Compass Group

Peter Szilagyi

In the search for stronger connections between employees, leaders, customers and stakeholders, many organizations have sought to cultivate a company purpose. This need is more imperative today than ever before, given a range of factors such as a younger workforce craving greater meaning, ongoing economic uncertainty and cost of living pressures, the rise of social movements such as ‘me too’, impacts of climate change and a ‘COVID as normal’ world where prior expectations of work have been reformed.

Organizations must now demonstrate value beyond strategy, profit or production, risking a tokenistic view of purpose if not carefully cultivated. We acknowledge that purpose is enduring, with many chapters yet to unfold and our work has only just begun.

Understanding Purpose
Purpose acts as the North Star, guiding an organization beyond profit and production by aligning its core values, mission and vision. It shapes culture and drives decision-making. Many large organizations, like AstraZeneca ("We push the boundaries of science to deliver life-changing medicines"), BHP ("Bring people and resources together to build a better world"), and BlackRock ("Help everyone experience financial well-being"), either have a defined purpose or are considering one.

At Compass Group Australia, we launched our purpose in 2023 which is to ‘Serve a better future by enriching people, communities and our planet’. Our purpose statement is fundamentally connected to the work we do in servicing clients and customers and the broad societal and community impacts we have in Australia (and globally).

Best Practice Application in Embedding  Purpose
The challenge with purpose is translating it from a statement on paper to aligned awareness, focus, and action. Achieving this alignment is difficult, and research by Harvard and McKinsey emphasizes that the purpose should be a whole-of-business initiative with visible support from senior leadership and active application both within and outside the organization.

At Compass Group Australia, we were well aware of the research and many lessons learned having engaged with a number of organisations in listening sessions. Our program of work was quite deliberate and included the following:

Executive team engagement: Purpose was led by the executive team with a broad cross-section of the business participating in the design, rollout and embedment of purpose.

Strategy alignment: Our five-year strategy (‘our what’) is connected to our purpose statement (‘our why’) and we have taken it one step further to connect purpose with our company values and leadership model (‘our how’). This combination has helped reinforce the narrative to all leaders of what we are doing, why we are doing it and how we should do it.

Artifact integration: Our purpose has been infused into tangible elements such as the employee handbook, office design and company merchandise. These artefacts serve as constant reminders fostering a culture of purpose and belonging.

Experience enhancement: We have integrated our purpose through our employee experience; it is referenced in our company advertisements and recruitment process, and it is embedded practically into our onboarding, leadership development and frontline engagement through pre-starts and employee engagement activities.

Employee engagement: We have had many employee engagement activities to share purpose stories. Importantly, we recognize everyone has their own purpose (their own way of working with Compass Group) and so our company purpose fosters the connection between the individual story and the Company story. Authentic purpose stories have fostered a culture of storytelling and celebration.

“Embracing and integrating purpose into every aspect of operations allows organizations to bring 'the why' to life, inspiring employees, engaging stakeholders and driving positive change in the world”

Awards and recognition: Our purpose is celebrated through our annual employee awards and by recognizing those employees who have gone above and beyond in exemplifying purpose in their daily work. Celebrating purpose-driven behaviour reinforces its importance and inspires others to follow suit.

Leadership development: We recognize that leadership development across all levels of the organization is critical to the success of sustaining purpose. We have therefore integrated purpose through the leadership development cycle from embedding the concept into frontline leader training, middle manager and senior leadership training.

Executive communication: Our executive and senior leaders regularly reference our purpose through various communication not limited to formal announcements, strategy updates, town halls and frontline engagement.

Stakeholder engagement: We have extended our purpose to external stakeholders such as customers, suppliers and communities. For example, we regularly share our purpose and specific applications of purpose with our customers through quarterly business reviews.

Connecting with charities: We have started to forge meaningful partnerships with charities and non-profit organizations whose missions align with our company's purpose. We are supporting them through purpose-led initiatives such as donations, volunteer work, recruitment and strategic collaboration.

These are just some of the activities we have undertaken and there are many more.

The Value of Purpose
Harvard and McKinsey, amongst others, have reported that purpose-driven companies experience higher levels of employee engagement, increased productivity and enhanced innovation. They attract top talent and loyal customers who are drawn to their values and mission, leading to reduced turnover and greater customer satisfaction.

At Compass Group Australia, aligning our five-year strategy with our purpose statement, values, and leadership model has reinforced our narrative and aimed to enhance leader engagement and retention. Despite being industry leaders, we face significant challenges in attracting and retaining roles, with post-COVID attrition exceeding the industry average of over 40 percent.

By integrating our strategy, purpose, and leadership model, we've redefined our approach to attraction, retention, and engagement. In one year, we've reduced attrition for frontline leaders from 30 percent to our target of 15 percent. Positive trends in exit surveys, employee engagement, and leadership assessments confirm this success. Improved retention reduces operating costs and enhances client and customer engagement, ultimately   boosting profitability.

Conclusion
The purpose of purpose is to illuminate "the why," creating meaningful connections with employees, clients, partners, and customers. By fully integrating purpose, organizations can inspire employees, engage stakeholders, and drive positive change, as seen with Compass Group Australia. While we're early in our journey, the future looks bright.