How can a large organization apply purpose-driven principles to create meaningful business transformation? The former CEO of Best Buy, Hubert Joly, explains purpose-driven, digital business transformation by presenting the Best Buy company strategy he created.
The discussion includes these topics:
-- About Hubert Joly's book: The Heart of Business
-- Why did Best Buy have trouble in 2012?
-- Driving efficiency with respect for people
-- What is purpose-driven transformation?
-- Efficiency vs. cultural transformation
-- Importance of customer experience at Best Buy
-- Customer experience and corporate culture
-- How do you balance staff and management?
Watch the video and read the complete transcript:
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Hubert Joly is the author of THE HEART OF BUSINESS: Leadership Principles for the Next Era of Capitalism. He is the former Chairman and Chief Executive Officer of Best Buy and is now a senior lecturer at Harvard Business School. He is also a member of the board of directors of Johnson & Johnson and Ralph Lauren Corporation, a member of the International Advisory Board of HEC Paris, and a Trustee of the Minneapolis Institute of Art. Joly has been recognized as one of the top 100 CEOs in the world by the Harvard Business Review, one of the top 30 CEOs in the world by Barron’s and one of the top 10 CEOs in the U.S. by Glassdoor.
From the conversation:
What is purpose-driven transformation?
Michael Krigsman: Let's talk about purpose for a moment. We do hear this term kind of popping up everywhere. I think very often it's a good, politically correct, motherhood and apple pie kind of, you know, it feels good, but there is no real substance. How do we convert that into something substantive and meaningful?
Hubert Joly: Yeah, so let me make it really concrete and share some of the lessons learned along the way. I'll tell you that it was challenging. This was not a walk in the park. As a result, we've learned a lot [laughter], frankly, during that time.
Back in 2016, as we were looking to accelerate our growth, we did the good work around market research, segmentation, targeting, positioning – what I teach my students at Harvard Business School in the marketing course. Then we also wanted to go beyond that and started to think about our why – maybe influenced by Simon Sinek – why do we exist?
That's where we came up with the concept, actually said it, "We are not a retailer. We are not a retailer. We are a company that's in the business of enriching lives through technology by addressing key human needs."
Defining your purpose, I think you find a company purpose at the intersection between four circles:
What the world needs. What are the human needs you're trying to address?
What you are uniquely good at.
What you are passionate about.
Then, of course, how you can make money.
This is real substantive. This is not philanthropy. This is not CSR or OESG. This is a business discussion.
The benefit of defining the business in terms of its purpose is that, number one, it vastly expands the addressable market. There are a couple of examples of that.
That's how, at Best Buy, we went into the healthcare space helping aging seniors live and stay in their home independently longer by placing sensors under their bed, under their sofa, in the kitchen, in the bathroom. Fall...