LTP interviews executives and top managers about the position and strategy of their organization in a rapidly changing world. Purpose is key in these organizations.

Why, actually? What is its importance for the organization and for its leadership?

And what does purpose mean for the executive or top manager personally?

‘To win as one’

Jean-Paul van Londen and Marian de Joode inter- view Abbe Luersman, an American and CHRO of Background Royal Delhaize. Luersman, named CHRO of the year in 2018, guided the merger of the Dutch Abbe Luersman group Koninklijke Ahold NV and the Position: CHRO at Ahold Delhaize Belgian . Together with 370,000 Strength: Connected / Always on! colleagues, she laid the foundation for a new Purpose: Creating communities to win as one company with a new culture and purpose: Eat well. Lifestyle: Motivated! Save time. Live better. How do you bring purpose Hobbies: Sports, Travel, Spending time with to a very large and complex organization such as family & friends Ahold Delhaize?

“Culture does not arise in a day. Culture is a journey, Koninklijke Ahold Delhaize… something that evolves. And everyone influences that …operates more than 6,700 stores and carries 19 culture, not only by words, but also – and perhaps local brands in Europe, the United States, and even more – by unspoken actions. Before the merger Indonesia. The multinational with its head office in 2016 we were two companies, each with its own in the serves over 50 million mission and vision, its reason to exist: Ahold and customers a week in their stores and over 20 Delhaize. Neither organization spoke boldly about million online, with 372,000 employees or purpose. Then we came together as a combined associates worldwide. Royal Ahold Delhaize was entity and had to form a combined identity. We really created in 2016 through a merger of the Dutch wanted to shape our new aspired culture. And we supermarket group Koninklijke Ahold NV and the wanted to know why we existed. Our purpose.” Belgian Delhaize Group. 1

“It was enormously exciting, because how With the merger behind us, the question became: why often do you have the opportunity to create a do we exist as a company and what do we stand for? new company? When we defined our first What impact do we want to have? We shaped five purpose, it was about creating a new organi- potential themes, which, as an ExCo, with help from zation. Almost all our associates were enthu- our Communications and Human Resource teams, we siastic and involved. Thousands participated.” shared with our associates. Our associates then acti- vely engaged and voted for their favorites or evolved How did you define the purpose? with potential enhancements or changes. Post their “The Executive Committee, ExCo, took it on full feedback, we narrowed it down. We extracted the key charge. We asked how our associates – when I say elements from their feedback: what is really impor- associates, I mean employees – would define their tant to us? Together these key elements formed our current culture. What did they value and what was it new purpose: Eat well. Save time. Live better! they didn’t like? How would they like to see the new Each brand has its own purpose, in keeping with its company, the aspired culture? We also made a cultu- own brand promise. Because of course, as Ahold ral diagnosis of the companies, pre- and post-merger. Delhaize, we are also talking about our collective pro- Before the merger, Ahold and Delhaize were both big- mises. There are three: a better place to shop, a better time operators: large, successful, and influential place to work, and being a better neighbor. After all, companies who really cared about what they were we serve the local communities, we are a meeting doing. But we also saw that our associates wanted to place. That’s why you increasingly see a kitchen table have an organization with greater courage, more in the store, to drink a cup of coffee together...” innovative, with more fun, learning, and meaning.

It seems a difficult task for such a large and Then the ExCo started to shape shared values and therefore complex organization as Ahold beliefs, and started to define the aspired culture. We Delhaize to implement purpose in all the came up with five shared values: courage, teamwork, organization’s layers and countries. And espe- care, humor, and integrity. These were the drivers for cially to help people find their own purpose... our new, aspired culture. So how do we continue to amp these up? It was all about integrating the two “That is why we have developed a program for which organizations. To take the best of the best from both, we partnered with Harvard University: Purpose to and be the best for the customer. Better Together: Legacy. It’s a week-long experience. From Sunday to our strategy. How could we define it as a purpose? Friday, more than 300 of our leaders, to date, have Together, we build Great Local Brands, bringing Fresh had the opportunity to discover their purpose and Inspiration Every Day.” their contribution to the greater whole: to the company and society.” However, you now have a new definition... “This way we get purpose throughout the “Yes, our purpose was skewed. Now, two and a half entire organization very quickly. And it is years later…Then we were kind of internally focused. also very cost effective.” We were focused on merging and becoming a new company, while at the same time running the day-to- “Now we have developed a director level program to day businesses to best serve the local customers and allow 3,000 associates around the world to follow this communities. Now, we were ready and had the same course. This is done in four modules, over four opportunity to evolve our strategy. We moved from months in which they are virtually connected for 90 Better Together to Leading Together? We want to be minutes each week. It’s… ‘Avatarish’. Real time and at the forefront, make bigger societal contributions. interactive, so no webinar! One of the Harvard profes- And thus, our purpose, had to evolve. sors will be in the center of the classroom. They can

address and challenge us directly and we can respond immediately, while we are at our laptop anywhere in 2 the world. You see everyone else in the room and have “I had the opportunity to reflect about the a classroom, lifelike experience. I love it!” key moments in my life, crucible moments: the events and decisions that actually define How important is purpose for you personally? who I am.”

“A good CHRO, as I have said before, is a driver of The big question of course: what is your purpose and culture. I really want to make sure that personal purpose? everything I do relates back to my purpose. I also want to make sure that I can actually fulfill my purpose in “My purpose then and my purpose today is ‘creating the companies I’m a part. That doesn’t mean I don’t communities to win as one’. It’s a life purpose.” want to have another purpose alongside it. Ahold Delhaize also has a company purpose as we discussed, A life purpose? and I need to make sure that I “fit in” with my beliefs “Yes. Whether it was at Whirlpool, , Ahold or and can fully contribute. That’s when I’ll be able to Ahold Delhaize: my career cannot be described in give my best and as well, be the most fulfilled. It needs terms of education and profession. It is much wider. to be a reciprocal relationship, that’s how it should The personal aspects in and around my career are work.” important: how I live my life, the contributions I make

to my friends and colleagues, to society... It is about Have you always felt that personal purpose? life experiences and interactions, not just those in the “No, because until 2008 I did not really have a con- workplace.” sciously defined purpose. But I did remember – and that is a very early memory – that when I was about Why do you think the concept of ‘purpose’ is six or seven years old I asked my parents why I existed. so immensely popular at the moment? What my role and contribution was to the family. Of “Research shows that purpose-driven companies course I used different words, but apparently I wanted outperform those that aren’t. Associates want to to know how I could add value or make a difference. I know why they do something, what their role is, how wanted to contribute to something bigger. And that they fit in. They want to be part of something and related back to the concept of purpose.” contribute to something bigger. These are charac-

teristics that are now being expressed in organi- How did you discover your ‘conscious’ or zations more than before. And that leads to results.” defined purpose? “Unilever, the company where I went to work in 2007, The logical next question: why are came out with a pretty bold purpose: doubling the organizations with a purpose more size of the business while reducing its environmental successful? footprint. Paul Polman, CEO of Unilever, wanted to “Let me first say how we measure the effect of make sure all people were aligned to it. So they rolled purpose, so that you know how concrete it is. We out a leadership development curriculum and model measure it through our engagement survey, and have around discovering your purpose. Here’s where I even drawn a comparison by measuring our top ten learned, the two – the company purpose and the performing stores and our bottom ten performing personal purpose – needed to be aligned in order to stores, and no doubt, you see a direct correlation.” have real impact. “The top ten performing stores, the best I had the pleasure to work with Bill George, who wrote ones, have higher engagement and are all the book Discovering Your True North. And I worked purpose-driven. The associates feel involved with Nick Craig, who, at Harvard, wrote concepts and love what they do - their work. They see about authentic leadership.” the meaning of it. It is meaningful.”

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“Only if our associates love what they do and if their are currently working on that. And Courage? They work is connected to the purpose of the organization, wanted to see collectively that we were willing to take only then can we achieve our purpose. This is also more risks. They even wanted us to celebrate failures logical: if associates love their work, they have greater more. And learn and grow more thanks to those engagement. Greater engagement drives customer failures.” satisfaction and therefore gives better results. Then we can make better investments in our people, products, organization, and services. That is why they are more successful.”

How do you ensure that people love what they do? How do you stimulate that engagement?

“Within our ‘Best Talent People Strategy’ we have defined four specific priorities: Create the Future of

Work, Pivot our Culture, Transform our Capabilities, and Cultivate our Talent. Returning to your previous answer: you say that it is about meaningful work, connected To pivot our culture we do culture diagnoses, we have to the purpose of the organization. Is there a our shared values, and we conduct our engagement connection between the concept of ‘purpose’ survey on an annual basis. 83% of our organization and the concept of ‘meaning’? participates. Think about that: 308,760 of our 372,000 “Absolutely. There is a direct correlation between the associates! two. When you think about purposeful leaders... They And the results? 79% of associates feel engaged. But drive engagement, are inclusive, inspirational. When have we really achieved our aspired culture? Well, not associates are inspired by purposeful leadership and exactly. We dug into the comments. We recognized want to achieve more, they naturally start to look for we had 186,000 written comments. Associates told us more meaning in what they are doing. For what what they thought, how they could help, and how we reason do they do what they do? What contribution could improve the company. This shows that we are can they make? Is it meaningful? That meaning does starting to develop a learning organization that wants not necessarily have to be purposeful. After all, to drive continuous improvement. purpose is not about doing, it’s about existing.”

110,000 of these written comments actually tied back “Purpose is timeless. It is not something that to three of our values: Teamwork, Care, and Courage. you can tick off. The elements that determine They were telling us: we had to amp up those values. your purpose, that sense of meaning, that Regarding Teamwork: we had to collaborate more, do strong belief, are constant. How you phrase it more across functions and brands.” can change, but the core elements cannot. Meaning, on the other hand, can change. It “Work is evolving, things are being can grow and change over time.” automated and people need to have new skills and abilities. Which do they need for ? Are authentic, value-driven leaders What actions can we take? And how are they potentially also more vulnerable? After all, in line with our purpose?” they are willing to show more of themselves. And in a top position it is not easy to be “We have 19 great local brands in 10 markets: how can vulnerable... we better share experiences, ideas, and concepts? “Indeed. Leaders who have grown in their careers, Regarding Care: the comments are about all voices have also then taken on more responsibility. This being heard. It was about being more inclusive. We 4 responsibility is a privilege, but it also creates obliga- personal purpose: creating communities to win as tions. As soon as leaders get worried or have a fear of one. When you win as one, you have no losers. Then doing something wrong, their natural human defense you have healthy competition.” mechanisms come into effect. They feel threatened and then implicitly see threats in the words or actions The previous interviewee, Dimitri Yocarini, of others. So it is not obvious that they show them- CEO of labor broker Olympia, asked how you selves. On the other hand, vulnerability also makes as CHRO get purpose into the capillaries of leaders more human. They experience more trust and such a large and complex organization as ‘connect’ better. This helps them build real relation- Ahold Delhaize... ships and stronger organizations.” “I hope I’ve been able to answer that question. Purpose must permeate at every level: having a “When leaders allow themselves to be personal purpose, a purpose that fits the brand vulnerable, people sometimes abuse it. promises and or brand purpose, and the joint purpose What do you do: flee or fight?” of the company is powerful. You can develop a program to help stimulate this, as we did with Harvard “Leadership is about building relationships, not about University, but the real basis of everything is having fighting. You can’t shout: I just gave you a black eye, the conviction and believing that purpose but I really care about you! Conflicts with a purpose- demonstrably leads to better results for associates, driven leader therefore have a better outcome. He or the company, and the community.” she is more focused on achieving the right outcomes, development and relationships than on conflicts, and Our next conversation about purpose is with will respond differently.” Geraldine Fraser, Global HR Director at FrieslandCampina. Is there a question that Stronger because of vulnerability? you would like to ask her?

“In my experience, when we let ourselves be vulnera- “Yes, and it’s a tough one, hahaha. The purpose at ble, we get to face the real challenges. Then we have FrieslandCampina is Nourishing by Nature. How can the real conversations, we become interdependent, you connect associates worldwide to this purpose? and we get better outcomes. But getting there can be How do you then measure whether they add value messy and painful. This is because as soon as every- every day? Because at FrieslandCampina they talk one says what they are really thinking, you sometimes about this kind of daily added value. They also talk hear things that you actually don’t want to hear. about four specific themes, but do not indicate how Things you may have read between the lines, but now they measure them. I would really love to understand you get confirmation. And then you have to decide that better...” how you are going to manage that.” Jean-Paul van Londen and It’s about trust? Marian de Joode “The point is: are you also willing to take that next LTP Executive Services step in a difficult situation? Do you really trust each +31 6 15 96 01 39 other and help each other for the benefit of the whole? Do you opt for forward focus and continuous Executive Services, part of LTP, advises and improvement, or do you criticize and blame? We are facilitates to increase the impact of your top all human. We all make mistakes. In organizations you management. We connect the old with the new: our 90 have groups of humans who sometimes make collec- years of expertise in applying the latest insights and tive mistakes with a big impact. The faster you can technology. We assist in the selection and overcome that and learn from it, the sooner you can development of a new generation of executives. make a contribution again. Then it comes back to my >> https://ltp-executiveservices.nl/en/

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