Business purpose vs. business value – Finding a direction in a complex reality

2023-12-28, by Johan Hildingson (formerly Lagerström)

Background

In a business world characterized by shifting markets and endless possibilities, distinguishing between business purpose and true business value is crucial. However, this distinction is not always clear. Business strategy, tactics, goals, and purpose interact in a complex pyramid structure where boundaries are fluid and often subject to debate. This is where methods (e.g. goal modeling), established models (e.g. UML) and discussions (e.g. workshops) etc. become essential, acting as a compass in a world of relative values and multifaceted ambitions.

Business purpose vs Business value

Let's begin by exploring the definitions of "Business Purpose" and "Business Value". Further, these two words are stipulative definitions, meaning we as humans have assigned them a meaning (i.e. through a biased definition). Nonetheless, among the definitions that exist, the following is a summarized common description:

1. Business Purpose:

   • Definition: The business purpose refers to the fundamental reason for a company's existence beyond just making a profit. It encompasses the organization's mission, the specific needs it seeks to address, and the unique way it aims to benefit its customers, employees, and the broader community. This purpose serves as a guiding principle, influencing the company's strategies, decisions, and overall direction. It answers the question, "Why does this business exist?" and often reflects the company's core values and long-term objectives.

   • Examples:

     1. Providing Quality Products or Services: A business may have the purpose of delivering high-quality products or services that meet customer needs. For example, a technology company's purpose might be to create innovative software solutions that improve business efficiency.

     2. Solving Specific Problems: Many businesses are founded to address specific challenges or problems in the market. For example, a healthcare startup might focus on developing treatments for rare diseases.

     3. Fulfilling Social Responsibility: Some businesses define their purpose in terms of social impact, such as reducing environmental footprint, contributing to community development, or promoting social justice.

2. Business Value:

   • Definition: Business value, on the other hand, encompasses the various forms of worth that a company provides to its stakeholders, including shareholders, employees, customers, and even society at large. It's a broader concept that includes not only financial value, such as revenue and profit, but also other forms of value like customer satisfaction, brand reputation, employee engagement, innovation, and social responsibility. Business value is often used to measure the company's overall health and success, indicating how effectively it is achieving its goals and fulfilling its purpose.

   • Examples:

     1. Revenue Growth: An essential value for most businesses is increasing revenue. This can be achieved through expanding the customer base, entering new markets, or introducing new products or services.

     2. Brand Recognition and Reputation: Building a strong brand and maintaining a positive reputation can be invaluable. This often leads to customer loyalty and can be a significant competitive advantage.

     3. Innovation and Market Leadership: Businesses that consistently innovate tend to create significant value. This can be seen in companies that lead in their market segments due to their innovative products or business models.

     4. Employee Satisfaction and Talent Attraction: Companies that invest in their employees often see high levels of staff satisfaction, which can lead to improved productivity and the ability to attract top talent.

     5. Employee Satisfaction and Talent Attraction: Companies that invest in their employees often see high levels of staff satisfaction, which can lead to improved productivity and the ability to attract top talent.

     6. Customer Satisfaction: Ensuring high levels of customer satisfaction is crucial for long-term business success. Satisfied customers often become repeat buyers and brand advocates, leading to increased customer loyalty and positive word-of-mouth referrals. This can result in sustained revenue growth and a solid market position.

The exact delineation between the concepts of business purpose and business value is not always clear, possibly because it's challenging to entirely separate the meanings of the two terms. However, common to the definitions that exist is the following understanding:

• Both business purpose and business value are foundational to the strategic and operational direction of a company.

• Business purpose tends to focus on the "why" of a business – its reason for existing, its mission, and the broader impact it seeks to make beyond profit.

• Business value, meanwhile, encompasses the tangible and intangible benefits the business delivers, including financial performance, customer satisfaction, brand strength, and social contributions.

• There is an interplay between these concepts, where a well-articulated business purpose can drive the creation of business value, and in turn, realized business value can reinforce and give credibility to the stated business purpose.

• Both concepts are dynamic and may evolve as the business grows and market conditions change.

(Digital Leadership, 2023) (Invensis Learning, 2023) (BVOP, 2023)

Below are some examples based on well-known companies:

• Apple Inc.

  • Description: Apple Inc. is an American multinational technology company known for its innovative consumer electronics, software, and online services. It achieves its goals through products and services like iPhones, Macs, iPads, Apple Watch, Apple TV, and software applications, along with services like the App Store, Apple Music, and iCloud.

  • Business purpose: Apple's purpose is to innovate by creating products that combine technology and design, making advanced technology accessible to the average user. Their vision is to create products that enrich people's daily lives, and their mission is to bring the best personal computing experience to students, educators, creative professionals, and consumers around the world through innovative hardware, software, and Internet offerings.

  • Business value: Apple's true business value lies in its exceptional blend of technology and design, leading to high-quality products that have established a loyal customer base and a strong market presence.

  • How: Apple achieves this through continuous innovation in design and technology, a focus on user-friendly interfaces, and maintaining a robust ecosystem of software and services that complement their hardware products.

• Tesla, Inc.

  • Description: Tesla, Inc. is an American electric vehicle and clean energy company founded by Elon Musk. It implements its goals by producing electric vehicles, developing sustainable energy solutions like solar panels and energy storage systems, and building a worldwide network of charging stations.

  • Business purpose: Tesla's purpose is to accelerate the world's transition to sustainable energy by offering electric vehicles and renewable energy technologies. Their vision is to create a sustainable energy future, and their mission is to ensure electric vehicles become accessible and affordable to as many people as possible.

  • Business value: Tesla's true business value is evident in its pioneering role in the electric vehicle market, reshaping the automotive industry, and influencing global trends towards sustainable transportation.

  • How: Tesla achieves this through cutting-edge research and development in electric vehicles, battery technology, and renewable energy solutions, combined with direct-to-consumer sales and a global network of superchargers.

• Patagonia

  • Description: Patagonia is an American outdoor clothing company known for its commitment to environmental sustainability and ethical manufacturing practices. It implements its goals by creating high-quality outdoor clothing and gear using environmentally friendly materials, engaging in environmental activism, and operating its business in a responsible and transparent manner.

  • Business purpose: Patagonia's purpose is to use business to inspire and implement solutions to the environmental crisis. Their vision is to build the best product without causing unnecessary harm, and their mission is to implement and advocate for environmental solutions.

  • Business value: Patagonia's true business value stems from its unwavering commitment to sustainability, fostering a strong brand identity and customer loyalty.

  • How: Patagonia fulfills this by using sustainable materials, transparent supply chain practices, and dedicating a portion of its profits to environmental causes and conservation efforts.

• IKEA

  • Description: IKEA is a multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances, and home accessories. It implements its goals by designing cost-effective, functional, and well-designed furniture and home products, offering a unique shopping experience that combines self-service with inspiring showrooms, and maintaining a strong online presence.

  • Business purpose: IKEA's purpose is to create a better everyday life for many people by offering affordable, well-designed furniture and home decor products. Their vision is to create a better everyday life for the many people, and their mission is to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

  • Business value: IKEA's true business value lies in its innovative approach to design and affordability, revolutionizing the furniture market and resonating with customers globally.

  • How: IKEA accomplishes this through efficient design and manufacturing processes, a global supply chain, and a unique in-store and online customer experience that emphasizes self-service.

In summary, while the business purpose provides the fundamental reason for a company's existence and guides its mission and values, business value represents the quantifiable and qualitative benefits that a company delivers to its stakeholders, reflecting its overall health and success.

The importance of a coherence

In every business context, there's a diversity of values, often leading to conflicts. A parallel can be drawn to how Quran burnings can lead to riots, illustrating how an action in one context can evoke strong and unpredictable reactions in another. This dynamic is equally relevant in the business world.

In "Existentialism is a Humanism," Jean-Paul Sartre emphasizes that there is no predetermined purpose for humanity, advocating instead that individuals have the responsibility and freedom to choose their own paths, thereby defining what it means to be human through their actions and decisions. Sartres view aligns with Antonovsky's "Sense of Coherence" (SOC) theory. Like Sartre's existentialism, SOC emphasizes the importance of comprehending, managing, and finding meaning in our environment, reinforcing the idea that personal understanding and choice are crucial in defining our existence. This perspective also resonates with the "Johari Window" model. This model highlights the value of open communication (i.e. in the "open window") in establishing common understanding, suggesting that our self-awareness and interactions with others are key in shaping our identity and understanding of the world.

Complicated and complex - Choose your reality

Leadership plays a crucial role in navigating these complex waters. The contrast between strong individual leaders and collective community can be likened to influencers versus traditional TV channels. We choose what to follow and believe in, as somethings is too complicated to explain - that's why we choose based on our feelings.

In this context, the Cynefin (pronounced "kuh-nev-in") framework is relevant. The Cynefin framework is a conceptual framework used to facilitate decision making. It was created in 1999 by Dave Snowden, while working for IBM Global Services, and has been described as a "sense-making device". The framework emphasize the difference between complicated and complex environments. In a complex world, we can't always grasp all aspects; sometimes, we must simply accept certain elements as they are. 

The complex world is also discussed in the theory called "the Munchausen trilemma". The theory presents three "deadlocks" in knowledge validation: circular reasoning, infinite regression, and dogmatism.

• Circular validation: A is because of B. B is because of A.

• Infinite regression: 1 is because of 2. 2 is because of 3. 3 is because of 4. And so on to infinty.

• Dogmatism: Something high and ultimate that one chooses to see as a fact, e.g. "God".

These frameworks, models, and theories all emphasize the importance of accepting complex things as they are, because we humans can't fully understand complex reality. This acceptance is crucial, not just in navigating the complexities of the business world but also in recognizing our cognitive limitations.

Our failure to fully grasp the complexity of a full reality, shaped by our cognitive limitations, manifests in a tendency to repeat historical mistakes. This cycle of repetition, particularly evident in the persistence of wars, highlights a profound challenge in human society. As discussed in "Global Affairs Explained": "Human nature has not changed. Although civilization has softened some aspects of the human condition... fighting and conflict are still natural ways for people to resolve their differences."​ (GLA, 2020)​. The article underlines the critical need for resilience and adaptability in leadership and societal structures. 

But what, then, is the meaning of it all, if we, as humans, cannot fully comprehend the complex reality and are doomed to repeat the same mistakes over and over again? This question leads us to crucial insights from Robert Sapolsky, an American neuroendocrinologist and author, and whom I consider to be one of the most intelligent and motivating individuals I am aware of. Reflecting on life's essence through the lens of dopamine, Robert Sapolsky once shared a thought-provoking insight:

“Be very careful about what you strive for in life. What is realistic, and what are you willing to sacrifice to achieve it? Perhaps this is the key to understanding dopamine. It's about motivated anticipation. It's not about pleasure. It's not about the pursuit of happiness, but about the happiness in the pursuit.”
(Robert Sapolsky, 2021)

Dopamine is one of the brain's most potent neurotransmitters. It activates our drive to accomplish tasks and experience rewards, motivating us in life. Sapolsky encapsulates the concept of a complex world, emphasizing that the journey often holds more value than the actual goal itself. This insight is especially pertinent in the business world, e.g. when considering the interplay between strategy and tactics. The business is a complex phenomena and in this context, each step taken towards a goal can be as crucial and meaningful as the goal itself - if not more.

An example of a complicated model for a complex reality

I was recently at a client meeting with a large insurance company, at the lunch break I discussed models with one of their actuaries. I mentioned that there are no complete models; they are merely simplifications of a complex reality - that's why they are called "models". The actuary quickly countered, citing mathematics as an example of a complete model. To illustrate my point, I brought up the Collatz Conjecture, demonstrating how even fundamental mathematical concepts can embody profound complexity.

The Collatz Conjecture is a mathematical puzzle that starts with any positive integer. If the number is even, it's halved; if odd, it's tripled and one is added. Repeating this process, the conjecture states that you will eventually reach the number 1, regardless of which number you start with.

This simple yet unsolved phenomenon, which cannot be fully explained by scientists, underscores the limitations of our mathematical models in capturing the complexities of reality. As we engage with such challenges to understand complexity, we humans fulfill our need to comprehend and find order, a pursuit that is inherently valuable. Our interpretations of the world are shaped by these models, reflecting our choice of perceived reality. 

This quest for knowledge and our desire to make sense of the world is evident in our reliance on models. In exploring puzzles like the Collatz Conjecture or phenomena in physics, we find purpose and a sense of belonging. Models such as Bohr's atomic theory, quantum mechanics, and string theory, each developed from a unique perspective, aim to simplify the complexities of reality but only capture a fraction of it. For example, Bohr's model laid the groundwork, quantum mechanics offered a deeper understanding, and string theory introduced the concept of one-dimensional "strings". Yet, all these models, despite their advancements, are incomplete, illustrating that our understanding of reality, influenced by our perceptions, is an ongoing approximation of a much broader and intricate reality.

In acknowledging that models are not reality but simplifications designed to make complex reality more comprehensible, we recognize their value in our endeavor to understand the world. These models, with their inherent limitations, remind us that our knowledge, while constantly expanding, is shaped by the simplifications we create. The models serve as a tool to help us understand reality a little better. So, does the simplification by the models diminish our drive? Personally, I don't think so. Instead, it motivates us, fueling our enthusiasm for life and prompting us to acknowledge the inherent limitations in our representations of reality.

The complex phenomenon of the coherence "Business"

What does this mean for the business world? Well, it means that there is no absolute right or wrong way to define a company's purpose or value. It's about the choices we make within the frameworks in which we operate. The classic problem of distinguishing between purpose and goal, strategy and tactic, is less about their objective definitions and more about the subjective interpretations and choices made within an organization. The important thing is not what these elements are in themselves, but rather how they are perceived and how they interact to create a common purpose that adds value. A sense of coherence in a complex phenomenon.

Therefore, it's important to define the purpose based on the value you want to create, making it comprehensible, manageable, and meaningful for all involved. This creates a sense of coherence - essential for all successful businesses. The Munchausen trilemma illustrates the challenges we face in this process, but it's also a reminder of the importance of accepting that some things cannot be "solved" in a traditional way.

Finally, it's important that we as individuals and as organizations acknowledge that our success is not solely defined by external circumstances or concrete goals. It's a continuous process of self-reflection, adaptation, and development. By focusing on our inner value and purpose, we can create a meaningful and sustainable path forward, both for ourselves and for the organizations we are part of.

Embracing the Journey: Extracting Business Insights from "The Boy, the Mole, the Fox, and the Horse"

In Charlie Mackesy's "The Boy, the Mole, the Fox, and the Horse," a profound narrative unfolds within a mysterious forest, where a young boy embarks on an extraordinary journey alongside a wise horse, a curious mole, and a kind-hearted fox. As they navigate through the forest's challenges, the boy grapples with uncertainties about the path ahead.

The transformative moment in this tale arises when, feeling overwhelmed and lost, the boy turns to the horse for guidance. With wisdom and compassion, the horse imparts a valuable lesson:

"Can you see the next step? If you can, then take it."

This statement encourages the boy to shift his focus from the entirety of the unknown journey or the distant destination to the immediate next step. It underscores the courage required to take that step, even when the path ahead seems unclear.

In the business context, where organizations frequently encounter unpredictable challenges and opportunities, this message resonates profoundly. It encourages professionals to shift their perspective and understand that genuine business value isn't exclusively attained by achieving distant objectives or striving to become something they are not. It also involves appreciating and finding value in their present circumstances while focusing on each step of the journey. The forest, symbolizing the ever-evolving business landscape, parallels the experiences of individuals and organizations navigating the intricacies of the corporate world, characterized by moments of uncertainty, wonder, and exploration.

Summary

So, what can we learn from this? Perhaps it's that the relationship between business purpose and true business value, while often viewed as distinct, are actually deeply intertwined. These concepts, shaped by the choices and interpretations within an organization, complement each other in a nuanced interplay. Purpose steers a company's direction, shaping the type of value it aims to create. Yet, the path towards clear goals and purposes is often meandering and influenced by our perceptions. 

Embracing these fluctuations, challenges, and shifts is essential for fostering growth, learning, and reevaluation. Ultimately, success in the business world hinges on understanding that it's not just about achieving external milestones, but also about nurturing an internal sense of coherence, adaptability, and sustainable development that aligns purpose with value.  And, achieving enduring and meaningful business success hinges on seamlessly integrating purpose and value, recognizing their intrinsic interdependence, while humbly acknowledging the inherent complexity of the reality. 

As we navigate this intricate landscape, it often becomes clear that the journey itself is where we find the profound essence of purpose and value. This realization brings to light that, in many cases, the path we tread is even more valuable than the destination we aim for. It's on this journey that we uncover lessons, insights, opportunities, and transformations that are indispensable. These experiences remind us that the process is just as important, if not more so, than the end goal. Perhaps, in this revelation, we discover that the true purpose is embedded not just in reaching our destination (i.e. goals and values), but also in the journey towards it.

My top pro tips

1. Purpose is Essential: Purpose is crucial as it creates meaningfulness. There's no universal answer to what the purpose is; it's defined by those within the context. Decide based on the value you want to create, making it comprehensible, manageable, and meaningful. This creates a sense of coherence and provides the purpose you need.

2. Embrace Humility: There's no universal answer to what the purpose is. No purpose is better or worse. They simply exist. It's the group that defines and values the purpose. A facilitator's role is to guide people to find this valuable purpose, not to choose it for them.

3. Relinquish Credit as a Consultant: As an external consultant or facilitator, be sure to give credit for achievements to the group. If you take credit, the outcome becomes yours, risking its continuity when you leave. Instead, make it the group's victory and step back, letting the group become ambassadors to carry the message forward.

4. There are several good articles in this domain. Below are five specific reports that highlights the importance of balancing business purpose with true business value. These reports and studies highlight the critical importance of integrating purpose and value into business strategy, impacting everything from revenue and market value to employee engagement and customer loyalty.

   1. EY's "Purpose-Led Transformation Report" (2019): This study revealed that companies with a clear purpose experienced higher growth rates. They found that businesses with an "integrated purpose" grew at an annual rate of 9.85%, compared to the average annual growth rate of 2.4% for companies in the S&P 500 during the same period.

   2. Deloitte's "Global Human Capital Trends" (2020): According to this report, 93% of business leaders believed that companies focused on purpose are more successful in recruiting and retaining talent, highlighting the importance of purpose for workforce engagement and loyalty.

   3. Nielsen's "Global Corporate Sustainability Report" (2015): The report showed that 66% of consumers are willing to spend more on a product from a sustainable brand. For Millennials, the figure was even higher, at 73% preferring to shop from companies that demonstrate social responsibility.

   4. McKinsey & Company's Report on "The Business Value of Design" (2018): The research indicated that companies placing design and user experience at the core of their strategy had 32% higher revenue and 56% higher total return to shareholders compared to their competitors.

   5. Harvard Business Review's "The Impact of Corporate Sustainability on Organizational Processes and Performance" (2015): This study found that companies voluntarily adopting sustainability practices were more profitable and had higher market values than those that did not. These firms also saw improvements in operational performance and increased long-term survivability.

5. Numerous reports (e.g. above mentioned) emphasize the significance of involving customers in the process. It's crucial to align your purpose with the needs and preferences of your existing customers, and more importantly, those you aim to attract. Remember, the process doesn't merely begin with receiving an order; it starts much earlier, with understanding and catering to the customer's needs. This customer-centric approach is integral to your strategy, ensuring you attract and retain the clientele you desire.

6. Explore Purpose with the "Why?" Question: Yes, I have mentioned the method several times in my articles... To uncover your true purpose, ask "Why?" at least six times in a row. Delve into your motivations and beliefs to reveal a more meaningful purpose at the heart of your actions and ambitions.
   
   Example: "Why take this course? Improve my skills. Why is that important? I want to stay competitive. Why competitiveness matters? Career growth. Why value career growth? Financial stability. Why is financial stability significant? Freedom to pursue passions and live life on my terms. Why is that important? I want to find my own meaningfullness."
   
   This method, as advocated by Sir Ken Robinson, often reveals purposes such as:
   - Meaningfulness
   - Autonomy / Self-governance
   - Mastery / Skill enhancement
   - Creativity
   - Belonging
   - Manageability / Comprehensibility
   
   Sir Ken Robinson, an esteemed advocate for creativity in education until his passing in August 2020, emphasized the transformative power of asking "Why?" to uncover deeper motivations and life's purposes. He famously highlighted how many creative individuals underestimate their talents due to societal undervaluation, stressing the importance of recognizing and nurturing individual potential. Awarded a Knighthood in 2003 for his contributions, Sir Ken's legacy continues to inspire a deeper search for meaning in both personal and professional realms. Personally, I'm a big fan of his work and the profound impact he has had on education and creativity.

7. As Albert Camus once wisely wisely said, "Life is the sum of all your choices". This is especially true in the business world, where companies are continually shaped by the choices they make, pursuing their defined purposes and values. The importance of setting clear goals is paramount, yet their relevance in day-to-day operations is what truly brings purpose to the business - it’s first then the value is created. 
   
   In this way, the essence of a business is not just shaped by its long-term objectives, but also by the meaningfulness found in its daily activities. This principle, while vital in the corporate world, transcends beyond it. The paths we choose in our professional endeavors mirror our broader existence. The true essence of who we become is not only determined by distant goals, but also by the paths we choose and take each day. This isn’t just a perspective in business; it's a fundamental approach to life itself. ♥

The organizational needs ladder - How to understand the phases of an organization 

2022-08-10, by Johan Hildingson (formerly Lagerström)

Background

Maslow's hierarchy of needs (Maslow, 1943) is a theory of motivation which states that five categories of human needs dictate an individual's behavior. The theory was published 1943 under the title "A Theory of Human Motivation" in the journal Psychological Review. 

Today the model is often used when describing the current state of humans in different society contexts. The hierarchy of needs is a psychological idea and also an assessment tool, particularly used in education, healthcare and social work (Poston, 2009). The hierarchy is also a popular framework in sociology research, including management training and higher education (Freitas et. al., 2011). Even though psychology isn't a science subject, this model is well-established and widely accepted.

The "organizational needs ladder"

In the model below I have interpreted Maslow's model and translated into a corporate world. This is with the purpose of describing the typical phases a organization can be in. I often use the model when I quickly try to familiarize myself with the organization and its situation, and by that roughly understand what their needs may be. It also gives me a hint of what challenges the organization has and what they want to strive for and move towards.

1. Profitability focused org. (Basic needs/survival)
   Money. Everything does not have to be perfect, the important thing is that the business works. Often small or young companies that try several different product ideas in order to find where they are needed and how can make money.

2. Solution focused org. (Up and running/safe)
   We have solutions (often IT), some of which the customer uses. Errors and problems are handled, it must work and feel safe in terms of operation. Our service must work. Often small to medium-sized businesses that are about to grow and scale up.

3. Manageability focused org. (Business development/efficiency)
   Our core business and operations must work. Therefore, we have to make the processes of our work good and efficient. Our collaboration within the company must work well. Often medium-sized to large companies with ingrained, undocumented or inadequate processes, rule sets and routines that want to change their focus to this step.

4. Customer focused org. (Business needs/benefits)
   The customer must appreciate what we do and get value from it. We must know that we are doing the right things that brings real value to our customers. Often large companies with a large legacy of old systems, deeply ingrained old processes and inadequate routines that want to change their focus to this step.

5. Commonality focused org. (area: Self-fulfillment/socially important)
   If "customer-focused" is about giving the customer the value she is asking for, then the "commonality focused" is about giving the customer what she really needs. The customer doesn't always know what she needs, here the company can help her. In addition, we should not know everything about our customer, we should only know what concerns us in the relation to the customer - we have nothing to do with her private sphere. The customer doesn't always even know that she is a customer, and we as organization can have several customers - we can even be each other's customers and have different roles in different situations. We (WE = organization + customer) can instead contribute to something bigger and more important in a common arena (what we have a common interest in). A purpose with real value, e.g. societal value. The value is often harvested where the service or product is used, therefore our processes are bigger than just between the interfaces to the "customer" (e.g. not only between orders coming in ---> handing over to "customer"). The process must also include what the "customer" does with our product and how she uses it and not least how her initial needs arise. Here the boundaries between customer, company and organization are blurred, we create a chain with shared and real value. Solutions, organization units, stake holders are just different phases, resources or parts in a chain - a chain that jointly creates real value for everyone. Here we have the example of the difference between, what I call, "digitization" (e.g. cassette tape to CD) and "digification" (e.g. CD to Spotify).

When you are about to shop at your grocery store, you probably write a shopping list (a todo list) and you say "I have an errand in town". But the shopping list is not the valuable thing, you can write it on a post-it, you can write in a notes app of your mobile phone, or you can memorize it... The real value is what the written words means (i.e. the information) and that you buy it (i.e. process and actors), with the goal of being able cook dinner at home (i.e. goals) and by that fulfilling the purpose of being able to survive (i.e. the purpose). If you were to say to your partner that "I have an errand" and wave the note, she/he may be annoyed...

- Well, what errand?!
- Yes, an errand!
- Yeah?!

Instead, you probably usually say something like...
- I was thinking of buying food for tonight at the grocery store, I was thinking Swedish meatballs - what do you think? Do we need anything else?

So, in our private life we are often (not always!) at step 4 or 5, trying to fulfill ourselves in a coherence and take care of our joint values.

Summary

In closing, in this article I try to put forward the idea that organizations may progress much like individuals, evolving from focusing on basic survival to ultimately contributing to society. This concept invites reflection on the broader role of businesses in our communities. How does your organization, or one you're familiar with, navigate this journey? Where does it currently stand on this "ladder", and what steps could it take towards greater societal impact? Your insights and experiences are valuable in enriching this discussion and understanding the diverse paths organizations take in their quest for growth and purpose. Consider sharing your thoughts and observations with others, fostering a wider dialogue about the transformative journey of organizations.

My top pro tips

1. Dare to ask the question "why" at least six times, preferably until someone has had enough. Then you know you've found the real value (i.e. the true purpose).

2. In your organization, look at whole process and see if there are several actors in it that jointly create value - who are they (the actors - not the roles!) and what do you do (the activities), as well as how (the work steps), to achieve which value (purpose and goal)? Is it valuable to say "customer" then, or is it the case that we all actually receive value and are "customers" - this as we are all part of a common chain that creates value together?

3. Is it the "case" in “case management” that is the valuable bringing thing, or is it just a means/medium/tool to deal with a need? Is it perhaps more valuable to focus on the joint value (i.e. the goals and purposes) and then see how we achieve these (through actors, processes, information, governance, tools, etc.)? 

4. Remember that you can be at different steps in the ladder depending on situation, contexts or time. Just because you have reached step five once in one given context, it doesn't mean that you going to stay there forever or by default reach that level in all contexts. The work of contentious improvements and reflection is always needed - it is by that we enrich and develop ourselves, and create a valuable purpose.

5. In short: dare to skip words like customer, case, order, organization unit etc... Because it is not always valuable to scratch your head baldly at these phenomena in the hope of reaching a clear definition (because the concepts often lack process value in themselves), it is (in my opinion) only valuable in cases where you are too solution-focused (step 2) and need to move towards the next step in the ladder. So always find out where you are at the ladder and where you want to go…

Bonus - The consultant ladder

And yes... Of course, I have a model that explains the consulting world as well. After all, I've been working as a consultant for 20 years. This article introduces the Trust-Driven Consultant Ladder, a conceptual framework drawing upon Maslow's Hierarchy of Needs and the insights of David H. Maister, Charles H. Green, and Robert M. Galford in "The Trusted Advisor". The model synthesizes these profound insights with my two decades of professional experience, offering a unique perspective on the evolution of client-consultant relationships.

1. Foundational trust-building
   At this stage, the consulting firm focuses on establishing a stable financial base and a reliable market presence. Consultants prioritize job security while providing fundamental services to address basic operational needs

   • Consultant's Perspective: Consultants are primarily concerned with job security and meeting basic job requirements.

   • Client's Perspective: Clients receive essential services to address their fundamental operational needs.

   • Consulting Firm's Perspective: The firm's primary focus is on building financial stability and market presence.

2. Reliability and assurance
   In this stage, the consulting firm's objective is to create a safe and dependable operational environment, fostering trust in the market. Individual consultants emphasize reliability and trustworthiness, resulting in clients benefiting from consistent and dependable services that contribute to operational stability.

   • Consultant's Perspective: Consultants emphasize reliability and trustworthiness in their work.

   • Client's Perspective: Clients value the consistency and dependability of the services provided, enhancing their operational stability.

   • Consulting Firm's Perspective: The firm works diligently to create a secure and reliable operational environment, reinforcing trust within the market.

3. Collaborative synergy
   At this stage, the consulting firm optimizes internal processes and nurtures a collaborative culture, with a focus on collective success. Consultants actively work towards aligning with the client’s goals, fostering a partnership approach, and providing collaborative solutions. Clients benefit from solutions closely aligned with their objectives, enhancing business efficiency and success.

   • Consultant's Perspective: Consultants strive to align their work with the client's goals and foster a partnership approach.

   • Client's Perspective: Clients appreciate collaborative solutions that enhance their business efficiency.

   • Consulting Firm's Perspective: The firm fosters a collaborative culture, streamlining internal processes for collective success.

4. Client-centric excellence
   In this stage, the consulting firm becomes deeply client-centric, with a strong focus on delivering significant value and building a distinguished reputation. Consultants are highly engaged in making meaningful contributions to clients, striving to inspire and elevate the client's business. Clients receive high-value, strategic insights, and services that are pivotal to their growth and success.

   • Consultant's Perspective: Consultants aim to inspire and uplift the client's business, delivering high-value services.

   • Client's Perspective: Clients receive high-value strategic insights, crucial to their growth.

   • Consulting Firm's Perspective: The firm is committed to delivering significant value and building a distinguished reputation.

5. Transformative partnership
   In this apex stage, the consulting firm transcends conventional business objectives, striving for significant societal impact. The individual consultant assumes the role of a catalyst and partner, deeply integrated within the client's organization. They collaborate closely with clients to co-create solutions that advance not only business goals but also contribute meaningfully to societal challenges. This stage embodies a shared vision of achieving a higher purpose – one that goes beyond immediate business concerns and addresses broader societal needs. At this pinnacle, the value delivered to the client is transformative, combining business success with a tangible contribution to societal well-being. This holistic approach defines the essence of contemporary consultancy, where the goal is not only to succeed in business but also to make a lasting, positive mark on the world.

   • Consultant's Perspective: Consultants become catalysts for positive change, aiming for significant societal impact.

   • Client's Perspective: Clients collaborate on solutions that contribute to both business and societal well-being.

   • Consulting Firm's Perspective: The firm focuses on achieving a higher purpose and making a lasting, positive societal impact.

The Consultant Ladder," informed by insights from "The trusted advisor" and my own consulting experiences, is designed to offer guidance and reflection in the consulting field. It integrates essential aspects such as credibility, reliability, intimacy, and a balanced self-orientation, presenting them as key components for a consultant's journey rather than strict rules.

• Credibility: This aspect underscores the importance of a consultant's knowledge and expertise, aiming to bolster the client's trust in their advice.

• Reliability: It emphasizes the need for consultants to align their actions with their words, thus building a reputation of dependability.

• Intimacy: This factor focuses on creating a safe environment for clients to share information, essential for deepening personal connections.

• Self-orientation: Aimed at ensuring the consultant prioritizes the client's interests, this element enhances trust by showcasing genuine care and attention.

By sharing this ladder I hope to contribute to the broader dialogue in the consulting industry. This model is a personal narrative, combining foundational trust principles with practical experiences, and is shared with the aspiration of encouraging others in the field to find their unique paths and create significant, positive change in their professional and broader community engagements. 

And remember... The true measure of any model's worth is its ability to resonate with and enrich your personal experiences and aspirations. Ultimately, it's about discovering your unique contribution, that intersection where your skills and passions align with the world's needs (i.e. "Ikigai") - a powerful insight that can redefine not just your career, but your impact on the world around you.