Purposeful Organizations

We tend to use the term "purpose" when we talk about something that brings meaning to life, not something that we just do.  Lots of organizations develop evocative "mission" statements, to be sure.  They can be very valuable in their own right, but I intend to go beyond that here.  The challenge is to look unblinkingly at the deeper "why" of an organization and its form.

To be provocative, let me suggest that most for-profit corporations have the same purpose: to provide a financial return for its shareholders (for their investment) and its employees (for their time). Corporations may be formed for other reasons, of course, even noble reasons, but when push comes to shove, or if a conflict lands it in a court of law, the financial questions tend to trump all others.

I don't mean to suggest that there is anything wrong with pursuit of financial gain, or forming a corporation that clearly has that purpose.  Quite the contrary.  Adam Smith based his study of market-based economics on moral philosophy, and I think he had good reason to do so.  I observe, however, that relatively few people like to say that their life's purpose is the accumulation of financial benefits for themselves and their employers' investors.  Ask the questions:

• What brings meaning to your life?
• What do you believe your life is in service to?
• What is your purpose(s) in life?

Most people's answers will involve how they relate to people around them, the world, or their God.  If money is mentioned, it is usually instrumental to something else, such as caring for family and friends, or doing something for their communities.

So, when a group of people organize themselves in pursuit of something that is intrinsically valuable to them -- not just instrumental -- then I describe that as a "purposeful" organization.

Ironically, many nonprofit and religious organizations that position themselves as purposeful organizations end up being remarkably focused on financial flows.  I am sure that we all have our own examples. There is a disconnect between their purpose and their structure.  They have trouble practicing what they preach.

As you might guess, I believe that agreement-based, distributed network organizations may provide an untapped vehicle for creating effective, purposeful organizations across all sectors of society.  But perhaps most surprisingly, I have concluded that:

The greatest potential benefit to society may come in forming purposeful commercial organizations, and that they will easily out-complete their non-purposeful peers. 

Or maybe that just says something about my own purpose...