The Heart of Business

The Heart of Business Plot Summary

Introduction

In today's rapidly evolving business landscape, leaders face unprecedented challenges that test not only their strategic acumen but also their deeper sense of purpose. Many executives find themselves trapped in a cycle of pursuing profit at all costs, measuring success solely through financial metrics while neglecting the human element that truly drives sustainable growth. This approach has led to widespread disengagement, with studies showing that over 80 percent of employees worldwide feel disconnected from their work. What if there was a fundamentally different way to lead? This is the question at the heart of purposeful leadership—a philosophy that places meaning, human connection, and authentic values at the center of business strategy. By reframing leadership through the lens of purpose rather than profit alone, organizations unlock what might be called "human magic"—the extraordinary performance that emerges when people feel truly connected to their work and each other. The following chapters explore how this transformation happens, providing practical guidance for leaders at any level who seek to create environments where people and purpose drive sustainable success.

Chapter 1: Discover Your Purpose Beyond Profit

Purpose serves as the guiding compass for both individuals and organizations, extending far beyond the traditional aim of maximizing profit. At its core, purposeful leadership begins with a fundamental shift in perspective: recognizing that business exists not merely to generate returns for shareholders, but to make a meaningful difference in the world. This principle asks leaders to identify and articulate what truly matters—the "noble purpose" that can inspire extraordinary commitment and performance. When Hubert Joly first took the helm at Best Buy in 2012, the company was struggling. Analysts were writing obituaries for the retailer, predicting it would soon follow other electronics chains into bankruptcy, unable to compete with online giants like Amazon. Upon visiting stores as part of his onboarding, Joly discovered disengaged employees who felt disconnected from any larger purpose. In one particularly telling moment, he found himself in a nearly empty store where sales associates showed little interest in helping customers, focused instead on simply completing transactions. Rather than immediately implementing dramatic cost-cutting measures as many expected, Joly took a different approach. He worked with his team to define a purpose that went beyond selling electronics: "to enrich customers' lives through technology." This wasn't just a slogan but a fundamental reorientation of why the company existed. When employees could see their work as helping people use technology to solve real problems and enhance their lives—rather than simply moving inventory—everything changed. The transformation began with each person reconnecting with their own sense of purpose. At Best Buy's Holiday Leadership Meeting, managers were encouraged to reflect on what drove them personally. Their answers revealed deeply human motivations: "being able to see the corners of the world with Grandma Shirley, my favorite person on this planet" or "helping employees and customers fulfill their hopes and dreams." These personal purposes could then connect meaningfully with the company's larger mission. To discover your own purpose beyond profit, start by asking yourself simple but profound questions: What gives you energy? What makes you feel most alive? What contribution do you want to make to the world? Look for the intersection of what you love, what you're good at, what the world needs, and what you can be paid for. This "purpose diagram" can help identify your sweet spot. Remember that finding purpose is rarely a sudden revelation but rather an ongoing journey of exploration and refinement. Don't expect perfection or immediate clarity. The key is to start connecting your day-to-day actions with something larger and more meaningful that drives you forward. When leaders operate from this place of authentic purpose, they create environments where others can do the same.

Chapter 2: Create Meaningful Human Connections

Human connections form the essential fabric of purposeful organizations, creating the environment where engagement flourishes. At its essence, this principle recognizes that business is fundamentally about relationships between people—not abstract entities or systems—and that these connections drive performance in ways that far exceed what traditional management approaches can achieve. True engagement emerges when people feel genuinely seen, valued, and connected to those around them. Kamy Scarlett, who headed human resources at Best Buy, demonstrated the power of authentic connection when she made a courageous decision to share her personal struggle with depression on the company blog. She described how she had hidden her condition for years, fearing judgment or sympathy, until her husband encouraged her to seek help. "The shadow cast by others gave me the courage to share," she wrote. "In the spirit of paying it forward, I am hoping the shadow created by my story brings courage to you." The response was overwhelming. Hundreds of employees responded to her post, and Kamy received 371 personal emails, each containing someone's own story. During a store visit, a young woman approached Kamy and revealed that after reading the blog post, she had sought help following a suicide attempt. By showing vulnerability and sharing her authentic experience, Kamy had created connections that transcended typical workplace relationships and potentially saved lives. This example illustrates what research has consistently shown: engagement is directly linked to the quality of human connections at work. In fact, Gallup's famous Question 10—"Do you have a best friend at work?"—proves to be one of the strongest predictors of workplace engagement. Initially skeptical of this seemingly "fluffy" measure, Joly came to recognize its profound importance through his experiences at multiple companies. People don't give their best because they're impressed by intellectual brilliance; they invest themselves when they feel respected, valued, and cared for. To create meaningful connections in your organization, start by treating everyone as an individual with unique needs, aspirations, and contributions. Make people feel they exist and matter—what one Best Buy executive called "making people feel big." Practice active listening without judgment, and encourage appropriate vulnerability by sharing your own challenges when relevant. Create psychological safety where people can admit mistakes and ask for help without fear. Fostering diversity and inclusion is also essential to meaningful connections. When Best Buy discovered through focus groups that African American employees often felt unseen and stuck at entry-level positions, the company implemented mentorship programs and expanded recruitment efforts with Historically Black Colleges and Universities. These initiatives recognized that human connections must cross traditional boundaries of difference to be truly meaningful. Remember that connection begins with you. As a leader, how you show up—with authenticity, vulnerability, and genuine care for others—sets the tone for your entire organization. The strength of these human bonds directly translates to extraordinary performance that defies rational expectations.

Chapter 3: Foster Autonomy and Decision-Making

Autonomy represents the freedom to control what you do, when you do it, and with whom—a fundamental element of what intrinsically motivates people to perform at their best. This principle challenges the traditional command-and-control approach to management, recognizing that in today's complex environment, those closest to the work often have the best insights into how to improve it. Fostering autonomy unleashes creativity, speeds innovation, and dramatically increases engagement. Maurice Grange, who headed maintenance at computer company Honeywell Bull in Paris, taught Joly a powerful lesson about autonomy early in his career through what he called "the theory of the mare." Imagine a veterinarian trying to extract a stone from a horse's hoof, Grange explained. If the vet holds the hoof, the mare gradually puts more weight on the vet, eventually risking crushing him. The only solution is for the vet to let go, forcing the mare to stand on her own. Similarly, if managers try to carry their teams and solve all their problems, employees will lean on them more and more, eventually crushing them with dependencies. This wisdom ran counter to Joly's analytical training, which emphasized a top-down approach where smart executives devised strategies that would then trickle down through the organization. But over time, he witnessed how pushing decision-making as far down as possible transformed performance. At Best Buy, this shift became evident during the transition from turnaround to growth strategy. During a flight to San Antonio with Corie Barry, then head of the strategic growth office, Joly asked if the purpose of their trip was to decide whether to expand a pilot program for in-home advisors to new markets. "No!" Barry replied. "I have already made that decision!" Joly's grin of approval signaled how far the organization had come in distributing decision authority. To foster autonomy in your organization, start by clarifying which decisions should be made at which levels. Best Buy adopted the RASCI model, which specifies who is responsible, accountable, supporting, consulted, or merely informed for different types of decisions. As CEO, Joly realized he needed to be personally responsible for just four areas: overall strategy, major investments, executive team composition, and setting the tone for company values. Everything else could be delegated, with varying levels of consultation. Creating a participative process is another key element of fostering autonomy. Early in his career, Joly witnessed how a battery-making factory improved operations by having front-line workers generate ideas rather than imposing solutions from headquarters. He applied this lesson repeatedly throughout his career, including at Best Buy, where the turnaround plan emerged from workshops with broad participation, not from the CEO's office alone. Remember to adjust your approach based on skill and will. Delegation works best when people have both the ability and motivation to succeed independently. In emergency situations—like Best Buy's turnaround—more direction may be temporarily needed. As conditions stabilize, autonomy can increase. This situational approach ensures that independence leads to success rather than frustration. By fostering autonomy, you create an environment where people feel ownership of their work and can respond quickly to changing conditions. When combined with clear purpose and human connections, this freedom becomes a powerful force for extraordinary performance.

Chapter 4: Develop Mastery Through Coaching

Mastery represents the journey toward becoming skilled through instruction and practice in something that gives you joy. This principle recognizes that people are inherently motivated to get better at what they do, and that creating environments that support this growth leads to both personal fulfillment and exceptional business results. The path to mastery focuses on continuous improvement rather than perfection, emphasizing effort and process over outcomes alone. In 2014, at the height of Best Buy's Renew Blue turnaround, Joly visited the company's operations in Denver, curious about their exceptional performance. The region had improved average revenue per sales associate by $14 per hour—a 10 percent increase unmatched anywhere else in the company. If replicated across all stores, this improvement would translate to $4-5 billion in added revenue. The secret? Regional manager Chris Schmidt had revolutionized how the company approached employee development. Schmidt realized that the traditional one-size-fits-all approach to sales management made little sense. Instead of asking everyone to focus on the same metrics regardless of their individual abilities, he mined available sales data to understand where each person could improve. Some associates needed help with conversion, while top performers in revenue per hour might benefit from expanding the range of products they sold. Most importantly, Schmidt implemented weekly one-on-one coaching sessions where managers and associates would review the previous week's performance, set specific improvement goals, and role-play scenarios to build skills. The results were remarkable. Sales associates were energized by seeing exactly how they contributed to store performance and how they improved over time. They loved the highly personalized attention to their development. When Joly experienced this coaching approach firsthand during his visit, he was so impressed that the company rolled it out nationwide. It became one of the most critical changes during the turnaround. To develop mastery in your organization, focus first on efforts rather than results. Like Bob Ladouceur, the legendary high school football coach who led the De La Salle Spartans to a record 151 consecutive wins, tell your team: "Nobody expects you to play perfect tonight. It's impossible. But what we do expect, and what you should expect from yourself and each other, is a perfect effort." This mindset keeps people motivated through challenges and setbacks. Replace traditional training with regular coaching. Research shows people forget 80 percent of classroom learning within a month unless it's practiced on the job. Instead, work with individuals on practical skills in real-life situations with frequent check-ins. Transform performance reviews from annual grading sessions to quarterly conversations focused on development rather than judgment. As Kamy Scarlett noted, "You can't manage people's behavior, and you can't manage their performance. You support their potential." Remember that mastery is a lifelong journey with no final destination. Even world-class athletes continue working with coaches throughout their careers. By creating an environment where everyone can continually improve their skills and pursue excellence in areas that give them energy, you build a culture of growth that delivers exceptional results.

Chapter 5: Embrace Growth and Possibilities

Growth creates the environment in which human potential flourishes, fueling a sense of possibility that energizes individuals and organizations alike. This principle challenges leaders to move beyond a fixed, constraint-based mindset to one that sees opportunities where others see limitations. By focusing on possibilities rather than problems, leaders create momentum that carries their teams through even the most difficult challenges. When analyzing Best Buy's struggles in 2012, Joly noticed a recurring theme in the company's communications with investors: "headwinds." The company explained its declining performance as the inevitable result of external forces—market contraction, online competition, changing consumer habits. Yet something didn't add up. "How is the wind where you are sailing?" Joly imagined asking competitors like Apple and Amazon. "The wind is great! Great sailing. We're having the time of our life," they would surely answer. If they found the wind at their backs, then the problem wasn't the wind—it was Best Buy's approach. This realization led to a fundamental shift in perspective. Rather than accepting constraints as fixed realities, Best Buy began looking for possibilities. In 2017, when developing the company's growth strategy, strategic growth leader Asheesh Saksena proposed redefining what Best Buy considered its market. Instead of narrowly focusing on retail sales of physical hardware in stores, Saksena expanded the boundaries to include the total consumer spend on technology, including services and subscriptions, for each human need the company addressed. This view transformed Best Buy's potential market from approximately $250 billion to over $1 trillion. The proposal initially made the executive team nervous. They worried about losing credibility by claiming territory they weren't sure they could capture. But Saksena's expansive thinking illustrated exactly what was needed: rather than focusing on getting a bigger slice of an existing pie (market share), Best Buy could create entirely new markets and unlock latent demand. This "Blue Ocean strategy" opened horizons that had been invisible when viewing the business through a lens of limitations. To embrace growth and possibilities in your organization, start by examining how you define your challenges. Are you focused on constraints or opportunities? Microsoft CEO Satya Nadella demonstrated this shift when he began demonstrating Microsoft software on Apple's iPhones—acknowledging that Microsoft's future wasn't limited by its own hardware market share but could expand across all platforms. This mindset transformation energized the company's culture, accelerated innovation, and sent the stock price soaring. When setting goals, balance practicality with ambition. During Best Buy's growth phase, the company learned to "dream big and start small" with initiatives like the in-home advisor program. Rather than limiting possibilities based on existing constraints (like store count), they imagined what could be possible by starting with customer needs, then built toward that vision incrementally. Even crises can become opportunities when viewed through a lens of possibility. During the Covid-19 pandemic, companies discovered that virtual conferences could reach far more participants than physical events, and appointment-based shopping could provide better customer experiences than open browsing. By asking "what's possible now?" rather than focusing solely on limitations, organizations found new paths to growth. Remember that your purpose provides the ultimate horizon for possibility thinking. When Best Buy defined its purpose as enriching lives through technology, it created a North Star that would remain relevant regardless of how products, channels, or business models might change over time.

Chapter 6: Lead with Authenticity and Values

Authenticity and values form the foundation of purposeful leadership, guiding how leaders show up and make decisions in service of something greater than themselves. This principle recognizes that effective leadership emerges not from projecting an image of perfection or power, but from a deep connection to one's true self and core values. When leaders operate from this authentic center, they create environments where others can do the same. In 2020, as Marriott faced devastating impacts from the Covid-19 pandemic, CEO Arne Sorenson released a video message to employees that became a masterclass in authentic leadership. He appeared without his full head of hair, lost to cancer treatment—a shocking vulnerability for a CEO. He spoke honestly about the company's challenges but also offered hope. "I can tell you that I've never had a more difficult moment than this one," he said, his voice breaking. "There is simply nothing worse than telling highly valued associates, people who are the very heart of this company, that their roles are being impacted by events completely outside of their control." Sorenson's message resonated deeply because it combined vulnerability with clear-eyed assessment and determination. Rather than projecting an image of invincibility, he brought his whole, imperfect self to a moment of crisis. This authenticity created connection and trust during a time when both were desperately needed. Joly's own journey toward authentic leadership wasn't always straightforward. Raised to believe that professional and personal lives should remain separate and that emotions had little place at work, he initially struggled to open up. Even after his divorce, which left him with a profound sense of failure, he threw himself into Best Buy's turnaround rather than processing his feelings. It took years before he could share these experiences with friends and colleagues, eventually allowing him to lead with his heart and gut, not just his head. Authenticity goes hand-in-hand with values-based leadership. When Joly asked Russ Fradin, a former McKinsey partner, for leadership advice early in his career, Fradin offered simple guidance: "Tell the truth and do what's right." These values became touchstones throughout Joly's career. During crises, he found that holding firmly to values made difficult decisions clearer, as when Best Buy's leadership chose to close stores early in the Covid-19 pandemic despite being classified as an essential business. Employee and customer safety came first, regardless of financial impact. To lead with authenticity and values, start by clarifying what truly matters to you. Authentic leaders maintain a strong connection to their purpose and regularly examine whether their actions align with it. Harvard professor Clayton Christensen suggests it's easier to stick to your values 100 percent of the time than 98 percent, as making exceptions "just this once" leads down a slippery slope. Be willing to show appropriate vulnerability. This doesn't mean sharing everything about your personal life, but rather being honest about challenges, admitting when you don't know something, and asking for help when needed. Remember that vulnerability is the foundation of trust and human connection. Finally, recognize that authenticity isn't about being perfect—it's about being real. When Joly stepped down as executive chairman of Best Buy in 2020, he titled his farewell email to senior leaders and board members simply: "I love you!" This heartfelt expression would have been unthinkable earlier in his career, but it reflected the authentic connection he had developed with his colleagues during their journey together. By leading with authenticity and values, you create space for others to bring their whole selves to work, fostering the human connections that drive extraordinary performance.

Summary

Throughout these chapters, we've explored a fundamentally different approach to leadership—one centered on purpose and humanity rather than profit and power alone. The journey begins with discovering your purpose beyond financial metrics, creating meaningful human connections, fostering autonomy, developing mastery through coaching, embracing growth, and leading with authenticity and values. These principles work together to unleash what Joly calls "human magic"—the extraordinary performance that emerges when people feel connected to something meaningful and to each other. As you move forward in your leadership journey, remember that the transformation starts with you. "The way you change behaviors is by changing behavior," Joly reminds us. Begin by clarifying your own purpose and values, then create environments where others can do the same. Make space for authentic human connections, push decision-making to appropriate levels, coach rather than control, look for possibilities where others see constraints, and show up as your whole, imperfect self. This is the path to not just better business results, but to more meaningful and fulfilling work for everyone involved. Start today by asking yourself and your team one simple question: "What drives you?" The answers may surprise you—and set you on a journey toward purposeful leadership that transforms both your organization and your life.

About Author

Loading...

Hubert Joly

Hubert Joly is the former Chairman and Chief Executive Officer of Best Buy Co., Inc. who has been recognized as one of the top 100 CEOs in the world by the Harvard Business Review, one of the top 30 CEOs in the world by Barron's and one of the top 10 CEOs in the U.S. by Glassdoor.During his time at Best Buy he led a company transformation in which customer satisfaction and employee engagement went up dramatically, the company's carbon footprint went down by more than 50%, and Best Buy's share price went from a low of $11 to a high around $90.His upcoming book, "The Heart of Business - Leadership Principles for the Next Era of Capitalism," takes the reader inside the mind of a CEO who leads with a remarkable philosophy: Find your noble purpose. Put people at the center. Unleash human magic.Joly is a member of the board of directors of Johnson & Johnson and Ralph Lauren Corporation, a vice chairman of the Business Council, an executive advisor at World50, a member of the International Advisory Board of HEC Paris, a Trustee of the Minneapolis Institute of Art and a senior lecturer at the Harvard Business School.He is a knight in the French Legion of Honor and the French National Order or Merit.

Read more