaders—and that’s not surprising given the central role they play in defining it—but it is not trickling down to the rest of the organization. CEOs believe only 43% of middle managers and 24% of front-line teams have fully embraced their company’s purpose. purpose drives business performance, and motivates and inspires employees (although we would always caveat that by saying it’s one of many factors that Engaging front-line employees is critical—they’re closest to your clients and the driving force behind your business. Purpose is a strategic tool that can be used to motivate, inspire, and drive action. So why isn’t it being properly utilized in businesses? Often, organizations don’t know what to do with a purpose once it’s defined. It’s not a brand line that appears on marketing content, nor an employer value proposition (EVP) that shapes content on your careers site. Purpose is a strategic tool that motivates, inspires, and drives action—yet, businesses are still failing to embrace it organization-wide, missing an opportunity to power performance from within.

Chris Holmes Managing Partner, Culture Innovation Brandpie

There’s also often not a clear owner and without that, it can fall between the cracks. Which raises an interesting point in itself—who owns purpose? Our view is that it should be everyone in the business, including employees. If employees feel like they have ownership over the company’s purpose, it will be more meaningful to them and be used as a lens through which they shape their decisions. Though this takes time and effort to achieve, it’s worth it. We’ve seen first-hand the impact purpose can have on mobilizing your people, raising engagement and, ultimately, powering performance. DEFINING PURPOSE: THE FOUNDATION FOR ENGAGEMENT It sounds obvious but a good purpose starts with a statement that is rooted in what your business does, while answering what role you play in solving a bigger challenge. A well-articulated purpose inspires employees by helping them see how their business is contributing to a greater cause. However, finding the balance is critical. A purpose that is too broad means employees may struggle to see how it relates to their specific responsibilities. >

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MOBILIZING EMPLOYEES

Our findings show purpose is a motivator for senior leaders— but it is not trickling down to the rest of the organization.

> Take a recent program of work we delivered for Statkraft, a renewable energy company. Originally, their purpose was defined as “Providing pure energy”. We worked with the leadership team to shift their purpose from “what” they did to “why” they did it: “We exist to renew the way the world is powered”. The word renew was intentionally chosen to create a direct connection to what the business contributes to the world. Aligned to a new business strategy and set of values, the impact was immediate, with employees expressing pride and ownership in the new purpose. The new purpose was also an integral part of messaging to external talent. Getting your purpose right takes time and precision. But it’s worth the effort. HOW TO CASCADE PURPOSE FROM LEADERSHIP TO FRONT-LINE TEAMS Once a business has a compelling purpose statement, you must cascade it so that it permeates every level of the organization. This requires a deliberate and thoughtful process of communication and engagement, starting with leadership. In our experience, the most effective way to build understanding is to get people talking about it. While there needs to be some “broadcast” communications to drive awareness, the real value comes in giving teams and individuals the tools, and the time, to have a conversation that is relevant and meaningful to them. This takes planning and effort, which is why we have developed tools for leaders to drive focused conversation with their teams. This manifests itself in different ways: From action-planning sessions to structured conversation guides that enable teams to think about your purpose in terms of how you work together, the service you deliver to clients and, critically, how it connects it to your strategy, brand, and values—so you’re telling one joined-up story. In a recent program, we ran "Follow the Sun" global workshops with employees that started in Sydney and ended in South America. Each workshop lasted two hours and involved interactive tasks and the opportunity for people to discuss purpose and what it meant to them. Critically, we also asked them to think about how they could use purpose to shape how they worked with each other and clients. Post session, 95% of people were clear about how they could integrate purpose into their day-to-day actions.

43 % of middle managers have fully embraced their company’s purpose CEOs believe ONLY

Partnering with AstraZeneca for over ten years across several cultural programs, purpose serves as the unifying thread— driving productivity and efficiency throughout the business. Here are two ways: 1 MOTIVATING EMPLOYEES TO SIMPLIFY THE BUSINESS AstraZeneca wanted to make it easier for their employees to get work done, stripping out complexity and red tape. Historically, efforts by the business to make this a reality had focused on what simplification was, not why it mattered. AstraZeneca’s success is built on a clearly articulated purpose: "We push the boundaries of science to deliver life-changing medicines". Connecting AstraZeneca’s purpose to its simplification strategy created momentum and urgency among employees to work together to remove the red tape. Employees across the business were challenged to save one million hours and refocus these on what really mattered: Improving patients’ lives. The challenge inspired people and over 700 projects were initiated. Expectations were exceeded, with two million hours unlocked that could be refocused on what really mattered. 2 IMPLEMENTING A NEW WAY OF WORKING Embedding a LEAN mindset among manufacturing and operations employees was critical in driving a more flexible and innovative environment. Again, the story was flipped from what LEAN is (tools and process) to why it matters, connecting it to AstraZeneca’s purpose. If employees embraced LEAN, more medicines can be delivered to more patients, more quickly. As a result, over a three-year period, hundreds of millions of dollars were saved and customer satisfaction soared.

24 This goes down to

for front-line teams

USING PURPOSE TO SOLVE BUSINESS CHALLENGES Purpose builds unity and provides direction. It enables you to solve challenges that you’re facing in your business right now. The challenges we tackle with clients are sector and industry agnostic. How do we create a business where it’s easier to get things done? How do we overcome potential resistance to implement new ways of working? Purpose can often feel very theoretical. Here is how to use purpose as a lever (alongside other tools) to deliver better business outcomes. OUR KEY LEARNINGS OVER THE LAST DECADE? Start with the right words. Ensure your purpose connects what you do and the impact your business has on the world. Then, focus on delivering action— because without it, purpose is just words on a page. Take the time to invest the effort and get your people thinking and talking about what purpose means to them. By doing this, you’ll drive a sense of ownership and make it relevant to them; a fifty- thousand-foot idea becomes a guiding thought for how they can implement it in their day-to-day.

> Purpose is an incredibly powerful tool that can drive engagement and unlock performance. For a practically focused conversation on how purpose can power your culture and mobilize your people, contact Chris Holmes at chris.holmes@brandpie.com.

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VOICES: MATT MCCARTY

Most initiatives that are dreamt up in the boardroom and cascaded out corporately don’t tend to have the impact you want.

Matt McCarty

I n the fast-evolving healthcare sector, mergers and acquisitions (M&A) have for leaders, including aligning two opposing cultures—as was the case when ERT and Bioclinica merged to create Clario to become the market leader in medical imaging. As Matt McCarty, Chief Strategy and Marketing Officer at Clario at the time, emphasizes, "Alignment and consistency are pivotal for any transformation to be successful". The importance of purpose in ensuring cultural integration cannot be overstated. become a cornerstone strategy for growth, innovation, and expansion. However, M&As pose significant cultural challenges In healthcare, purpose is not just a statement—it's a strategic necessity. As Matt notes, "We're a very purpose-driven industry." This strong sense of purpose is often the key to unlocking employee engagement, improving patient outcomes, and ensuring that both legacy and newly acquired businesses continue to thrive. Clario’s purpose, "The power of certainty"—shaped by its role as a clinical trials data management company—was not just about merging two organizations but about demonstrating value in a rapidly evolving market. "Before the merger even closed, we spent plenty of time focusing on our positioning and our purpose," explains Matt. Dedicating the time early on to align on purpose provided a strong foundation for cultural integration. PURPOSE: A NORTH STAR FOR CULTURAL TRANSFORMATION

Former Chief Strategy & Marketing Officer Clario Matt began his journey in 1996, founding a digital and events agency for global brands. After selling the business in 2004, he became Director of Sales & Marketing at the acquiring firm, doubling revenues. Joining Quintiles in 2007, he then transitioned to the Real World Evidence team post-Quintiles merger. Later, he served as Global Head of Patient Engagement at ICON, and Chief Strategy & Marketing Officer at Clario. Since 2022, he consults on brand strategy, growth, and life sciences for private equity firms.

Unifying cultures to create a market leader How Clario's purpose, "The power of certainty", drove successful cultural integration, unifying two diverse cultures for lasting impact.

BRINGING TOGETHER THE BEST OF BOTH WORLDS

matthew-mccarty

One of the most challenging aspects of any M&A deal is cultural integration. Often, merging companies have distinctly different ways of >

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VOICES: MATT MCCARTY

Listening is crucial. What are [employees] finding on the ground? How are they seeing the change?

> operating, making the blending of cultures a delicate process, which can alienate employees and customers alike. Clario took this opportunity to bring together the best of both worlds—but achieving this required careful planning and execution. Matt explains the importance of co-creation in this process: "We were very keen to ensure that customers still came first and that employees could see clearly and transparently what was happening." Rather than imposing one culture on the other, Clario involved both companies in the creation of the new organization’s values, processes, and strategies. This was not just about rebranding but about uniting people. "Making sure we had representation from both organizations—whether that was early on in defining the values or thinking about the process and decision- making—was critical," Matt adds. This approach allowed employees to feel like active participants in the transformation, rather than passive observers. It also helped mitigate some of the anxiety that often accompanies M&As, where employees may be concerned about job security. Cultural integration was further facilitated by a clear communication strategy. Employees were kept informed of strategic decisions, ensuring they felt included in the journey. By doing this, Clario was able to avoid alienating employees and, in turn, the potential impact on customers. MANAGING CHANGE WITH ALIGNMENT For cultural transformation to be truly successful, purpose must extend beyond the boardroom and be properly aligned in the organization. As Matt notes, "Most initiatives that are dreamt up in the boardroom and cascaded out corporately don’t tend to have the impact you want. So how do you take your entire team on that journey?" Small steps toward change are often more effective than attempting a dramatic, wholesale transformation. "How do you show you’re making progress? Show the reality of change incrementally," he says. Moreover, cultural integration is not a one-time event; it requires an ongoing effort. Matt stresses the importance of listening to employees during the process. "Listening is crucial. What are they finding on the ground? How are they seeing the change?" By maintaining an open line of communication and being willing to adjust as needed, leaders can ensure that cultural transformation remains aligned with the company’s goals and the employees’ realities.

> Read the Clario case study

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