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402 PART 5: THE LEADER AS SOCIAL ARCHITECT

Exhibit 13.6 A Leader’s Framework for Noble Purpose

Purpose Description Basis for Action Examples
Discovery Finding the new Pioneer, entrepreneur IBM, 3M, Virgin
Excellence Being the best Fulfillment Berkshire Hathaway,
Apple, BMW
Altruism Providing service Happiness ServiceMaster, Wal-Mart
Heroism Being effective Achievement Microsoft, Dell,
ExxonMobil

Source: Nikos Mourkogiannis, Purpose: The Starting Point of Great Companies (New York: Palgrave Macmillan,
2006); and Nikos Mourkogiannis, “The Realist’s Guide to Moral Purpose,” Strategy + Business Issue 41 (Winter
2005), pp. 42–53.

It is easy to understand how employees at Genentech can feel that they are
serving a noble purpose. But what about a mutual fund company, a fashion re-
tailer, or a soft drink manufacturer? Leaders in any type of organization can tap
into people’s desire to contribute and make a difference. Exhibit 13.6 describes
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four basic approaches leaders take in framing an organizational purpose that
helps people feel that their work is worthwhile. Each of these approaches is de-
scribed in more detail below.

Discovery Many people are inspired by the opportunity to fi nd or create
something new. Discovery for its own sake can serve as a noble purpose, as it
does for employees at 3M, where researchers are given time to explore ideas
and work on their own projects. Another example is Google, where people are
energized by the psychic rewards they get from working on intellectually stim-
ulating and challenging technical problems. Leaders at Samsung Electronics
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have reenergized the company by focusing employees on discovery rather than
imitation, aiming to transform Samsung into a world-class innovator rather
than a manufacturer known for cheap, low-quality knockoffs. This shift in
purpose has led to amazing results. Samsung’s record of innovation will be
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discussed in more detail in Chapter 15. This type of purpose inspires people
to see the adventure in their work and experience the joy of a pioneering or
entrepreneurial spirit.

Excellence With this approach, leaders focus people on being the best, both
on an individual and an organizational level. Excellence is defi ned by the work
itself rather than by customers. Indeed, organizations that pursue excellence
would rather turn customers away than compromise their quality. Apple, for
instance, has always built high-quality, cleverly designed computers, yet it holds
less than 5 percent of the personal computer market. Leaders would like to in-
crease their share of the market, but they aren’t willing to sacrifi ce their commit-
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ment to high quality and what they consider superior technology. In companies
with excellence as a guiding purpose, managers and employees are treated as
valuable resources and provided with support to perform at their peak. People
are motivated by the opportunity to experience intrinsic rewards and personal
fulfi llment.

Altruism Many nonprofit organizations are based on a noble purpose of altruism,
but businesses can use this approach as well. Recall the examples of employees at