Pupose and Not Profits - Creating enduring Values to Organization

"The Only valid purpose of a firm is to create Customer"

The famous words of Peter Druker was recapped in the Global Peter Druker Forum 2013, when eminent management thinkers came together to find a way forward for Organizations in VUCAD environment.(Volatile,Uncertain,Complex,Ambiquiois,Dynamic)

Many of the discussions and finer points are well known to the business leaders and corporate heads, but the challenge they face is in executing  the same.The so called VUCAD environment is going to be permanent feature as we see business world getting connected globally. 

Organizations need to understand the New Center of Gravity for Management. The traditional concept of maximizing profits to shareholders does not help enterprises cause, in the new age of VUCAD  environment. The business leaders have to go beyond the monetary values and look into the" Purpose" of their existence. The center of gravity lies in the Purpose and not in the Profits.The adaptability to this change will be a critical factor for organizations to sustain and succeed in VUCAD milieu. 

Purpose is the glue that sticks the people together, which is critical for the success of business. Denial to adapt to the change can lead  the organization to become extinct over a period.

The responsibility lies with the business leaders to get into the transformation act and the challenge will be much more for Change Management Consultants who have to sweat out to get the buy-in from everyone. 

Here again we can get to understand the relevance of Customer centric organizations Peter Druker was talking about a generation back. The balance of power in the marker place has shifted decisively from inside the firm to the customer. 

The evolution has gone that far from being a sellers market few decades back to buyers market and then to customer delight to collaborative innovation. The change in recent period had been faster with the advent of VUCAD post the globalization and the metldown. 

The conventional methods of doing business will be a serious risk. Today succussful organizations talk about shared vision, participatory management.and self governance as key differentials. Age old practices like command based control and hierarchical bureaucracy, with its rules, plans and reports, simply can’t get that job done. 

People have to align to the organizations purpose through collaborating from inside and outside by networking. Continuous improvement through getting their creativity will make a positive impact in the given conditions. 

Final words,  Business has to happen in VUCAD conditions and the Purpose can act as the compass to get the control.The focus should be to converge the critical dimensions of the organization like Goals,Structure,Value and Communication with that of People to deliver value to customer. 

T Margabandhu , Marggo India. Visit us in www.marggo.in