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What is the primary question to consider when articulating core values and beliefs?
What is the primary question to consider when articulating core values and beliefs?
Why is it important for organizations to maintain core values despite outside pressures?
Why is it important for organizations to maintain core values despite outside pressures?
What characteristic defines a good purpose statement for an organization?
What characteristic defines a good purpose statement for an organization?
How did Paul Galvin exemplify his commitment to honesty in Motorola's dealings?
How did Paul Galvin exemplify his commitment to honesty in Motorola's dealings?
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In George Merck II's statements, what was the primary focus of Merck's purpose?
In George Merck II's statements, what was the primary focus of Merck's purpose?
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What is a common effect of failing to articulate authentic core values?
What is a common effect of failing to articulate authentic core values?
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What length is considered ideal for a purpose statement?
What length is considered ideal for a purpose statement?
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What does a purpose statement need to do for organizational members?
What does a purpose statement need to do for organizational members?
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What is the underlying impulse behind the founding of Apple as described in the content?
What is the underlying impulse behind the founding of Apple as described in the content?
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Which statement best reflects Bill Hewlett's perspective on having a purpose during HP's early days?
Which statement best reflects Bill Hewlett's perspective on having a purpose during HP's early days?
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What does the content suggest about the presence of purpose in a company?
What does the content suggest about the presence of purpose in a company?
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According to the content, what is a potential benefit of identifying and writing down a company's purpose?
According to the content, what is a potential benefit of identifying and writing down a company's purpose?
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What aspect of purpose did the authors highlight regarding successful companies?
What aspect of purpose did the authors highlight regarding successful companies?
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What was one of the motivations that Hewlett expressed about starting HP?
What was one of the motivations that Hewlett expressed about starting HP?
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How did Jobs and Wozniak's original desire regarding computers reflect on Apple's purpose?
How did Jobs and Wozniak's original desire regarding computers reflect on Apple's purpose?
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What key concept does the content imply about the nature of company purposes?
What key concept does the content imply about the nature of company purposes?
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What is the role of the environment in the mission-setting process?
What is the role of the environment in the mission-setting process?
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How did Ford's democratization mission and NASA's space mission relate to their historical context?
How did Ford's democratization mission and NASA's space mission relate to their historical context?
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What is considered essential for making non-quantitative missions tangible?
What is considered essential for making non-quantitative missions tangible?
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What does a vivid description in the context of missions aim to achieve?
What does a vivid description in the context of missions aim to achieve?
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Which of the following statements about mission-setting is true?
Which of the following statements about mission-setting is true?
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What is one aspect that should not limit mission-setting according to the content?
What is one aspect that should not limit mission-setting according to the content?
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Which of the following is a key element of a tangible image in an organization?
Which of the following is a key element of a tangible image in an organization?
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How is a mission best described in terms of the creative process involved?
How is a mission best described in terms of the creative process involved?
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What distinguishes Giro from Merck in their approach to organizational vision?
What distinguishes Giro from Merck in their approach to organizational vision?
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What is one potential benefit for organizations like Merck if they integrated their vision into one document?
What is one potential benefit for organizations like Merck if they integrated their vision into one document?
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Which statement correctly reflects the author's view on charisma in leadership?
Which statement correctly reflects the author's view on charisma in leadership?
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Which of the following is NOT listed as a guiding value of Giro Sport Design?
Which of the following is NOT listed as a guiding value of Giro Sport Design?
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What does the author suggest about the myth of a charismatic leader being necessary for a visionary organization?
What does the author suggest about the myth of a charismatic leader being necessary for a visionary organization?
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How does Giro's approach to innovation differ from traditional views on product development?
How does Giro's approach to innovation differ from traditional views on product development?
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Which guiding principle reflects Giro's commitment to fairness?
Which guiding principle reflects Giro's commitment to fairness?
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What potential consequence does the author highlight about substituting charisma for substance in leadership?
What potential consequence does the author highlight about substituting charisma for substance in leadership?
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What is one potential consequence of not setting a new mission after achieving an initial one?
What is one potential consequence of not setting a new mission after achieving an initial one?
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Who expressed a competitive stance towards rivals during an interview in 1988?
Who expressed a competitive stance towards rivals during an interview in 1988?
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What warning does Vance H. Trimble give about achieving a mission?
What warning does Vance H. Trimble give about achieving a mission?
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Which of the following describes a key focus in the speech by George W. Merck?
Which of the following describes a key focus in the speech by George W. Merck?
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What is indicated as a critical aspect for companies after they've reached their mission?
What is indicated as a critical aspect for companies after they've reached their mission?
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What is one perspective mentioned by Marvin Bower on consulting?
What is one perspective mentioned by Marvin Bower on consulting?
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What lesson can be learned from Nike CEO Phil Knight's competitive nature?
What lesson can be learned from Nike CEO Phil Knight's competitive nature?
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What was the context of the phrase regarding throwing rocks at competitors?
What was the context of the phrase regarding throwing rocks at competitors?
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Study Notes
Core Values and Beliefs
- To understand core values and beliefs, the key question is "What values and beliefs do we actually hold in our gut?"
- Authentic value-driven behavior is more important than rhetorical statements.
- Balancing core values against each other is sometimes necessary, but core values should not be compromised due to external pressures.
- Paul Galvin, Founder of Motorola, believed in forthright honesty in all the company’s dealings. He rejected industry standards of misrepresenting company financial health and product benefits to distributors.
- Galvin’s response was that he didn't care about standard industry practices, "Tell them the truth," he said, "first because it's the right thing to do and second they'll find out anyway."
Purpose
- Purpose is an outgrowth of core values and beliefs.
- Every organization should be able to articulate their purpose succinctly in one or two sentences.
- A statement of purpose should clearly convey how the organization fulfills basic human needs.
- A good purpose statement is broad, fundamental, inspirational, and enduring.
- It should guide an organization for at least 100 years.
- A good purpose statement should resonate with the soul of each organizational member.
- Merck’s purpose, contained in its 1989 “Statement of Corporate Purpose,” is: “We are in the business of preserving human life and improving it. All of our actions must be measured by our success in achieving this."
- Merck’s early archives contain numerous comments by George Merck II that demonstrate a fundamental, enduring purpose, for example, in 1935 he said: “I really believe that people have a desire to express some deep feeling about wanting to contribute something...I believe that people have a desire to put something back."
- Apple’s purpose was implicit and hidden behind Jobs and Wozniak’s original impulse to make a computer for themselves and their friends.
- HP co-founder, Dave Packard, responded to a question on whether he and co-founder Bill Hewlett had a purpose in mind during the early days of HP: "I don't think those are questions we asked ourselves… We had a good education and we felt we ought to be able to do something with it, and there weren't many jobs around… So why not try our wings? ... Hell, we wanted to know where we were going to get our bread the next day. So the question you ask comes about much later. And I think we felt that we were a major factor in helping the electronics industry... that we had a responsibility to provide good instrumentation for the country. That's a very idealized statement. I don't know if we've made it or not."
Environment
- The guiding philosophy of an organization is operationalized in its tangible image, but it becomes so taking the organization’s expected future environment into account.
- Environment moderates the translation of purpose into mission.
- Guiding philosophy is relatively free of current environmental conditions and comes from within people.
- Missions are affected by the environment - they are affected by timing, trends, technology, and other external factors.
- Ford’s democratization mission and NASA’s space mission could not have been done in the 19th century.
- Setting a mission is a creative process and should not be unduly dampened or limited by the human tendency to say "we can't."
- Missions should walk the boundary between possible and impossible.
- Mission-setting should be proactive, not reactive, and strategy is subservient to mission and strategic analysis.
Vivid Description
- Vivid description, which is a second element of tangible image, represents a vibrant, engaging, and specific description of what it will be like when the mission is achieved.
- It provokes emotion and generates excitement.
- It transforms the mission from words into pictures, a way of conveying the mission so that people carry around a clear, compelling image in their heads.
- It brings the mission to life.
- We call this “painting a picture with your words.”
- For non-quantitative missions, “picture painting” is essential for making the mission tangible in people's minds.
- For example, Celtrix’s definition of “great” involves things like having multiple profitable products, state-of-the-art facilities, proud employees, and being on the cover of Time magazine.
- Giro is a young company consciously focusing on creating an integrated vision. They have systematically developed all of its components and collected them in one document.
- Merck represents an evolutionary process in which the organization has “unconsciously” created its vision.
- By studying a variety of Merck documents, we were able to ferret out the various pieces and organize them into a comprehensive set of statements shown in Table 4.
- Organizations such as Merck would get greater leverage from what they already do if they were more conscious about integrating their vision into one document.
- This document could be used as the basis for communicating the ideas guiding the organization.
- Building a visionary organization does not require the presence of a charismatic leader who is somehow blessed with almost mystical or superhuman visionary qualities.
- Charisma’s role in setting vision is vastly overrated.
- Attempting to substitute charisma for substance is destructive.
- The function of leadership is to build a structure that allows others to shine and build a vision that resonates with the hearts and minds of the organization’s members.
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Explore the foundational aspects of core values and beliefs that drive organizational behavior. This quiz delves into the significance of these values, using Paul Galvin's principles as a case study. Understand how purpose evolves from these beliefs.
