Successful, long-standing organizations risk conflating their identity (how they operate, e.g., "active global investor") with their purpose (the ultimate mission, e.g., "maximize return"). Leaders must constantly challenge whether their established identity still serves the core purpose, avoiding decisions that merely preserve the status quo.
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When your business no longer feels aligned, trust your instincts to make a change. The required pivot may be disruptive and risky, especially if the current model is commercially successful, but your internal wisdom is the most reliable guide for long-term fulfillment and integrity.
For established businesses, the default goal of perpetual growth can be counterproductive. A more sustainable approach is focusing on protecting the team's peace and well-being, questioning the need for "more," and finding comfort in holistic success rather than just metrics.
When leaders are stuck defining their organization's mission, this question forces a shift from generic goals like survival to tangible impact. It clarifies the unique value provided to customers and society, revealing a more motivating and authentic purpose beyond simply 'staying in business.'
Stating that your company's purpose is to make a profit is not a compelling 'why' for employees or customers. A true purpose should be a unique identifier, like a thumbprint or DNA, that distinguishes the organization from all competitors who are also seeking profit.
Unlike startups, institutions like CPPIB that must endure for 75+ years need to be the "exact opposite of a founder culture." The focus is on institutionalizing processes so the organization operates independently of any single individual, ensuring stability and succession over many generations of leadership.
Before a major business pivot, first identify what can be let go or scaled back. This creates the necessary space and resources for the new direction, preventing overwhelm and ensuring the pivot is an extension of identity, not just another added task on your plate.
Company-wide processes like annual planning often become bland and unopinionated to appease all stakeholders and avoid criticism. In contrast, companies with strong cultures often have opinionated leaders who champion specific, quirky rituals, which infuses the entire organization with a distinct and effective character.
As companies grow from 30 to 200 people, they naturally become slower. A CEO's critical role is to rebuild the company's operating model, deliberately balancing bottom-up culture with top-down strategic planning to regain speed and ensure everyone is aligned.
One-off volunteer days or CSR initiatives are superficial fixes that employees recognize as inauthentic. Purpose must be the core reason a company exists and be embedded in every decision, not treated as a separate, performative activity to boost public image.
A company’s true values aren't in its mission statement, but in its operational systems. Good intentions are meaningless without supporting structures. What an organization truly values is revealed by its compensation systems, promotion decisions, and which behaviors are publicly celebrated and honored.
