Our working world is in a constant state of change. New forms of collaboration and mega trends such as digitalisation, but also the influence of the so-called VUCA world (Volatility, Uncertainty, Complexity, Ambiguity) are breaking through old structures. This is accompanied by social changes and new expectations of employees.
Olga Gerashchenko emphasises in her publication that meaning-oriented companies are more profitable and innovative and their employees are more motivated. But how does a company succeed in elaborating its own meaning and communicating it to all employees? What role do managers have to play in meaning orientation for themselves and, above all, for their employees? And what does that mean in concrete terms for everyday leadership?
Gerashchenko explains which competencies a manager must have in order to be able to lead his or her employees according to the meaning of a company. She shows how to develop a living culture in a team, but also in the entire company. She also makes clear how important authenticity is in this process. Her book is a helpful guide for Purpose Driven Organisations.
From the contents:
- Corporate Values;
- Corporate culture;
- Employee motivation;
- Employee retention;
- Leadership Style
Table of contents
List of abbreviations
1 Introduction
1.1 Questions
1.2 Structure of the paper
2 Purpose/Meaning and its Meaning
2.1 Purpose Driven Organisation: definition
2.2 Terms purpose and meaning: Demarcation / Definition
2.3 Purpose of the company
2.4 What sense orientation is there for companies?
3 Sense orientation, cultural change and Role of the leader in this process
3.1 Relationship between meaning orientation and leadership role
3.2 Culture and cultural change
3.3 Role of the manager in cultural change
4 New role of the manager in "Purpose Driven Organizations"
4.1 Leadership styles with mention of meaning orientation
4.2 Management-effective instruments in Purpose Driven Organisations.
4.3 Explanation of the need for a new approach
5 Good Future Leadership (GFL)®: leading according to the meaning of the company
5.1 Organization and meaning (sense as an orientation star)
5.2 Sense of meaning in the workplace
6 Competencies of the manager in Purpose Driven Organizations
6.1 Self-guided tour: Behavior and competencies of the manager for self-leadership
6.2 Behavior and competencies of the manager in employee management
6.3 Teamwork: Characteristics and competencies of the manager in teamwork
6.4 Organization: Behavior and competencies of the manager in relation to the organization
6.5 Methodology
7 Summary
Bibliography
Annex: Methodology and feedback on the methodology
List of abbreviations
Figure not included in this reading sample.
1 Introduction
Today, our working world is in a constant state of change. Examples such as new forms of cooperation or the influence of the so-called VUCA world (Volatility, Uncertainty, Complexity, Ambiguity)1 break through old structures and put companies on new paths of development. Both the work of the future and mega-trends such as "digitization", "demographic change" and "individualization" will influence the working world itself, but also employees in all their areas (personal, social, professional). Work is already increasingly shaped by digital information and a technical working environment. The job profiles, work tasks and job profiles contained therein are constantly changing.
In addition, a change in values is taking place. The employee of the future is more oriented towards values such as meaning, respect, respect and appreciation than was previously the case. In addition, the term "Corporate Social Responsibility" (CSR) is gaining more and more attention for the end consumer. Customers are increasingly attaching importance to the fact that companies no longer only think about financial success, but also pay attention to its impact on the environment and people (customers, employees, municipalities).2 According to Fink, it is also important for the new "millennial generation" (birth cohorts between 1980 and 2000): ".that a company improves society than that it generates high profits in the short term."3
So what do these changes mean for companies? Companies are looking for new ways to develop more innovative strength, to win customers and to keep employees as motivated as possible. In addition, these changes bring with them many new management fashions and methods: one speaks of agility, resilience, new work and purpose. The most recent keyword "Purpose Driven Organisations" (meaning the search of companies for meaning) is the impetus for the topic of this master's thesis.
In 2009 speaks Simon Sinek in a TED talk about "Start with Why"4, which has 5,827,221 views on YouTube at the time of writing this work. In the same year, his book with the German title "Frage immer erst Warum" was also published.5, in which he presents his ideas that companies should first look for a WHY (why) in order to be successful and innovative. He describes this with the following sentence: "People don't buy what you do, they buy WHY you do it and what you do is a proof of your believe". The examples mentioned in his book include companies such as Apple, with its founder Steve Jobs. Steve Jobs wanted to offer people new solutions to needs that no one knew at the time. Today, these solutions have grown into status symbols. Also the coffee house Starbucks with its idea not just to sell coffee, but to create a "third place between the house and the work" is in Sinek 's book listed.
In March 2018 wrote Larry Fink, CEO and co-founder of the fund company Black Rock, a letter to 500 CEOs of US companies listed on the world's largest stock exchange. In it, he appealed to all managers to look for the purpose for their company with the following words: "Without a sense of the importance of its own actions, no company can reach its full potential." Boston Consulting Group then founds a consulting firm that supports companies in their search for meaning.6
Recent studies show that meaning-oriented companies are more profitable7,8,9 and more innovative10 whose employees have higher motivation and commitment.11
The search for the corporate sense seems to have become an important movement. In view of the fact that humanity faces very great challenges that can only be mastered together, it is worthwhile for companies to deal with new ideas. These new thoughts should have a different purpose than simple profit maximization. Here's what Weckmüller says: "Meaningful work promotes employee satisfaction and has an impact on HR targets. In this sense, the current trend stands Purpose in a long tradition not only of empirical personnel research, but also of the New Work movement and is by no means a pure management fashion" (Weckmüller, 2019)
1.1 Questions
The author of this master's thesis is herself a manager in a company that worked out the meaning (purpose) a year ago. In doing so, she came to the realization that it is not very easy to implement the works of this sense in everyday work without a suitable understanding among all employees. In addition, it is also difficult to develop a lived culture in a team, but also in the entire company. In addition, the meaning and values in the company can both motivate and lead to internal termination if they are not lived authentically.
The search for a sense of an economically active company therefore generates many motivating forces on the one hand, especially among the employees, on the other hand, the expectations of the employees of the company itself increase at the same time. Since the meaning can not only be predetermined, it should be understood and lived much more as an inner guideline or compass of employees.
A search for meaning in companies is only expedient and economically successful if the managers live this sense of the company in their daily leadership role and consistently act accordingly. For example, recent studies show that meaning can only have a positive impact on the financial success of the company if management succeeds in clearly formulating and communicating it.12
This raises different questions: what does this development mean in concrete terms for everyday management? What role does the manager have to take on or fulfill in the sense orientation for himself and above all for his employees?
In this thesis, the author wants to investigate which competencies a manager must have in order to be able to lead his employees according to the meaning of a company.
To this end, she examines the role of the manager in the processes of cultural change, what purpose means in an entrepreneurial and personal context and which factors must be taken into account for a manager if he or she is to lead employees according to the meaning of a company. In order to substantiate this accordingly, she will conduct intensive literature research on the one hand and develop her own concept on the other, which she will call "Good-Future-Leadership (GFL)®", which can be applied and understood as a recommendation for action for managers or the leadership role itself.
1.2 Structure of the paper
First, the meanings of the terms "Purpose Driven Organisations", "Purpose" and its translation into German – also called "Sinn" – are explained (Chapter 2). Since the meaning of meaning has a wide variety of aspects (psychological, philosophical and entrepreneurial background), the explanation for simplification only briefly deals with individual researchers who have dealt with the term meaning urgently. The significance of meaning in the world of work and for companies themselves is also analysed (Chapter 2.3.).
In her work, the author focuses specifically on the role of the manager, who must support the sustainable implementation of the sense in the company. Since this process usually changes the corporate culture, she will explain in Chapter 3 what role the manager plays in cultural change and what influencing factors the culture of the company and the cultural change itself have.
Chapter 4 takes a closer look at the new role of the leader in Purpose Driven Organizations. A wide variety of questions are examined, such as the importance of meaning-oriented leadership, in which other leadership contexts meaning leadership is mentioned as the task of the manager, how exactly this role must be designed and what a manager can do to lead employees according to the meaning of a company.
In Chapter 5, she presents her newly created model "Good-Future-Leadership (GFL)®" and explains how to define an overarching understanding of the leadership role in this process.
Building on the model understanding of the connection between company and meaning, which is based on the TOP organizational model of Prof. Nowak and the True North explanations of Murray (Chapter 5.1.), she explains which areas of an organization are influenced by the newly found corporate sense and how a manager can connect the employee with the meaning of the company (Chapter 5.3.).
The resulting and listed competencies of a manager are fundamentally based on literature research, but essentially on the author's experiences in her professional life as a manager. These competences are set out in Chapter 6. For a better understanding and practical transfer, she also leads methods and exercises (Annexes 1 and 2). These arise from their task as part of the "purpose team" in their company.
2 Purpose/Meaning and its Meaning
This chapter first discusses the general definition of purpose and how it is understood in the world of work today. Thereafter, the consideration falls briefly on the meaning of the personal sense in the context of the work and activities carried out and finally on the term purpose in the sense of the company.
2.1 Purpose Driven Organisation: definition
As a rule, it describes organizations that are looking for a purpose (common sense or purpose) and align their actions accordingly. As Fink writes: "They are organizations whose heart and engine are a 'higher purpose'. An energy- and orientation-creating conviction and motivation to make a contribution to something that goes far beyond one's own advantage and benefit". (Fink & Moeller, 2018). Thus, the sense or purpose of Purpose Driven Organizations lies outside the pure profit orientation and offers employees additional opportunities to experience their own purpose in everyday working life.13 As described in Chapter 2.4, this description does not always apply, as the understanding of meaning can be interpreted differently in companies.
Since no analogous or meaningful descriptions could be found in the German literature, the author will call in her work companies that have found meaning in their work Purpose Driven Organizations.
2.2 Terms purpose and meaning: Demarcation / Definition
As a rule, purpose is translated into the German language either as a purpose or meaning. With regard to personality, purpose is also understood as the purpose of existence, vocation and destiny. According to Ryff (1989), for example, purpose in life means to have a goal or a certain direction (Ryff quoted from (Martela & Steger, 2016)). In the same studies, Martela and Steger refer to Mcknight and Kashdan, who understand the purpose as a "central, self-organized sense of life, stimulate the goals, regulate behavior and give meaning to meaning".
The analysis of the Opinion Monitor on the subject of 'What makes sense?' shows that the general understanding of what the term 'purpose' stands for on German is not clear.Figure 1).
Abbildung in dieser Leseprobe nicht enthalten
Figure What does the trend term "purpose" stand for?
(Lipkowski , 2019)
Since there are a wide variety of translations for purpose in German literature, the term "Purpose" will be called "Sinn" in this work, which according to this survey is most often understood as such.
In the literature, "meaning" is treated with two different meanings:
- On the one hand, it has an emotional dimension: Meaning is something that gives motivation, drives energy and connects with the inner attitude of the person.
- On the other hand, a factual and substantive dimension: it is the goal that describes the higher purpose of the existence of either a person or a company.14
2.2.1 Emotional dimension of the sense
The need to experience and do something meaningful is neurobiological in humans. Meaning or coherence are among the basic psychological needs that make a person happy and satisfied.15 According to Maslov, the needs for self-realization are essential for every person after whom his basic needs (such as eating, drinking, sleeping) are satisfied. Since for many people who work in industrialized countries, the basic needs are completely satisfied, there is an increasing search for meaning itself. There is a need to do something different, meaningful.16 Also in the aspect of the world of work, the need for meaning is becoming increasingly important. The experience of meaningfulness in the workplace is recognised by the Federal Ministry of Labour and Social Affairs as an important component for maintaining – or damaging – health at work.17 This explains why a person who sees no meaning (anymore) in his life, both in his private environment and in working life, can experience an influence on his health and motivation. In the worst case, this can lead to depression.18
The following examples of the definition of the sense are presented only superficially and briefly to get an overview.
a) The understanding of meaning according to the sense of coherence of Antonovsky:
The sense of coherence according to Antonovsky is the name of a basic life orientation, which consists of three components:
a) Ability to understand
b) Manageability
c) meaningfulness
The feeling of comprehensibility describes the expectation that the demands of life are structured and predictable. The feeling of manageability describes the conviction that humans have enough resources at their disposal to meet these requirements. Meaningfulness describes the feeling that most requirements make sense and that there is enough motivation and energy to invest in coping with them.19
b) Man as a meaning-related being according to V. Frankl
after V. Frankl (Founder of logotherapy) a person cannot be given meaning, but the person himself must take responsibility for the meaning of his own life. Thus, meaning must be found in work, or man must give meaning to the meaning of work.20
In today's age of automation, people gain more free time, which at the same time puts them in a state of boredom. Demographic change and the ageing of the population are also pushing more people into an empty vacuum after their professional careers have ended.21 This vacuum leads to different effects for the individual: Consumerism, increased activity and the exaggerated urge for new things. In addition, there is the manager's disease, the addiction to power and money, when the "will to money displaces the will to make sense!"22
Frankl has also recorded how important "serving" is for the fulfillment of meaning. However, since we as human beings live in an interplay of the world and our environment, we cannot separate our own meaning from the meaningfulness of our actions (which is very often expressed in our professional context). According to Frankl, we fulfill and realize ourselves when we deal with the tasks of the environment and life instead of just with our own needs.23 This is how we live according to our meaning, for example, if we
- give our life meaning or something worth living for;
- engage in a professional activity that we find meaningful and aware that we are part of something greater;
- accept that people and our world are not perfect;
- accept that there can also be situations of imbalance that cannot be resolved immediately, and that life also consists of "difficult moments".24
(c) Daniel Pink: Fulfillment of meaning as one of the factors of fulfilling work and intrinsic motivation
Daniel H. Pink mentions in his book "Drive: What really motivates you" three factors for intrinsic motivation and fulfilling work: Self-determination, perfection and fulfillment of meaning. Happiness and contentment do not arise from the fact that we want to do something unpleasant quickly, just as the principle of "eyes close and through" cannot enrich us. In order for us to be able to go about our work with satisfaction, we should move "towards something". This something should be a personal goal, what is sought and wanted. A goal that is valuable and achievable will lead to more joy and motivation.25
d) Theory of human well-being
This is complemented by the research of positive psychology, which describes meaning as an essential component of human well-being with a PERMA theory. P - positive feeling, E - commitment, R - positive relationships (relationship), M - sense (meaningfulness) and A - goal achievement (achievement). The meaning fulfilled according to Seligmann three criteria:
- it contributes to well-being;
- one pursues the sense for the sake of the sense itself and not to be happier or to live more fulfilledly;
- the meaning is not dependent on other elements of PERMA, such as relationship and goal achievement.26
2.2.2 Factual - substantive dimension of the sense
Here, the sense serves as a guide, something to which people or companies align their attitude and decisions and take this as a so-called "North Star". This dimension is used in systems theory by Niklas Luhmann describe. In this systems theory, meaning has a more general meaning as a way of distinguishing the possible from the given.27 In the complex context of psychological (conscious) and social systems (organizations, families, etc.), the sense helps to find an orientation of different possibilities.
This is how there is Dave Ulrich an example of stone masons building a cathedral: when three people are asked how they do it, the first one answers: "I lay the stones" the second: "I build a wall" the third: "I am building a beautiful cathedral for God". The third has found a meaningfulness in his work and gives his work a higher meaning.28 In conclusion, it can be stated that the third stone mason has found both a very emotional sense for himself and a factual and content-related dimension, to which he aligns his work.
2.2.3 Meaningful and meaningful work
Some authors describe the meaning in working with terms such as: "Meaningfulness in work" and "Meaningfulness at work".29
Prof. Dr. Tatjana Schnell describes these two meanings30 :
According to her theory, meaningful work feels four central criteria:
1) significance: Employees are aware of the importance of work.
2) belonging: The employee can experience the affiliation.
3) Fit in terms of skills, interests and values.
4) Identification with the entrepreneurial orientation: Employees can stand behind the company's goals.
Meaningful work, on the other hand, is experienced when work "additionally offers the opportunity to realize personal values, such as.B social commitment, closeness to nature, power, community or morality" (Prof. Dr. Tatjana Schnell (Rose, 2019)). The aspect of when a company can offer meaningful work is explained by the current movement of the company search for meaning. What the meaning of the company means is explained below.
2.3 Purpose of the company
How can the word "meaning" be understood in an entrepreneurial context? Is it the answer to questions such as why a company exists and does what it does? Or what needs does it meet for others? And what makes this company different than just being profitable?
Simon Sinek explains in his book "Always ask why first" that the meaning of the company can be seen as an answer to the question of why or WHY. It also answers the question of what a company brings into the world and for what purpose a company does what it does.31
Craig and Snook describe meaning as : "is the statement of a company's moral response to its broadly defined responsibilities, not an amoral plan for exploiting commercial opportunity." (Craig & A. Snook, 2014) (Translated as follows: It is the moral obligation of a company not only to pursue commercial success and its advantages". Gartenberg et al. have the meaning "[...] as a set of beliefs about the meaning of a firm's work beyond quantitative measures of financial performance " (Gartenberg, Prat, & Serafeim, 2018) (Analogous translation: [...] as a set of beliefs about the importance of entrepreneurial trade that are above financial and quantitative measures)."
2.3.1 Golden Circle after Simon Sinek
Simon Sinek has presented in his book the concept of the Golden Circle, which will be used in the further elaborations. The Golden Circle helps to distinguish between the meaning and the competences or tasks associated with the meaning.32 The circle consists of three layers (Figure 2):
- The WHAT describes what exactly each company does. This can be seen in the products as well as services or services. This is therefore easy to identify.
- The HOW describes how the companies or individuals do the WHAT. This refers to characteristics that lead to an event and are different from others. For example: an idea becomes a product (WHAT) through the HOW (the path, actions, competencies, decisions).
- The WHY is the most important thing for Sinek to be innovative and successful. It describes reason for movement, belief, meaning, as well as reasons why a company exists and why it does what it does.
Abbildung in dieser Leseprobe nicht enthalten
Figure Golden Circle, S. Sinek
(Sinek, 2018)
The author considered the mention of the Golden Circle at this point in her work to be particularly useful, as it clearly shows that a company is not only about the "why sense", but also about the actual way to get there (HOW).
2.4 What sense orientation is there for companies?
Since there are different understandings and interpretations of the sense as already described, it is interesting to see that "Purpose Driven Organizations" also interpret their own meaning differently.
Murray33 asked 150 executives what they consider to be the "Purpose of the Business". The different answers can essentially be summarized in four different categories:
1. Shareholder Purpose: most executives in this group refer to this for-profit business category as the meaning of the company itself (according to Milton Friedman's theory: business is a way to maximize profit).
2. Customer Purpose: Murray quotes Peter Drucker, who explains that the customers are the ones who secure the existence of the company. The purpose of the company is therefore outside the business.
3. Social Purpsosis: Executives who have chosen this category refer to this sense of the company as something bigger. The orientation corresponds to the customers as well as the employees, suppliers and local institutions, consequently to the social sense. Therefore, the meaning is often talked about in three areas: People, Planet and Profit. "There is an increasing awareness that the purpose of a company has to be beyond shareholder value, and that this is not something that will cost your business but something that will enhance your business," "There is a growing understanding in the market that meaning must necessarily take precedence over the actual value of the company, and that this does not lead to damage to the company, but ultimately advances the company" according to Michael Beer (Harvard Business Review, 2019) .
4. Higher Pupose: The fourth group of executives talks about the higher meaning of business. In this, the companies should work to solve the problems of humanity (just as, for example, doctors want to heal people, while the purpose of the pilots is to fly or the architects to build buildings). 34 These promise, among other things. Customer benefits, such as elicit satisfaction, creating connections with each other, inspiring the discovery of the new, awakening pride and influencing society. 35 This sense corresponds to the meaning given by V. Frankl, according to which the meaning is to be experienced by dealing with the environment and other lives (Chapter 3.1.2). The feeling of being a part of something bigger and thus contributing to something bigger can even be more motivating than the financial merit or status. 36 Furthermore, according to a survey by the Havard Business Review, 86% to 90% of executives confirmed that companies achieve better results when the meaning is outside the profit orientation. 37 Sisodia, Sheth and Wolfe note that the financial success of meaningful companies with humanistic values has increased 14-fold within 15 years (from Sisodia, Sheth and Wolfe in 2007 to (Korn Ferry Institute, 2016) ).
Descriptions of some companies as an example:
- Daimler: "We move the world first"38
- Adidas: "Through sport, we have the power to change lives. "39
- Sonnentor Kräuterhandels GmbH: "At Sonnentor, we firmly believe that nature is the best recipe for a beautiful and long life. That's what we work for. That's what we live on. And we believe that organic farming is the only alternative to the consequences of monoculture and overproduction."40
- Bayer AG: "Science for a better life."41
- Thyssen-Krupp: "The purpose of the work should be the common good."42
- Weleda AG: "We dare to care, Inspired by Anthroposophy, we dare to make a difference. "43
3 Sense orientation, cultural change and Role of the leader in this process
Since the sense orientation is associated with values and attitudes, an orientation towards the meaning of the company can only take place if this is also anchored in the cultural core of the company. In this chapter, the author would like to look at the role of the manager in corporate culture and how this is associated with the process of cultural change.
3.1 Relationship between meaning orientation and leadership role
Concrete orders for the implementation of meaning-oriented leadership usually come from companies that are living through or striving for a cultural change (after crises, mergers, leadership changes) and want to implement a new management basis.44 When a company is looking for meaning, it is essentially about the corporate culture and the associated change processes. Studies have shown that even if the sense has a high priority, there is still a separation of the common understanding of the sense between employees and company management / executives.45
A study by the Harvard Business Review shows that employees of surveyed companies do not always understand the meaning and values of the company (only 38% of respondents understand the meaning of their company). Only 37% of these respondents are of the opinion that business models and operational business are strongly linked to meaning (cf. Figure 3). Only 46% said they base their strategic and operational decisions on purpose.46 Here the division between understanding and assumption becomes clear that the corporate sense is fundamentally important for entrepreneurial success. In reality, however, the corporate sense is not fully established.
[...]
1 cf. Heller, 2018, S.V.
2 cf. Leipprand, Prof. Allmendinger, Ph.D., Dr. Baum, & Dr. Ritter, 2012, pp. 16-17
3 cf. Dörner & Schäfer, 2019 accessed on 03.09.2019
4 cf. Weblink to the video: https://www.youtube.com/watch?v=u4ZoJKF_VuA, retrieved on 03.09.2019
5 cf. Sinek, 2018
6 cf. Lipkowski , 2019, p.20
7 cf. Canwell & Tony, 2018
8 cf. Harvard Business Review, 2019
9 cf. Korn Ferry Institute, 2016
10 cf. Harvard Business Review, 2019
11 cf. Canwell & Tony, 2018
12 cf. Gartenberg, Prat, & Serafeim, 2018
13 cf. Rey, Bastons, & Sotok, 2019, pp. 4-9
14 cf. Fink & Moeller, 2018, pp. 23-24
15 cf. Mourlane, 2015, p. 30
16 cf. Butzman, 2019, accessed 03.09.2019
17 cf. Nauer, 2013, p. 50
18 cf. Isaksen, 2000
19 cf. Begel & Lyssenko, 2012, p.65f
20 cf. Rose, 2019, p. 235
21 cf. E.Frankl, 2017, pp. 295-298
22 cf. E.Frankl, 2017, pp. 296-297
23 cf. E.Frankl, 2017, p. 280
24 cf. Mourlane, 2015, p. 130
25 cf. Buchacher, Kölblinger, Roth, & Wimmer, 2015, pp. 12-16
26 cf. Seligman, 2011, pp. 34-35
27 cf. Fink & Moeller, 2018, p. 24
28 cf. Duncan, 2019, accessed 03.09.2019
29 cf. Gartenberg, Prat, & Serafeim, 2018
30 cf. Rose, 2019, pp. 259-262
31 cf. Sinek, 2018, pp. 39-41
32 cf. Sinek, 2018, pp. 39-41
33 cf. Murray, 2017,pp. 124-126
34 cf. Murray, 2017, p. 127
35 cf. Murray, 2017, p. 128
36 cf. Harvard Business Review, 2019, accessed 17.09.2019
37 cf. Harvard Business Review, 2019, accessed 17.09.2019
38 cf. Butzman, 2019, accessed 03.09.2019
39 cf. Fröndhoff & Scheppe, 2019, accessed on 17.09.2019
40 cf. Ayberk, Kratzer, & Linke , 2016, pp. 35-40
41 cf. Fröndhoff & Scheppe, 2019, accessed on 17.09.2019
42 cf. Fröndhoff & Scheppe, 2019, accessed on 17.09.2019
43 cf. Weleda AG, 2019, p. 5
44 cf. Grund & Schlegel, 2012, p. 234
45 cf. Harvard Business Review, 2019, p.2, accessed 17.09.2019
46 cf. Harvard Business Review, 2019, p.2, accessed 17.09.2019
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