Centrality of Purpose

My partner, Kevin Lamar, and I have encountered  many people of faith and/or goodwill who have created a not-for-profit (NPO) or charitable organization to impact and improve the world. We admire their passion and expertise. Many, unfortunately, struggle with the administrative burden of running the organization.

We have talked with foundations and other funders and hear over and over concern expressed about lack of administrative expertise in the organizations who seek and receive funds. These concerns range from board function (non-function) to lack of, or poor, record keeping, bookkeeping and planning.

The struggles of NPOs with administration, including but not limited to board function, record keeping, bookkeeping and planning, are understandable. The folks who found and run NPOs are passionate, and largely very competent, at service delivery. Too often, the pressure to deliver service overshadows administration of the NPO, which suffers. Yet without good administration, the NPO is doomed. Funders, and the public, are calling for increased accountability that NPOs do what they claim to do, and use funds for the purposes the funds are given to fulfill.

Organizations, like people, are prone to one of two paralyzing problems. One is to lose focus on exactly what it is that we are about. We have short attention spans, and tend to manage by crisis, or what is making the loudest noise, or what looks most attractive in the moment. The other is to become so focused on some minutia that we lose peripheral vision and do not see changes in the world around us that require adjustment in what we are doing.

A well thought out Purpose Statement, prominently displayed for our own benefit, helps maintain proper focus. Everything opportunity should be tested against the Purpose Statement and, if it fits, then be considered. The Purpose Statement is the gatekeeper of opportunities. Every opportunity that does not fit within the Purpose is barred from consideration. The Purpose Statement is the "Why" for the individual or the organization. It tells me why I am who I am. It tells the organization why it exists.

A great example of this is the United States Supreme Court. The only cases it hears are cases that involve a "constitutional question"--does the statute or court decision or state action before the Court fit under the U. S. Constitution? The Constitution is the Purpose Statement for the United States government. If the state action before the Court is found to fit under the Constitution, the Court permits it to stand. But if the state action does not fit under the Constitution, it is struck down and ruled "unconstitutional."

The role of the "Mission Statement" is often stressed in the literature. A good organization can have a good Mission Statement and still suffer mission drift or focus lock. A Mission Statement is the "What" for the individual or the organization. It tells the individual, or the organization, what it is to do, but not the "why" for doing it.

To individuals, I encourage you to consider your personal Purpose Statement. To organization, I encourage your leadership to consider the organization's Purpose Statement. If your, or your organization lack a Purpose Statement, stay tuned to this blog.