The Four Natural Goals of Business

First Principles

 

Introduction

Organizations succeed when they accomplish their strategic goals and objectives. This is a relatively simple statement, but it reflects a broad array of considerations for executive teams and boards. For example, who sets these goals and objectives, and what do they entail? How do these goals and objectives align with the challenges of the marketplace and the interests of the organization? Are these goals and objectives skewed to the near-term or the long-term? And are they understood by the people who are accountable for making things happen?We’ve had the privilege of exploring strategic goals and objectives with hundreds of executives and boards. We’ve heard a great deal about purpose, vision, mission, and strategic intentions. We’ve explored general and specific goals related to business growth, performance, and change. And we’ve examined the broader, more philosophical contexts for mapping out goals and objectives. If the challenge is to evolve and sustain the enterprise over time, realistic goals and objectives serve as powerful drivers and critical guardrails. Goals and objectives are important focusing devices for strategy and decision making.

 

A Common View of Natural Goals

Across the realm of Free Market and Free Enterprise settings, there are some common drivers of forward planning and decision making. We call these the Four Natural Goals of Business. These are the foundations of economic society. They are the building blocks of strategic thinking, policy management, leadership focus, and risk management. Companies solve problems and drive innovation with the guidance and framework of these Four Natural Goals of Business. Consider:

  1. Customer Connections as a Natural Goal …
    – Finding Ideal Customers, Serving and Keeping Them
    – Engaging with Marketplace Systems, Communities
  2. Economic Performance as a Natural Goal …
    – Framing Revenue/Margin and Capital Balance, Logic
    – Matching Opportunities with Investments Over Time
  3. Comparative Advantage as a Natural Goal …
    – Shaping Something Distinctive and Value-Generating
    – Differentiation of Everything that Really Matters
  4. Corporate Stewardship as a Natural Goal …
    – Framing the Ethical Factors in Business – for Good
    – Navigating Technical, Social, and Political Interests

These should be part of the executive team and board conversation about strategy. They speak to an organization’s focus and the answer to the questions – what do we stand for, and where are we headed as a company?

 

Toward the Future – Natural Goals and Mission Command

As executive teams, boards, group managers, and strategic teams gather to prompt and craft their goals and objectives, the Four Natural Goals of Business provide First Principles and perspective. These Natural Goals guide what many people today call Mission Command:

  • Get the Big Ideas Right
  • Execute Like it Really Matters
  • Track and Measure Progress
  • Adapt, Learn, and Evolve

From these ideas, leaders can work together to put things in perspective. They can generate options, and optionality. They can build on strengths and leverage resources. They can argue and discern decisions. They can make better choices and manage risks with greater clarity. They can reduce friction and drive engagement. They can become better aligned.

Bottom Line:
Natural Goals serve to focus the organization’s curiosity, business objectives, and judgment … for better strategy.

 

Challenges of Today – Options for Tomorrow

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