Innovate your way to fidelity One of the most important ways companies can prove their authenticity is through purpose- led innovation. Many think about innovation in terms of R&D initiatives and the introduction of new products and services. But innovation should be applied in a number of other ways to demonstrate a company’s commitment to purpose. Each of the fidelity factors presented in Figure 1, as well as many others, can be made real with purpose-led innovation. Consider environmental sustainability, a cause that It is a process of co creativity which promotes Customers now need to bring their own reusable more than half of Gen Y and Z embrace. Industries that value that will be shared in the long term.”9 cups—or buy one at the store. Ten months after were once not customer-centric are suddenly faced implementing this policy, Boston Tea Party had kept with learning the customer centricity ropes—the hard Other companies use purpose-led innovation 125,000 single-use cups from landfills. It also lost way. Utilities are one such industry in which purpose-led to create a sense of belonging for customers. £250K (US$327K) in sales. But the company had innovation in the area of environmental sustainability Tony’s Chocolonely, a Dutch confectionery company, factored this loss into its planning. As owner Sam has become their gateway to purpose and to a customer invites its consumers to be part of its purpose and Roberts put it, “We felt this was a financial loss we focus. No better example exists than with Enel, Europe’s rally behind its anti-slavery cause—and provides had to take and we want this to be a call to action 10 largest utility company, that took purpose-led innovation them information and opportunities to do just that. to other companies….We are 100% committed and there’s no going back.”11 head-on with it’s wholesale shift to a new positioning Gen Y and Z consumers are drawn to brands and strategy squarely aimed at consumers and that that put purpose before profits and stand for promises to deliver the fidelity of purpose consumers The bottom line is that virtually everything a company demand. At its core are two principles of sustainability something bigger than what they sell. Such brands does—and everything on which it can be judged and innovation, the latter of which is uniquely anchored take intentional risks. Their actions are driven by —can be innovated through the lens of purpose. in culture rather than technology. And they boldly put authenticity, not financial performance. Boston Tea This includes products and services, certainly, but 8 Party, an independent coffee chain in the United also supply chains, processes, organizational models, their commitment to their new Open Power purpose Kingdom, took the innovative action of banning out front: “Innovation must be cultural, rather than customer and employee experiences and more. technological, and that means being open to ideas single-use coffee cups. that come from both inside and outside the company. 7 | GENERATION P(URPOSE)