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Core Values
One way to help keep corporate spirit high is
to publish core values. This allows employees,
customers, and stockholders to hold leaders accountable
for living up to what they say is important. Further,
this allows members of the organization’s
team to measure their every action against the
core values. It’s like what members of the
Rotary Club are challenged to do. They are committed
to a set of core values that translate into the
following four-way test.
Of the things we think, say, or do:
- Is it the truth?
- Is it fair to all concerned?
- Will it build good will and better friendships?
- Will it be beneficial to all concerned?
Organizations who want to keep the spirit of
their core values alive hold people accountable
for modeling the stated values in their day-to-day
actions. This is especially true for the leaders
of the organization, who must set the example
for their teams.
For the most successful companies, managing core
values is as important as managing any other aspect
of the business. Just as employees know not to
violate trust in completing timecards and expense
reports, or misusing other resources, they dare
not violate a core value. In addition, they share
responsibility for identifying any policies, practices,
and/or procedures that contradict a core value.
These organizations are not perfect in embracing
their core values 100% of the time. Instead, they
are constantly evaluating everything they do to
see if the activity or behavior is in sync with
the values. This role is the responsibility of
everyone in the organization, but particularly
important for those in leadership positions. We
must remember that employees don't judge us based
on our good intentions, but on our actions. If
we say we value our people as our number one resource,
then our every interaction with employees must
match that value. As humans who are not perfect,
we will occasionally and unintentionally fail
in totally embracing a value. We must, therefore,
be strong enough to admit mistakes and take immediate
corrective action. This sends a strong message
that values are intended for everyone in the organization.
On the other hand, deliberate violations are not
tolerated.
The daily activities of a manager set the example
for employees. This means that those little things
that come up day in and day out are most important.
If we only embraced values for the "big stuff"
it would be like a parent telling a child it is
wrong to steal, and then later justifying that
it's okay to steal small things like a pack of
gum. The child would not embrace the value of
honesty at all. People believe what they see modeled
for them. A perfect example of management modeling
a value is Nordstrom department store. Management
values customer service, and to achieve that value
they tell employees to do whatever it takes to
make the customer happy. To that end, employees
are expected to use their best judgment. The section
of the employee handbook labeled rules for customer
service simply says: "Use
your best judgment in all situations. There will
be no additional rules." The most
important aspect of this example is that employees
are truly allowed that much autonomy!
In the excellent companies, values are held to
no more than two or three core values that are
consistently modeled, almost to the point of obsession.
And these successful organizations fully believe
that this is the most important role of their
leaders.
As already mentioned, organizations typically
clarify no more than two or three core values.
Disney focuses on family entertainment, Mercedes
on quality, 3M on innovation, Frito-Lay lives
service, and FedEx redefined delivery speed and
reliability.
Core values are typically very easy to understand
but broad in scope of implementation. The Nordstrom
example was clear in direction: use
your best judgment to best serve the customer.
The possibilities in carrying out that direction
are endless.
A simple statement that has rich meaning to the
organization often communicates the values. For
years people have related "The
finest in family entertainment" with
Disney. While many people relate to this phrase
as a description of the Disney Company, it has
a very strong, dynamic meaning to those within
the Disney organization. Walt Disney set a new
standard for the entertainment world, and those
who are left to run the Disney organization today
are working diligently to maintain that leadership
position within their industry.
For organizations that try to embrace five or
10 so-called core values, there is something wrong.
While a company can strive to do many things well,
you can only be obsessive about a few. For instance,
Disney cannot be the finest in family entertainment
and the least expensive at the same time. The
longer the values list is, the more impossible
it will be to model in a way that is believable
and understandable.
Excellent companies explore what their organizations
are all about and describe their thoughts with
carefully chosen sound bites that are true to
their desired environments. |
