THE PURPOSE EFFECT – BOOK REVIEW & INTERVIEW WITH DAN PONTEFRACT

We, at Learnnovators, are privileged to review Dan Pontefract‘s second book, “The Purpose Effect” that is scheduled to release on May 10, 2016. Below is our review of the book and an insightful interview with Dan…

THE PURPOSE EFFECT – REVIEW

The sole reason for an organization to exist is to make a profit. And the sole reason for a person to go to work is to sustain themselves.

If your thinking has been on these lines so far, then you couldn’t be more wrong. In his book, The Purpose Effect, Dan Pontefract brilliantly distils the malady that pervades many corporations today. At the same time, he shows the way for both organizations and individuals to work towards a purposeful existence. Generously littered with examples of organizations and individuals that have found their purpose, the book takes you on a journey to help you find the sweet spot, the harmonious intersection of high purpose at three levels: organization, individual, and role. A must read for anyone in search of their ‘calling’, and for those seeking to answer the question “Why do I exist”?

INTERVIEW WITH DAN PONTEFRACT

1. LEARNNOVATORS: You have written the book ‘The Purpose Effect’ to help both organizations and individuals lead meaningful lives that benefit society and result in a larger good, by defining purpose in three categories:

• Personal purpose (which seeks to answer an individual’s “Why?”, and what motivates them in their life)
• Organizational purpose (which seeks to answer why an organization exists, and what problems it has set out to solve)
• Role purpose (which is about why a role exists in an organization)

What inspired you to write this book?

Dan Pontefract: I wrote The Purpose Effect to prove that there is a link between purpose and culture. The concept of purpose was something I wanted to explore deeply, and prove that an organization and its employees are better off with the dynamic duo of culture + purpose.

Through the three years of writing The Purpose Effect, I have discovered and proved my thesis that purpose is a very close partner of culture.

In parallel, Denise and I have three children, now aged 13-, 10- and 9-years old. There is not a day that goes by where I am not thinking about their future. I want nothing more for them than to either start an organization or work in an organization that spills over with purpose. As a father, I hope The Purpose Effect is being demonstrated in our household (by Denise and I) and in the organization where we have chosen to work. I hope our children (the goats) look up to both of us as role models of purpose.

2. LEARNNOVATORS: At the time the book was about to go to print, you stopped the launch and almost re-wrote it. That must have been painful, but it was the brave and honest thing to do. How was your first version (which we believe was called ‘Dual Purpose’) different from the one we’re reading now? Please describe the transition from ‘Dual Purpose’ to ‘The Purpose Effect’.

Dan Pontefract: Misery likes company. I found out with great interest that author/academic Adam Grant did the same thing with his first book, Give and Take. (disclosure: Adam is an endorser of The Purpose Effect) You will note the title of the first attempt, Dual Purpose, invokes the number two. If you look at the cover of The Purpose Effect, there are three circles making up a Venn diagram. You’ll just have to guess what happened between the two manuscripts.

3. LEARNNOVATORS: The story of Janice Williams, an economist in her day job, and a blogger and healthcare advocate by night, is truly inspiring. Janice has found her personal purpose; but unable to find purpose in her role at work, she has beautifully come around her circumstances, taking to blogging and advocating improved birth practices in her free time. What is your advice for those who, like Janice, have found their personal purpose, but are not able to find their role purpose due to unavoidable circumstances?

Dan Pontefract: In fact, Janice continues the journey of finding role purpose. Actually, we all are. Personal or role purpose can be troubling to find, but one must never forget they both have to be worked on in perpetuity. Each of us ought to be continuously developing our skills, our likes, our ambitions, our interests … and in parallel, we must decide each and every day how we want to show up in life/work, while defining ‘who’ we are as we pass through the stages of our own humanity. My advice? Never stop developing, defining or deciding what, how and who we are.

4. LEARNNOVATORS: On the other hand, we hear the disturbing story of Linds Redding, who thought he was filled with purpose in his role (as owner and operator of an art and animation studio, with 30 years of advertising experience behind him), but didn’t realize until he was in his deathbed that he wasn’t. When his role perished due to his ill health, his sense of purpose ceased to exist (since he had not defined his personal purpose), and he ended up feeling that his career was one big sham, “an epic act of self-deceit” in his own words. Where he had thought that he was sacrificing his personal life for a great cause, he realized that he was just shifting merchandise. What is your advice for individuals to establish their personal purpose, and ensure that it is balanced with role purpose at all times?

Dan Pontefract: Look in the mirror. Ask yourself the hard questions. Am I doing everything there is to fuel and complete my inner and outer self? When I leave this Earth of ours, have I lived and worked a life that invokes respect, growth and love of self… and of others? In this age of constant notifications, narcissism, immediate gratification and endless consumerism, we are not asking the hard questions in the mirror.

5. LEARNNOVATORS: Carrying the same example forward, you say that the organization is somewhat responsible for the disillusionment of people like Redding. So, in addition to defining the organization’s purpose and the purpose of the roles that employees are fulfilling, what can an enterprise do to help individuals find their personal purpose, and thereby achieve the elusive sweet spot?

Dan Pontefract: First, establish an open, connected and collaborative culture that is both empowering and enlightening. (a nod to my first book, Flat Army). Second, engage, listen and assist. When a leader engages with an employee, listens to their likes/dislikes and then assists them in the pursuit of their own personal purpose (in their role at work) the benefits can swarm the organization like flies to the lion in the wilderness.

6. LEARNNOVATORS: You quote Goodhart’s Law, which states that “any observed statistical regularity which tends to collapse once pressure is placed on it for control purposes”. We understand this to mean that an organization which has found its purpose (aka. sweet spot) will find its mettle tested by external factors such as competition, market forces, and the economy in general. What steps can an organization take to protect itself against such forces, and to keep its purpose intact even in the face of such pressures?

Dan Pontefract: An organization cannot necessarily protect itself from the forces appearing, but it can protect itself from a negative aftermath. Once an organization redefines its purpose such that it is employing the Good DEEDS (something I bring up in the book) on a consistent and absolute basis, there is no stopping the interruption or disruption from affecting the organization. It will simply repel or be swatted away. For example, I share the story in the book about Johnsonville Sausage. They had a devastating fire where one of their plants was completely decimated. Instead of terminating all the workers (the plant had to be completely rebuilt, in another location) they had them perform 20 hours of volunteer service in the community AND they allowed the workers to learn for 20 hours per week. This situation went on for roughly six months! A positive result happened because Johnsonville Sausage demonstrates the Good DEEDS in all of their actions. No matter the situation, when an organization has created a higher purpose it will withstand any pressure, external force or disruption.

7. LEARNNOVATORS: Mary Hewitt’s is a classic example of someone who struggled before eventually finding their role purpose. And sharing her lesson with you, and the rest of the world, Mary explains that “some of the uncomfortable steps are still in the picture, contradictory to my overall purpose”. You sum up the example saying “There will always be elements of a role that are uncomfortable”. What is your advice for people to make sure that such elements are kept to a minimum?

Dan Pontefract: I hate doing expenses. In fact, I loathe it. But, I refuse to hand off my expenses to an executive assistant or to some sort of external service. When I eventually do my expenses, I remind myself that 90% of my role is absolutely awesome. If an individual is spending more than 50% of their role in a situation that is detrimental to their personal purpose, it really is time to move on to another role and organization.

8. LEARNNOVATORS: You talk about the three mindsets that team members typically possess (job mindset, career mindset, and calling / purpose mindset), and proceed to explain that people might employ all three types of mindsets at various stages of performing a role. You further explain that organizations routinely encounter ‘peace and pay’, a situation that describes employees who willingly and consciously demonstrate the job mindset. What steps would you recommend organizations take to reduce such instances, and to ensure that employees remain in the purpose mindset as far as possible?

Dan Pontefract: I have found that the purpose + culture equation = engaged employees. When employees are engaged, more often than not, they will be exhibiting the purpose mindset. The steps are multifaceted.

9. LEARNNOVATORS: LSTN is a company that that does not just make headphones, but does so in a manner that skillfully balances purpose with profit. For each beautifully-designed wooden headphone sold, the company pitches in to give the gift of hearing to someone in need. We do nod in agreement when Joe (LSTN’s Director of Positivity) talks about the need for balancing purpose with profit, and about how it is easy to tip the balance one way or the other.

What is your advice for organizations to maintain this balance between purpose and profit?

Dan Pontefract: Management expert Peter Drucker once said of the link between life and work: “To make a living is no longer enough. Work also has to make a life.” Charles Handy, another sage on the topic of management, once wrote, “Let us be clear, profits—and good profits—are always essential, and not just in business. But the myth dies hard, the myth that profit is the purpose.” It comes down to two things. 1) A company requires profit in order to provide its employees with a living, it customers with value, and society with its contributions. 2) When a company puts profit ahead of the aforementioned stakeholders—for profit sake, to benefit owners and/or shareholders only—it has lost the true purpose of business. A business is in business to make a profit; it is in business to serve its stakeholders. When the organization believes it is in business for profit, it has lost its balance and society will eventually suffer by its myopia.

10. LEARNNOVATORS: While you are against hierarchical thinking as it exists in several organizations today, you are also against a complete overthrow of hierarchy. You say that you “don’t believe in Holacracy or other foolish organizational models that want to rid the organization of hierarchical structure, but the behavior of leadership itself must change.” Could you please elaborate?

Dan Pontefract: I still believe (based on my research, interviews and first-hand experience) that hierarchy is important in today’s organization. The problem rests with the fact far too many senior leaders employ hierarchy for the sake of hierarchy, using command and control tactics as a basis for leadership, to uphold the hierarchy itself. It’s a power trip. That’s the problem. That’s the root of a purposeless organization. When hierarchically thinking leaders forget about the reason it’s in business—when it fixates on profit, power and pay—the people who suffer are the employees, followed closely by (ironically) the customers and society. You need look no further than the recent news of Volkswagen, what it has done to the core of the many cities in Germany that build Volkswagen cars… or the dealers across the world who have witnessed Volkswagen sales plummet. All because a number of hierarchically, profit-driven leaders decided to forge emissions tests results with an elaborate scheme and lie. It’s laughable.

11. LEARNNOVATORS: What next? Can we look forward to a sequel to ‘The Purpose Effect’, or another inspiring book perhaps?

Dan Pontefract: Book #3 is currently being sketched out. I hope to have it out by 2019 or earlier. Unless I have to throw it out, and start over again.