Foundation Layer

The foundation layer establishes the bedrock principles that guide everything else in your organization. This layer answers fundamental questions: why do we exist, how do we make decisions, and what principles guide our daily trade-offs.

Layer Components

Why & Purpose - Product Strategy

Sets the North-Star: why we exist and where we play. Establishes the fundamental direction and market positioning that drives all other decisions.

Govern with Culture

Scales behavior through principles rather than rules. Creates shared understanding of how decisions are made and work gets done.

Values

Shared beliefs that guide day-to-day trade-offs. Provides the decision-making framework when policies and processes don’t exist.

Implementation Order

Start here before building any other organizational systems:

1. Establish Purpose - Define why you exist and where you’re headed
2. Build Culture - Create shared principles for decision-making
3. Define Values - Establish trade-off criteria for daily decisions

This foundation enables everything else in the operating model to function effectively.