Drucker, Peter with Jim Collins. The Five Most Important Questions You Will Ever Ask About Your Organization. Third Edition. San Francisco: Jossey-Bass, 2008.
Planning is frequently misunderstood as making future decisions, but decisions exist only in the present. You must have overarching goals that add up to a vision for the future, but the immediate question that faces the organization is not what to do tomorrow. The question is, What must we do today to achieve results? Planning is not an event. It is the continuous process of strengthening what works and abandoning what does not, of making risk-taking decisions with the greatest knowledge of their potential effect, of setting objectives, appraising performance and results through systematic feedback, and making ongoing adjustments as conditions change.
Another reason to encourage dissent is that any organization needs its nonconformist. This is not the kind of person who says, "There is a right way and a wrong way-- and our way." Rather, he or she asks, "What is the right way for the future?' and is ready to change. Finally, open discussion uncovers what the objections are. With genuine participation, a decision doesn't need to be sold. Suggestions can be incorporated, objections addressed, and the decision itself becomes a commitment to action. …
What is our mission? Such a simple question-- but it goes right to the heart of the fundamental tension in any great institution: the dynamic interplay between continuity and change. Every truly great organization demonstrates the characteristic of preserve the core, yet stimulate progress. On the one hand, it is guided by a set of core values and fundamental purpose-- a core mission that changes little or not at all over time; and, on the other hand, it stimulates progress: change, improvement, innovation, renewal. The core mission remains fixed while operating practices, cultural norms, strategies, tactics, processes, structures, and methods continually change in response to changing realities. Indeed, the great paradox of change is that the organizations that best adapt to a changing world first and foremost know what should not change; they have a fixed anchor of guiding principles around which they can more easily change everything else.
Customers are never static. There will be greater or lesser numbers in the groups you already serve. They will become more diverse. Their needs, wants, and aspirations will evolve. There may be entirely new customers you must satisfy to achieve results-- individuals who really need the service, want the service, but not in the way in which it is available today. And there are customers you should stop serving because the organization has filled a need, because people can be better served elsewhere, or because you are not producing results.
Need alone does not justify continuing. Nor does tradition. You must match your mission, your concentration, and your results. Like the New Testament parable of the talents, your job is to invest your resources where the returns are manifold, where you can have success.
Objectives are the specific and measurable levels of achievement that move the organization toward its goals. The chief executive officer is responsible for development of objectives and action steps and detailed budgets that follow. The board must not act at the level of tactical planning, or it interferes with management's vital ability to be flexible in how goals are achieved. When developing and implementing a plan, the board is accountable for mission, goals, and the allocation of resources to results, and for appraising progress and achievement. Management is accountable for objectives, for action steps, for the supporting budget, as well as for demonstrating effective performance.
When you have strong performance is the very time to ask,