Acting responsibly towards the planet and society is in Philips DNA. The global healthcare technology company was aiming to embed its purpose into every part of the organization, so that employees’ daily activities drive the business and at the same time help make the world a better place.
In order to make purpose a driving force behind strategy, Philips wanted to integrate its financial and non-financial key performance indicators (KPIs). This was a huge step forward so, in 2019, KPMG firms were asked to help build a new framework for executive decision-making.
KPMG professionals and Philips jointly came up with the concept of a Purpose Compass – a dashboard that charts progress and highlights gaps. Visually appealing and easy to understand, it shows how different decisions and actions can contribute to Philips’ purpose-related targets and benefit stakeholders.
Helping road test the approach in key markets and businesses, KPMG professionals worked at refining the framework along the way. The company is now integrating purpose-related targets, metrics and rewards into executive decision-making, to create value for all its stakeholders, by improving lives, increasing access to healthcare and helping meet United Nations Sustainable Development Goals.
KPMG and Philips believe that what’s good for society and the environment is also good for business.