Rob Goudswaard used his statistical and mathematical background when he took over as CEO at Credit Union Australia. He figured out a mathematical formula to calculate the profit they had to make at the ROE (Return on Equity) they were generating to provide sufficient capital for the following year. It was a very simple formula, nowhere near as complicated as other more diverse organisations where your ROE is affected by how much you sell and various other factors. He talked with his team. They could keep spinning their wheels for the foreseeable future, doing what they were doing and applying the same formula year after year. But Rob challenged them to consider instead ‘why’ they were in business. That invitation started Rob and his team on the journey to develop their ‘purpose’.
They assembled a cross-section of about 35 people over a few days to talk about why they should have a purpose and what was the purpose of CUA. The program continued for six to eight months and involved 800 of the 1,000 staff. Rob did not force people to take part, but he gave them the opportunity to be involved if they wished to be. They landed on this purpose for CUA: ‘Members working together through life’s changes for mutual good.’
Years later, after he left the organisation, the purpose and its meaning and how the bank operates still receive high scores. Employee engagement, which is one measure of its success, was at 77 per cent.
It’s not only good business for organisations to be purpose-driven; it can also help employees connect with their work and be an important contributor to retaining key talent. The McKinsey study, ‘Help your employees find purpose — or watch them leave’, found nearly two-thirds of US-based employees surveyed said COVID-19 had caused them to reflect on their purpose in life. Nearly half said they are reconsidering the kind of work they do because of the pandemic, with millennials three times more likely to say that they were re-evaluating work in light of their personal and organisational purposes.
These leadership insights from Rob Goudswaard are outlined in more detail in the new book, which Dean Phelan and I co-authored – The Gentle Art of Leadership. The perspectives we gathered from our interviews with 50+ leaders from around the globe and the original research we drew on, form the basis of the book.
How could you help find your organisation’s purpose?
Best regards, Brian
PS: Discover your inner superpower, develop the human touch and enhance your ability to get to “yes” faster in the Personality and Behaving Transactionally Program. Get in touch if you would like to find out more about the latest program.