NON-CONFIDENTIAL AND ENTIRELY SHAREABLEPurpose+, Amstel 95, Amsterdam, The Netherlands

Organisations

Visual 87: Automation will impact certain professions directly

Source: The Future of Employment: How Susceptible are Jobs to Computerisation? Frey, Osborne (2013)

0.0030.0040.0070.0080.02

0.060.17

0.370.4

0.430.55

0.650.81

0.860.89

0.920.94

0.99

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Recreational therapistsDentists

Athletic trainersClergy

Chemical engineersEditors

FirefightersActors

Health technologistsEconomists

Commercial pilotsMachinists

Word processors and typistsReal-estate sales agents

Technical writersRetail salespeople

Accountants and auditorsTelemarketers

Probability of computerisation, 2013, 1 = certain

Visual 88: Partial automation will be the norm

1

8

18

26

34

42

51

62

73

91

100

0 10 20 30 40 50 60 70 80 90 100

100%

>90%

>80%

>70%

>60%

>50%

>40%

>30%

>20%

>10%

>0%

Share of all roles, %

Tech

nolo

gica

l aut

omat

ion

pote

ntia

l, %

Source: McKinsey Global Institute (2017), A future that works: Automation, employment and productivity; US Bureau of LaborStatistics

* 820 roles examined

Sewing machine operators, graders,

and sorters of agricultural products

Stock clerks, travel agents, watch

repairers

Chemical technicians, nursing assistants, Web developers

Fashion designers, chief executives,

statisticians

Psychiatrists, legislators

Example jobs

Visual 89: The best earn (way) more than the rest

Source: Bloomberg, IMF (2016)

541.4483.06

298.98228.7

202.98179.34

175.65172.42172.32

119.42113.98113.07

100.9982.07

74.9567.6566.266.0364.8962.3361.2

46.5743

23.943.94

0 100 200 300 400 500 600

South AfricaIndiaU.S.U.K.

CanadaSwitzerland

GermanySpain

NetherlandsIsrael

South KoreaAustraliaNorway

DenmarkSwedenFrance

Hong KongMalaysia

SingaporeJapan

FinlandAustriaChina

PolandThailand

Pay ratio, CEO to average worker

Visual 90: Ultra-transparency is coming

Source: APCO, Emotional Linking Index (2013); Lady Geek, Global Empathy Rankings 2015; Newsweek and Ethical company data from Information is Beautiful database

71.5 72 72.5 73 73.5 74 74.5 75

The Walt Disney CompanyYahoo!Google

SonyNestlé

AuchanNetflix

Whole FoodsApple

Emotional linking index score

From ‘emotional linking’ indexes published by APCO...

0 20 40 60 80 100

MicrosoftFacebook

TeslaAlphabet

P&GApple

Johnson&JohnsonWalt Disney

Prudential1Audi

Global Empathy index, Lady Geek ranking

...to empathy indexes, published by Lady Geek in HBR…

…to ‘green indexes’ published by Newsweek... ...and comprehensive, total indexes published by multiple parties*

68 70 72 74 76 78 80 82 84

International Bus. Machines (IBM)Hewlett-Packard

Sprint Nextel Corp.CA, Inc.Dell Inc.

Nvidia CorporationIntel Corp.

Staples Inc.EMC Corp.

Microsoft Corp.

Green score (Newsweek Green Ranking, 2012

* Example through an ‘ethical calculation’: Charity donations + Ecological performance + Executive diversity + LGBT policy + Toxic waste + Best places to work index + Most admired index + Subsidiaris in tax havens

0 10 20 30 40 50 60 70 80

GoogleStarbucks

Whole Foods MarketMacy's

NordstromIntuit

Walt DisneySouthwest Airlines

Adobe SystemsKroger Co.

Ethical company score*

Visual 91: Creative destruction is speeding up

55

31.6

0

10

20

30

40

50

60

1970 1975 1980 1985 1990 1995 2000 2005 2010

Aver

age

age

at w

hich

U.S

. com

pani

es w

ere

delis

ted

Source: Martin Reeves, Simon Levin, Daichi Ueda (The Biology of Corporate Survival, HBR, 2016)

Average age at which U.S. public companies were delisted, by year

Visual 92: Platforms and peer to peer ecosystems are on the rise

Linear value chains Horizontal platforms Peer to peer ecosystems

Companies that have delisted since 2002...

Source: Innosight

...and companies that have listed since 2002

Visual 93: Positive contribution to society is critical for future success

68%86%

83%80%

78%77%77%

74%72%

68%68%

67%66%

65%65%

64%64%

62%62%

61%61%

60%55%

49%

20%10%

13%12%17%

16%17%

16%20%

22%22%

21%23%

20%23%

22%22%

23%22%

23%25%

24%29%

26%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TotalIndonesia

IndiaChina

TurkeySouth AfricaSouth Korea

BrazilPeru

ArgentinaMexico

United StatesCanada

AustraliaGermany

ItalyRussiaFrance

SwedenPolandSpain

Great BritainBelgium

Japan

Agree Disagree

Answers to the statement ’In the future, the most successful brands will be those that make the most positive contribution to society beyond just providing good services and products’

Source: Ipsos Global Trends Survey, October 2016, N = 18,180

Visual 94: Talent increasingly prefers values over money

Source: PwC , 19th Annual Global CEO Survey, 2016 (People and Purpose)

34%

47%

49%

50%

53%

59%

67%

68%

70%

78%

90%

4%

3%

4%

4%

3%

3%

3%

5%

4%

4%

1%

62%

50%

47%

46%

44%

38%

30%

27%

26%

18%

9%

Russia

South Africa

Middle East

UK

India

Global

China

Italy

Denmark

Australia

Japan

49%

53%

53%

55%

54%

59%

68%

69%

69%

73%

76%

1%

2%

2%

3%

5%

3%

2%

6%

5%

0%

0%

50%

45%

45%

42%

41%

38%

30%

25%

26%

27%

24%

Asset Management

Banking

Hospitality and leisure

Energy

Entertainment & media

Global

Metals

Industrial manufacturing

Health care

Forestry, paper and packaging

Pharma

Competitive pay is most important factorDon’t know

Top talent would rather work for organizations with social values aligned to their own

By country... ...and by sector

Visual 95: Capital is no longer scarce

Source: Clayton Christensen, Harvard Business School; Bain macrotrends group; HBR,

Market-creating innovations

Sustaining innovations Efficiency innovations

221

393

600

900

0

100

200

300

400

500

600

700

800

900

1000

1990 2000 2010 2020

Tota

l fin

anci

al ca

pita

l, wor

ld, tr

illio

ns

Visual 96: The five main players to influence human progress

Sources used: Angus Maddison, World Bank, Herman Daly, Purpose+ team

Countries/regions

Indu

strie

s

Governments

Supranational institutions

For profit organisations

Individuals (consumers, households)

Not for profit organisations

Visual 97: Organisations and governments are the key influencers (1/2)

Source: Purpose+

Tectonic shifts for the 21st century I FPO NFPO SNI G

Re-balancing of the economic growth engine

Rising levels of inequality

The slowdown of productivity growth

The increasing emotional disconnect for investors

The middle-class fuelled consumption boost

China as the new largest economy

The race for diversification for commodity exporters

The diffusion of power

The global trust deficit

Rising anti-globalisation sentiments

The philosophical void in societal politics

The rise of the strongman leader

Rising international tensions

The great divide between the elite and the rest

The regional surge in population growth

I = individuals, FPO = for profit organisations, NFPO = not for profit organisations, SNI = supranational institutions, G = governments

Visual 97: Organisations and governments are the key influencers (2/2)

Source: Purpose+

Tectonic shifts for the 21st century I FPO NFPO SNI G

The rising numbers of forcibly displaced people

The great urban migration

The rise of the well-educated

The ageing society

The religious tipping point

The rise of the robots

The great decoupling

The rise of the winner-takes-all models

The rise of the automated trust technology

The rise of artificial intelligence

The rising temperatures

The increased likelihood of natural disasters

The depletion of non-living resources

The declining biodiversity

The rising waste pile from human consumption

I = individuals, FPO = for profit organisations, NFPO = not for profit organisations, SNI = supranational institutions, G = governments

1681%

263%

118%

0%

200%

400%

600%

800%

1000%

1200%

1400%

1600%

1800%

Firms of Endearment Good to Great companies* S&P 500

* Identified by Jim Collins in the book ‘Good to Great’ (2001)

Sources: Sisodia, Wolfe, Sheth (2007). Firms of Endearment. Firms of Endearment used are the companiies identified in the U.S.

14,2x

Visual 98: Aligning stakeholders is good for businessC

umul

ativ

e pe

rform

ance

ove

r 15

year

s

Visual 99: Executives belief purpose relates to other business outcomes

90% 91% 89%

79%

94%

65%61%

38%

19%

63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

'Over the past year, my company has performed

well financially'

'My company has a dinstinct brand that stands

out among competitors'

'My company has a clearly defined culture and

values/beliefs system'

'My company has strong employee satisfaction'

'My company has strong customer satisfaction'

'My company has a strong sense of purpose' 'My company has a weak sense of purpose'

Source: Deloitte, Culture of purpose: a business imperative, 2013 core beliefs and culture survey. Survey conducted in US with 1310 adults (298 executives)

Visual 100: Organisations see huge gaps between theory and reality

89%

85%

84%

84%

81%

80%

50%

46%

41%

38%

37%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

An organization with shared pupose will have employee satisfaction

I'm more likely to recommend a company with strong purpose to others

Our business transformation efforts will have greater success if integrated with purpose

An organization that has shared purpose will be more successful in transformation efforts

Purpose-driven firms deliver higher-quality products/services

An organization with shared purpose will have greater customer loyalty

Our organization's strategy is reflective of our sense of purpose

My organization has a strong sense of purpose

There is a disconnect between our senior executives and our employees over purpose

Our staff have clear understanding of organizational purpose and commitment to core values/beliefs

Our business model and operations are well-aligned with our purpose

Source: EY, Harvard, The Business Case for Purpose (2015)

Purpose in theory Purpose in reality

Visual 101: Organisations that prioritize purpose grow faster

15%19%

42%

25%29%

16%

58%

51%

42%

0%

10%

20%

30%

40%

50%

60%

70%

Prioritizers Developers Laggards

Flat/decline 0-10% growth >10% growth

-27% chance of flat/declining growth

+16% chance of >10% growth

Source: EY, Harvard, The Business Case for Purpose (2015) * Note: visual shows financial performance of organisations that either prioritize, develop, or lag, in the purpose space (N = 474)

Visual 102: There are regional differences around the purpose experience

Source: Imperative, Global Purpose Index (2016)

United States: 40%

North Africa: 28%Saudi Arabia: 23%

Kuwait: 26%Qatar: 28%UAE: 28%

Global average: 37%

Sweden: 53%Germany: 50%

Netherlands: 50%Belgium: 49%Poland: 48%

Visual 103: Inspired employees are most productive

Source: Bain & Company (2015); featured in the Harvard Business Review article Engaging Your Employees is Good, but Don’t Stop There.

Have a safe work

environment

Have the tools, training and

resources to do the job well

Can get their jobs done efficiently

without excess bureaucracy

Are valued and rewarded fairly

Are part of an

extraordinary team

Have autonomy to do their jobs

Learn and grow every

day

Make a difference

and have an impact

Get meaning and inspiration from their company’s mission

Are inspired by the leaders in their

company

Satisfied employees...

Engaged employees...

Inspired employees...

71%

100%

144%

225%

0%

50%

100%

150%

200%

250%

Prod

uctiv

e ou

tput

Source: 1 HBR/The Energy Project, Human era at work (2014); 2 Gallup - State of the global workplace (2013); 3 Imperative and New York University, Workforce Purpose Index (2015); 4 HBR/EY, The business case for purpose (2015); 5 Deloitte, Core beliefs culture survey (2013); 6 Raj Sisodia, Firms of Endearment (2013); 7 Havas, Meaningful Brands Index (2013); 8 Edelman, Trust Barometer Global (2016); 8 PwC Tax CEO survey (2016); 9 Bain & Company; 10 McKinsey Quarterly, Measuring the economic impact of short-termism (2017)

Visual 104: The writing on the wall echoes similar ideas everywhere

Executives believe that purpose-driven companies will deliver higher quality of products and services for their clients.4

81%

Executives that are more likely to recommend a company with purpose to others.4

85%

Executives of purpose-driven companies say their company has strong customer satisfaction5

94%Customer centricity

People who see work as a calling are 50% more likely to have a top position in the firm.3

50%

People who experience purpose at work are 2.3 times as likely to be engaged.1

2.3x

People with purpose at work are 2.8 times as likely to stay.1

2.8x

Employees who are inspired are 2.25x as productive as the ‘satisfied’ ones.9

2.25x

People engagement

Of people believe that CEO’s should be personally visible in discussing societal issues.8

Of CEOs agree that they will have to address wider stakeholder needs in five years’ time.8

80%

85%

Risk Management

Of executives believe that business transformations will have greater success if integrated with purpose.4

Of executives belief that a clear purpose is a good guide/inspiration to future innovation of products and services.4

84%

89%

Innovation/Transformation

Profitability in the long run

Executives believe that companies perform best over time if purpose goes beyond profit.4

87% More revenue for firms in with a long-term view of value creation in a 13-year period.10

47% Greater likelihood to end in the top decile or quarter for shareholder returns.10

50% Trillion USD in potential value in the past decade if companies would choose a long term approach.10

1

For more information

• Rens ter Weijde• Mail: rens@purposeplus.com• LinkedIn: www.linkedin.com/in/rensterweijde