The Purposeful Leader in the New Era of Stakeholder Capitalism

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Leaders in the new era of stakeholder capitalism need to shift from the old model of being seen as superheroes to a new model of purposeful leadership. This new model entails maintaining focus on individual attention and ensuring employees feel seen, especially amidst complexities, challenges, and crises. A purposeful leader is characterized by being different from the traditional superhero leader. They are focused on stakeholders, driven by a sense of purpose, and prioritize making employees feel valued and understood.

When Hubert Joly became CEO of Best Buy in 2012, online retailers like Amazon were exploding in popularity, and Best Buy was facing a sea change.

But Joly famously turned around the struggling electronics retailer by changing the organization’s holistic strategy. He prioritized fair pay for workers, opportunities for employees to advance, and working with consumers, the larger community, and even competitors.

In this episode, you’ll learn how Joly re-defined Best Buy’s purpose and aligned incentives with that larger strategy. You’ll also learn how he found mutually beneficial ways for the company to work with competitors and suppliers, including Amazon, the e-commerce giant that once threatened the company’s survival.

Key episode topics include: strategy, business management, corporate social responsibility, leadership and managing people, retail strategy, leading through change, leadership transition, innovation, customer service.

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· Listen to the full HBR IdeaCast episode: Best Buy’s Hubert Joly on Walking the Talk of Stakeholder Capitalism (2021)

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