Studies Reveal a New Formula for Successful Businesses
Posted on 22nd January 2025
In today's rapidly evolving business landscape, companies face significant uncertainty, balancing multiple priorities such as digital transformation, risk management, and corporate governance. With so much to juggle, decisions often prioritise short-term profits, potentially jeopardising long-term growth and sustainability. Clare White, an Amazon bestselling business strategy author and People Experience Consultant, introduces the "3 Ps" formula—Purpose, People, and Profit—as a comprehensive model to ensure harmonious and thriving organisations.
Purpose: The Guiding Star
A clear and compelling purpose is the foundation of successful companies. It defines why a company exists beyond making money, articulating the impact it aims to make in the world, guiding decision-making, and inspiring stakeholders. A strong purpose underpinned by a robust business model and a product or service that meets a clear market need is essential.
Why is Purpose Important?
Research by McKinsey shows that companies with a strong purpose outperformed the stock market by 42% over a 10-year period. A well-articulated purpose fosters a cohesive and positive organisational culture, creating a shared identity among employees and promoting teamwork and collaboration. It should permeate the business model, informing the value proposition and the impact on customers' lives, differentiating the company from competitors.
Customers increasingly engage with companies that have a clear and meaningful purpose, leading to trust, increased customer retention, positive word-of-mouth, and greater market share. ZenoGroup reports that 94% of consumers find it important that brands they engage with have a strong purpose. A clear and authentic purpose enhances a company’s reputation and brand value, perceived as more trustworthy, ethical, and socially responsible.
Case Study: Patagonia
Patagonia, the outdoor apparel company, exemplifies a purpose-led business. Their mission statement, "We're in business to save our home planet," guides every decision they make, from board members to store employees. This commitment is reflected in their products, prioritizing sustainability and environmental responsibility. Patagonia's dedication to purpose has attracted a loyal customer base and employees who share their values, driving long-term success.
People: The Lifeblood of the Organisation
People are at the heart of any successful business. From employees to customers, their experience and satisfaction are paramount. A clear 'people experience' strategy, focusing on the journeys of both employees and customers, understanding their feelings at each touchpoint, and creating a harmonious environment based on trust, is essential.
Employee Experience
Employees should feel valued, safe, and empowered to do their best work. This involves creating a culture of psychological safety, opportunities for growth, and recognizing contributions. Engaged and happy employees are more productive and loyal. McKinsey reports that 84% of employees consider psychological safety highly valued, yet only 26% of leaders successfully create it.
Customer Experience
Ensuring positive customer experiences at every touchpoint, from initial contact to post-purchase support, leads to higher satisfaction, repeat business, and positive word-of-mouth. Trust, built through transparency, consistent communication, and delivering on promises, is essential. High-trust cultures enjoy 50% higher employee satisfaction and 40% less burnout compared to low-trust cultures.
Understanding Journeys
Understanding the journeys of both employees and customers is crucial. Regular open feedback channels, such as Voice of the Customer (VoC) and Voice of the Employee (VoE), are critical for continuous improvement. Businesses must authentically seek to improve, not just measure metrics and scores.
Case Study: Salesforce
Salesforce, a cloud-based software company, exemplifies the integration of purpose, people, and profits through its 1-1-1 model, dedicating 1% of the company's equity, product, and employees' time to philanthropic efforts. This commitment to social responsibility and community engagement has created a strong sense of purpose within the company. Salesforce prioritises employee satisfaction and customer success, driving innovation, customer loyalty, and significant financial growth.
Profits: The Result of Purpose and People
Profit is the natural outcome of a business that successfully integrates purpose and people into its operations. By focusing on purpose and prioritizing people, companies can drive sustainable and ethical profitability, often seeing long-term, sustainable growth driven by loyal customers and motivated employees.
Brand Reputation and Competitive Advantage
Companies known for their strong purpose and excellent people experience enjoy a robust brand reputation, translating into competitive advantage, market leadership, and financial success. The "3 Ps" formula—Purpose, People, and Profits—offers a comprehensive approach to building and sustaining a thriving business.
About Clare White
Clare White, CXAD (dip), is an Amazon bestselling business strategy author, CEO of Connected CX, and creator of the “3 Ps” formula for success. Passionate about people, Clare helps businesses connect the dots and increase their profits with people-centric solutions. With 25 years of experience leading diverse teams and solving critical business problems, Clare consistently enhances customer and employee experiences, inspiring teams and fostering cross-functional collaboration for successful outcomes.
FAQs
The "3 Ps" formula—Purpose, People, and Profits—connects a company's purpose with its people and profits, ensuring a harmonious and thriving organisation.
A strong purpose guides decision-making, inspires stakeholders, and creates a cohesive and positive organisational culture. It differentiates the company in the marketplace and resonates with customers who share similar values.
Focusing on people, including both employees and customers, leads to higher satisfaction, productivity, and loyalty. A clear 'people experience' strategy ensures positive experiences at every touchpoint, building trust and long-term relationships.
Patagonia is an excellent example of a purpose-led company. Their mission statement, "We're in business to save our home planet," guides every decision they make, from board members to store employees, reflecting in their products and commitment to sustainability.
Profit is the natural outcome of a business that successfully integrates purpose and people into its operations. By focusing on purpose and prioritizing people, companies can drive sustainable and ethical profitability, achieving long-term, sustainable growth.
Conclusion
The "3 Ps" formula—Purpose, People, and Profits—provides a comprehensive approach to building and sustaining a thriving business. By clearly defining their purpose, focusing on the experience of both employees and customers, and understanding that profit is the result of these efforts, companies can create a harmonious and successful organization. This model drives financial success and fosters a positive impact on society, making the world a better place for all stakeholders involved.
For further information or to schedule a consultation, visit Connected CX and discover how Clare White's "3 Ps" formula can transform your business.
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