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One of the most sophisticated methods I’ve come across for measuring end-state outcomes related to purpose was with the EY organization (leave accountants to take the lead in this area). The company defined its purpose as “building a better world of work” and coupled it with an “ambition” of delivering “long-term value as the world’s most trusted, distinctive professional services company.” This emphasis on long-term value is critical and underscores one of the key characteristics of purpose as a fundamental alignment with the business.

EY teams, in turn, defined four types of long-term values ​​linked to different stakeholders and ESG (Environmental Social and Governance) themes: customer value (customers), employee value (employees), social value (communities and the planet), and financial value ( partners of EY). To measure purpose, EY teams measure the results of these four forms of value against ten core metrics. These metrics, in turn, are linked to an additional set of behavioral metrics that allow EY’s partners to track their own performance against the four types of values, and therefore Purpose. EY teams used these metrics to set ambitious and specific goals, track annual progress, and reward partners. The organization has also attempted to map internal goals to more conventional ESG measures.

As Carmine Di Sibio, Global Chairman and CEO of EY, told me, metrics help because they show external stakeholders, including potential employees and collaborators, that the company takes its purpose seriously. “Companies really need to be able to show what they do. They get in trouble when they talk a lot about purpose and it’s just talk and what it really takes to produce results.” Metrics and incentives also help ensure employees are on purpose. “You have to measure the results and you have to measure how you are performing against the strategy and if your strategy is value driven over the long term then there is no motivation for it if you don’t measure it get there.” The figure below summarizes the metrics and specific goals associated with the four types of values.

Ultimately, purpose speaks to what some have termed the “human dimension” of business. And as one observer points out, “At least some of these dimensions will always be difficult for CEOs to collect, mince and codify on their digital dashboards. As a result, they must resolve to put more effort into managing the things they can never easily measure.” In their enthusiasm and dedication to a reason for being, Deep Purpose Leaders make this effort and find new ways to support the organization’s pursuit to quantify their existential intention.

Contribution to Branding Strategy Insider by: Ranjay Gulati and excerpt from his book DEEP PURPOSE. Copyright © 2022 by Ranjay Gulati.
Reprinted here with permission from Harper Business, an imprint of HarperCollins Publishers

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