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Assessing Your Organization’s Health 163
the organization is functioning is consistent with its purpose. Changes in a
purpose statement should not be made lightly, as it is fundamental in describ-
ing an organization’s reason for being.
Another important point of this first diagnostic target is that of planning,
including long-term goals and short-term objectives. Review the corporate or
functional strategic plan. Does long- or even short-term planning exist? What
should be your planning horizon? Historically, strategic plans were three to
five years or longer. In some sectors today, three or more years could seem like
an eternity. Is there contingency planning in which provisions are made for
the unexpected or for emergencies? How do you address factors affecting risk
and risk management? Do these plans help or stifle innovation or continuous
improvement? In your judgment, will these plans hold up under the pressure
of a crisis?
Compare emerging markets and product lines for synergy. Do they match?
For example, in the 1990s, one large mainframe computer company saw no
long-term future for personal computers while another mainframe manufac-
turer saw the PC as virtually its only future. The first of these companies does
not exist today. In today’s technology world, companies need to demonstrate
the ability to turn on a dime yet use their planning and innovation processes
to ensure a robust portfolio of promising products. One pharmaceutical com-
pany sees great growth in fighting infectious diseases as well as dementia and
Alzheimer’s syndrome. Another is committed to biological approaches to
treating cancer and diseases of the immune system. One hospital’s goal is to
increase profits by testing drugs while another has established extensive diag-
nostic labs in communities it serves.
How does your function fit into the company’s long-term goals? Make sure
your long-term goals help achieve the corporate goals. Similarly, make sure
your department’s short-term and yearly objectives are specific, concrete, and
measurable. Identify the signposts that measure how well they are achieved.
Make sure there is alignment between your function and the broader corpo-
rate goals.
Comparing objectives is a spiral process. Departmental objectives should
develop from divisional and corporate goals and strategies; work group objec-
tives should evolve from departmental objectives; individual leader objectives
should be related to work group objectives; and direct reports objectives
should be related to leader and work team objectives. Goals and objectives
from the most operational level upward should help achieve corporate objec-