Four Types of Companies

When dealing with any organization, it is important to understand the things that are important to it and the employees. For instance, they may be focused on improving compliance or increasing revenue, but each company focuses on things that are important to it.

Knowing this when dealing with the company or their employees helps understand how they behave.

One way to examine any organization is through the lens of purpose versus process. When looking at organizations from this lens, there are four possibilities. The organization can be purposed-based, process-based, blended, or neither. How they are says a lot about how they operate.

Let me define what I mean by each of these types of organizations:

1. Purpose-based. A Purpose-based organization relies on a strong organizational purpose and reason for being. At the heart of what they do everyday is a greater reason everyone works there. Sometimes the organization defines this in their mission and vision statements and sometimes it is just known. Making money is NOT a greater purpose. A good example of a Purpose-based organization would be a philanthropic nonprofit or military organization. Their reasons for existence, even if not written down, are usually quite clear.

2. Process-based. Organizations that focus on perfecting processes to run an effective and efficient organization, are process-based. Strictly process-based organizations are focused on exceptional product or service delivery and not their reason for being. Money is normally very important to them.  Many commercial companies fall into this categor, more so in manufacturing.

3. Blended. A blended organization has a strong purpose or reason for being and operates with strong processes. Organizations with both are difficult to find, but can come from anywhere.

4. Neither. Many companies and organizations have neither a strong defined purpose nor effective and efficient processes. These organizations are quite easy to find because they are everywhere.

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