The Raison d’Être of Organizations: Moving the Rock Beyond Survival

Organizations are not merely random assemblies of people and resources; they are born with a purpose, a raison d’être. This guiding principle is essential to their creation and sustainability. As Ichak Adizes wisely points out, organizations do not exist simply to exist. They have tasks to accomplish, objectives to meet, and, ultimately, a reason that justifies their existence. In exploring this insight, we dive deeper into understanding why businesses are formed and how their purpose, when clearly defined, can distinguish thriving organizations from those merely surviving.

The Illusion of Survival as Purpose

Some sociologists argue that the primary goal of any organization is survival. On the surface, this seems logical. Organizations must survive to provide for their stakeholders, employees, and customers. However, as Adizes emphasizes, survival is not the ultimate purpose of an organization. Survival is a basic instinct, a prerequisite to something greater—but it should never be mistaken for the end goal.

Consider an organization as a group of hikers with a shared goal to reach a beautiful lake. Along the way, they encounter a giant rock blocking their path. The rock represents obstacles in the journey of the organization. To reach the lake (the desired outcome), they need to move the rock. But if they get comfortable camping by the rock, with no clear mission to drive them forward, they lose sight of their reason for being there. They might rationalize their inaction, choose short-term comfort over long-term progress, and settle into a rhythm where surviving the day becomes their default mode.

Organizations that focus solely on survival often fall into this trap. They exist but without a clear direction or purpose that drives them forward. These organizations are like planes flying without a pilot, dependent on external forces like market conditions or competitors. As Adizes notes, without a clear task that requires interdependency, an organization loses its way. It may appear to be functional, but the lack of an overarching purpose, or “telos,” leaves it vulnerable to stagnation and, ultimately, failure.

The Telos: A Purpose Beyond Profit

In the business world, the conventional wisdom is that profit is the ultimate purpose of a company. This is reinforced by economic theory, which teaches us that businesses must focus on maximizing profits to satisfy shareholders and ensure long-term success. Yet, as Adizes explains, profit alone is not a sufficient answer. In fact, an overemphasis on profit, at the expense of understanding customer needs and the broader mission of the organization, can lead to destructive behaviors.

Organizations obsessed with profit can become shortsighted. They may cut corners, neglect innovation, or prioritize shareholder returns over customer satisfaction. This fixation on immediate financial gain, ironically, puts the organization’s survival at risk. Adizes likens this mindset to waking up every morning and asking, “Am I happy?”—a sure path to misery. Just as individuals need a larger sense of purpose to lead fulfilling lives, businesses need a mission that transcends survival or profit.

This leads us to a fundamental question: What is the rock that a business organization must move? If survival and profit are insufficient purposes, what should organizations focus on?

The Shift to a Massive Transformative Purpose (MTP)

Salim Ismail’s work in Exponential Organizations (ExO) introduces a paradigm-shifting concept that helps answer this question: the Massive Transformative Purpose (MTP). An MTP is a bold, aspirational statement that defines an organization’s mission in a way that inspires and aligns its efforts toward a cause far greater than mere profit or survival. The MTP is the lake that the organization strives to reach, the reason for moving the rock, and the guiding star that brings focus and purpose to all activities within the business.

An MTP reflects the organization’s commitment to solving a large-scale, meaningful problem that impacts not just its direct stakeholders but society at large. It creates a sense of urgency and direction that keeps the organization moving forward, even when faced with significant obstacles. This type of purpose catalyzes innovation, drives engagement, and ensures that the organization remains relevant in a rapidly changing world.

Take Google’s MTP, for example: “Organize the world’s information and make it universally accessible and useful.” This mission goes far beyond generating revenue through advertisements or maintaining market share. It’s a vision that unifies Google’s products, services, and employees toward solving a global issue—how to manage the overwhelming amount of information in the digital age. The result? An organization that continuously innovates, challenges the status quo, and remains an indispensable part of modern life.

The lesson here is that the organizations that thrive in today’s exponential world are those that move beyond the limitations of profit and survival. They adopt an MTP that serves as a magnet for talent, resources, and innovation. It’s the organization’s raison d’être, the deep, driving purpose that everyone can rally around, from the top executives to entry-level employees.

Aligning the MTP with Management

For an organization to succeed in moving its proverbial rock, it needs more than just a compelling purpose—it requires effective management. Without structure and direction, even the most inspiring mission can lose momentum. Adizes reminds us that without management, interdependencies within an organization fall apart. While many organizations function with individuals holding management titles, the absence of genuine managerial leadership creates a situation where interdependencies happen organically, often leading to chaos and stress.

In well-managed organizations with a clear MTP, every decision, action, and communication serves a purpose. Whether it’s short-term objectives or long-term goals, all efforts are aligned with the broader mission. Effective management ensures that people aren’t just sitting around the rock complaining about the obstacle—they are taking active steps to overcome it.

For instance, an organization with a well-defined MTP can approach problems creatively and collaboratively. It empowers teams to make decisions that align with the bigger picture, encouraging them to take ownership of their roles in moving the organization forward. This interdependency is not random or chaotic; it is intentionally designed and managed to maximize impact.

By aligning its MTP with its management practices, an organization can maintain clarity in its decision-making processes, ensure that resources are effectively allocated, and create a culture where innovation thrives. It becomes a place where employees feel connected to something larger than themselves, making their work meaningful and purposeful.

Conclusion: Beyond Survival, Toward Transformation

In today’s rapidly evolving world, organizations can no longer afford to focus solely on survival. They must adopt a purpose-driven approach that aligns with a broader mission—one that inspires and drives them toward meaningful impact. Ichak Adizes’ insight into the importance of purpose, coupled with Salim Ismail’s concept of the MTP, provides a powerful framework for organizations to move beyond the limitations of profit and survival.

By focusing on their raison d’être, businesses can create environments where management and purpose intersect. This intersection allows organizations to move the rock, reach the lake, and thrive in a world that increasingly demands more than just financial performance. It’s about finding the deeper meaning behind why they exist and rallying their people to achieve something greater than themselves—a purpose that not only benefits the organization but also contributes to the betterment of society as a whole.

References

1. Adizes, I. (2004). The ideal executive: Why you cannot be one and what to do about it. The Adizes Institute Publishing.
2. Ismail, S., Malone, M. S., & Van Geest, Y. (2014). Exponential organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it). Diversion Books.
3. Ismail, S., Diamandis, P. H., & Malone, M. S. (2023). Exponential Organizations 2.0: The new playbook for 10X growth and impact. Ethos Collective.