Leadership, Organisational Change Dave Martin Leadership, Organisational Change Dave Martin

Profit? Or Purpose?

What is the purpose of a company? Any company? Why do they exist? Why do they do the things they do, employ the people they employ, produce the products and services that they produce? Ask that question and most of the time you will get one answer - to make money. While that answer isn't wrong, it's also incomplete.

Legally, the directors of a company are required to maximise returns to shareholders. There are other legal requirements to make sure that a company is solvent, able to pays its bills and so on. So yes, making money is a important part of what a company does. But that's not its purpose - its reason for existing. Nothing exists just to produce money (except maybe for a mint but that's different). To be truly successful a company must fulfil some sort of other purpose - it must produce goods and services that people want to buy, and it must produce them in a way that is acceptable to the society in which they sell them. So really, an organisation's purpose is "Do XYZ, in order to be profitable". Not just "Be profitable".

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Agility Dave Martin Agility Dave Martin

Vision

Normally, the phrase 'project vision" or "project goal" elicits a collective groan from any team in which it is used. This is because project vision statements are generally... well... crap. Whoever puts them together inevitably feels it necessary to slip into management speak and string a bunch of fairly meaningless weasel words together – "we will proactively leverage our synergies to achieve outcomes consistent with our values going forward...". Lots of words but no actual meaning. No wonder people greet them with a groan.

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