Why Purpose matters

Some call it the foundation of a house, some compare it to a conductor for an orchestra, we call it our North Star – our company purpose: Pioneers at heart for the good of generations.

In recent years, there has been a lot of discussion about why companies need a purpose. Many studies tried to analyze if, and how, companies with a purpose-led strategy perform better across many metrics. And Blackrock CEO @Larry Fink highlighted the importance and role of purpose for a company in his widely quoted annual letter to CEOs: “The more your company can show its purpose in delivering value to its customers, its employees, and its communities, the better able you will be to compete and deliver long-term, durable profits for shareholders.”

While I fully agree to all of the above, I would like to tell a more personal story about why our purpose matters to me, in my role as CEO and, as I firmly believe, to everyone at Henkel.

When I took over the responsibility to lead Henkel at the beginning of 2020, I knew we had to set a new course. While we had done great things in the last decade, I was convinced we needed to do things differently to win the 20s for Henkel. And it was clear to me that we need to build on our collective strengths, our assets, and our diverse global team to successfully drive a real cultural transformation. So, we in the Management Board developed our agenda for Purposeful Growth. And we put Purpose deliberately at the center of our strategic framework for the coming years. However, we also knew that we had not yet properly articulated our Purpose. As a result, not everyone at Henkel could deeply relate and connect to it.

When we were about to start communicating our purpose, the COVID pandemic began to unfold, fundamentally changing the way we work and live, putting the lives and health of our families and loved ones, our colleagues, and communities at risk. From the very first second, we defined our top priorities to steer our company safely through the crisis. We did everything to ensure the safety and well-being of more than 53,000 Henkel colleagues, to protect their jobs and incomes. We continued to serve our customers and consumers and always lived up to our responsibility towards society.

But instead of distracting us or making us lose our focus on our strategic agenda, we moved closer together as one global team and revived our unique Henkel spirit. Despite social distancing and despite the challenge to spend months working only in a remote setting, the global crisis just confirmed what I have always known: At Henkel, we have a deep connection and a unique competitive advantage – the power of collaboration.  

I have been with this company for more than 25yrs. Over the years, I have had the privilege to work with so many great colleagues.

I have seen how they embraced new opportunities, ventured into unchartered territories and new markets.

How they created room for innovations, proved their perseverance in the face of adversity and always acted with an entrepreneurial pioneering spirit combined with a deep sense of responsibility and purpose. 

And it was that attitude and bond that helped us through the global crisis and enabled us to emerge even stronger with clear focus to gain a competitive edge and drive our cultural transformation.

Some weeks ago, we shared our new purpose statement with our global team and with the public. It was the result of deep and thoughtful discussions with colleagues from all over the organization, across countries and hierarchies, the Henkel family, our workers’ council, as well as customers and consumers, creative experts, and independent masterminds.

“Pioneers at Heart for the Good of Generations” – this purpose statement immediately touched and energized me and my board colleagues. It is a courageous call to step up and create a better tomorrow. It describes who we are and what role we play in the world. It connects our yesterday, today and tomorrow. 

Our yesterday, because it all started with a dream. 145 years ago, Fritz Henkel, an entrepreneur, and courageous pioneer at heart revolutionized the everyday life of people. With that, he launched a legacy of care: for his employees, society, and the environment. Long before the concept existed, he put sustainability first.

Our today, because we still stand for these values. Our sense of unity has made us a diverse community of over 53,000 that customers and consumers put their trust in.

Together, we enrich and improve the lives of millions every day through our products, services, and solutions. And we have the potential to impact even more.

And our tomorrow, because we will build on our pioneering spirit, knowledge, and resources to shape a purposeful future for the next generations. With our innovation and technology, we create value for customers and consumers, bring success to our teams, and are a force for good in the world. 

For us, “Pioneers at Heart for the Good of Generations” is far more than “just” a slogan or buzzword. We are deeply committed to live up to it every single day. We aspire to build a truly purpose-driven company – for our people, our customers and consumers, our shareholders and for the good of generations. 

Nevertheless, with great power comes great responsibility. Living our Purpose will require change and transformation. And that change starts with me and with us as leaders. So, why does purpose matter? Because being a “Pioneer at Heart for the Good of Generations” gives me the strength and the motivation to challenge and re-invent myself every day, to serve my people and to lead the way for our global team towards a successful future.