INSIDE-out: Measuring Purpose, with CEO Matt Hayfield
Exciting times, as our CBO and company founder Dan Dimmock sat down for an enlightening chat with Matt Hayfield, the visionary CEO of KingsFaris. For those who haven't yet encountered the thought-provoking discussions steered by Matt, you're in for a treat.
In this recent podcast, the conversation revolved around a topic close to our hearts and crucial in today's market: Purpose-driven brand strategy. Dan sheds light on the genesis of our firm, how purpose has been woven into every decision we make, and the challenges and rewards that come with such a commitment.
Whether you're a budding entrepreneur, a brand strategist, or just someone curious about the intricacies of building a brand that stands for something more than profit, this interview promises a wealth of insights.
And for our readers who prefer reading over listening, don’t fret! We’ve taken the liberty of transcribing the entire conversation for you. So, plug in your headphones, settle down with a cup of coffee and dive into this rich exchange of ideas!
Edited transcript
Matt
Welcome to our second podcast in the series. We're here today to talk about purpose-driven brand strategy. And I'm delighted to welcome Dan Dimmock, a global corporate brand leader. He's worked worldwide, from New York to Asia, and has been based in Dubai for many years, where he founded an international advisory firm for brands, Firstwater Advisory. Welcome, Dan!
Dan
Thank you, Matt. And thank you for inviting me to your podcast.
Matt
You're welcome. So, in terms of brand, most people perceive it as external and built around a logo. But it means so much more than that. So, what is a purpose-driven brand strategy?
Dan
I was first introduced to corporate identity 20 years ago by a pioneer called Tony Spaeth, who was based in the US. He could be heralded as the pioneer or grandfather of corporate branding and identity. When I was introduced to Tony, I was taken aback by his mantra: he considered corporate identity a leadership imperative. And this idea and notion have stuck with me throughout my career. And that when a brand is effectively embedded into an organisation, it not only changes and influences consumers' or customers' mindsets but also any other stakeholder of an organisation. Now, if we take the basic concept of a brand, for example, from the moment you woke up this morning, you've engaged brands. For instance, you brushed your teeth with a brand. And your choice of buying that brand was likely informed by your perceptions of that brand. Is it good for me? Is it good for the environment?
There are a series of different motivations that contribute to your decisions. You got dressed. Put on clothes, and turn the television on. You may have read a newspaper. Every day, we make decisions and invite brands into our lives to help us fulfil our rituals and routines. So, everyday decisions are influenced by our perceptions of brands. And this notion has become very, very important at a consumer level, at an employee level, and at an investor level. We intentionally seek to invite organisations and their brands into our lives and, more so, brands that do well, say they're doing well, and have a higher purpose and calling. So, consumers, employees, talent, and investors are all looking to work with and be represented by organisations they perceive as doing a great job or improving the world. And that leads to Purpose. So, companies with a strong purpose are those that all their stakeholders are absolutely clear about and who have a good understanding and clarity around what that Purpose is. We're seeing many brands worldwide that are doing very, very well based on that notion.
Matt
Where do you start with such a project for an established business that may be thinking about its brand identity and taking the inwards-outwards approach? Where would they start with such a task?
Dan
Again, a good question. I come from a school of thought that you can only define and successfully implement a strategy in an organisation if the philosophy of that organisation is fully understood.
Matt
Sure.
Dan
When we think about the philosophy of an organisation, we're led to investigate statements and commitments to the calling of that organisation through such statements as a mission statement, values, principles, and drivers, all laddering up to a vision. So, the importance of having absolute clarity around that philosophy is integral to the success of any business in any organisation. And as that philosophy is cascaded through a company, its various strategies take form. So, whether you're thinking about brand, business, transformation, or employee engagement strategy, all must directly relate to how the philosophy connects to those concerned stakeholder groups. So, with employees, for example, there are ways in which philosophy can be applied and effectively articulated in a way that's meaningful and relevant to employees. Of course, I'm talking about an Employee Value Proposition (EVP).
Suppose a Brand Value Proposition (BVP) guides how a brand communicates to the outside world, and an Employee Value Proposition is clearly aligned; you project a more profound sense of homogeny and consistency. This empowers companies to investigate creative ways to bring their brand to life through experience. And its Purpose is to connect the dots and ensure a centralised philosophy can lead an organisation forward. It's inclusion and alignment with an overall Purpose and Vision that transcends what happens outwardly with what we discussed at the beginning and where ideals drive reality.
Matt
Can you speak to us about something specific? We don't have to mention any names, obviously, but sort of case studies around organisations where you've gone in and some kind of really transformed culturally to get employees on board with the company's overall Purpose or even define what it is and then what that's meant for a business or an organisation.
Dan
Yeah, but it's important to say that the work we've been doing and continue to do is to help is to facilitate. So, we've developed techniques, tools, measures and principles that help uncover and unleash the superpower within a business. And we've done that with a reasonable degree of success. We assist leaders in alignment, understanding, and improving their self-awareness. That's the first point of call. Then, from that, we can articulate a series of constructs that can be effectively aligned to the organisation and help them to align with the needs and requirements of stakeholders.
We've been very fortunate to have worked with many great organisations worldwide, from countries, NGOs, and charities to large corporations and startups. Organisations who have chosen to work with us have bought into our mindset that purpose-driven brands and purpose-driven businesses have the power to make a significant difference and change in the world. That said, a couple springs to mind. The first is our work with a sizeable top-tier bank in Asia. Despite being an institution that has been around for many years, very few people truly understood what the bank was there to fulfil. While the bank was doing very well across retail and wholesale banking and was expanding, there needed to be more understanding of what it was there to do other than just bank. We worked very closely with the board of directors and the chairman of that organisation to establish a governance committee. This was to get the right leaders within the business around the table, to build consensus and develop an understanding of what they were there to do and what they stood for. Then, oversee the various milestone changes of transformation to get alignment, build consensus, establish consistency, build a level of understanding and widen the value creation throughout the supply chain. In terms of a testament to that work, a key stakeholder was obviously human resources. And we worked very closely with human resources to translate leadership's philosophy into an Employee Value Proposition.
After relaunching the brand, we captured quantifiable measures from the programme. And I'm pleased to say one of them was very surprising, which was that attrition amongst less able-bodied employees actually dropped from fifty to five per cent in three years following.
Matt
That's brilliant, isn't it? Yeah, really good. It's an outstanding achievement. And the fact that you can quantify it in those terms is also crucial. Just leading on from that, Purpose, in particular, is essential. We talk about employee retention and attraction but mainly look at different generations within an organisation or a workforce, particularly younger people. And I remember you telling me the Purpose of an organisation is particularly important. Can you talk more about the alignment of Purpose with employees?
Dan
We've seen significant changes, particularly in people's demands and expectations of businesses, especially businesses or any organisation you might choose to work with or work for. And with societal and environmental issues we face as a species, we're seeing a natural transition and shift from historically extrinsic motivations and extrinsic values like money, status, fame and individuality to more intrinsic ones. So, employees looking to work with organisations taking a more human-driven approach to doing business and looking after the interests of all their stakeholders, not just the employees themselves. Those who are affected by the contribution or lack of contribution that a company might have to the world somehow. This has given birth to the realisation that when evaluating these shifts and changes in employee requirements and needs, leaders are broadening their understanding of value, accepting that their business activities create or diminish value. And that this phenomenon exists at every moment within their company's supply chain. When employees are at the helm of relationships and are leading and championing the charge, it becomes imperative that the organisation's intrinsic motivations and values are understood and embedded. Advocated from the top of the organisation through to delivering the experience. When you elect to embed inherent motivations and values to drive success, you can also appreciate that culture manifests and brings values to life in ways that leaders may not have expected them to. However, being open and embracing these changes has been seen to create great success for organisations, making them incredibly attractive places to work and, in turn, also attracting investors and suppliers who want to be part of the story. So, in answer to your question, it's definitely intrinsic value creation and the transformation of existing organisations.
Matt
I remember you telling me about a particular startup you've been doing a lot of work with that went in from the beginning with a culture-focused, purpose-driven strategy from day one and who've seen tremendous success. Can you tell us more about that project and what they got right?
Dan
Yeah, absolutely.
Again, it's important to say that as we continue to support this startup, we went in to facilitate. From the outset, the founders made a conscious decision not just to find a solution to a problem in the world but also to sit down together and say, "Well, there's a type of business that we want to create. We don't just want to make a company that solves a problem in a transactional way. Still, we want to create a culture that solves problems and connects with people more profoundly and meaningfully to resolve not just every day tensions but also significantly resolve issues affecting people worldwide.
And that company is Mamo, a fintech startup based in the UAE. It started life as a peer-to-peer personal transfer service and electronic wallet. Now, it provides tools and vital assistance to solopreneurs, freelancers, and small businesses. And they're growing in terms of capability and certainly growing in terms of people. And when I sat down with the founders at the beginning of our engagement, it was vital for them that the business was seen as culture-led.
Now, one of the founders is a UX designer. So making sure that the human and the empathetic approaches to solving problems and taking people through a serve-designed journey was really important. But he wanted this to fuel employee engagement, too. So when we started looking at the philosophy they wanted to articulate and how we could scale and grow the brand alongside the business, putting in place, from very early on, a People Partner to help champion and see that through became key.
From the beginning, the founders wanted to build an inclusive culture where people are always encouraged to share ideas and develop new and innovative ways to improve the product offering and, ultimately, the business.
Again, this is a testament to leadership ambitions and commitment to building a culture that solves everyday problems. Mamo continues to do that, and I'm delighted to see the business grow, flourish and attract great people who build great product. As Mamo continues to grow, it attracts investors who believe in its Purpose and the vision of those founders. This is happening increasingly. Purpose-driven companies are raising capital and securing investment. But there has to be that alignment there, and again, that goes back to the notion that people are thinking beyond money and financial returns.
That said, a study last year conducted by DocuSign, but I can’t remember the actual number, showed the airtime a VC or investor would give to a pitch deck was drastically reduced if they couldn't find reference to a clear Purpose very early on in that presentation. Too, Larry Fink, the CEO of one of the largest investment companies in the world, is regularly cited for his annual letter to investors where he talks about Purpose as 'not a marketing campaign, not a tagline, but a statement of intent' that explains why businesses exist in the first place. What's their north star? What's their raison d'etre? There are loads of cliches, but they all ladder up to this point: Why does your business exist beyond the economics and commercial gain? So, unless you've got a clear answer to that, a response that connects with people in an emotional way that they can see in the experience you create, you will otherwise struggle to connect with people.
Matt
So, Dan, can you measure Purpose?
Dan
We're in an exciting place where, thanks to digital technology, you can measure most things. So, as a business, we've looked at brand successes, some we've been involved with and others from around the world. We've looked at companies that have successfully raised their profile while notably achieving great things in the world and at how they have been able to do that. And the most successful organisations don't just have a Purpose; they manage to create and maintain a sense of brand clarity and understanding with all their stakeholders.
When you think that brands can touch any stakeholder, as we've been discussing ⏤ employees, investors, customers, etc. ⏤ every moment within the brand experience must be crystal clear.
So, we've identified six indicators of brand clarity and developed a series of tools to assess the status quo, to understand where an organisation is in terms of people's understanding of its Purpose and why it matters to them. These tools can also be used as a litmus test to understand how well the project is doing or how change is being received. Every moment can be systematically measured.
The six indicators begin with a higher purpose. Do you have a higher purpose as an organisation? Higher Purpose is defined as the mission, Purpose, Values and Principles combined ladder up to your Brand Value Proposition and, ultimately, your Vision where you want to go. The next indicator centres around how well your Higher Purpose translates into the strategies that you execute in your business. Providing a score around Purpose-driven Strategy. Now, strategies are only helpful if you can execute them and if people understand what they mean to others. So, next comes Conscious Communication, which is both internal and external. We assess the quality of communication from an organisation's consciousness level. Your most important ambassadors for your organisation, of course, are your employees. So, how intrinsically motivated are your people? How well connected are they to your Higher Purpose? Do they have clarity and an understanding of that Purpose? If so, you're in a great position to connect empathetically with your customers and primary audiences. So, Intrinsically Motivated People establish a relationship based on Empathic Connections, championing values externally. Finally, the sixth indicator is whether your organisation has the right tools, systems, assets and processes, the brand elements that help ensure continuity and understanding so that you can, over time, build equity in the marketplace to be known for your Purpose.
So, the six indicators of clarity are Higher Purpose, Purpose-Driven Strategy, Conscious Communications, Intrinsically Motivated People, Empathetically Connected Customers, and, as a business, do you have Agility, and are you Responsive? Have you embedded the right systems and processes to create value? Bring all six together, and you can have an excellent sound understanding and measure of how well you're Purpose is performing.
Everything, though, comes back to the anatomy of a strategy. The anatomy of a strategy is, what are you going to do? Why are you going to do it? How are you going to do it? And what are the measures of success? And so, the anatomy of a strategy sits very closely and is aligned with how you bring your organisation's philosophy to life through purpose-driven brand strategy.
Matt
Thank you, Dan.
That's been a fascinating discussion, and I hope to have a further conversation soon because there's so much we could cover here. If you have any thoughts or questions, please write in the comments section below. We'll be more than happy to put you in touch with Dan if required. Please reach out to him directly. And we'll see you next time.
