The Organizational Issues requirement has three pieces:
- What's your organization's "form" and why is the form you've selected the "best fit" for your organization?
- What's your organization's "purpose?" What is its reason for "being?" Answering those questions will produce your Mission Statement.
- Your organization's "functions" will need to be managed. What are the duties of managing those functions? What kind of managers will the organization need? What will they have (get) to do?
There's more to come. Keep reading.
Explain why you've selected a sole proprietorship, general partnership or corporation for your organization's form.
Doing that starts with answering (at least) three "big" questions:
- Is "controlling" the business important? What kind of decision-making process best fits your business? Does it need lots of hands-on supervision or can day-to-day operations be delegated while top management focuses on strategic issues?
- What's the likelihood that someone could be harmed by your products or operations? How much liability could we face? Remember that "harms" come in lots of forms; for example, there's product liability, contractual risks and on-the-job injuries, to name just a few.
- What are our future capital needs? Will we need to raise substantial amounts of financial resources in the future?
A good approach might be briefly describing the advantages/disadvantages of each form followed by an explanation of why your business is best served by one of these forms.
Mission statements should be a lot shorter than "War and Peace." The best mission statements are the shortest; perhaps no longer than two or three sentences.
Your mission statement's biggest audience is internal. It's a key part of teaching and reinforcing your organization's values. It should capture the reason your firm exists today and its hopes and aspirations for the future.
Here are some examples.
Google: Organize the world's information and make it universally accessible and useful. After reading that, it's easy to understand what Google is doing. By the way, "Do no harm" isn't part of Google's mission statement, but sits atop their list of their "core values," which are certainly no less important.
Microsoft: To enable people and businesses throughout the world to realize their full potential. Sounds lofty and idealistic, but there's nothing wrong with that.
General Electric (GE): We bring good things to light. My favorite by far; only six words long with no word having more than one syllable. There's no mistaking what GE is all about after reading their Mission Statement.
The key here is understanding what the business needs. What are its functions and what will be needed to make those functions perform optimally? Think in terms of "functional descriptions," not "job titles" (there will be time later to pass out titles like Vice President).
There are a couple of approaches to describing who will perform those functions. One is assigning members of your team to manage functions for which they are qualified. Doing it this way involves describing the member's training and experience and showing how they satisfy the organization's needs (remember the task is to identify the human resources that the organization needs, not find jobs for the founders).
Another approach, and just as acceptable, is to describe the "skill set" for each functional manager and forecast when that position will need to be filled.