Strategic Purpose
4 – STRATEGIC PURPOSE
4.1 Introduction
The example of Lehman Brothers show that there is a failure of both strategy and governance. In this chapter we will able to : * Consider appropriate ways to express the strategic purpose * Identify the components of the governance chain of an organisation * Understand differences in governance structures * Identify differences in the corporate responsibility * Undertake Stakeholder analysis
4.2 Organisational purpose: values, mission, vision and objectives
* Statements of mission, vision and value
Harvard University’s Cynthia Montgomery argues that the purpose of the organization is an important thing to understand the strategy of a company, moreover for someone who observes it from the outside. There is a primordial question to that: What is the organisation there to do that makes a difference and to whom ?
Montgomery suggest that executives need to find a way of expressing strategic purpose in ways that are easy to grasp and that people can relate to. There are three ways in which executives typically attempt to do this :
* A mission statement aims to provide employees and stakeholders with clarity about the overriding purpose of the organisation. A mission statement should explain in details the actions of the manager, and answer several questions like “What business are we in?” “What would be lost if the organisation did not exist” and “Why do we do this?” * A vision statement is concerned with the desired future state of the organisation. This is simple, with a vision statement a manager should explain want does we want for the next year. The fundamental question is : “If we were sitting here in twenty years what do we want to have created or achieved” * Statements of corporate values communicate the underlying and enduring core “principles” that guide an organisation’s strategy and define the way that the organisation should operate. So the question here is :
4.1 Introduction
The example of Lehman Brothers show that there is a failure of both strategy and governance. In this chapter we will able to : * Consider appropriate ways to express the strategic purpose * Identify the components of the governance chain of an organisation * Understand differences in governance structures * Identify differences in the corporate responsibility * Undertake Stakeholder analysis
4.2 Organisational purpose: values, mission, vision and objectives
* Statements of mission, vision and value
Harvard University’s Cynthia Montgomery argues that the purpose of the organization is an important thing to understand the strategy of a company, moreover for someone who observes it from the outside. There is a primordial question to that: What is the organisation there to do that makes a difference and to whom ?
Montgomery suggest that executives need to find a way of expressing strategic purpose in ways that are easy to grasp and that people can relate to. There are three ways in which executives typically attempt to do this :
* A mission statement aims to provide employees and stakeholders with clarity about the overriding purpose of the organisation. A mission statement should explain in details the actions of the manager, and answer several questions like “What business are we in?” “What would be lost if the organisation did not exist” and “Why do we do this?” * A vision statement is concerned with the desired future state of the organisation. This is simple, with a vision statement a manager should explain want does we want for the next year. The fundamental question is : “If we were sitting here in twenty years what do we want to have created or achieved” * Statements of corporate values communicate the underlying and enduring core “principles” that guide an organisation’s strategy and define the way that the organisation should operate. So the question here is :