Week 5 Key Concept Exercise Governance And Strateg

Week 5 Key Concept ExerciseGovernance and Strategic PurposeStrategic purpose is about stating clearly what the organization intends to achieve from a particular innovation. The strategic purpose should be in line with the mission, vision and values of the organization. The mission of the company was to take maximum advantage of the free market. The vision of Enron was to become the most innovative energy company when it comes to meeting the customers’ needs. Enron’s values on the other hand included transparency, mutual respect and compliance with the legal framework. However, the company lacked proper governance from the board and external partners to ensure that it met its vision while staying focused on the core values. This led to the collapse of Enron. The board of directors and the executives were responsible for the process of developing Enron’s strategic purpose. However instead, the strategic purpose was singlehandedly developed by Jeffrey Skilling and rubberstamped by the board (Heath, & Norman, 2004). The board did not question the CEO’s decisions as long as it made enough profits. This is particularly evident in the Special Purpose Entity (SPE) deal. Enron transferred its debts to an SPE linked to one of its executives