IMD Annual Report 2019

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IMD ANNUAL REPORT 2019

Purpose is about creating markets and opportunities based on where we can have an impact. It really has to do with using purpose to focus on redefining our playing field to drive growth, focusing on our value proposition around relationships not transactions, and motivating and empowering, not just our employees inside but our stakeholders outside - that’s where we get the power of purpose. The power of purpose comes not just frommaking people feel good and not just words on a wall. The power of purpose is when it shapes the actions and decisions of leaders and the behaviors of the organization over time.” PUT PURPOSE AT THE CORE OF YOUR STRATEGY Thomas Malnight, Ivy Buche, Charles Danaraj Harvard Business Review

I believe that our article on purpose got traction among readers because we brought facts to the table to demonstrate the real power of purpose in shaping a company’s strategic choices about where they play, defining new value propositions about what they do and creating impact in terms of how they win across a range of stakeholders. Some readers also commented that our point of view on shifting purpose from a peripheral activity to playing a concrete role in driving profitability and growth made them re- think their ideas around purpose and strategy. After the publication of our article we have been contacted by companies and commenced working with them on developing an enduring and compelling purpose that will drive strategic decision-making and guide organizational actions and behaviors going forward.” Ivy Buche IMD Associate Director, Business Transformation Initiative

Thomas Malnight IMD Professor of Strategy and General Management