Welcome to the For Love and Money podcast, the show where business and social purpose meet to inspire a movement for positive change. Here's your host, Carolyn Butler-Madden. Hi there, it's Carolyn here, your host. I don't have a guest for today's episode. Today, I'm going to take you down a little rabbit hole that I think is fundamentally important in getting a better understanding of what it means to be a purpose-led business. Or even a purpose-driven leader.
This rabbit hole that we're entering will challenge the accepted thinking that purpose starts with why. Oh, sacrilege, I know. But come and join me on this little journey. I think it will help to open some new and useful ways of thinking. Today, I'm going to be talking about the work that I start every piece of client work with. Start with who? When you think of the bottled water category, what themes and images immediately come to mind?
So perhaps you envision, you know, serene landscapes, yoga-inspired wellness, or beautiful young women looking active and healthy. That's what most of the advertising is about most of the marketing, right? Well, in 2019, a new brand entered this category and smashed that picture to smithereens. I want to introduce you to liquid death. A beverage brand that's taken the world by storm with its audacious approach to marketing and branding.
It was founded by Mike Cesario and it was born out of a simple yet radical idea to make drinking water as exciting as consuming energy drinks or beer. So Mike Cesario had seen the opportunity while attending the Vans Warped tour where he noticed concert goers sipping from cans of energy drinks. And he thought, why not create a product that captures that same rebellious spirit, but is actually healthy? So its tagline is murder your thirst.
And liquid death defies conventional bottled water marketing. Instead of this tranquil imagery that we're used to seeing in the bottled water category, liquid death opted for a heavy metal aesthetic. I'd call it punk goth rock, complete with skulls and irreverent humour. If you haven't seen it, look it up. It's amazing.
It's bold, it's unique, and this branding resonated deeply with a younger audience, so millennials and Gen Z, who are drawn to authenticity and humour in a world saturated with traditional advertising. So Liquid Death has positioned itself as an outlaw or rebel brand. If you think about brand archetypes, I won't go into it, but it's very rebellious and it stands in stark contrast to the typical sanitised image of bottled water.
Their tall boy aluminium cans are reminiscent of beer packaging, and they don't just stand out on shelves, but they also align with Liquid Death's commitment to sustainability. Aluminium is infinitely recyclable, unlike plastic. So this commitment is encapsulated in their slogan, Death to Plastic, which appeals to environmentally conscious consumers who are tired of plastic waste. There is market for this, right?
So the success of Liquid Death has been staggering. In just a few years, it's grown into a billion-dollar brand with reported sales in 2023, reaching $263 million. Their marketing strategy is not just about selling water. It's about creating a community around a lifestyle choice that flips the bird to mainstream norms.
By engaging their audience through entertaining content on social media and even releasing an album featuring negative reviews of their brand, Liquid Death has built a cult following that feels more like a movement than a marketing campaign. So as we explore this theme, the theme of this podcast episode, which is Start With Who, Liquid Death serves as a prime example of how understanding and embracing your unique identity can lead to remarkable success.
They've defined who they are and who their people like us are, those who appreciate edgy branding and environmental responsibility, creating a powerful connection that extends beyond just customers to include employees and collaborators. So this people like us theme I'm going to come back to later because I borrowed it from Seth Godin who uses it a lot and it's such a powerful theme. So let's now dive deeper into how we can apply these lessons in our own journeys towards purpose-driven success.
Start with who. What does this mean? So let me give you some context. In In 2010, Simon Sinek gave his infamous TED Talk, Start With Why. It was brilliant, right? He shared that while most brands focused on what they do, some brands connected to why they existed. And he used Apple, the brand Apple, to bring this to life, using what he called his golden circle framework, which starts with why at the center, then how, then what.
So with the Apple example that he used, he said, for Apple's why, at Apple, everything we do, we believe in challenging the status quo, we believe in thinking differently. How? We do this by making products that are beautifully designed and user-friendly. And then the what? We just happen to make great computers. Want to buy one? So the Apple Golden Circle was a brilliant articulation that captured the essence of Apple's why, the inspiration that drove so much of its success.
Start with why and the Golden Circle was a powerful model for inspirational leadership, and it was fit for purpose back in 2010, and it still is. The power of the golden circle is enduring, but there is a problem. The problem isn't the model. I think it's the Apple example, which in its original form is no longer fit for purpose in the world we inhabit today.
So Apple has moved on, right? Apple has changed its corporate vision and mission statements over time to reflect changes in the organization, to reflect the context of the changing world. Today, Apple Inc.'s corporate vision is to make the best products on earth and to leave the world better than we found it. Its mission is to bring the best user experience to its customers through its innovative computer hardware, computer software, and services.
Now, Apple may have moved on and developed a vision that implicitly recognises its role in creating positive change in the world, but the original Apple example, which was so powerful when Sinek shared it, is still today being used in corporate boardrooms as an example of what a great purpose statement looks like. And the people crafting their business strategy are looking to that example and emulating it. But what is lacking is context.
The world has changed dramatically since 2009-2010 when Simon Sinek came out with this. The needs that were bubbling beneath the surface then have now raised to the top. Context is everything. So where Apple's earlier purpose statement talked about a belief in challenging the status quo and thinking differently, that now feels far more like a how than a why. And the reality is the world needs to challenge the status quo.
We need to think differently about a whole range of things, including business itself. Needs change. People's expectations change alongside those needs. And perhaps if Simon Sinek were to revisit the Apple Golden Circle, it might look something like this. Why? We're in business to make the best products on Earth and to leave the world better than we found it. So that why is Apple Inc.'s current vision statement.
How? We do this by using innovation to create products that are beautifully designed and user-friendly. What? Computer products and services. Now within that why, that hypothetical why that I put up here, you can start to get a sense of who Apple is. But it's only when you get clarity on who you are that you can really connect to your why. This goes for Apple as much as it goes for any business or brand. So here are the key aspects that define who Apple is. They're an innovator at heart, right?
Apple is recognised for its pioneering spirit and continuous innovation in technology. It has a history of introducing groundbreaking products that redefine consumer electronics, like the iPhone, iPad and Mac. That's probably arguable in more recent times, but it is an innovator at heart. The second thing is it's got a customer-centric philosophy. So Apple places a strong emphasis on understanding and enhancing the user experience.
And it's this focus that drives product development and ensures that their offerings resonate with a diverse audience. Diversity and inclusion. So Apple actively promotes diversity within its workforce, believing that a variety of perspectives leads to better ideas and products. This commitment is reflected in their hiring practices and their corporate culture. The fourth thing is environmental stewardship.
Now, Apple has set some ambitious sustainability goals, including achieving carbon neutrality across all of its operations by 2030. Their commitment to reducing environmental impact resonates with consumers who prioritise sustainability. And then the fifth thing is empowerment through technology. So Apple's products are designed to empower users in their personal and professional lives. The company focuses on creating tools that enhance productivity, creativity and communication.
So bring these five facets of Apple's identity together and they combine to form what I would say is its unique organisational identity and its clarity on this identity that is critical to building a deep connection with Apple's why. Without it, it's just another statement. Okay, so start with who. Recognizes the unique characteristics and values of the organization. It's not just a values piece, it goes deeper than that, right?
It really goes to the heart of who we are as a collective, and it is this that can lead to deeper connections with customers and stakeholders who share those same characteristics and values in today's market landscape. So this approach complements Simon Sinek's Start With Why framework by emphasizing the importance of knowing the people behind the brand. When you know the people behind the brand as a customer, as a partner,
as a stakeholder, I can connect to that, right? And I can connect to it emotionally. Who becomes your clarion call? You speak in language that resonates with your people like us. It's strong language that can also repel those people who are not your people like us. And that's a good thing, right? Because it means you are clear on who you are and what you stand for. You're not trying to be all things to all people. When you try to be all things
to all people, you end up being nothing for anybody. You're vanilla. You're offending no one and, you know, appealing to no one in particular. Back to liquid death. So when it comes to purpose, liquid death does not have a formal purpose statement. I haven't been able to find one. So at least it's not one that's widely publicized. But its mission can be summarized through its core themes and initiatives.
The brand focuses on two primary objectives. The first one, murder your thirst, is their slogan, right? And that encapsulates the brand's goal to make drinking water exciting and appealing, particularly to younger consumers who may find traditional bottled water uninteresting. Liquid Death aims to position itself as a fun and edgy alternative in the beverage market. Now, this isn't a society changing positioning in itself, but its second theme
goes closer to that. The slogan for the second theme is Death to Plastic. So Liquid Death is committed to addressing environmental issues, particularly plastic pollution, and it uses aluminium cans for its products which are more environmentally friendly than plastic bottles. Additionally, Liquid Death donates 10% of its profits to non-profit organisations dedicated to combating climate change and reducing plastic waste.
So overall, Liquid Death's mission reflects a blend of promoting a healthier lifestyle through its beverage offerings while actively working towards sustainability and environmental responsibility. Enjoying the podcast? If you're looking for more inspiration, head to our website, thecauseeffects.com.au, for more resources on how you can start using your business as a force for good. Or buy the For Love and Money book. Every copy sold allows us to protect one square metre of rainforest.
The problem today with Start With Why. Colin Mayer, Emeritus Professor, professor at Oxford University's Business School, defines the purpose of business as this. The purpose of business is to create profitable solutions to the problems of the people and the planet, not to profit by creating problems for people and the planet. I'm going to repeat that, because I just think it's so simple and so clear, and it begs to be repeated.
The purpose of a business is to create profitable solutions to the problems of the people in the planet, not to profit by creating problems for people in the planet. Herein lies the problem with Start With Why, as followed by so many people, so many organizations, I should say, that are using the Apple example as their reference point. Almost every business today as a purpose statement, but that doesn't mean that this is genuinely the purpose that drives everything they do.
I'd guesstimate in about 90% of cases, it's just a tick box measure. So to exemplify this, let me share with you the purpose statements of Australia's top four banking establishments. Commonwealth Bank is to improve the financial wellbeing of our customers and communities. ANZ, to shape a world where people and communities thrive. Westpac, helping Australians succeed. NAB, back the bold who move Australia forward.
Now, with the exception of NAB, which is a little bit different, would you agree they're all interchangeable? And how do these statements make you feel? What do they tell you about the identity of the organization, about who they are, about what they care about, about what is their stake in the ground? Do they inspire and uplift you? Do they talk to any of the needs and concerns you have? Are they specific?
Do you feel compelled to join any of these organizations because you want to contribute to their purpose or you feel that they're serving your needs? They're pretty generic, aren't they? Now, if you were interviewing as a prospective employee, would any of those statements inspire you to want to know more? Would you go, wow, okay, yeah, how do you do that? Would it inspire you or motivate you to dedicate your precious time to? Probably not, right?
Now, this doesn't mean that these organizations aren't purpose-driven. I'm not going to go into that with these particular organizations. It doesn't mean that they can't become purpose-driven. But because their purpose statements are so generic, and in some other cases where you look at purpose statements, they're very product-centric, right? They just give context to the products or services that those businesses are already in.
Because they're so generic and or product centric those organizations have to work much harder to attract inspire and activate the people who can help them create positive change in the world and they have to go deeper in order to identify what is that positive change that they want to contribute to that isn't just their ESG responsibilities or their CSR responsibilities is. Defining a meaningful purpose. So now I want to talk about how you define what a meaningful purpose is.
The problem with purpose is that there are so many misconceptions around what it is and what its role is. Here's how I define purpose. I define it as the change your organization contributes to society in a financially sustainable way through and beyond your products or services. Through and beyond means your employees, your customers, your communities, your suppliers, your partners, your channels, your marketing, your resources and your assets.
Through and beyond means through and beyond your products and services. This is where innovation lies, right? I'm not saying that a bank should go and start becoming an engineering company. It's about using what you already do as a takeoff point to serve the why you exist. Use what you already do as your takeoff point and use everything that's part of what you do to look at how else you can serve that purpose. Does that make sense? I hope so.
So why is it important to have a meaningful purpose? Well, the world needs solutions to its growing challenges. That is very obvious and very clear. And business is the institution with the resources, the influence, the capability for innovation and the capacity to scale its impact. Furthermore, business actually has trust. It is the only trusted institution of the four major institutions of business, government, NGOs and media.
That's according to the Edelman Trust Verometer, who have been reporting on trust for well over 20 years. Business is the only institution that sits in the trusted zone. It's in the sort of neutral trusted zone, just over 50%. I think for Australia in the last report, it sat at 54%, whereas the other three institutions fall below 50%. So it gives business the opportunity to use that trust to actually fulfil the potential it hasn't yet fulfilled as an institution.
So the world needs solutions to its growing challenges. But the other reason why it's important to have meaningful purpose is if you want to look at the commercial side of it, purposeful businesses financially outperform their counterparts. There is plenty of research and data to support this statement. I'm not going to go into it in this episode because it is a rabbit hole, but purposeful businesses, businesses driven by their purpose,
financially outperform their counterparts. And you may ask why. And there are many reasons for this, but one of the core reasons is because their people are driven by that purpose. They are more agile. They're more resourceful. They're more resilient. Innovation is at the fore of this. And where you have your people who are engaged and invested.
That's where you drive growth and success. The UN Global Goals, the Sustainable Development Goals, the World's To-Do List, the 17 goals that the world has signed up to achieve by 2030. According to the UN Global Compact, those goals represent 12 trillion US dollars of market opportunities, right? Look at those goals. look at the targets that sit beneath each of those goals. I guarantee you, your business would be well aligned.
Any business is well aligned with not just one of those goals, but probably several. And there are businesses that are already capitalising on those market opportunities. $12 trillion of market opportunities, that's what the UN Global Goals represent. Let's get back to who. You can't connect to a meaningful why until you know who you are as a collective. That who connects to the individuals that want to support your organization's vision.
And the more clarity you get on this, the more you show up fully as the organization that is truly committed to its why. I believe this is the most important piece of work that organizations can do right now. They should be doing it with their leadership teams, their boards, with their people, because starting with who is how you build emotional bonds with your people, within your teams, with your customers, with your partners, with your collaborators, and with your communities.
It's how you build pride in your organization. It's how you build a sense of belonging. It's how you reach for the stars together. And maybe you don't reach those stars, but along the way you create meaningful change. Within the For Love and Money podcast, I can't remember which episode it is, but I interviewed Nikki Sparshot from Unilever. She was then the CEO of Unilever Australia in New Zealand. Today, she's the Global Chief Transformation Officer of Unilever.
And she speaks beautifully about reaching for the stars and reach for the stars and maybe you'll get the moon, right? Yeah, have a look at that episode. It's a great one. I'll link to it in the show notes. In all the work I've done with my clients over the last few years, we always start with who and it is always the most exciting reveal, right?
When I hold the mirror up to them and they recognize themselves with a sense of surprise and then recognition and then excitement to get on with the work ahead of them. And it bonds them as a team, right? They're in it together. And when who you are aligns clearly with why you exist, well, that's where you build a powerful shared narrative that can create incredible outcomes. So how to start with who?
Now, I'm not going to even try to do it here because I'm never going to do it justice via a podcast, but I will share with you some questions that you can think about just to get you started and to get you into this way of thinking. So think aspirationally. Who is the best of you? What does it look like when the best of you is at work? Think of actual people in your organization and think of moments when the best of them has been revealed. Share those stories and dig into them.
What is it about them that made them do that? People like us do things like this. What is it about them that inspired or motivated them to do whatever you're holding up as evidence of the best of you? So what are your shared beliefs? What matters to you? So this people like us do things like this, I've mentioned it a couple of times, is a term that I've borrowed from Seth Godin, the author and brilliant strategist. It is such a powerful idea.
People like us do things like this. It is that clarion call, right? And at a time where we need businesses to step up into its full potential, the rallying call people like us believe things like this opens the door to building a collective movement of change makers in your organization. Thanks for listening. I hope this episode has been useful, practical, valuable. I hope it inspires you to do something.
And if you'd like to know more about my work and how you can start with who, head to the show notes where you'll find some links. Thanks. We'll be right back. Music. Thanks for listening to this episode of the For Love and Money podcast. If you'd like to take a deeper dive into the purpose movement, visit us at thecauseeffect.com.au. And remember, doing good is good for business. So if you're not doing good, then what are you doing?