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Organisational purpose - Coggle Diagram
Organisational purpose
Every organisation needs a purpose, that is why an organisation is formed in the first place and why it continues to exist
One of our recurring themes is the centrality of people, with their diversity, their idiosyncrasies and most importantly their thought processes and behaviours
Purpose is formed by people, driven by people and delivered by people and successful fulfilment of purpose is celebrated by people
It is also people who suffer when there is a lack of purpose, when the original purpose has not stayed aligned with the changing organisation or world or when the purpose proves to be supported by an ineffective or loss-making business model
There can be a lack of clarity in an organisation between vision and mission, between objective and goal between strategy and objective, between goal and target
At the top of any perceived hierarchy, we need to be able to understand the strategic vision: what is it that the leaders within the hierarchy are trying to achieve and what it is the rationale behind that vision?
The rationale might be defined as the mission of the organisation. Further, it is suggested that all other aspects of strategic definition flow from and are aligned to this clarity of difference between vision and mission
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SMART thinking
One frequently used method of focusing on the specific attributes of the strategic objectives is the use of the acronym SMART
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The purpose is to provide a structure through which a series of criteria can be assessed, considered and challenged
S - specific, special, significant, seismic
M - measureable, meaningful, motivational, massive
A - attainable, achieveable, acceptable, action-based, accelerating
R - realistic, relevant, rational, rewarding
T - timely, traceable, testing, transforming
CA2006 requires all companies other than small companies to discuss the financial and non-financial indicators of the organisation within their annual strategic report; these need to be SMART
The increasing importance of the environmental stakeholder and the need for organisations to consider their longer-term sustainability has led to the development of a concept known as the 'triple bottom line'. This suggests that organisation should be looking at three core areas of strategic objective:
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The impact of the organisation upon the economy, environment and society
The interaction of all three of these areas is fundamentally important in maintaining a positive organisational reputation
The Integrated Reporting Council (IIRC) which actively encourages organisation to view their strategic objectives and produce their annual report and accounts in an integrated manner, ensuring that the different aspects of the report interrelate and are not a series of isolated sections. Underpinning the IIRC concept is the identification of seven different forms of capital within an organisatin
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The identification of objectives is not always straightforward within an organisation and problems can often occur. These are usually based around confusion as to the ultimate vison, together with different interpretation of that vision and other priorities thet are required to achieve success. Some examples of common problems that might be associated with the clarification and fulfilment of objectives are
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