If you ask Peter Faricy, a career shouldn’t just be about working. It should be about working toward something.
Faricy boasts an impressive résumé, which includes stints as an engagement officer at McKinsey & Company; two vice president positions at Amazon; and chief executive officer, direct to consumer at Discovery Channel. While he enjoyed his work with these companies, he couldn’t help but feel something was missing. He wanted to feel like he was really “making a contribution to the world.”
It was this desire that led him to become chief executive officer at SunPower Corporation, a residential solar power company.
“If you’re going to work so many hours, which all of us will the rest of our lives, it does feel rewarding to work on something that can make a real positive difference in the world,” he said.
At SunPower, Faricy embraced mission-oriented leadership. He recently shared his perspective on this strategy with MBA students, faculty, staff, and alumni as part of the M. Keith Weikel MBA Leadership Speaker Series at the Wisconsin School of Business.
What is mission-oriented leadership?
As the name suggests, mission-oriented leadership puts a company’s mission and values at the center of its operations.
“Mission-oriented leadership is when you focus on something in addition to just the financial results of the company,” Faricy explained. “It’s something that goes above who the leader of a company is. And it’s something that really focuses on … what’s the goal, what’s the dream of what you’re trying to go do.”
“Mission-oriented leadership is when you focus on something in addition to just the financial results of the company. It’s something that goes above who the leader of a company is. And it’s something that really focuses on … what’s the goal, what’s the dream of what you’re trying to go do.”
—Peter Faricy
This way of thinking resonates particularly with the younger generations of leaders, Faricy said—and its relevance is only growing.
“I think this mission-oriented leadership is becoming a more important part of being a great business leader.”
The pros: Why mission-oriented leadership works
Faricy shared his observations about why a mission-first approach to work isn’t just fulfilling—it’s also a smart business decision.
Employees are engaged.
Employees at mission-oriented companies are passionate about what they do, empowering leaders to build stronger teams.
“We had incredible engagement scores at SunPower, much better than any other company I’ve ever been a part of,” Faricy explained. “People love being part of a company that has a mission—they’re very proud of it. They wear it on their sleeve; they think about it when they’re not working; they think about it when they’re working. And so this employee engagement is a big asset.”
It attracts talent.
Mission-oriented leadership is an effective tool for recruiting, developing, and retaining talent. Sometimes, people are even willing to earn a smaller salary than they would at other companies.
Faricy recalled a time that he was recruiting an outstanding candidate, who also happened to have offers from Goldman Sachs and Amazon.
“We’re just this humble residential solar company—we couldn’t afford to pay this guy probably 50% of what he could have made at Goldman and 75% of what he could make at Amazon. But we ended up getting him to come to SunPower. And it was really because of this mission orientation.”
Employees are resilient in the face of adversity.
Faricy noted that even when the business environment is challenging, employees retain their focus on the mission.
“When you’re committed to something in your heart, in your life, you’ll work through tough times,” Faricy said. “I feel like mission-oriented companies really over-index on people that are strong and persistent. And when you hit tough times, they’re still with you, because they really see the bigger picture of a mission.”
The cons: Why mission-oriented leadership can be challenging
For all the advantages of mission-oriented leadership, Faricy admitted there are drawbacks too.
People can take on a nonprofit mindset.
At times, mission-oriented leadership can breed friction between the mission and delivering financial results. For instance, Faricy recalled fielding questions like: Why doesn’t SunPower put all the money in its foundation and give everyone in the U.S. free solar power?
“A lot of times, mission-oriented companies do attract people who love the mission, but may not love the financial part of it,” he said. “I think one of the critical parts is, is there a way for you to link those two things together?”
He continued, “What I would constantly try to say to people is, ‘Listen, the reason it’s a good idea for us to make money is we get to invest in the kinds of technologies that will make this problem easier and easier to solve over time, or it’ll allow us to expand the number of financial offerings we have, so that more and more people can afford residential solar over time.’”
There’s no place for egos.
Sometimes, it can be tricky to balance the needs of a company’s mission while recognizing individual performance.
“Mission-oriented companies, they don’t really respect the ego,” Faricy said. “If someone tries to pop up and pretend they’re king or queen of the of the company, everyone else is like, ‘Sit down.’ … You have to figure out a way to attract the right people—and people who have a need to have their ego as part of their role, these are often the wrong companies for them.”
“I feel like mission-oriented companies really over-index on people that are strong and persistent. And when you hit tough times, they’re still with you, because they really see the bigger picture of a mission.”
—Peter Faricy
There are limited opportunities for advancement.
Because employees at mission-driven companies are so engaged, they often want to stay long-term. That means fewer promotion opportunities exist.
“I think most people in human relations would say, ‘Way to go—low turnover is positive,’” Faricy said. “And it can be a positive for sure. But it can also be a challenge. Because if you want people to be able to grow and advance in their career, you need to create opportunities for them.”
Reflection: What mission-driven leadership means for you
Faricy challenged his audience to consider how mission-oriented leadership might impact their careers. To help them get started, he provided a series of reflection questions.
Does your company mission matter to you?
Should you think about that question as you explore opportunities? Will it influence which company you choose? Do you look at the mission statement before you interview with a company?
Should you incorporate the company mission into how you lead?
Whether or not the mission matters to you, does it matter to the people on your team? Would you be a more effective leader if it did matter to you and if you could speak to your team about the mission? Is there a way to bring the company together by collectively considering the mission?
How can you take advantage of the mission while minimizing any downsides?
Are there strategic steps you can take to help ensure being a mission-oriented leader ends up being positive?