For organisations, this right is issued by the stakeholders. They form the sponsoring environment of your business. Without a sponsoring environment large enough to justify its existence, an organisation will die soon after we remove life support (funding).

When we design our businesses, we must always consider our mandate. This is our right and purpose to existence. The one big mistake entrepreneurs make is that they believe they possess the power and authority to mandate the existence of a business. We don’t.

The creator has the authority to define the purpose of his/her creation. This begs the question, who creates businesses? Is it the entrepreneur, or is it the need of the market that the entrepreneur discovers and exploits? You can keep it alive for a while, artificially. All the while the business is malnourished and perishing until it’s ultimate demise. Usually within three years.

This result is more often due to unclear mandate or misunderstanding of the sponsoring environment than it is of all the other symptoms we diagnose as business problems.

Why does your business have a right to exist? Under what set of circumstances is this right valid? What does your business need to deliver to maintain and secure this right?

You cannot answer these questions without understanding that your market confers them on you.

Once you do, (and only once you do) it’s all about optimisation and scale. Design away.

Sebastian Pociecha

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