Tuesday, May 16, 2017

Strategic Planning: Defining the Business Environment Part 2


Think about the following questions regarding your organization within a larger social context.
  • Why does the organization exist?
  • What contribution do we make to our community (society)?
  • What are our most important nonfinancial objectives?
  • How would you describe our current core ideology?
  • What is the reputation of our organization within our industry?
  • What is our reputation among our employees?
  • What is our reputation within the community?

We often think the purpose of most companies is to make money.
  • In American society today, financial profitability is the most important measuring stick of success.
  • A short-term focus on profits drives most downsizing, reengineering, cost cutting, and mergers and acquisitions.
  • While these steps can make businesses more efficient in the short run, a narrow focus on profitability measures can kill the "spirit" of an organization, driving away its best people.
  • Money is like food, oxygen, and water; these are not the reasons for our existence and yet, without them, we cannot exist.
  • The best companies don't define their identity or legacy around making money but rather making a contribution to the good of the community or larger society of which they are a part.
  Until next time...

Sheryl Tuchman, SPHR, SHRM-SCP

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