Your Business, Your Legacy: tell me what your business does, and I will tell you who you are.
When speaking about business, we generally think of a legal entity that makes a profit by delivering a good or service (or a bundle of them). This is precisely the primary definition of a company.
When sustainability became more relevant in the business environment and international political debates, business purpose became strongly associated with impact and long-term value delivery to a broader range of stakeholders. The most relevant milestone was the adoption of the United Nations 2030 Agenda for Sustainability Development.
While sustainability, as a concept, is still under a lot of fire due to its complexity (there are still many frameworks and requirements), credibility (due to greenwashing), and capacity (due to the still low level of knowledge), the legacy we want to leave as individuals is linked to our inner needs and values, as the psychologist Abraham Maslow so well explained in his famous pyramid of needs.
Since businesses are set up and run by individuals, they are influenced by the needs of the individuals deciding on or being impacted by such companies. In sustainability terminology, they are collectively called: “the stakeholders”.
Shareholders define the company's goal and ensure that leadership identifies and follows the right path. Employees choose the business they work for based on the needs they must satisfy. So, a solid relationship exists between the shareholders’ goal, the leadership team selected, and the employees they attract and retain.
I often hear how difficult it is to find the right people, which shouldn’t be a surprise in Europe, where the quality of life is increasing (as an essential intrinsic value), and the mixture of different generations in the labour market has reached the highest level ever. I wish I had heard more about the legacy the owners want to leave through their business, which means the purpose they set for their business and how to reach it.
There is no doubt that making money is part of the purpose since businesses are for-profit entities, so profit is mandatory in any successful business. But what the business does, why and how it does, are questions that define the first chapter of the shareholders’ legacy.
That is why the purpose of a business should not be only an empty statement that comes out of a ticking-the-box exercise, as “incentivised” by some certification frameworks or by a beauty contest of “who has the most sustainable goal”. The purpose should be, instead, a meaningful expression of the owners serving as an invitation to interested stakeholders to engage towards a defined destination.
While Professor Michael Porter's concept of “creating shared value” should be the underlying idea of any purpose, the definition should be straightforward to enable commitment yet broad enough to accommodate different paths to success. For example, a purpose could be to provide affordable and sustainable houses. Without getting stuck in one model or solution, this would require constant consideration of costs, environmental impact, quality, and comfort.
If the purpose sets the direction of a long-term journey, the right paths must be chosen at each crossroad encountered by a team equipped with a compass, a map, and resources.
You know you can’t take a path in a different direction than the one you have set, but what do you do when you do not see where the paths take you or which is the most suitable one? In business, this means making decisions under challenging circumstances, or for those familiar with the notion, in the VUCA context.
So, how do you handle it? One of my favourite quotes for business performance is: “If you want to go fast, go alone; if you want to go far, go together!”. In a long-term journey, you need a team to be empowered with the mission (the journey itself) and adequately equipped with a map, a compass and resources. Is there any marketplace where you can find this kind of ready-to-go team? Maybe, who knows, but you don’t need them. “Creating shared value” concept starts from and with the team. This is why you need to start the journey with your team.
First, draft the map to frame the internal and external context in which your company is acting and identify the required inputs for decision-making at any crossroads. You might need external support, but as a company and your team, you must be conscious of your stakeholders’ needs and the ecosystems around you and communicate them well.
Then, you define your cardinal values together, according to which you will decide whenever the VUCA context prevails. Values are the inner elements that anchor any decision one may need to make when circumstances are too windy. Other peoples’ values can’t anchor anyone, so the team must have values that align with the purpose.
Having a map and a compass, you may start preparing for the journey based on the available resources. There are infinite discussions on resource scarcity, but the truth is that, in business, resource abundance is not natural. Resource optimisation is. This requires an optimal balance between internal and external sources to cover the needs as per the agreed priority, which is the primary role of a strategy.
More precisely, preparing to reach the purpose does not mean defining the exact itinerary but instead defining the strategy to help you determine the first milestones, prioritise actions and resources, and set the stage for continuous improvement, learning, and adaptability of choices. A company's success is determined by its capability to be resilient and flexible over time while staying consistent with its goal of enriching its reputation.
A company's reputation is the legacy shareholders leave behind and can’t be bought with money. You may invest in the brand and marketing, but reputation is how people perceive you beyond your image.
While public companies are more concerned with market impact, placing the reputational risk on the leadership’s shoulders, in private companies, the owners’ values and needs are deeply intertwined with their business. Building a true symbiosis between them and their company is crucial for long-term success.
By aligning the business's purpose and strategy with their motivations, owners build a more authentic and resilient reputation and achieve personal fulfilment and satisfaction through their work. This strategic alignment ensures that the business grows sustainably and meaningfully, driven by the owner’s commitment and genuine connection, making it both a competitive advantage and a fulfilling personal journey.
1 VUCA comes from volatility, uncertainty, complexity and ambiguity which define the contemporary environment