The Hierarchy of Purpose

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Transcript

The last chapter of this section is about how to take decisions from an organizational perspective. So I've told you about making decisions, the challenges, the importance of prioritization. How to how important is to be focused, but how about companies? How about organizations? They run a lot of projects, they run a lot of activities. They have hundreds of objectives and KPIs.

How can you make sure that you take the right decisions that you invest in the right projects. So I've developed a concept of framework very simple, which I call the hierarchy of purpose. Actually, there was an article I published in, in Harvard Business Review in their blocks, and I will share the link so that you can read it, but there's five levels in this kind of pyramid or hierarchy. So first purpose, the first level, the highest purpose is defining what's the purpose of the organization. And this goes beyond like this mission. ambition.

It's What really makes the company alive? What will attract from employees? And what drives that company to success? Second is about the priorities you saw with the example with Gina and the Postal Service is what are the priorities were it's about growth? Where do we want to be in the next five years? define those priorities?

Once we have that the third level is about which projects do we invest? How can we get to those five year plans? And how can we create that growth or that expansion or, or that new technology so that will help you choose your projects because one of the biggest challenges I see is that companies have hundreds of ideas, even thousands, how do you make it to decide which ones to invest? So this is a good way priorities purpose, and then projects the fourth element, the fourth layer is the people. Obviously people are the ones carrying out the job and You need to make sure that that people know worse the company going with the purpose with the priorities in with the projects. Once you have that you realize that employees and people will work much happier and they will know where you're going.

And they will go to work, knowing how they can contribute to, to that vision and to that purpose. And the last level of this hierarchy of purpose, performance, we need to measure if you don't measure you don't know where you're going. Not so much about lagging indicators what happened in the past but identify five, seven indicators which will tell you how are you doing towards the future? How are you moving forward, and where you can take some actions when you're not going in the right direction. So don't forget purpose, priorities, projects, people and performance

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