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Hey Reader 👋🏻

It has been 3 weeks since my last newsletter - this is the first time I have gone more than 2 weeks between newsletters since launching ~2 years ago - But I am glad I took this break (and sorry if you missed me! 😆).

I often feel pressure to get this newsletter out every week, but sometimes it's necessary to take a break - for multiple reasons - but in this case it was to deliver Immersive PX | Amsterdam, which was AWESOME! 🥳

Honestly, there is way too much to share about that experience and still plenty I am processing about it, but I am delighted that it delivered what we had designed to do - provide a truly transformational experience for all those who attended.

From the direct feedback (and feeling the energy in the room!) - I know we 100% delivered on that 🙏🏻🙌🏻

I don't want to share someone's story for them, so I won't give the details that sit behind this statement, but I do want to call out Fabrizia Zanca in particular, who commented; "I can genuinely say that this event changed my career FOREVER" 😱 - I think we can call that transformative!

Honestly, these live immersive experiences are really hard to put together and I still haven't cracked the profitability model, so it's super challenging at times to keep pushing on to deliver them - But it's the experience of people like Fabrizia which make it SO worth it 🙏🏻

Having had a week to reflect, I am left with an overwhelming sense of pride and gratitude - It's a real privilege to be able to put these experiences together and to see first hand the impact that they have for those who attend and for the people and businesses they got back to influence 💜

The Transformation Economy 🦋

I had a moment of personal revelation - actually more than one - during the event. The one I want to share today came from Jessica Zwaan's workshop. Jessica was talking to us about "The Purpose Economy" which is the subject of her new book and builds on the "The Transformation Economy" model, to explore the various ways purpose can be leveraged in the different stages of the employee experience model she outlined in Built for People.

It was super interesting to have the mainstream view of purpose challenged. Since the emergence of purpose focused models like Simon Sinek's "Start with Why", purpose has been seen as the silicon valley panacea for creating high-performing businesses.

Whilst alignment to a strong organisational purpose matters to some, does it matter to all? Does it need to matter?! and if not, then what role does purpose play in culture, performance, and the experience of work?

I think we all had a collective moment of realisation and reflection - perhaps purpose isn't the cultural panacea we have been sold after all... I will let Jessie close this loop when her new book launches later this year, but I think it is going to become another People & Culture must read.

Anyways, that's not what I wanted to talk about specifically today - it's the original Transformation Economy model.

I have written about this basic concept in the newsletter previously (ironically - or perhaps not) - inspired by Jessica Zwaan's contributions at PX Espresso Live last year 😆

📖 Recommended reading: The Transformation Economy by Pine and Gilmore

🎧Recommended listening: Work for Humans podcast episode featuring Joe Pine​

TL:DR

The model shows how economic value evolves. We started by trading commodities. Then we manufactured goods. Then we delivered services. Next came experiences - designing moments that feel personal, immersive, and memorable. But now we’re entering the transformation economy - where the value isn’t in the moment, it’s in the change it creates.

Core Progression of Economic Value: Commodity → Goods → Services → Experiences → Transformation

Each stage adds more personal relevance and value. If experiences are the stage, transformations are the outcome. People pay (with money, time, or energy) not just to feel something, but to become something.

Jessica ran through a series of questions with us, asking us to move around the room based on our answers - one of those questions cut me deep. Mainly because the question tapped straight into something I was experiencing in the moment (and which was causing me a lot of discomfort). That question was (paraphrased as I can't remember the exact wording); "Does/would your organisation prioritise experience over profit?"

What a powerful question. 🤯

If the answer was yes, you were likely operating in the transformation economy. Worth noting, sacrificing profit is not mandatory (or advised 😆) but it is a good litmus test to see where your priorities lie on the economic scale.

As a bootstrapped founder - who was in that very moment - taking a financial loss to put on a transformative experience, I felt like it was a question just for me. Truthfully, I needed that question to help me rationalise my decisions or at least find comfort in them. It's always been a non-negotiable for me with Sapien-X. I would actually call it a first principle of the business; Experience first.

Many times I have had decisions to make, particularly as it relates to the PX Espresso Live and Immersive PX events - I haven't got the live experiences to profitability (yet) - some of the reason is just the cost of learning - but, a good chunk of the cost attached to my event is related to speaker and attendee experience. Whenever a decision on spend comes up, my stance is always; We must not compromise the experience. Often times, that means compromising the P&L.

Maybe I am just a bad businessman - I do think that sometimes - But Jessie's question along with the direct feedback of personal transformation from attendees gives me comfort that I am making these decisions for the right reasons and that bad business or not, I will not compromise the experience. Transformation depends on it.

My mantra in recent months has been: Think in decades. Act in weeks.

Profitability will come in the decades ahead. The right decision for my short term acts is to continue to prioritise creating experiences of transformation. I strongly believe that to be true.

Transformation Through PX

My guess is that the Transformation Economy model will be resonating with you as it relates to the PX product we create for employees - It’s not just about giving employees memorable moments. It’s about designing experiences that lead to real, personal change. Growth. Confidence. Mastery. If we want People Experience to be truly valuable, we need to stop asking “Did they enjoy it?” and start asking “Did it change them?”.

I would actually encourage you to use both question as part of your people initiative retros - start first with "Did the [end user(s)] enjoy it? followed by "Did it change them?".

The enjoyment piece is great, obviously we want to shoot for enjoyable experiences, but the reality is, it isn't always possible - a redundancy or lay-off for example - the likelihood of "enjoyment" or "delight" is low (very low!) - However, "Did it change them?" - Assuming the process is well designed, well executed, and delivered with genuine care and compassion, you might just stand a chance of creating lasting positive change.

Perhaps that example is the wrong one, I have gone right to the extreme, a lay-off is never nice. For anyone. Sometimes success is making a horrible experience as least damaging as possible, that in itself can lead to a sense of lasting gratitude if not change.

Perhaps a better example would be a difficult but critical feedback conversation - These conversations are very hard to get right, often avoided, and certainly not enjoyable for either party. However, spending the time preparing managers to have these conversations when they matter most will 100% lead to experiences of transformation. Ingeborg shared in her talk; "nice is telling people what they want to hear today. Kind is telling people what they need to hear tomorrow" - this is also fitting for the feedback example. A nice experience would be telling the employee what they want to hear - a transformative experience is telling them what they need to hear.

I believe the best People teams are in the business of transformation.

They’re designing a People Experience product which is helping people become better versions of themselves. That’s what drives retention, performance, advocacy… all the good stuff. So if we want to be seen as strategic partners - not support functions - we need to operate like we’re in the transformation economy. Because we are. Whether we realise it or not.

OK, that’s a wrap for this week.

Grab your coffee and open up your inbox same time next week for more insights, tips, and resource flags on how to smash HR silos, add strategic value and turn your People function into a growth driver 🚀

With love,

Luke ✌🏻

PS, when you are ready you might like...

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