5. Define purpose and goal

Note: In this framework, the term initiative refers to programs and projects. The term work execution unit refers collectively to programs, projects, phases, releases, and work packages, all of which are considered temporary organizations.

The Foundation of Success: The Problem/Opportunity Statement

The initialization of any initiative, regardless of its scale, must begin with an understanding of the problem to be solved or the opportunity to be seized. This is formalized in a Problem or Opportunity Statement, which serves as the bedrock for defining the purpose and goal. This statement is composed of two distinct sections that provide a comprehensive view of the situation.

Current State Analysis

This section provides a detailed description of the situation as it exists today. A thorough analysis is crucial and must include:

• Stakeholder Pain Points: The direct frustrations and issues experienced by those involved in or affected by the current situation.
• Consequences: The tangible negative impacts of the current state on the organization. These are often measured in terms of money, time, productivity, or competitive advantage.

By articulating the current challenges and their repercussions, this analysis provides the necessary context to formulate the Purpose Statement, explaining exactly why the initiative is necessary.

Ideal Future State Description

This section shifts the focus from the problem to the solution. It paints a clear picture of what the situation would look like once a successful solution has been implemented. This vision of an improved future directly informs the definition of the initiative’s goal statement, which describes the target state at the end of the work execution unit. A common challenge in this phase is the tendency for teams to jump directly to solutions (i.e. the outputs meant to solve the problem) rather than first achieving a shared understanding of the problem itself.

Methodologies for Problem Identification

Defining the problem is a collaborative effort requiring input from various stakeholders. The process begins by meeting with these stakeholders to learn about their specific pain points. To move beyond surface-level symptoms and uncover the true source of an issue, the “5 Whys” technique is highly effective. This method involves repeatedly asking “why” to drill down through layers of issues until the underlying root cause is identified.

An example of this process is detailed below:

• Initial Problem: Low profitability.
• First “Why”: A low customer retention rate is identified as a primary cause.
• Deeper Root Causes: Further inquiry reveals several drivers of low retention, including long delivery times, inefficiency in customer service, inconsistencies in accounts receivable, and a lack of transparency regarding the status of transactions.
• Drilling Down on a Root Cause: Focusing on the “lack of transparency” and continuing to ask “why” reveals that customer information is spread across multiple systems and that clear workflows are missing for certain products, particularly those involving external suppliers. This deeper understanding points toward potential objectives, such as consolidating information and defining workflows.

Defining the Core Components of an Initiative

With a well-defined Problem or Opportunity Statement, an organization is positioned to articulate the purpose and goal of any program, project, phase, or work package with clarity and precision.

The Purpose Statement: The “Why”

The purpose statement is the direct answer to the question, “Why are we doing this?” It is distilled from the “current state” analysis and its identified consequences. Its primary value lies in its ability to provide guidance during decision-making and to constantly remind all stakeholders of the initiative’s core motivation and the costs of inaction.

• Example Purpose Statement: “We should be able to provide an accurate status of customer transactions because the current lack of transparency is making us lose customers that have been acquired with considerable effort, costing us x amount of money per year.”

The Goal Statement: The “What”

The goal statement defines what the initiative is intended to achieve. It is derived from the ideal future state described in the problem or opportunity statement and articulates the intended target state appropriate for the level of work. During initialization, the goal is defined with the degree of specificity possible at that point in time, depending on the maturity of available information and prior analysis. To be effective, the goal must be clear and easy for everyone to understand. This clarity helps secure stakeholder buy-in and provides a stable directional reference for subsequent planning and execution.

• Example Goal Statement: “Provide transparency of the status of all transactions along the entire workflow.”

Distinguishing Goals from Objectives

Although often used interchangeably, goals and objectives have distinct meanings within this management framework. The goal defines the target state at the end of the work execution unit, while objectives are intermediate targets that structure and guide the work toward the goal. This distinction is critical because objectives are derived from and constrained by the chosen strategy.

To achieve the goal of “providing transparency,” an organization could pursue different strategies, each with its own set of objectives.

• Strategy A: Hire 10 new administrative staff to manually gather and communicate transaction information. The deliverables and actions would focus on recruitment, hiring, and training.
• Strategy B: Consolidate information into a single system and define new workflows. The objectives would be technical and process-oriented, such as “consolidate information in one system” and “define and implement workflows for all products, including participating suppliers.”

This distinction underscores why objectives are not defined during the initial, high-level stage of an initiative. The focus must remain on establishing the purpose and goal first.

Mastering the Art of Initiative Initialization

The most effective way to begin any program, project, phase, or work package is to establish a clear understanding of what it seeks to accomplish and why. This is achieved through the systematic development of a problem statement, which in turn informs the purpose and goal. This process is described as an “art,” and like any art, it requires practice to master. By prioritizing this foundational work, organizations set the stage for focused execution and successful outcomes at every level of an undertaking.