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Why Organizational Mission, Vision and Values Matter?

At the very heart of the existence of any organization lies the answer to a very important “why” question. And this question always needs to be about why the organization should ever exist, namely its purpose! All organizations exist for a purpose. And the purpose always has to do with serving somebody or something else. No organization can exist for serving nothing but itself. For such an organization would sooner or later die. There has therefore to be a need that the organization wants to satisfy and it is only when well-defined ideas on how to provide for this need in the best possible way are defined that an organization can exist.   Organizations may come to existence for achieving a purpose. However it is not this purpose that drives their evolution. Organizational mission alone cannot do that. It is simply not enough for an organization to identify why it should ever exist in order to go forward. It is also of paramount importance to also identify what it needs to do wi...

What Is an Unhealthy Organization and what to Do about it?

Every organization exists for a reason, which always has to be about serving somebody or something else. The very existence of any organization depends on that, since it is a well-defined reason that gives rise to a strong purpose. And it is exactly this purpose that drives the organization forward, thus allowing it to grow and prosper. In this sense therefore, a purposeful organization is a healthy organization. After all, a healthy organization is one that can be self-sustained by providing for its environment both now and in the future.   As long as the organization successfully serves an existing need and it does that by consuming resources that are less costly than the value of this need, is both effective and efficient in the short-term. Such an organization is a healthy organization today. An organization that can foresee future needs and can stay integrated when making the necessary transition is both effective and efficient in the long-run. Organizations that can do al...

Which Is Better, Democratic or Autocratic Management?

There have been a lot of discussions regarding democratic versus autocratic management dilemma during the last couple of decades to say the least! The current generation of managers and to a large extent the previous one too is proud to have abandoned the autocratic management styles of the older ones. They boast that, in this way, they have managed to motivate people, to increase productivity and to a large extent to increase the capacity of their organizations to develop.   For sure, democratic management has a lot to offer. However, it does not always represent the right approach. Democracy is good for decision making. This is so because in democracies everybody has the right to offer ideas and opinions. And it even goes further than that. In true democracies this is even an obligation. One has to participate too. And if one does not do so, one does not have the right to complain afterwards… Democratic management therefore allows organizations to make good decisions. In this...

What Is Organizational Aging and what to Do about It?

Organizations are born in order to serve a purpose. And this purpose is in turn always about serving somebody or something else. There simply has to be a need that needs to be satisfied for an organization to be born. It is however only when the commitment of the founder to the idea overcomes his or her perceived risk, that the organization may come to life. Organizations are therefore born out of an entrepreneurial glimpse in the eyes of their founder and it is this entrepreneurial spirit that drives them all the way through as they grow. However, entrepreneurship is not enough for organizations to prosper…   As they grow, organizations need to become more systematized. Entrepreneurship offers flexibility. However, control is also important. Organizational effectiveness is simply not enough. Organizations have to be efficient too. And they have to be both effective and efficient both in the short and in the long term. As organizations grow therefore they introduce controls. Co...

Why Is Organizational Mission so Important and what to Do about it?

Every organization has to have a reason to exist. And this reason is always about serving somebody or something else. Its very existence depends on that. Otherwise, there would be no point for the organization to exist. The premise is very simple. If there is a need that has and that can in some way be satisfied, the organization can exist. Otherwise it cannot and will not. Should however there is a reason, there can and there has to be a purpose. And the purpose would need to be to serve this need in such a way that the organization would be chosen by those for the service of whom it exists, not only once but repeatedly.   Organizational purpose embodies the answer to the fundamental question of why the organization should ever exist. And the answer to this question is the first and foremost one. It is essentially what drives the answers to all the “what”, “how”, “who” and “when” questions. Simply put, without a well-defined answer to the fundamental “why” question, no other q...

What is Digital Transformation all about and what to Do about it?

The digital wave that sweeps everything around is so strong that many have been led to speak about the fourth industrial revolution. More and more organizations of all kinds and sizes are striving to find their way in this modern environment… And this is quite understandable, since all of them need to transform themselves digitally, even for ensuring their own survival. However, in order for them to be successfully transformed digitally, they have to learn how they may be transformed anyway. And this seems to be today more relevant than ever!   The main characteristic of the first three industrial revolutions was that machines mainly contributed to the increasing of the efficiency of human effort, which in turn led to an increased productivity by orders of magnitude. They therefore essentially helped in doing things that were being done in the past anyway but in a better way. In this context, the use of the concepts of scale and specialization helped humanity to answer a lot of...

One Day at a Time… as Opposed to Planning!

All plans will eventually fail... No matter how carefully one plans, no matter how detailed his or her plans are, no matter the quantity and the quality of the information that he or she has used in order to build them, his or her plans will eventually fail. And they will fail because there is no way that anybody, no matter how clever, no matter how creative he or she is, he or she can ever take into consideration all the possible contingencies. They will simply fail because of change! And if this is the case, a plausible question that would normally arise is why one should plan at all… There is however a good reason for this!   If one does not know where one wants to go, all possible routes would lead him or her there… In the planning process one has to figure out a starting and an ending point. One has to therefore deeply know where one stands and where one wants to go. And this is not a simple task at all simply because knowing where one stands is equivalent to deeply knowin...