Friday, May 4, 2012

Organizational Purpose

I've been flooded with discussions on strategy lately.  And one of the main questions that comes up is along the lines of "What is the purpose of the organization?"  Organization, of course, can mean any group of people - not necessarily a for-profit corporation.  It can as small as a two-man garage band or as large as Wal-Mart.

I'm a firm believer that every organization needs a purpose, no matter how small.  Purpose can be anything.  It could be to make music, to enjoy the company of friends, mutual protection, or any number of other reasons.  The most common in business is "to make money," which was the mantra pushed in a book I read, The Goal.  Making money is a key to survival, but it can't be the only reason for an organization's existence.  BUT...

Problems with Organizations Focused on Making Money

  • Wouldn't be a very rewarding place to work.  
  • Output would tend to reflect only high-reward opportunities. 
  • Ignores new opportunities.
  • Can breed unethical and/or illegal behavior.  
  • Creates a hostile, driven work environment.
  • Don't make a true impact on the world (for good or evil).  
That last one is the key.  You really want to make a difference in the world, and an organization is the best way to do it. It enlists others and gives them something to strive for.  The whole is greater than the sum of its parts is no more obvious than in a smooth-running organization.  

Here are some organizational purposes.  
  1. To make easy-to-use, aesthetically pleasing technology
  2. To help people suffering from the ills of third-world life.  
  3. To maintain and distribute common goods.  
  4. To provide convenient drug and convenience stores.  
  5. To provide high-quality baked goods and meals containing them.   
  6. To protect the United States.  
What do you think about the Chicago Cubs?  Fox News?  Your local high school?  

-sjk


My Answers:
  1. Apple
  2. Red Cross
  3. Government
  4. Walgreens
  5. Panera Bread
  6. U.S. Army

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