A company is nothing more (and nothing less) than three things: people, processes and purposes. In the language of the software engineer these would be inputs, algorithms and specifications. In the language of classical business analysis they are assets (or resources), organization structures and business models. In military theory, these are logistics, tactics and strategy.
This is the trinity which allows for an understanding of a complex system: the physical, the operational and the guiding principle. The what, the how and the why.
When approaching any analysis problem, these questions form the foundation of causal inference. What is it, how does it work and why does it exist?
When analyzing nature the sciences often help with the what and the how but rarely address the why. In contrast, man-made systems (e.g. systems of law, religion and commerce) require an answer to the why as there is a presumption of a will in their creation and preservation. The why allows ultimate judgement on the merit of an enterprise. The why may escape us but it’s assumed to always be there. For instance, in criminal law the motive is often a crucial piece of evidence but it’s not always found. In business, the motive for action or for organization is a crucial piece of the puzzle which often explains the what, who and how, but here the ultimate why is usually profit. This the characteristic of a for-profit business, the purpose is explicit.Notes:
- Religion attempts to answer the whys which science leaves as unanswerable. [↩]