The Cost of Ignoring Purpose
"Where there is no vision, the people [organization] will perish..." (Proverbs 29:18)
This timeless proverb highlights a truth that applies not only to individuals but also to organizations. Businesses and nonprofits that operate without a clear vision and strategy are adrift, ultimately jeopardizing their long-term viability.
The Hebrew word for “perish” (para) means to cause people to go out of control, to run wild, or to cast off restraint. Perhaps you’ve worked for a para-organization.
According to Norton and Kaplan, in their book, The Balanced Scorecard, 90% of organizations fail to execute their strategies as planned. There is a disconnect between planning and execution of the plans.
Another study in the Harvard Business Review reported that 85% of organizational leaders confess to spending less than one hour each month reviewing strategies and connecting them to performance. Over 50% of these leaders admitted to spending no time reviewing the strategy's implementation.
Vision is a Screen Providing Focus and Alignment
A well-defined vision statement outlines an organization's aspirations and provides a roadmap for the execution of work. The statement creates a screen through which all opportunities are examined to see if they fit. This stated purpose unites employees towards a common goal. Without this, efforts become scattered, resources are misallocated, and a sense of aimlessness sets in. They “perish.”
Worse yet, some organizations have a stated purpose but fail to execute strategies and tasks that move them closer to achieving that purpose. They aspire to greatness but do nothing to accomplish that stated greatness. The organization's vision should guide what each stakeholder should do.
Organizational leaders must connect the desired outcomes of the organization's mission, the supporting strategies, and, most importantly, specific expectations for all organization members related to their role in achieving the strategy. Expectation setting and accountability are generally lacking as they relate to achieving the missional intent of the organization. Expectations and related accountability are essential to organizational success.
When employees don't understand the "why" behind their work, sustaining motivation and making strategic choices supporting the bigger picture is complex, and the blame for organizational failure lies with leaders.
How Lack of Strategy Undermines Effectiveness
Inefficient Resource Allocation: Organizations often spread their resources too thin without a strategy, creating financial instability and human exhaustion. They may chase every potential opportunity without considering long-term impact, leading to wasted time, money, and talent.
Missed Market Shifts: Strategic foresight and being proactive to those envisioned shifts allow organizations to anticipate changes in their environment and adapt quickly. Without vision, they become reactive, playing catch-up rather than seizing new opportunities. This puts them at a competitive disadvantage and can lead to declining effectiveness.
Poor Decision-Making: Daily decisions should align with the organization's purpose and strategic goals. Lacking a clear strategic intent leads to a haphazard approach, hindering the ability to make sound, well-reasoned choices that drive success. The stated mission or purpose should serve as a screen to vet all existing work and future opportunities to determine what should be pursued and avoided.
Decreased Stakeholder Engagement: People want to contribute to something meaningful. They want to make daily progress toward meaningful work. Without a compelling vision, their efforts feel detached from a bigger purpose. When vision is missing, disengagement rises, impacting productivity, innovation, and organizational success.
Four Tips on Embracing Visionary Leadership:
Articulate a Compelling Vision: Engage stakeholders to craft a concise vision statement that captures the organization's aspirations and inspires action. Whether formatted as a mission, vision, or purpose, this statement should guide work and exclude efforts that do not align with the organization's stated purpose.
Develop an Actionable Strategic Plan: Break down the vision into actionable steps with measurable goals and define strategies to achieve them. Define each organization's role in a way that directs behaviors that support the organizational purpose. Be specific.
Communicate Expectations: Share the vision and strategic plan with stakeholders at all levels, aligning their individual contributions with the overall direction. Most expectations are not specific enough, leaving the stakeholders with an undefined obligation to fill their work time with activity.
Embed Purpose into Decision-Making: Use a broad-based understanding of the organizational purpose to guide daily choices, ensuring consistency and maximizing resources.
Investing time and resources into defining a clear path forward is not an annual special event that is quickly forgotten; it's a daily necessity for sustainable growth and organizational effectiveness.