Understanding and Fostering Organizational Existence Significance.

This newsletter is aimed at HR professionals who want to contribute to the success of businesses and leaders who want to manage organizations more effectively.

It's hard to believe, but this is already the fifth edition. From this edition onward, I'd like to write about each mechanism of HR.

For those who haven't read the first through fourth editions yet, please check them out here.

Why I start this newsletter? | LinkedIn

How I understand organization and identify challenges？ | LinkedIn

How I understand HR Mechanisms? | LinkedIn

How I understand the business? | LinkedIn

In the third newsletter, I wrote about how I deepen the understanding of HR mechanisms using the diagram below.

Specifically, I'm checking the following points:

• What is the intention of the mechanism? What does it aim to achieve?
• Is there consistency between the intention and the content of the mechanism?
• Is the mechanism being operated as intended?
• Is there coherence between each mechanism?

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Furthermore, I predict and confirm the behavior of employees and the perceived value of various stakeholders based on the current status of HR mechanisms. At the same time, I predict and confirm the situation of HR mechanisms based on the actual behaviors observed and feedback received from employees and various stakeholders. By moving back and forth between "HR mechanisms," "Behavior," and "Business Success," I deepen understanding. As I've also received comments from Dave Ulrich , which I have big appreciation to him, I am deepening my understanding by practicing the perspectives of "Outside/in" and "Inside/out."

Over the next few editions, I'd like to write more detailed explanations about each mechanism. This time, I'll write about “the Reason to Exist”.

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Why Reason to Exist?

“Reason to Exist” represents "why the organization exists in the world." I perceive it as akin to the "ultimate goal the organization wants to achieve." Recently, the term "Purpose" is often used for this. For detailed definitions of Purpose and differences from Mission, please refer to other sources.

Why is it necessary to create “Reason to Exist” for the organization? I believe it's because it determines almost everything about the organization. It serves as the starting point for determining the direction of other HR mechanisms. When making decisions, “Reason to Exist” becomes an important reference point. Whether in significant or minor decision-making, “Reason to Exist” becomes a significant basis for everyday decisions.

Therefore, “Reason to Exist” may be one of important factors for some people in deciding where to work. It could also be the first point in deciding whether or not to enter the recruitment process of the organization. It's essential to resonate with this “Reason to Exist” and sincerely desire to achieve it.

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Confirming “Reason to Exist”

During the recruitment process and after joining the company, I confirm how employees perceive the “Reason to Exist”. Methods include examining scores (values and changes from previous scores) of relevant survey questions, as well as the contents written in related free comments, if available in survey items such as Engagement Surveys. Additionally, I meet with employees to hear their thoughts, and I pay attention to the words commonly used among employees.

An important point is not only whether employees understand the “Reason to Exist” but also whether they show empathy and excitement about its realization. If I can confirm such a state, I judge that the “Reason to Exist” is "functioning as intended," and I fill in the section "Reason to exist" on the diagram in green.

If it is confirmed that the “Reason to Exist” is not being recognized, or if it is recognized but not leading to empathy or excitement, I judge that it can be improved and fill it in yellow.

If the “Reason to Exist” undermines employee motivation or if there are negative comments about the “Reason to Exist” from employees, I judge that it is "causing a negative impact" and fill it in red. I believe this would be the case if the “Reason to Exist” itself doesn't exist.

I don't have a particular preference for the colors to fill in, but I use green, yellow, and red to make it easier for more people to understand at a glance.

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To Foster Empathy and Excitement Towards “Reason to Exist”

?I'd like to write about what I do as the next step if the “Reason to Exist” is agreed upon as yellow or red during discussions with the business side people.

In the case of yellow, in addition to increasing awareness of the “Reason to Exist”, I work on connecting that “Reason to Exist” with each individual employee. I aim to transition from "the company's Reason to Exist”" to "my Reason to Exist” and further to "our Reason to Exist." Therefore, the founder's aspirations, the current management's aspirations, and the values of each individual become important.

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Founder's Aspirations

I believe that almost every company is initially born from the efforts of the founder or founding members. Instead of choosing to work for another company, they chose to take risks and start their own business. I think there must have been extraordinary determination, passion, and dreams behind this. In other words, at the time of its founding, the company should have embodied the aspirations of the founder or founding members. I believe it has reached the present by being accepted by customers and chosen by them.

In that sense, the words that express the “Reason to Exist” of the company should reflect the aspirations of the founder or founding members. By understanding why the founder or founding members took risks to start the company, the words written as the “Reason to Exist” can embody the aspirations of the founder or founding members.

For companies with a long history, there may be individuals referred to as "The Revivalist Founders” in their history. In such cases, I think it would be meaningful to incorporate the aspirations of these "The Revivalist Founders" into the “Reason to Exist”.

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Current Management's Aspirations

After understanding the aspirations of the founder or founding members, it's necessary to update these aspirations in the current dynamic business environment. The current management team is suitable for this task.

It's important for the current management team to adapt the aspirations of the founder or founding members to the current business environment and to add their own aspirations, then convey them to the employees. I recommend starting with the topic of “Reason to Exist” at all touchpoints with employees. This could be during internal communications or when sharing business results, at award ceremonies, or in New Fiscal Year's greetings. I recommend starting conversations with the topic of “Reason to Exist” in all situations involving employees. It's also okay to have discussions between management members and employees on themes like "What would the founder or founding members do in the current environment?"

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Individual Values

Even if the words expressing the “Reason to Exist” include the aspirations of the founder or founding members and the management team, it often remains "the company's Reason to Exist” for each employee. To increase the likelihood of transitioning it to "my Reason to Exist," it's important for each individual to understand their own values.

I understand values as determining a person's standards, judging what is good or bad, what they like or dislike, what is enjoyable or not enjoyable. Therefore, it becomes easier for that person to transition to "my Reason to Exist" by connecting their own values with the words expressing the “Reason to Exist” imbued with the aspirations of the founder or founding members and the management team.

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How to Understand Individual Values

So, how can individual values be clarified? I think there are various methods in general, so I hope you will research and find a method that suits you. By the way, I'd like to write about how I do it.

I believe that the person’s values are shaped by the person’s experiences throughout the person’s life. So, rather than "clarifying" a person's values, I think it's more accurate to say "finding" them. Specifically, I ask people to tell me about their enjoyable memories. I will listen to the story and ask questions as if I could imagine that I am present in the situation as if I were that person. For example, when did the story take place? Where was it? Who was there? What were you doing? How specifically were you doing? By asking questions like these, I try to see the same scene that the person has in the head. This helps me imagine the person’s emotions. Finally, I ask the person what the person realized after telling the story.

By having one person speak and several people ask questions, everyone can work together to find the speaker's values. After the exercise, sharing what each person found helps deepen understanding and confidence.

Another good aspect of this exercise is that after the exercise, relationships between people are often strengthened, and a sense of distance is reduced.

By connecting the values found in this way with the words expressing the “Reason to Exist” imbued with the aspirations of the founder or founding members and the management team, I have experienced that it becomes a meaningful “Reason to Exist” for the individual, in several companies and groups.

For cases where the “Reason to Exist” is red, basically, the same steps as in the case of yellow are taken. If there is no “Reason to Exist” or if it needs to be changed, I think it's good to discuss it by bringing the aspirations of the founder or founding members, the aspirations of the current management team, and the values of each employee to the table.

How to discuss depends on the size of the organization, but the key is to create the “Reason to Exist” where each employee feels that the aspirations of the founder or founding members and the management team are expressed and their own values are included.

Identifying personal values is often useful for other HR mechanisms, which we will discuss in future newsletters. I have been identifying personal values and linking them to other HR mechanisms for about 10 years and have seen the benefits, and I am glad to see that we are hearing more and more about personal values topics these days.

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Conclusion

This time I wrote about “Reason to Exist." Specifically, I wrote about the definition of “Reason to Exist,” why it's important, how to understand the current situation regarding “Reason to Exist” in organizations, and how to foster empathy in employees towards “Reason to Exist.”

I emphasized the importance of connecting "founder's aspirations," "current management's aspirations," and "individual values" in order for employees to empathize with the “Reason to Exist” and recognize it as “my Reason to Exist” or “our Reason to Exist.” I also shared my method for discovering individual values.

I would be grateful if this article could be of help to you. If you find this article helpful, please repost this to your network or click "like". Please note that this newsletter is my personal opinion and is not related to any organization I belong to.

I look forward to writing about other HR mechanisms from next time. Don't miss it.