Sometimes the simplest questions are the hardest to answer. Have you ever taken a walk with a five year old? Logic indicates that simple questions should be easy to answer but that’s not often the case. Simple questions are often difficult to answer because they force us to think or, worse, they force us to self-assess.

As you know, I’m a real fan of Peter Drucker. Some years ago, Mr. Drucker, working with colleagues in his Leader to Leader Institute developed a list of five key questions every organization should ask itself.  These questions were not designed for program assessment or for individual performance review but rather as an exercise in self-assessment for any organization.

You’ll notice that the underlying purpose is to help organizational leaders assess the value they are bringing to their customers. Answering these questions will provide real insights into your organizations strengths, how you deal with change, how much you foster innovation, respond to customer needs and how adept you are at looking for future opportunities.

Self-reflection is sometimes painful but always beneficial if taken seriously. So with the intent of helping our organizations get better at what we do, lets take a quick look at the five important questions Mr. Drucker and his colleagues asked.

Question #1 What’s Our Mission?

Mission describes you organization’s reason for existence, not what you make or what service you provide. Mission is about why you do what you do. The Disney corporation’s mission is to “Make People Happy. Notice it doesn’t say anything about theme parks, movies or music.  Mission describes what your organization will be remembered for.

So, what’s your company’s mission?

Question #2  Who is our customer?

Whether you call recipient of your product or services a customer or client, the bigger question is who must be satisfied with for my company to achieve desired results? It’s also important to remember your primary customer is not your only customer. There are always residual customers out there who can benefit from what you do. Also, customers are never static. Their faces and needs are always changing. And, you probably have customers you need to abandon.

So, who are your customers?

Question #3  What does our customer value?

This may be the most important question of all and yet is probably the least often asked. Too often we assume we know what our customers value instead of, oh I don’t know, asking them! When was the last time you contacted your customers to find out what they valued, instead of what you wanted to sell them? You might be surprised by the answers.

So, what does your customer value in their relationship with you?

Question #4  What are our results?

Let me cut to the chase here to say profits cannot be your only means for measuring results. The fact is the bottom line is only one indicator of results; it’s not the only factor. Progress on achievement needs to be weighed in both qualitative and quantitative terms. Qualitative results are measurable. They have depth and breadth and usually provide rich data Quantitative results are intangible, they often describe standards, expectations or how lives are touched by the products or services you provide.

What are your results? Are they the results you really want?

Question #5  What is our plan?

This self-assessment process should lead to a plan that outlines your organization’s purpose and future direction. The plan will include a vision and a mission statement. It will describe strategies, measurable objectives and action items that must be accomplished in order to fulfill the organization’s purpose.

The right questions lead to the answers needed to develop a focused and relevant performance plan for any organization in any sector of the economy. Remember, failing to plan is planning to fail. A good plan starts by asking the right questions.