View: System Purpose
The enterprise or undertaking starts with a purpose that gives the enterprise meaning. The purpose is the reason for being for existing as an organization. The purpose of the specific organization is generally documented in the Strategic Plan or equivalent document. This plan typically includes:
- business products and services (contribute needed result to society, the economy and the individual)
- Ownership (Living Purpose, Rooted Membership, Mission-Controlled Governance, Stakeholder Finance, Ethical Networks)
- Innovation centers
- Support delivery of infrastructure services (all technology owned by an enterprise
The principles for any system-of-interest apply to the Enterprise. Specific principles are shown below:
- An Enterprise exists to contribute a needed result to customers, society, and the individual.
- The Enterprise is realized through one or more interacting organizations.
- The whole enterprise (all organizations) are aligned to contribute their part to the purpose of the enterprise.
- Various types of organizations contribute to the purpose: suppliers, partners, channel partners, customers, etc.
- Zero waste in a circular flow of technological and biological nutrients (Circular Economy concepts).
PDF: System Description: Enterprise as a System of Systems (SoS),
This section includes the stated or implied purposes of the system-of-interest
Every Enterprise as a System of Systems (SoS) must establish their own purpose or reason for being which is used as the basis for establishing the enterprise. This is generally the responsibility of the 'Central' Organization. The purpose tends to focus on the elements in the following picture:
The key elements of the purpose inform the Enterprise Strategic Plan.
The Enterprise as a System of Systems (SoS) exists to achieve its mission (purpose), goals, objectives and provide products and services to its customers. In addition, there is a contribution to the various systems in which the enterprise operates: the individual, the economy and the society.
Customer
The enterprise creates customers. A customer may be a person or a specific organization with stated needs that the Enterprise can satisfy. The following questions help shape the purpose of the Enterprise:
The following are questions related to the value delivered by the Enterprise (from Peter Drucker)
- Who is the customer?
- Where is the customer?
- What does the customer buy?
- What is value to the customer?
- What will our business be?
- What should our business be?
The following are useful references for developing a purpose:
- Start with Why?
- Purpose relates to MTP, BHAG, Core Ideology, Context: Reason for Being, Purpose, Optimal Path
Purposeful
The organization is a purposeful system. This type of system is able to change its ends or means in one or more environments. This means that the organization is able to adapt to changes in the environment.
Ends and Means
Important to separate the two when setting objectives unless absolutely sure that the means need to be specified.
part of the challenge is getting the requirements understood and people to take responsibility for achieving them.
The Ends define 'What' needs to be done, or met. The Means define 'how' the 'what' will be delivered. Separation of Ends vs Means is very important when setting objectives or product based planning.
The vision for the organization is an important focus for the production of plans.
Each team will have a vision - this will be in their Team Management Plan.
The values for the organization are important to build integrity in the management and direction of the organization.
See 'Built to Last' Collins and Porras for information about core ideology (purpose and values).