Every organization needs clarity about its purpose and direction. Purpose answers the question why an organization exists, while direction describes where the organization intends to go in the future.

• Why do we exist and where are we heading? This is one of the most important questions in every organization. It clarifies the purpose of the organization and gives orientation for decisions and collaboration.
• The “why” represents the raison d’être – the fundamental assignment the organization has set itself. It explains why the organization exists and what contribution it aims to make.
• The “whereto” describes the direction of the organization and outlines the broader picture of the future the organization aims to create.
• To live up to its purpose, the organization defines appropriate tasks and establishes a suitable operating system that supports the fulfillment of these tasks.
• The purpose of a role therefore also clarifies its own “why” (raison d’être) and “whereto” (direction). Each role contributes to the overall purpose of the organization.
• For the organization to function effectively, the purposes of interrelated roles must be coordinated and aligned – for example between internal suppliers and customers or between functions such as purchasing, production and finance.