Associate Dean and Professor at Saïd Business School, University of Oxford | Researcher | Advisor | Teacher | Speaker
📈 Why Purpose Alone Isn’t Enough… and Profit Is Not the Enemy. I'm pleased to share my latest article in MIT Sloan Management Review, in which I argue that true strategic alignment comes from aligning both purpose and profitability, because: ➡️ A purely profit-driven company is hollow, with neither long-term vision nor intrinsic motivation for employees. ➡️ A lofty purpose disconnected from what customers value is just window-dressing, destined to fail. ➡️ The sweet spot lies in purpose that’s validated by market demand, guiding strategy and energising performance. Drawing on my research at Saïd Business School, University of Oxford, I outline a practical framework to help leaders craft strategies where purpose and profit reinforce each other, creating not just lasting performance but also meaningful work. I’d love to hear how others are working to integrate purpose with business results. What challenges are you seeing—and how are you tackling them? Read the full article → https://lnkd.in/ej6FE5kA #Leadership #Strategy #PurposeDriven #BusinessPerformance
Michelle S.
1mo
Congratulations on the new article, Professor Jonathan Trevor. This is a very interesting topic. I would like to answer the last question through the lens of my different roles: 1. From a traditional Chinese Strategist's perspective - The key success factor in winning a business war is to start with the right purpose. Only when this alignment is achieved will people be willing to follow the leader without hesitation. A company should act only when the move serves the purpose of profitability, and cease action when it no longer supports that goal. (Inspired by "The Art of War") 2. Wearing the Hat of a Lean Mater Black Belt and Global Strategy Consultant - We always start with the business purpose and long-term vision. From there, we conduct market research and deploy strategic targets and breakthrough objectives to support the business generate profit and build competitive advantages. (Referencing "Hoshin Kanri") 3. As an AI Business founder - "x* = argmax E[R_profit(x)] subject to E[R_righteousness(x)] ≥ τ and KL(P_action || P_ethics) ≤ δ". We design our decision system to maximize expected profit, subject to a hard constraint on the righteousness score and and an alignment pattern between the actions and the ethics.
Purpose must do more than inspire; it must resonate in the day-to-day. When mission drifts from reality, it becomes decoration. A thoughtful alignment ensures purpose and profit move in sync. Thank you for sharing, Trevor.
Roxanne Selby
1mo
A great article. Alas however the torturous sign up process to read it! Some of my most meaningful employment has been in the pursuit of profit for organisations with charitable aims, where purpose is driven by clear market demand, and profit is used to serve charitable goals. Conversely, my least meaningful employment has been for companies seeking to maximise shareholder value, where I have sometimes seen ethically dubious ways of making money combined with poor treatment of employees and contractors used to prop up shareholder value. As you say, a “hollow endeavour”. Enter lasting and deep-rooted cynicism … I’m a firm believer in ethical, purpose driven business and fully believe purpose can be aligned with profitability but it poses challenges in selection and recruitment of the right individuals and communication of the core values and goals.
Sarif Hossain
1mo
Congratulations Jonathan Trevor- Looking forward to read it. As a leader of a conglomerate in India I couldn't agree more with the argument. Purpose is essential to anchor but the turmoil the economy is facing now is testimony that without profitability no amount of purpose-drive is enough. For some companies like mine profitability and purposes are entwined.
Scholar of strategic, ethical and self leadership
1moCongratulations Jonathan Trevor - looking forward to reading it.