Every organization is formed for a purpose and this aspect covers the
reason for the organization's existence and the way that it develops - whether
to teach students, distribute clothes to the poor, manufacture cars, build
houses, administer a local community, right an injustice, or just provide a
living for its owners.
The senior managers at least, need to understand the organization’s
‘Purpose’ but others connected with it should as well,
including workers, customers, suppliers and partners. Everyone should be
‘pulling in the same direction’ and ‘singing from the same hymn sheet’.
Some organizations use terms such as 'Mission Statement', which are usually a combination of
some of the elements which we use to define 'Purpose'. There are no right or wrong
definitions, but we suggest that our categorization gives a logical set of
distinct elements, which allows them to be evaluated independently and can
result in a much more in-depth analysis of why the organization is there and
what it is doing.
The six elements of Purpose