A strong purpose is authentic, meaning that it is unique, distinct, and credible aspirational, meaning that it expands the role you play in society and challenges you to deepen your impact and aligning, meaning that it provides clarity and focus and serves as an edit-point for strategic decision-making. It serves as the timeless North Star that aligns and inspires the company’s timely activities. Purpose captures why you exist as an organization, distinct from your mission ( what you do) and your vision ( where you’re going).
Larry fink blackrock letter to ceos driver#
How, precisely, should they go about finding their purpose and turning that purpose into a positive contribution to society and a driver of sustainable performance?įirst, a definition.
Larry fink blackrock letter to ceos how to#
Nonetheless, now that the debates have (mostly) subsided, the question for boards and CEOs becomes how to move forward with the mantle that Larry Fink has charged them with. The common refrain in these debates that companies’ only obligation is to shareholder return completely misses the point, which is that purpose-driven firms outperform on shareholder return (a case for this is proven by the book Firms of Endearment). The zero-sum view of purpose and profit is an old paradigm, one it’s time to leave behind. The letter led to a predictable series of debates about how Fink’s view might sit with our old friend Milton Friedman. In it, he asserted that, “ to prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.” Last month, Larry Fink, CEO of BlackRock, sent a letter to CEOs. And ultimately, that company will provide subpar returns to the investors who depend on it to finance their retirement, home purchases, or higher education.” It will remain exposed to activist campaigns that articulate a clearer goal, even if that goal serves only the shortest and narrowest of objectives. It will succumb to short-term pressures to distribute earnings, and, in the process, sacrifice investments in employee development, innovation, and capital expenditures that are necessary for long-term growth. It will ultimately lose the license to operate from key stakeholders. “Without a sense of purpose, no company, either public or private, can achieve its full potential. But what can you do to help your company activate on his advice? As the pioneers of purpose, we have some solid advice we’ve built over the past 23 years. This year when Larry Fink published his annual letter to CEO’s he titled it “A Sense of Purpose.” Fink is CEO of BlackRock - the world’s largest asset manager with over $5 trillion in assets, and every year CEO’s await his letter. You Read BlackRock’s Letter on Purpose: Now what should you do? by
0 kommentar(er)
