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000-135 Rational Host Access Transformation Services (HATS) v7.1

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000-135 exam Dumps Source : Rational Host Access Transformation Services (HATS) v7.1

Test Code : 000-135
Test Name : Rational Host Access Transformation Services (HATS) v7.1
Vendor Name : IBM
Q&A : 60 Real Questions

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IBM Rational Host Access Transformation

IBM Rolls Out system z10 Mainframe, Plus Dev equipment | killexams.com Real Questions and Pass4sure dumps

information

IBM Rolls Out gadget z10 Mainframe, Plus Dev tools
  • by using Kurt Mackie
  • 02/26/2008
  • IBM nowadays announced the debut of its new equipment z10 mainframe laptop for commercial enterprise data facilities. The company additionally rolled out a lot of application products and programs aimed toward assisting its clients and business companions help mainframe operations and enterprise utility construction efforts.

    Clusters of PCs the usage of x86-primarily based hardware could be all of the rage, but IBM boasts that system z10 is the equal of "very nearly 1,500 x86 servers." The business is also touting the power efficiency of its most up-to-date mainframe product, citing "as much as 85 percent much less power charges."

    some of the new application products associated with IBM's equipment z10 announcement is IBM Rational company Developer. This built-in building atmosphere may also be used to enhance purposes for device z devoid of requiring the developer to understand the underlying middleware, in accordance with IBM's announcement.

    the brand new IBM Rational Host access Transformation functions (HATS) solution is designed to support developers take "green reveal"-class applications and create web features out of them that have graphical person interfaces. The HATS tool helps cellular equipment utility introduction in selected, in response to Scott Searle, IBM's product director of advertising and marketing for enterprise modernization products.

    5 IBM Rational commercial enterprise modernization options were announced these days: IBM commercial enterprise COBOL for z/OS v4.1; IBM business PL/I for z/OS v3.7; IBM Rational Developer for equipment Z; IBM Rational Transformation Workbench; and utility Configuration and Library manager superior edition for z/OS v1.2.

    despite developer hobby in more moderen programming languages, legacy coding within the type of COBOL lives on. Searle mentioned that there at the moment are greater COBOL developers around than at some other time. He estimated that there are as many as 10,000 or up to 50,000 COBOL developers in India by myself.

    because COBOL purposes get tweaked or age over the years, builders may also face the dreaded "spaghetti code" mess as they are trying to adapt legacy apps to meet existing company needs.

    From IBM's point of view, commercial enterprise modernization includes 5 components, based on Searle.

    the first element is to seem at the belongings and greater be aware the code that you've got. Separate code with respectable company good judgment from the lifeless code.

    The 2d part is associated with structure. Use an integrated development environment to take the code you have identified and reconstitute it in the stack that runs on the mainframe.

    Third, use the Rational company Developer interface and IBM's new language -- referred to as enterprise generation Language (EGO) -- to circulation workloads back and forth. EGO refaces the facts right into a more consumer-friendly format, Searle explained. EGO is an IBM language newer than COBOL and PL/I and appropriate for equipment i and device z clients.

    COBOL, Java, windows and Linux builders can all use EGO fantastically comfortably, he brought.

    "I suppose stories display that in case you are attempting to teach a COBOL developer Java, there's a really high failure price -- I've heard 80 percent," he referred to. "And it probably goes the identical method in reverse. through EGO, they both can do the equal component and they can output the outcomes in either COBOL or Java."

    Fourth, use IBM Rational ClearCase solution for device z to achieve software lifecycle administration.

    eventually, which you can look strategically at your mainframe ambiance and reuse the proven code that you recognize works, Searle said.

    For more element on IBM's announcement, see the click free up .

    about the creator

    Kurt Mackie is online news editor, commercial enterprise neighborhood, at 1105 Media Inc.


    The mainframe's capabilities for web features and cloud computing | killexams.com Real Questions and Pass4sure dumps

    this is the third installment on modernizing enterprise-important applications on the mainframe. take a look at the previous...

    chapter on the risks and benefits of software modernization.

    net features permit IT departments to make a legacy mainframe utility attainable no longer best to the complete corporation, however also to a global customer and accomplice base of millions. The internet provider's ability to supply one carrier for distinct entrance-end shoppers – conclusion users via the website, in-residence software or move-corporation expertise -- permits more rapid adjustments to the mainframe software that are available to a large range of clients. The internet service's potential to invoke other net capabilities akin to safety, business compliance and personalization, makes the mainframe utility greater characteristic-prosperous. internet service suggestions, kept in a repository, gives directors a typical application-asset counsel base to monitor and troubleshoot the superior mainframe applications.

    "Cloudization," or virtualization of mainframe apps, enhances web features through making the mainframe utility a lot greater flexible. in its place of per-platform ability on demand, it can shift workloads between systems. If a cloud does not contain a mainframe, it may well still circulation mainframe app circumstances to and within a far flung cloud -- and, of route, it could possibly stream Wintel and Unix/Linux apps to a mainframe within a cloud.

    These technical merits additionally result in broader company merits: reducing the can charge of doing company; allowing corporations to achieve improved effectivity through the use of mainframe enterprise-essential applications more simply; using the mainframe as a hub of allotted functions that scale out across the web and up within the mainframe; and giving the organization more advantageous means to adapt to changing circumstances.

    standards for an upgrading mainframe appsIT buyers should emphasize the following criteria in picking out an improve-in-area product for web enablement, web servicizing, or virtualization.

  • comprehensive functionality. The answer should consist of wide middleware that offers a magnificent application infrastructure so developers upgrading the existing application can with no trouble integrate potent new capabilities. The middleware should assist old and new applied sciences as smartly as the upgrade manner. it'll also consist of a full range of recent know-how "necessities" such as .web.
  • services. The corporation of the upgrade product should still supply consultants and methods integrators which are both experienced within the mainframe and savvy with new technology to assist upgraders and coach IT in improve gold standard practices.
  • Flexibility. The product may still handle undocumented mainframe functions and enable effortless addition of a wide array of net/e-enterprise elements.
  • Low chance. The upgrade know-how may still draw on lengthy adventure with mainframes to become aware of and cut unhealthy alterations to the utility, corresponding to changes to the schemas of an underlying database.
  • Programmer productivity. The technology should still help device units from the organisation and/or third parties. The middleware should still supply powerful APIs in order that e-company functionality will also be hastily introduced.
  • IBM mainframe app modernization optionsIBM presents a large set of mainframe utility legacy modernization and net-servicization equipment and services. The fundamental products are building and improve equipment according to the Eclipse open source framework, which provides requirements-primarily based flexibility and third-birthday party tool integration.

    Rational Developer for equipment z (RDSz), often supplemented through Rational Host entry Transformation services (HATS), provides to Rational mainframe-construction and existing-application-upgrade performance that allows for clients to put together normal latest and legacy software for inclusion in composite applications that combine company processes without problems.

    RDSz additionally comprises assist for net services and JCA connectivity to diverse models of CICS and IMS, in addition to visual modeling and move-era aid for the CICS v3 service move characteristic. It provides workflow and enterprise integration functionality to enable creation of recent composite purposes that integrate with latest application features and net functions. RDSz comprises native support for WS-BPEL4WS-compliant procedures and a number of procedure integration and ESB capabilities.

    The Eclipse initiative exceptionally helps substituting or including third-birthday party building tools to IBM's tools and framework. RDSz gives support for CICS-based mostly software upgrade. IBM's service arm offers modernization outsourcing, counsel and support, including web-servicization offerings. furthermore, IBM modernization options allow users to contain IBM's protection, privacy, company compliance and master data administration application as part of the general interface to those applications.

    The introduction of the information superhighway and cloud computing has had a mainframe utility effect directly opposite of what one might are expecting. in its place of increasing the enchantment of migrating performance-important and equivalent latest functions, the web makes it easier for companies to net-allow and net-servicize in region, adding affordable cyber web connectivity and utility deployment or cloud deployment with minimal impact on the business's construction environment. Mainframe clients should, therefore, look either for upgrade-in-area capabilities in an typical building product or a separate upgrade toolset to permit not pricey re-use of the latest utility portfolio in any building venture.

    Infostructure acquaintances and others have for a while referred to an upsurge in conversion of key mainframe purposes to internet functions providing internet carrier company interfaces. this is a major win for consumers. web-servicizing mainframe functions in place makes it possible for users to take potential of not most effective the mainframe's company-important applications but also its protection, privateness, company compliance and grasp-information-administration application. internet-servicization enhancements the mainframe's legacy purposes, turning the company software portfolio's vicious circle of increasing maintenance prices right into a virtuous circle of lowering prices and company merits available to a much wider latitude of conclusion users. Virtualization, commonly requiring no additional effort, can add affordable flexibility for cloud implementations. IBM's extensive mainframe construction and legacy-utility modernization tools, and its software for security and different web-provider needs, make it a logical option for clients seeking to get full value from a company-critical or mission-crucial mainframe application.

    in regards to the creator: Wayne Kernochan is president of Infostructure acquaintances, an affiliate of Valley View Ventures. Infostructure friends aims to provide notion management and sound guidance to carriers and clients of guidance technology. This doc is the outcomes of Infostructure buddies-backed analysis. Infostructure friends believes that its findings are purpose and signify the superior evaluation accessible on the time of ebook.

    What did you consider of this function? Write to SearchDataCenter.com's Matt Stansberry about your facts core considerations at mstansberry@techtarget.com.


    three Rational laptop tools start Beta check | killexams.com Real Questions and Pass4sure dumps

    information

    3 Rational computing device tools start Beta look at various

    IBM Rational software Architect, practical Tester and performance Tester start checking out.

    by the time you read this, IBM Corp. will have begun beta testing types of three of its key Rational desktop construction tools. however the edition 7.0 betas of IBM Rational utility Architect, useful Tester and efficiency Tester run most effective on home windows, the typical availability release will encompass each windows and Linux versions, an organization spokes-person verified.

    adjustments from the old models revolve around improvements made "to support implement service-Oriented Architectures, systems building and geographically disbursed functions [sic]," IBM noted.

    IBM's Rational software Architect provides a model-driven construction and static evaluation device for utility architects and mannequin-pushed builders creating carrier-Oriented structure (SOA), J2EE and portal functions. New in version 7.0's setting up features are a reduced installing footprint and the potential for builders to effectively configure a group's environment.

    An more desirable diagram editor creates web functions with the aid of diagramming net pages and their associated hyperlinks and automatic stream-common sense, as well as drag-and-drop integration of relational data and web capabilities into net pages.

    beneath the heading of superior C++ support, utility Architect will take expertise of many large enhancements in Eclipse CDT three.1.1 (C/C++ construction Tooling) and the capacity to create C++ area fashions with more suitable modeling aid. edition 7.0 will additionally seriously change UML to C++ extra efficiently with more advantageous transformation guide, in response to IBM.

    trying out 1, 2, 3Software Architect 7.0 will game extended unit trying out with WebSphere software Server 6.1, as well as better web security and crew modeling capabilities.

    Rational practical Tester gives automatic useful and regression trying out for testers and GUI developers who need to verify Java, visible Studio.web and web-based mostly functions. edition 7.0 includes extended atmosphere guide.

    SAP has delivered aid for useful checking out within the SAP GUI atmosphere and practical Tester now helps each Siebel 7.7 and seven.eight, as neatly. The beta also allows teams to examine on the Firefox browser, and the trying out device is now licensed as a workbench host for Citrix server. aid for Microsoft's .net Framework 2.0 is additionally protected.

    practical Tester 7.0 will add SOA-testing help to supply functional and efficiency trying out capabilities of features and business procedures. That contains checking out of headless services (no user interface within the utility beneath verify), and should provide aid for web carrier requirements such as soap, HTTP/S, JMS and WS-security. Testers can also determine add-ons of composite applications ordinary in SOA environments.

    The Rational efficiency Tester 7.0 beta lets testers computer screen system elements using windows PerfMon, Linux/Unix Rstatd or Tivoli monitoring items. It provides response time breakdown for software monitoring and difficulty analysis and provides root-trigger analysis via protecting response times.

    analyze appears into Open sourceThe college of California, Davis has gained a $750,000 supply from the country wide Science basis to habits a 3-yr look at analyzing how open supply utility is constructed. Professor Premkuma Devanbu hopes the study will demonstrate how the constitution and corporation of construction groups can impact the resulting code.by inspecting excessive-profile open supply initiatives such as the Apache web server, PostgreSQL database and the Python scripting language, Devanbu hopes to attract meaningful conclusions about building agencies and their means to produce nice application. Devanbu says his crew chosen open source projects as a result of they are in a position to profit unfettered access to communications, together with e-mails and IM chat logs.One exciting situation for Devanbu is the question of why open supply initiatives seem to defy Brooks' legislations, which states that including manpower to a late software mission most effective makes it later."or not it's no longer spectacular should you deliver people in, since you ought to train them," says Devanbu. "however that doesn't seem to take place in open supply initiatives-issues seem to go sooner. i am no longer sure why. nonetheless it can be that individuals are educated before they be a part of the task. They self-educate."

    -- Michael Desmond

    among different new features, performance Tester 7.0 provides IP aliasing to aid emulating digital user hundreds that use various IP addresses so as to extra precisely emulate actual-world scenarios.

    fascinated developers can sign up for the beta here .

    in regards to the author

    Stuart J. Johnston has covered technology, certainly Microsoft, given that February 1988 for InfoWorld, Computerworld, information Week, and computer World, as well as for enterprise Developer, XML & web features, and .internet magazines.


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    Rational Host Access Transformation Services (HATS) v7.1

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    The mainframe's potential for Web services and cloud computing | killexams.com real questions and Pass4sure dumps

    This is the third installment on modernizing business-critical applications on the mainframe. Check out the previous...

    chapter on the risks and benefits of application modernization.

    Web services allow IT departments to make a legacy mainframe application available not only to the entire organization, but also to a global customer and partner base of millions. The Web service's ability to provide one service for multiple front-end clients – end users via the website, in-house application or cross-organization technology -- allows more rapid changes to the mainframe application that are available to a broad range of users. The Web service's ability to invoke other Web services such as security, business compliance and personalization, makes the mainframe application more feature-rich. Web service information, stored in a repository, gives administrators a common software-asset information base to monitor and troubleshoot the enhanced mainframe applications.

    "Cloudization," or virtualization of mainframe apps, complements Web services by making the mainframe application much more flexible. Instead of per-platform capacity on demand, IT can shift workloads between platforms. If a cloud does not contain a mainframe, IT can still move mainframe app instances to and within a remote cloud -- and, of course, IT can move Wintel and Unix/Linux apps to a mainframe within a cloud.

    These technical advantages also lead to broader business benefits: lowering the cost of doing business; allowing companies to achieve greater efficiency by using mainframe business-critical applications more effectively; using the mainframe as a hub of distributed applications that scale out across the Web and up within the mainframe; and giving the organization greater ability to adapt to changing conditions.

    Criteria for an upgrading mainframe appsIT buyers should emphasize the following criteria in choosing an upgrade-in-place product for Web enablement, Web servicizing, or virtualization.

  • Comprehensive functionality. The solution should include extensive middleware that provides a powerful software infrastructure so developers upgrading the existing application can easily integrate powerful new capabilities. The middleware should support old and new technologies as well as the upgrade process. It should also include a full range of new technology "standards" such as .NET.
  • Services. The supplier of the upgrade product should provide consultants and systems integrators that are both experienced in the mainframe and savvy with new technology to aid upgraders and train IT in upgrade best practices.
  • Flexibility. The product should handle undocumented mainframe applications and allow easy addition of a wide range of Web/e-business features.
  • Low risk. The upgrade technology should draw on long experience with mainframes to detect and minimize dangerous changes to the application, such as changes to the schemas of an underlying database.
  • Programmer productivity. The technology should support tool sets from the supplier and/or third parties. The middleware should provide powerful APIs so that e-business functionality can be rapidly added.
  • IBM mainframe app modernization optionsIBM offers a large set of mainframe software legacy modernization and Web-servicization tools and services. The primary products are development and upgrade tools based on the Eclipse open source framework, which provides standards-based flexibility and third-party tool integration.

    Rational Developer for System z (RDSz), often supplemented by Rational Host Access Transformation Services (HATS), adds to Rational mainframe-development and existing-application-upgrade functionality that allows users to prepare typical existing and legacy software for inclusion in composite applications that integrate business processes effectively.

    RDSz also includes support for Web services and JCA connectivity to multiple versions of CICS and IMS, as well as visual modeling and flow-generation support for the CICS v3 Service Flow Feature. It adds workflow and business integration functionality to allow creation of new composite applications that integrate with existing application functions and Web services. RDSz includes native support for WS-BPEL4WS-compliant processes and a range of process integration and ESB capabilities.

    The Eclipse initiative specifically supports substituting or adding third-party development tools to IBM's tools and framework. RDSz provides support for CICS-based application upgrade. IBM's service arm offers modernization outsourcing, advice and support, including Web-servicization offerings. Moreover, IBM modernization solutions allow users to incorporate IBM's security, privacy, business compliance and master data management software as part of the standard interface to these applications.

    The advent of the Internet and cloud computing has had a mainframe application effect directly opposite of what one might expect. Instead of increasing the attraction of migrating performance-critical and similar existing applications, the Internet makes it easier for enterprises to Web-enable and Web-servicize in place, adding cost-effective Internet connectivity and application deployment or cloud deployment with minimal impact on the enterprise's production environment. Mainframe users should, therefore, look either for upgrade-in-place capabilities in an overall development product or a separate upgrade toolset to allow cost-effective re-use of the existing software portfolio in any development project.

    Infostructure Associates and others have for some time noted an upsurge in conversion of key mainframe applications to Web services offering Web service provider interfaces. This is a major win for customers. Web-servicizing mainframe applications in place allows users to take advantage of not only the mainframe's business-critical applications but also its security, privacy, business compliance and master-data-management software. Web-servicization upgrades the mainframe's legacy applications, turning the corporate application portfolio's vicious circle of increasing maintenance costs into a virtuous circle of decreasing costs and business benefits available to a wider range of end users. Virtualization, often requiring no additional effort, can add cost-effective flexibility for cloud implementations. IBM's extensive mainframe development and legacy-application modernization tools, and its software for security and other Web-service needs, make it a logical choice for users seeking to get full value from a business-critical or mission-critical mainframe application.

    ABOUT THE AUTHOR: Wayne Kernochan is president of Infostructure Associates, an affiliate of Valley View Ventures. Infostructure Associates aims to provide thought leadership and sound advice to vendors and users of information technology. This document is the result of Infostructure Associates-sponsored research. Infostructure Associates believes that its findings are objective and represent the best analysis available at the time of publication.

    What did you think of this feature? Write to SearchDataCenter.com's Matt Stansberry about your data center concerns at mstansberry@techtarget.com.


    IBM Helps Rudolf Wohrl Improve Supply-Chain Processes With Services Oriented Architecture | killexams.com real questions and Pass4sure dumps

    German fashion company, Rudolf Wohrl, has announced that implementing a services oriented architecture (SOA), based on IBM software and mainframe technologies, enabled Rudolf Wohrl AG to reengineer its supply-chain processes. Designed by IBM Premium Business Partner FRITZ & MACZIOL, the architecture enhances the efficiency and transparency of the clothing company's supply chain and was the key to rapid implementation of its new business processes.

    Rudolf Wohrl is one of the fashion retailers in Germany, selling women's wear, men's wear, children's wear and sportswear. Based in Nuremberg, it has approximately 2,900 employees and runs 38 stores. Rudolf Wohrl markets clothing from its own collections as well as the latest fashions created by renowned designers. Its large range of clothing and brands is due to the fact that it works with 500 different suppliers and partners.

    Wohrl's IBM solution has been in real-time operation since May 2006. As a result, the complicated comparison of purchase orders and delivery dockets that reflect the business transactions between Wohrl, its 40 purchasers, and 500 suppliers now takes place in automated form. The fact that IBM WebSphere Business Modeler records and analyzes this process means greater transparency, and it also reveals ways of improving processes even further. This automated solution also produces a supplier documentation that allows Wolf to rank Wohrl's suppliers according to their efficiency.

    The profit margins for retail companies in the clothing industry are relatively static. According to Michael Wolf, Director of Organization, IT, and Logistics at Wohrl, potential savings can largely be made by optimizing the corporation's business processes. Wolf examined the whole gamut of supply-chain processes and reengineered them with this fact in mind. He felt that one-off custom solutions had to be reduced, processes needed to be automated to a larger extent, and they needed to be made accessible to employees via a single, standardized interface. Wolf also believed it was important to involve staff members in the project from the beginning, and for them to analyze their business processes together. Wohrl's central inventory control system, which was developed in-house and runs on IBM System z hardware, is an important component of the new architecture.

    Further basic IT elements such as free-form search functionality were required to create a link between Wohrl's legacy system and the new technology. Following a proposal by FRITZ & MACZIOL, an IBM Premium Business Partner, Wolf opted for a service-oriented architecture based on IBM software.

    "Fashion is like yogurt -- it has a short shelf life. That's why business processes in this industry all have to take place quickly and efficiently. In other words, they need to be automated," said Michael Wolf, Director of Organization, IT, and Logistics at Wohrl AG "It's important not to underestimate the human aspect when you introduce such tools. Employees need time to get used to thinking in terms of business processes. You have to discuss the processes with them, and motivate them to accept any changes. You shouldn't expect too much at the beginning."

    "The SOA implementation conducted at Wohrl is a classic example of the advantages that IBM products and solutions have on the SOA market. More than any other manufacturer, IBM offers its customers practical modules made using open standards, on the basis of which heterogeneous IT environments can be integrated within the scope of an SOA," said Dietmar Frik, project manager at FRITZ & MACZIOL. "In Wohrl's case, one of the ways this pays off is that the company's previous investment -- its COBOL-based inventory control system -- was not only protected but can still be utilized in an innovative manner as the backbone of its business processes."

    "Rudolf Wohrl is a prime example of how the concept of SOA can be implemented effectively in a medium-sized enterprise, taking account of practical, everyday situations," said Sebastian Krause, Vice President of the Software Group at IBM Germany. "Protecting investments and integrating systems are really hot topics for mid-size businesses now, which is why there are so many innovative minds at work in precisely this segment -- people who've recognized the benefits that SOA can offer and now want to reap them."

    The SOA-Based Solution Used by Wohrl AG

    The SOA concept that FRITZ & MACZIOL developed for Rudolf Wohrl AG has four fundamental pillars: The IBM WebSphere Business Integration Server Foundation acts as the central service platform on which every workflow across the company takes place; IBM WebSphere Business Modeler, IBM WebSphere Integration Developer, and IBM Rational Application Developer are employed for modeling and developing new business processes. In Wolf's view, the ability to conduct a free-form search of the myriad of delivery dockets and invoices that enter and leave the company is another key component.

    This is why the OCR text-recognition solution is a fundamental aspect of automated supply-chain processes. An IBM WebSphere Portal Server acts as the users' front end. The data from the inventory control system are retrieved by users via the IBM WebSphere Host Access Transformation Service (HATS) incorporated in the portal. As for document management and tamperproof archiving, these functionalities are provided by an archiving solution using IBM DB2 Content Manager.


    Purpose with the Power to Transform Your Organization | killexams.com real questions and Pass4sure dumps

    Purpose can be powerful — but only if it’s authentic. A four-step approach helps organizations move beyond superficial statements to activate and embed lasting purpose.

    Everywhere these days, people are talking purpose. As big believers, we’re encouraged by all the interest. Yet we’ve observed that many organizations are merely scratching the surface; they’re missing the full power of the kind of purpose that can transform.

    Many organizations do a superficial job of articulating why they exist, settling for vision-setting exercises that lead to little more than catchy slogans and posters. Some craft purpose statements that are so generic they could apply to just about any company. Other efforts are inauthentic, like the politically correct promotion that has no connection to the company’s DNA. But even among organizations that articulate their purpose effectively, many are guilty of going no further. They do almost nothing to integrate purpose into the day-to-day experiences of their employees and customers. This “surface purpose” amounts to a thin veneer that doesn’t ingrain new beliefs and behaviors. Despite the hype, the organization remains unchanged.

    Organizations with surface purpose realize none of the benefits of authentic purpose: the energized employees, the stronger organizational alignment, the unswerving customer loyalty, and the greater value that comes from making longer-term investments in people, offerings, and new markets. And they may miss out on a fundamental element of purpose: its positive impact on society.

    Realizing purpose with the power to transform requires a different approach. From our work with many leaders and organizations over the years, we have developed and honed a methodology for discovering, articulating, activating, and embedding true purpose. In this report, we begin by examining why purpose is attracting so much attention. We then clarify what purpose is. Finally, we present the four steps that organizations should follow to bring purpose to life — to realize the kind of purpose that will anchor and guide them through challenging circumstances and changing times.

    WHY ALL THE BUZZ NOW?

    To suggest that companies have historically lacked purpose would be disingenuous. Purpose is elemental to humans and human institutions; it’s an existential imperative. We have one life, and most of us spend most of our waking hours working in an organization. It’s important that we find meaning and fulfillment in what we do.

    So, why the intense interest lately? We see five major reasons:

    Purpose Pays. First and foremost, studies show that purpose-driven organizations perform better. Our own in-depth analysis of the link between purpose and performance revealed that a deeply ingrained purpose correlates strongly with ten-year total shareholder return. (See the sidebar “The Purpose-Performance Payoff.”)

    THE PURPOSE-PERFORMANCE PAYOFF

    Various studies have demonstrated a powerful link between purpose and performance. When employees embrace purpose — when the organization lives it, rather than just proclaims it — business results follow. When organizations view purpose as instrumental to their success and integral to their corporate social responsibility, instead of as a charitable or philanthropic effort, the outcome is a virtuous cycle of business performance and community impact. Says one CEO we’ve worked with, “Purpose allows us to do good, which drives business results, which in turn allows us to do more good.”

    We put this to the test with our own analysis. We surveyed the leaders, employees, and customers of 50 companies in three major sectors: technology, media, and telecommunications; consumer products; and financial services. We analyzed the results from multiple angles, using measures such as total shareholder return (TSR), revenue, and EBITDA growth.

    Our finding: purpose (when it’s truly ingrained) correlates strongly with ten-year TSR. (See the exhibit.) So, purpose does indeed pay — and it does so over the long term.

    Leaders’ Rising Aspirations, Employees’ Shifting Priorities. In recent years, more and more leaders have declared their commitment to deliver on the triple bottom line — people, planet, and profit. Attracting, engaging, and inspiring employees, along with demonstrating responsibility to the community and committing to sustainable environmental practices, have become as important as generating profits. In addition, leaders are increasingly feeling a personal need to have a positive impact and legacy. They see business playing a larger role in shaping society.

    Similarly, growing numbers of employees are seeking more from their work. Finding meaning in one’s job and being part of an inclusive community have become more important, especially to millennials. These goals have also become more important as digital technologies proliferate and the opportunity for face-to-face interactions with colleagues and customers diminishes. People want to work for an organization that values social and environmental responsibility — that strives to make the world a better place, not just to make more money.

    The Era of “Always-On” Transformation. The sources of disruption are multiplying — new technologies, new market opportunities, new business models, new kinds of competition, new customer needs and desires, and more. This unprecedented change, along with leaders’ heightened aspirations, has ushered in the era of always-on transformation. Transformation has become the status quo; at a given moment, companies typically have several transformations underway. For example, following a turnaround, a company might implement a new business model, and then undertake a sales and marketing transformation, followed by an enterprise-wide IT initiative to support the change. (For more on always-on transformation, see Transformation: Delivering and Sustaining Breakthrough Performance, BCG e-book, 2016.)

    Amid overlapping transformations, purpose becomes even more important — providing much-needed alignment, clarity, guidance, and energy. That energy acts as fuel to a transformation by providing an emotional connection that inspires greater commitment. Purpose serves as that vital North Star, illuminating a direction and linking and steering various transformation efforts in a way that is logical and accessible to everyone. Consider a European home products conglomerate that recently launched a growth transformation that involves geographic and channel expansion and an M&A agenda. Purpose has not only helped management and the board align on the company’s future; it has also served as a go/no go decision guidepost on matters as wide-ranging as product lineup, market focus, channel choices, and M&A targets.

    The Limits of Carrots and Sticks. The shift in employees’ expectations, together with the demands of always-on transformation, has further exposed the shortcomings of attempting to influence people through carrots and sticks. In far too many transformation programs, people are treated as a means to an end or, worse, as collateral damage.

    To counter this tendency, organizations are realizing the need to appeal to head and heart with intrinsic, not just extrinsic, motivators. Extrinsic motivators focus on individuals’ desire to be rewarded (rather than punished) and to have their contributions recognized by leaders and peers. Intrinsic motivators include employees’ desire for meaning, connection, and joy in their work, as well as the desire to contribute, develop, and achieve. (See Exhibit 1.) Purpose is one of the most powerful intrinsic motivators because it speaks to both the head (as the compass that guides and aligns behaviors) and the heart.

    Take, for example, Always, the maker of feminine-hygiene products. To shift employees’ orientation beyond the concept of selling everyday sanitary products, leaders tapped into the brand’s purpose — helping women achieve their full potential — for a key market segment, adolescent girls. The company revisited its education partnership with schools, as well as its marketing efforts, to expand the focus beyond hygiene and biology to include bolstering girls’ self-confidence. Connecting to this segment in this way proved to be highly motivating to employees as well as inspiring to customers.

    A “Digital Everywhere” Business Environment. Although many traditional forms of community have eroded, people still crave the sense of connection that it provides. Digital technologies link people in multiple ways, giving employees and customers alike greater access to an organization. But without in-person interaction, the bond can seem insubstantial. Purpose enables digital interactions to be more meaningful by imbuing them with a sense of the shared values that create communities.

    Purpose also facilitates digital transformation. Unlike transformation initiatives that can be launched and driven from the top by a program management office, digital transformation tends to be a bottom-up phenomenon involving many people across the product offering and the company’s value chain. Purpose helps guide and motivate those distributed efforts by engaging people from the shop floor to the top floor — as well as external stakeholders. Consider how a European consumer goods company drew on purpose as part of its digital transformation initiative. The company launched a global social media campaign to connect customers with the company’s historical commitment to scientific innovation. The company went on to publicly support global science education initiatives, demonstrating that its commitment to science goes beyond its products.

    Before we explore how companies can instill true and effective purpose, we need to flesh out our definition.

    PURPOSE DEFINED

    So, what exactly is purpose?

    The Essence of Purpose. Unlike mission (the “what”) or vision (the “where”), purpose is the organization’s “why.” It’s at the intersection of two fundamental questions: Who are we? (that is, What are our authentic and distinctive strengths?) and What need do we fulfill in society? (Why do we exist beyond what we make, do, or sell? and Why work for us?). (See Exhibit 2.)

    In answering the first question, purpose captures what is true about the organization at its best. Purpose is also aspirational: it depicts what the organization can be and goes beyond brand positioning to take a stand. Rather than being only market driven, a purpose-based organization is also driven by values, culture, and ethos. In addressing the second question, purpose reframes an organization’s compact with the world; instead of being an obligation, social responsibility is seen as an opportunity. A purpose-based organization would assert that if it disappeared tomorrow, the world would lose something meaningful.

    Rather than employees, a purpose-based company has missionaries. Instead of customers, it has advocates. In place of social charity, it avows social conscience. Instead of loyalty, it aims for love.

    The Five Properties of Purpose. To further clarify the essence of purpose — and help organizations steer clear of surface purpose — we’ve identified five properties of true purpose. To ensure purpose that is ingrained in the organization, we offer the following litmus test: a set of questions for each property that organizations should be able to answer. (These are just a sampling.)

  • Presence. Is the organization’s purpose clear, compelling, and noticeable to customers and employees? Do they understand it enough to describe it, beyond what the company makes or sells?
  • Strength. Is the organization’s purpose inspiring? Does it reflect a real need in society? Is it a rallying cry? Could it be as relevant tomorrow as it is today? Does it suggest that the organization is resilient in the face of an unknown future?
  • Alignment. Does the purpose reflect the company’s roots, history, and DNA? Do leaders believe in it? Does it motivate them to take certain actions? Do leaders feel that being part of the company is being part of a movement?
  • Integration. Are the company’s decisions in harmony with its purpose? Does the company live its purpose with passion? Would leaders turn down a profitable opportunity or disengage from a business activity if it wasn’t tied to the purpose?
  • Advocacy. Does purpose elicit greater loyalty from employees and customers? Are people more engaged with the company because of it? Would employees and customers recommend the company to others because of its purpose?
  • REALIZING PURPOSE WITH THE POWER TO TRANSFORM

    Now let’s turn to our final, critical question: How do organizations bring purpose to life — ingraining purpose with the power to transform?

    Our approach to developing an authentic purpose and helping organizations live it integrates internal and external inputs from multiple perspectives with four steps — discover, articulate, activate, and embed — that build upon and reinforce one another. (See Exhibit 3. For a description of how a company moved through these steps, see the sidebar “How Purpose Helped One Retailer Rack Up Success.”)

    HOW PURPOSE HELPED ONE RETAILER RACK UP SUCCESS

    In the price-transparent, instant-click-and-buy internet era, being a brick-and-mortar retailer has become ever more challenging. A leading national clothing chain was starting to feel the squeeze from brick-and-mortar as well as online rivals.1 To drive growth, the company needed to do more to showcase what made it distinctive.

    As a first step, the company probed why customers chose to shop at its stores — not just the rational reasons but also the experiential and emotional ones. Surveys and focus groups uncovered insights from several thousand customers in key markets where competitors had encroached substantially. Because personal attention was the store’s hallmark, leaders understood the importance of engaging with employees on a deeper level. Focus groups helped unearth employees’ motivations and needs, such as the desire to work for an organization that played a special role in the milestones of customers’ lives. For inspiration, leaders revisited the company’s founding purpose: enabling men and women to “dress to their dreams.” By helping people express themselves and to look and feel their best, they can become their best.

    The company also brought in two experts — a psychologist and a theater director — to shed light on the role of empathy and the importance of appreciating major life milestones when dealing with retail customers.

    To ensure authenticity in the purpose statement, leaders studied the story of the company’s founder, a single mother who when returning to the workplace wanted her appearance to reflect her aspirations — without ruining the family finances. Leaders also examined the core strengths they could tap into more deeply. For example, sales associates had a reputation for being caring shopping “advocates,” adept at guiding insecure or overwhelmed shoppers toward successful purchases. And throughout the branches were hundreds of middle managers, single parents themselves, who could relate to the founder’s story.

    Local “purpose ambassadors” helped activate purpose among the frontline employees. Executives condensed store policies from a rule book to a single page of guiding principles. This allowed employees to use their judgment in creating positive experiences for customers. Together, these efforts gave managers as well as employees the freedom to find new ways to sell and to solve problems on the spot, entrusting them with ownership of the customer relationship.

    New performance management and recognition programs were instituted at 15 pilot sites. The company put in place peer-to-peer recognition and feedback programs to celebrate employee acts that represented meaningful experiences for colleagues or customers — such as the employee who helped a shopper assemble a gift of new ties for her grandson’s first job after college. Performance-based financial incentives helped reinforce success; if a store created a winning promotion tied to purpose — say, helping customers “nail the job interview” with a well-chosen outfit — sales associates would receive a bonus. The company trained store managers on delivering purpose-related messages, knowing they would be more credible and more powerful than any generic communiqué from headquarters could ever be. Doing so also reinforced the notion that purpose comes from within.

    The results are telling. In one year, pilot stores’ employee engagement scores improved twice as much as those of the stores with the next best engagement improvement. Greater engagement levels translated into better customer interactions, which showed some of the highest improvements in the company’s history. Sales in the pilot locations, which were stores that had been lagging, rose 10% over same-store sales in a two-year period. And market share was up 2% — an impressive accomplishment at a time when other chains were being forced to shutter locations.

    NOTE

    1. Based on an actual client; details have been changed to ensure confidentiality.

    Discover. How does an organization identify its purpose? It starts by digging deep to unearth employees’ sentiments and consumers’ insights. In this phase, the organization immerses itself in materials related to the company’s culture and ethos. Through employee workshops and surveys, customer surveys, focus groups, and one-on-one interviews (of people from the C-suite to the front line), the company probes such questions as, What do we aspire to be and do? What would the world lose if we were gone tomorrow?

    Once the organization has established “who we are,” subject matter experts are brought in to help leaders explore the universal human needs that the organization can meaningfully address. These experts are typically drawn from academia as well as from fields of practice; a single company might host luminaries as diverse as a Metropolitan Opera singer and a NASA engineer. Tapping experts from diverse fields helps unearth fresh, outside-the-box insights.

    For example, SunTrust, the Atlanta-based bank, invited a leading researcher on trust, labor relations, and governance to share her insights. In labor unions, she noted, trust springs from the belief that “we’re all in this together” — an important notion for a bank in the aftermath of the recession, which tainted banking’s image as wholly self-serving. And an astronomer offered perspectives on the sun’s characteristics as a source of life-giving energy and light. For the bank, this suggested the importance of shedding light on typically opaque banking practices, such as the mortgage lending process. Insights from these and other luminaries helped SunTrust formulate its defining purpose: to illuminate and energize a world in need of financial well-being.

    Articulate. In this step, the organization develops and communicates its purpose statement. It crafts a story in its own voice that resonates with employees and customers.

    Creative messaging and emotionally powerful communications are crucial for articulating purpose effectively. A two- to three-minute film can serve as a visual illustration, in which imagery, music, and text engage head and heart. Film is particularly effective for disseminating purpose to a dispersed workforce because it does the talking for leaders and ensures a consistent message throughout the organization.

    For North America’s largest building materials company (the division of a global company), film has been an effective tool for communicating purpose. The division, which had grown chiefly through acquisitions, urgently needed to foster cohesion in order to manage and leverage scale, drive growth, and succeed in the long term. After articulating its purpose, the company commissioned a film on the theme of the human impulse to build. To engage the division’s tough, independent-minded people, the film featured only real employees doing real work, wearing their hard hats, safety vests, and steel-toed boots with pride. The film (as well as key rollout communications) recounted the company’s early-20th-century roots — two entrepreneurial European brothers who began with a single truck and a sand pit — a story that would resonate with those who became employees in North America through the acquisition of smaller, often family-founded, businesses.

    Activate. Once purpose is articulated, it’s time to roll it out: to enlist leaders at all levels to take symbolic actions that demonstrate it and to embody it in their words and deeds. Activating purpose requires employee-facing as well as customer-facing initiatives. The most effective initiatives link emotional triggers (how the organization makes customers or employees feel) with experiences. Leaders need to become personally invested in the organization’s purpose, offering support for and ideas on disseminating it throughout the enterprise. Walking the talk is crucial: if the company’s purpose calls for collaboration, leaders should demonstrate it by, for example, openly sharing information across businesses or encouraging their reports to shadow a cross-functional colleague for the day. Leaders need to be willing to correct those exhibiting behavior that conflicts with or undermines purpose.

    The building materials company began activating its purpose by sharing its film with its top 200 leaders. To rally leaders located outside of headquarters, the company organized a purpose “road show” to screen the film at four locations; all levels of leadership across the country were invited. For the headquarters screening, the company rented a theater and sent out invitations with tickets, treating the event like a movie premiere — right down to the green (not red) carpet, to match the company’s color. Employees who appeared in the film got star treatment. As a symbolic gesture, executives gave employees “optimism building blocks” with the inscription, “What did you build with optimism today?” (a reference to a line from the company’s purpose statement, which reads, “Optimism is the strongest building material on Earth”). From there, the company went on to create online leadership toolkits, teaching films, and other materials critical to turning articulation into action.

    Many social mission organizations (SMOs) are seasoned at activating purpose. They don’t have at their disposal all of the “hard” levers that for-profit organizations have, such as financial incentives and other performance management tools. So to drive performance, SMOs must rely on a deep sense of purpose — often centered on meeting a profound societal need. In that way, they are able to promote transformational change. Their leaders become adept at tying change to purpose and building narratives that harness the ethos of the organization to engage employees’ passions. They draw on personal experiences and anecdotes to convey “this is why we do what we do” and to inspire their people. (See “Learning About Transformation from Social Mission Organizations,” BCG article, April 2017.)

    Embed. If the preceding step is about communicating and symbolizing purpose, this step is about deepening and sustaining it. It’s about bringing purpose to life in a way that ensures the organization embodies it every day. Purpose is embedded through longer-term changes in the organizational environment, or context. By context, we mean everything from the organization’s leadership and design to its systems, such as learning and development, performance management, and rewards and incentives — all of which shape people’s behaviors. Context addresses both intrinsic motivators (through, for example, opportunities for meaningful work and personal growth) and extrinsic motivators (through, for example, compensation and benefits and decision rights). (For more on organizational context and culture, see High-Performance Culture: Getting It, Keeping It, BCG Focus, June 2013.)

    A powerful way to embed purpose is to make it a central focus of a recruitment program. SunTrust did just that (the firm calls its approach the “Sun screen”). According to SunTrust’s former marketing director, “The number one thing our recruits tell us is that ‘The reason I’m here is because of SunTrust’s purpose.’”

    Companies should also integrate purpose into their learning and development programs and performance management systems — tying rewards and incentives to behaviors that embody the organization’s purpose. They might redefine decision rights to cultivate ownership at the local level; this could mean giving branch managers greater authority in resolving customer issues or in how they participate in community activities. Or companies might refresh their systems with digital technologies that identify practices that conflict with purpose. For example, a call center whose purpose encompassed respect for customers’ personal time might get zealous about reducing hold times. Companies might even use smartphone apps or other digital technologies to push coaching tips consistent with purpose (such as suggestions for interacting with customers in ways that advance purpose).

    An organization can also modify the work environment to help embed purpose. For example, SunTrust redesigned its executive floor at headquarters to communicate its purpose. Interactive video walls feature stories from team members and clients that demonstrate the company’s purpose. Everyone who walks this floor, which serves as a break area for employees as well as a gathering place for guests, can experience SunTrust’s purpose.

    Above all, leaders must continue to walk the talk. The choices made by leaders at every level send a powerful signal: leaders should not only publicly recognize and promote direct reports who consistently live the purpose, but they must also be willing to stand in the way of those who don’t, even those whose performance is otherwise strong. Leaders must also manage their time in a way that’s consistent with purpose. For example, if the company’s purpose requires a deep connection with customers, leaders should take the time to engage more frequently with them. This role-modeling behavior serves as a critical example for the rest of their team.

    DOES YOUR PURPOSE GET BENEATH THE SURFACE?

    Purpose always matters. But in this era of heightened aspirations for leaders, shifting employee priorities, and always-on transformation, purpose has become even more important to both guide and energize organizations. It’s powerful in smoothing digital transformation, wooing and motivating talent, and elevating employee engagement to propel a thriving organization to new heights. And purpose can help an organization emerge from crisis or help heal its ailing culture.

    As one COO we worked with observed, “Purpose turns the light on. It’s the vehicle that helps people understand why they are attracted to the company, that deepens their pride in the company, and that reinforces the emotional connection they have with the company.” And a leading CEO noted, “With purpose, you can feel an energy inside the company that’s different today than it was 15 months ago. And human energy is what creates results.”

    Purpose can be powerful, but only if it’s authentic and deeply embedded. Go beyond surface purpose. Take the time to discover and articulate your purpose. But don’t stop there. Enlist leaders and advocates throughout the organization to find enduring ways to activate and embed it. Then, and only then, will you have purpose with the power to transform.

    By: Cathy Carlisi , Jim Hemerling , Julie Kilmann , Dolly Meese , and Doug Shipman



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