Peter Drucker on the 6 Key Questions Every Organization Needs to Answer
Jason Hoffer our New Frontiers/TST Director passed this Peter Drucker quote to me from some reading he’s been doing – Management, Tasks, Responsibilities, Practices. It perfectly applies to the discussion in my previous posts about the 6 Key Questions every organization needs to answer, and specifically the answers to the last four Key Questions – “why do we exist?”, “what makes us distinct?”, “what do we want to achieve in the long-term?” and “what do we want to become?” Drucker says…
“It is not easy for the management of a successful company to ask, what is our business? Everybody in the company then thinks that the answer is obvious as not to deserve discussion. It is never popular to argue with success, never popular to rock the boat. Sooner or later even the most successful answer to the question, ‘what is our business?’ becomes obsolete. Very few definitions of the purpose and mission of a business have anything like a life expectancy of thirty, let alone fifty years. To be good for ten years is probably all one can normally expect. In asking, what is our business? Management therefore also needs to add, and what will it be”
Notice Drucker’s language of both “doing” (i.e. Mission, BHAGG & Brand) as well as “being” (Vision). Drucker understood that the answer to the last four questions will change over time if an organization and its leaders stays attuned to the world around them.
And I wholeheartedly agree with Jason’s comment about the contemporary perspective of Drucker’s thoughts – “that was written in 1974 – I can imagine if he were to write that now those years would be dramatically fewer”
The Architecture – The Final Two Questions Every Organization Needs to Answer, Part 5
There are two final questions (click here for the 6 Key Questions) every organization needs to answer to assure long-term effectiveness.
Both questions move from the current state of an organization (the focus of the first 4 questions) to the future state. Though the answers to the first four questions provide “guard rails” for the answering the final two questions, they do not specifically define the future.
But the answers to these last two questions do define and articulate the desired future state of the organization. And because of that, the answers can and should change over time, especially as they become reality. Let’s take a look at each question and how an organization can answer them.
What do we want to achieve in 15, 20 or 25 years? Big Hairy Audacious Goal – BHAG (or Big Hairy Audacious God Goal for faith-based organizations)
The BHAG concept’s taken from Jim Collins and Jerry Porras book Built to Last. They state that BHAG’s are bold, challenging and daunting goals that stretch the organization. As goals, BHAG’s are definable, measurable and drive the organization to “think out of the box” while inspiring people to see the possibility of a different future.
Finally,
What do we want to become in 5, 10, 15 years? Vision
We call this the “be” question because in articulating a desired future state – a vision, the answer is more qualitative then quantitative. It centers the organization on what it wants to become. The answer usually include words like “best”, “biggest”, “innovative”, “world-changing”, “life impacting”, etc.
The answers to both these questions drive, inspire and help assure the organization isn’t just looking at today but is aspiring to do and be more tomorrow.
In my next post I’ll provide some resources that can help your organization answer the 6 Key Questions.
To see SpringHill’s answers to the 6 Key Questions click here.
The Framework – The Next Two Questions Every Organization Needs to Answer, Part 4
Once an organization answers the first two of the 6 Key Questions – “what do we believe to be true?” and “what’s important to us?” it then needs to answer these questions –
Why do we exist?
What makes us distinct?
The answers to the first two questions, though absolutely critical, do not make an organization unique. But the answers to this second set of questions begin to highlight the essential distinctness an organization brings to the world.
Why do we exist? Mission
By answering this question an organization identifies its purpose for existence by focusing on the difference it’ll make in people’s lives and in the world. Mission is an action and outcome orientated statement and should be, in part, a response to the needs of the world in which the organization finds itself. For this reason, mission may change or adjust over time in response to the unique opportunities its context presents.
What makes us distinct? Brand (or philosophy of ministry for faith-based organizations)
Every organization has a brand (whether intentional or accidental) – it’s the attributes which make it distinct. An intentional brand requires thinking through the attributes of its products or services which are apparent to those who experience the organization, then making these attributes a reality in every part of the organization. The brand is the tangible expression of an organization’s mission, core values and statement of faith.
Answering these two questions is necessary for an organization to identify its unique calling and its distinctiveness in living it out.
In my next post we’ll look at the final two of the 6 Key Questions every organization needs to answer – “what do we want to achieve in the long-term?’ and “what do we want to become?”
To see SpringHill’s answers to the 6 Key Questions click here.
The Foundation – The First Two Questions Every Organization Needs to Answer, Part 3
As I’ve posted twice over the last month, about the 6 key questions every organization should answer. Over the next few posts we’re going to take a closer look at each question.
We’ll begin with the first two questions – “what do we believe to be true?” and “what’s important to us?” The answers are foundational and should never change, though they can occasionally be updated for clarity’s sake. The answers are the underpinnings for the other four questions. And like any good foundation, they need to be protected from any form of compromise.
Question 1: What do we believe to be true?
Typically religious organizations have a statement of faith or a confession that answers “what do we believe to be true?” drafted through blood, sweat and tears and then, unfortunately, ends up on the shelf somewhere. Yet in a world where truth seems to be like shifting sands, articulating what you believe can and should be integral to an organization’s DNA. There is not appropriate length to such a document; it depends entirely on what is held as true.
Even for non religious organizations I’ve come to believe that answering this question can be a unifying process and help provide clarity and alignment for the entire organization.
Question 2: What’s important to us?
Core Values, on the other hand, should be limited to 5 to 8 succinct and memorable statements that answer the question “what’s important to us”? They define what an organization should and shouldn’t do. Jim Collin says in Built to Last – “it is absolutely essential to not confuse core ideology with culture, strategy, tactics, operations, etc.” Core values transcend all these things while guiding their appropriate implementation. Refer to Built to Last for some examples.
With these two foundational questions answered an organization is ready to answer the next two questions – “Why do we exist?” and “What makes us distinct?” both of which we’ll look at in my next post.
To see SpringHill’s answers to the 6 Key Questions click here.
Creating a Culture of Commitment, Part 2
- What do we believe to be true?
- What’s important to us?
- Why do we exist?
- What makes us distinct?
- What do we want to achieve in 15, 20 or 25 years?
- What do we want to become in 5, 10, 15 years?
In a previous post I wrote that these are the 6 questions every organization needs to answer to assure long-term effectiveness. But it’s not just having answers, its making the answers a visible reality in the culture of an organization that makes a difference.
When the answers become a “visible reality” the organization’s members, be it staff, volunteers or donors, begin to believe in and become committed to the organization’s health and success.
Why does this happen? Linda Hill and Kent Lineback tells us in their new book Being the Boss – The 3 Imperatives for Becoming a Great Leader.
“People relate to worthwhile purposes and goals. Most of us want to feel a part of something larger and more important than ourselves. When workers were asked how important it was that their lives be meaningful, 83 percent said ‘very important’ and another 15 percent said ‘fairly important’. That’s an astounding 98 percent to whom it was at least ‘important’. Is it important to you and those who work for you? Most likely, it is.
The same survey revealed that less than half of all employees in every industry studied felt strongly connected to their company’s purpose. Most organizations – whether a small group or a large company – are missing a great opportunity by not focusing more on why they do what they do and why they matter to the world.”
Has your organization answered these 6 questions and made them a visible reality in your organization? Can you verify it by commitment of your staff, volunteers and donors? If you can answer yes to both questions your organization is on its way to long-term health and effectiveness.
To see SpringHill’s answers to the 6 Key Questions click here.
- What do we believe to be true?
One Step Closer to Dunking a Basketball
Our son Mitch just told my wife and I that he dunked a dodge ball for the first time yesterday. Dunking a basketball has been a goal of Mitch’s and yesterday’s feat was tangible evidence of his progress towards reaching his goal.
He was proud of his accomplishment because, as he said, “it takes lots of small steps to accomplish a goal and yesterday was one of those steps in me dunking a basketball.” Our 16-year-old understands a powerful reality about reaching goals – if we want to accomplish a difficult task or reach a challenging destination we need to break it down into achievable steps and patiently work our way through those steps.
This process of breaking down a goal, task or project into smaller steps does a number of important things that increases the odds we’ll reach our desired end.
First, it forces us to think through, plan and count the cost of all that needs to be done to ultimately accomplish a goal. Mitch knows there’s more work to be done if he’s ever going to compete in a slam dunk contest.
Second, if we ultimately don’t achieve our goal, we have the consolation of having improved and being in a better place than we were before we started. Yesterday Mitch jumped higher than ever before.
Finally, and maybe the best reason for breaking down our goals into manageable steps, is it creates many opportunities for small victories which give us confidence and motivation to keep going forward. Dunking a dodge ball is a small victory and it fired Mitch up to keep moving along his journey to achieving his goal of dunking a basketball.
What goal do you have that would become more achievable if you broke it down into smaller steps?
Choosing the Right Measuring Stick
?
Recently, at SpringHill, we’ve made an intentional change in how we evaluate our current performance. As I’ve mentioned in previous posts we track a number of indicators that help us gauge how well we’re performing against our goals and fulfilling our mission.
Even though, for years, we set annual goals, broken down by period (our year’s divided into three periods like a hockey game) and by month, our default position has been to compare our results to the previous year. There are many reasons we’ve done this but I think, at the end of the day, it’s been our desire to always improve that’s made last year’s results our measuring stick. So if we exceeded last year, we’ve improved and because improvement has been a higher priority than achieving our goals, we’ve been satisfied.
Then, over the last year, our team’s recognized that improving isn’t enough, that we work hard at setting achievable goals that align with our longer term targets. Our goals mean something. They’re important, even more important than what we did last year because, though we may be improving, the improvement doesn’t guarantee we’ve went far or fast enough to reach those long-term targets.
So we’ve made the change, it’s official. We no longer have improvement over last year as our measuring stick. It’s now our annual, period, and “split time” goals that we measure our performance against.
We’ve even taken last year’s numbers off our Scoreboard which we review in our weekly Huddle meetings. We’ll continue to use the previous year’s results as input into our goal setting as well as in helping analyze our current position but it’s now performance against our goals that will drive our work.
Funeral Perspective
I attended two funerals last week. I’ll admit I don’t like the reality of death. The Scriptures are clear – God created us to live forever. Instead death stole into the world, not as a welcomed friend, but as an enemy. So I have biblical support for my strong dislike of death.
But, though I despise death, I’ve come to appreciate funerals.
First, I appreciate funerals for the reasons we have them – they provide an opportunity to grieve our loss, to celebrate the life of a loved one, and to be with family and friends.
Yet there’s one more reason I’ve grown to appreciate funerals. It’s the serious perspective that can be gained, whether we like it or not, when we come face to face with death.
These funerals were for two very different people who died at two different places in their lives, one at the end of what we’d call a good long life, the other passed in mid-life. As I sat quietly in each service I asked myself two perspective giving questions. Each question had an eye on my potential funerals – one at the end of a long life and the other, more immanent, at mid – life.
The first question was simply “who’d be at my funeral and why”? The answer’s very revealing about the significance my life has had on others – whether it was positive, negative or neutral.
The second question is “what would be said about me?” Again the answer shines a needed light, showing what, if any, difference I made in the world. It also points to what I did or didn’t do with the gifts and abilities God gave me throughout my life.
So last week I not only attend two funerals, I had a needed perspective checkup on my life and how I’m living it.
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Running for Clarity
For years I’ve been a runner. I run because it’s a simple, inexpensive way to stay in shape. Running is also an excuse to be outside, regardless of the weather. As such I’ve never owned a treadmill because, when I’ve had the opportunity to use one, I’ve found them to be well… torturous.
I have also discovered another significant benefit of running – when I run I find better solutions to pending problems, gain new perspectives on relationships, have better focus on a message that needs delivering or pray with more clarity.
The only reasonable explanation I’ve heard for this phenomenon is that running, with its physical rhythm of moving and breathing, especially outside, clears the mind of the clutter that can so easily cloud our thinking.
When I’ve had periods when I’m not running or not running much, I see a decrease in the quality of my thinking, especially around complex issues. On the other hand, as I look back on the last 30 years of my life, I can almost connect every good decision I’ve made, or idea I’ve had, to a run I’ve taken.
Now running isn’t for everyone. But doing something that includes the following three elements is a must if we’re to have any hope of experiencing clarity of thinking:
Rhythmic physical activity
That’s so simple to do it requires no thinking to do it
And keeps any potential distractions away
Such things as biking, walking, swimming or rocking in a chair (my 2nd favorite activity after running) can create the right combination of these elements as well.
So whatever the activity, making the effort to do it on a regular basis will de-clutter our minds and give us the clarity of thinking that’s necessary to deal with the complex world in which we live.
