Chapter 8 - Expressing organisational purpose Flashcards
Strategy and organisational purpose
What is the role of organisational purpose?
Organisational purpose is the fundamental reason for a company’s existence, guiding its strategy to achieve this purpose.
Strategy and organisational purpose
What are the three time dimensions of organisational purpose?
Past (learning from history), Present (assessing current values and culture), and Future (planning for necessary changes and future success measures).
Elements of organisational
purpose
Define ‘strategic vision’ and its importance.
A mental image of a desired future state that motivates, gains commitment, and encourages performance; it prevents the organisation from becoming static.
Elements of organisational
purpose
What is the purpose of a mission statement?
To clarify the organisation’s overall purpose, building understanding and confidence in its strategy.
Elements of organisational
purpose
What emotional factors should be considered in a mission statement, according to Maccoby?
Survival, Relatedness, Play, Information, Dignity, and Mastery.
Elements of organisational
purpose
List the five core traits in a mission statement identified by Lynch.
Nature of business, customer needs focus, organisational values and beliefs, sustainable competitive advantage, and reasons for existence.
Elements of organisational
purpose
What four elements make up the Ashridge model of a mission statement?
Purpose, Strategy and Scope, Values, and Standards and Behaviours.
Elements of organisational
purpose.
What is the McKinsey 7S model, and how does it relate to organisational strategy?
A framework that aligns Strategy, Structure, Systems, Shared values, Style, Staff, and Skills to reinforce organisational mission and strategy.
Elements of organisational
purpose
What are strategic objectives?
Specific, definable outcomes that turn vision and mission statements into practical reality.
Elements of organisational
purpose
Define SMART objectives.
Objectives that are Specific, Measurable, Attainable, Realistic, and Timely
Elements of organisational
purpose
What is the ‘triple bottom line’ concept?
A focus on three core areas: Profit (financial performance), People (stakeholder value), and Planet (environmental and societal impact).
Elements of organisational
purpose
What is the aim of integrated reporting?
To link strategy, governance, and performance with social, environmental, and economic contexts, showing long-term viability and resource allocation.
Elements of organisational
purpose
What are the six capitals in integrated reporting?
Financial, Manufactured, Intellectual, Human, Social and relationship, and Natural.
Elements of organisational
purpose
What are the three core principles of an effective statement of purpose, according to Lencioni?
Focus (guiding decisions), Motivation (encouraging commitment), and Clarity (reducing misinterpretation)
Elements of organisational
purpose
Provide examples of organisational purpose statements.
NG - “Empowering people to stay a step ahead in life and in business”;
Kellogg’s - “Nourishing families so they can flourish and thrive”;
IAG - “To help people manage risk and recover from the hardship of unexpected loss.”
