Strategic Management: Organizational Core Values PDF

LESSON 3 – STRATEGIC MANAGEMENT ORGANIZATIONAL CORE VALUES An organizational value is “a belief that a specific mode of conduct is preferable to an opposite or contrary mode of conduct” according to Rokeach (1973, The Nature of Human Values). We can think of them as representing framework...

LESSON 3 – STRATEGIC MANAGEMENT ORGANIZATIONAL CORE VALUES An organizational value is “a belief that a specific mode of conduct is preferable to an opposite or contrary mode of conduct” according to Rokeach (1973, The Nature of Human Values). We can think of them as representing frameworks for the way we do things. Some organizations think of their values as their “guiding beacon” directing the process of organizational development and growth. Others describe them as the components of their philosophy. They do relate to how organizations deal with their beliefs about people and work. They define non-negotiable behaviors. More and more studies show that successful companies place a great deal of emphasis on their values. Any organization which espouses particular values will tell you that those values underpin their vision. Values at work assist us by: 1. Providing a framework for how we treat one another at work. 2. Providing a framework for how we treat our customers. 3. Helping us make sense of our working life and how we fit in the big picture. 4. Providing a framework for achieving the vision and increasing the effectiveness of the organization. 5. Creating an environment conducive to job satisfaction as well as finding work which is exciting and challenging. 6. Differentiating one organization from another. Values at work are increasingly important because: 1. We work in stressful times, and they give us guidelines for our behavior. 2. Because it is a highly competitive world and they help show our customers how we are different from other providers, and potential staff how we differ from other prospective employers because they say “This is what we value here.” 3. People are increasingly aware of organizational values and look for them, frequently choosing one organization over another because of their values. 4. They provide the basis for achieving culture change. 5. They help enable people and organizations to succeed. 6. They impact on professional practice. 7. They can provide a measurement of success for individuals. (Some organizations include them in people’s performance reviews) 8. They can provide some stability through change; i.e., which values are remaining, how do we implement the change in line with our values? Values are the essence of corporate culture because they set out the “dos” and “don’ts” around here! Living them is what really counts. They are not made to be put up on the wall and forgotten about. WHAT VALUES CAN LOOK LIKE This varies from one organization to another. However, there should be a few core values only, no more than five at the most. They should be symbolized by one word, then have a brief definition of what that means in reasonably global terms, followed by defined behaviors. They support your vision, shape your culture, and reflect what you value. Here are some examples of company values. Respect - Listening to and respecting each other while working together to achieve mutually beneficial results. - When we are unsure, we check with others as to what they meant. - Everyone has strengths which we value and will use whenever possible. - All team meetings will include a progress report from everyone and requests for help when needed. Teamwork - Providing support to one another, working co-operatively, respecting one another’s views, and making our work environment fun and enjoyable. - We help others to achieve their deadlines without having to be asked. - All projects have identified points which are celebrated by the whole team. - We work with one another with enthusiasm and appreciation. - We work with one another without manipulation. - Conflict is resolved according to agreed guidelines for this team. - Conflict is brought out into the open and dealt with constructively until all parties are satisfied with the result. Honesty - Being open and honest in all our dealings and maintaining the highest integrity at all times - All concerns are aired constructively with solutions offered. - Each person is as skilled in some way as another and is entitled to express their views without interruption. Excellence - Always doing what we say we will and striving for excellence and quality in everything we do. - Quality will always delight the client while staying within budget limitations. - If we give our word, we keep it unless agreed otherwise by all parties. Commitment - Working with urgency and commitment to be successful from individual and company perspectives. - Time frames are always met unless urgent circumstances mean we have to renegotiate new time frames with all parties. - Clients’ needs agreed upon within budgets are met regardless of personal wants. Ownership - Taking ownership of our customers’ needs and being accountable for delivering friendly and professional service. We are each fully accountable for our work in gaining any possible repeat business with customers. We understand our customers’ business, prepare for all meetings with them Recognition - Recognizing and rewarding each other’s contributions and efforts. - All individual successes are celebrated within the team. - Assistance is thanked every time. Customer Service - We enjoy their custom and so they deserve our service -timely, responsive, pro- active, meeting their needs and aiming to delight. - At every meeting with our customers, we ask them what we could have done better, then implement their suggestions before we meet them again. - Before any accounts are rendered, we check with our customers that they are sufficiently satisfied to pay the agreed account. - All agreements are met. Professionalism -At all times we act with integrity, providing quality service, being reliable and responsible. - We do not upset one another intentionally, always endeavoring to present negative feedback constructively. - We take pride and ownership in all that we do and say. - We never talk about people behind their backs. Personal development - We value learning, feedback, coaching and mentoring. - Coaching and mentoring are commonplace here; we all coach and mentor one another. - All opportunities for our own learning are pursued. - Whenever we undertake a project, it is our responsibility to express our training needs and gather the required skills. - We each take responsibility to gain the required development to meet our customers’ needs. - We each take responsibility to gain the required development to be learning consultants. Company Values: Definition and Principles In essence, your company values are the beliefs, philosophies, and principles that drive your business. They impact the employee experience you deliver as well as the relationship you develop with your customers, partners, and shareholders. Your company values are your DNA (deoxyribonucleic acid, is the hereditary material in humans and almost all other organisms. The term “company DNA” is sometimes used as shorthand for an organization’s culture and strategy. They help you differentiate your business from the competition. That’s why you can’t make any important business decisions without having them in mind. However, having company values doesn’t mean having a polished communication plan around nice values and principles. You have to truly honor your company values in everything you do and set right example for your employees. It’s the only way you can build trust in the workplace. Don’t ask your employees to follow the company values you’ve set for your business if you don’t follow and integrate them into your daily work in the first place. Your Company Values are the Heartbeat of Your Business Because your company values reflect what you and your employees stand for, they give them a sense of responsibility. Indeed, every decision your employees should be aligned with the company values you’ve communicated with them. Each of your employees – from top leadership to entry-level – becomes accountable for those decisions by asking a simple question: Does this reflect our values? But most importantly, your core company values drive your business and help everyone in the organization reach the goals you’ve set for the company. As mentioned earlier, your company values are your company’s DNA and they help you differentiate your business from the competition. The bottom line is that your core values impact all the aspects of your business, from the product your teams develop to your sales and marketing strategies or the customer service your employees deliver. Examples of Common Company Values You won’t find several companies with the same set of values. However, there are some company values we see more often than others. They are employee and customer-centric and they include: Integrity – the quality of being honest and having strong moral principles Boldness – willingness to take risks and act innovatively; confidence and courage Honesty – the quality of being honest with honor; involves being trustworthy, loyal, fair, and sincere Fairness – impartial and just behavior without favoritism or discrimination Trustworthiness – the ability to be relied on as honest and truthful Learning – knowledge, intellect, level of education Customer Experience – total of customers’ perception and feelings resulting from interacting with a product or service Passion – strong feeling or emotion Balance – impartiality, equal opportunity Fun – enjoyment, amusement, lighthearted pleasure Discipline – control or obeying rules of conduct; order Humility – modesty or low view of one’s own importance Ownership – accepting responsibility for finding a solution Result-oriented – focuses on outcome rather than process used to produce as product or deliver a service Constant Improvement – ongoing effort to improve products, services, or processes Leadership – capacity to set and achieve challenging goals; take fast and decisive actions when needed, outperform the competition, and inspire others to perform at the highest level they can Hard Work – a great deal of effort or endurance Diversity – practice of including or involving people from different social and ethnic backgrounds and genders, sexual orientation, etc.  Employee Development – process of improving employees’ existing competencies and skills and developing newer ones to support the organization’s goals Innovation – change, revolution, transformation Quality – the degree of excellence for something Simplicity – the quality or condition of being easy to understand or do Collaboration and Partnership – sharing resources to accomplish a mutual goal by at least two parties who agree to share resources such as financial knowledge and people Idealism – a theory that the essential nature of reality lies in consciousness or reason Courage – strength in the face of pain, grief, or hardship Unselfishness – the quality of giving more time or importance to other people’s needs, wishes, etc. than your own Self-discipline – the ability to control one’s feelings and overcome one’s weaknesses, or the ability to pursue what one thinks is right despite temptations to abandon it Self-respect – pride and confidence in oneself, a feeling that is behaving with honor and dignity 5 Company Core Values that Shape Business Ethics Company values are critical, keeping in mind that it gives purpose to the organization's functions. Having a well-laid set of company core values will keep each and every one from top to bottom in the organization on the right track. Furthermore, when we associate value with a certain thing or activity, it emphasizes the importance of the same. Also, it is worth noting that employees or job seekers on their lookout for the best workplaces prefer the ones that have got a sound vision and goal. At its early stage, the values adopted by a company also acts as the base for carrying out long- term plans and prioritizing its major functions. As an example, here are 5 company core values that shape business ethics. Integrity: We will be fair, honest, transparent, and ethical in our conduct; everything we do must stand the test of public scrutiny. Responsibility: We will integrate environmental and social principles in our businesses, ensuring that what comes from the people goes back to the people many times over. Excellence: We will be passionate about achieving the highest quality standards, always promoting meritocracy. Pioneering: We will be bold and agile, courageously taking on challenges, using deep customer insight to develop innovative solutions. Unity: We will invest in our people and partners, enable continuous learning, and build caring and collaborative relationships based on trust and mutual respect. 7 Major Benefits of Having Company Core Values 1. Employee Engagement Every employer wants to have a performance-driven company culture. However, cultivating the same within the organization is impossible until and unless proper emphasis is put on engaging the employees. Employee engagement has now become the buzzword for the same across the corporate industry. The reason here is that with changing times, the motion of providing your employees with the best is shifting from a handsome paycheck to a wide range of other benefits. And with the competitive nature of the work environment taking over workplaces worldwide, adopting policies that benefit your employees gives an employer a competitive edge over the other. There’s been a noticeable shift in recent years towards emphasizing employee satisfaction and mental health in the workplace instead of prioritizing company profits. Long gone are the days where companies could skate by on simply offering employees a decent wage without empowering them or creating an inclusive workplace. Nowadays, employers need to exceed expectations to retain talent. Not only does improving employee satisfaction increase engagement, boost productivity, and reduce costly turnover, it builds a healthy company culture. Employee satisfaction is related to the contentment level of your employees in their current positions. Factors that influence employee satisfaction may include: Compensation Workload Scheduling flexibility Teamwork Available resources Perceptions of management Alignment with company culture Career opportunities External factors can also influence employee satisfaction. For example, an employee who has to commute two hours might be less satisfied than one who is just a short drive away from the office, or one who works remotely. Some employees may be unsatisfied in their industry, while others may have personal issues affecting their day-to-day life at work. Some of the ways to improve employee satisfaction and engagement are: a. Listen to employee feedback More and more businesses are moving towards a positive feedback culture to boost employee engagement. A professional feedback culture values open and honest communication between employees, managers, and higher leadership, and encourages a steady flow of insight and advice. A large part of feedback culture is seeking and acting upon employee comments and responses, enabling employees to give their insights on organizational and managerial decisions and concerns. While transitioning to this type of corporate culture takes time and effort, the effects of employee satisfaction surveys and other forms of employee feedback offer numerous benefits, including higher overall employee satisfaction and retention. Note that simply seeking feedback isn’t enough to boost employee satisfaction — employees want to see their insights put into action. When employees feel empowered and believe they directly contribute to business operations, they are more likely to provide honest input, leading to a positive feedback loop and improving employee satisfaction. b. Stop micromanaging Micromanagement is a productivity killer that can negatively affect employee morale and performance. It can also stifle creativity and discourage initiative. Placing too much emphasis on the minutiae of daily operations can cause you to miss the bigger picture, and unfortunately can result in an increased risk of burnout for the manager. While there is a time and a place for more direct involvement in an employee’s tasks (i.e., during the onboarding period), micromanagement tends to be less time efficient and cause more stress to those involved. c. Recognize and reward performance Employees want to feel valued and appreciated by their managers. They also want to feel that the work they do is both personally fulfilling and contributes to the growth of the company. When you recognize employees and reward stand-out efforts, your team will feel more confident in their work and will be more likely to push themselves to perform well or share ideas in the future. While recognition is important, the type of reward you give employees is also significant. Some people may feel uncomfortable with company-wide recognition and prefer smaller, more private acknowledgment. This recognition can come in the form of positive performance feedback and reinforcement or thoughtful perks like time off or discounted services. d. Promote a healthy lifestyle Health issues and work-related stress are among the most significant causes of workplace absenteeism. An office culture that supports a healthy lifestyle and programs that encourage employee well-being can help prevent burnout, fatigue, and other illnesses. Along with health benefits, you can promote your employees’ physical and mental well-being in several ways, including: Fitness classes Access to health food service Ergonomic office equipment Flexible work schedules e. Maintain a comfortable work environment Even seemingly minor things can have an enormous impact on employee satisfaction and experience. Lagging servers and computers, for example, can be a constant source of frustration and slow down productivity, while inadequate facilities make employees uncomfortable and feel undervalued. Many studies have shown that the workplace environment can dramatically affect employee satisfaction. In addition to factors like lighting and temperature, even small decisions like allowing employees to leave personal items at their workstations can improve employee experience. f. Improve communication and transparency Nobody likes to be kept in the dark about decisions and changes in the workplace. Rumors about job security, significant workplace changes, and even shifts in corporate culture can seriously impact employee job satisfaction and morale. A transparent culture can start with the use of internal communication tools to provide updates on current jobs, growth opportunities, and significant changes. Even better is seeking employee input about any potential changes, but the simple act of communicating helps employees feel respected and more engaged with the company. g. Support employee development One of the key reasons employees leave their current jobs is stagnation and lack of career growth. Managers can encourage career development with training, workshops, and expanding the scope of their roles. An excellent way to start conversations about professional development is to ask employees what they want from their work and where they see themselves in the future. Managers should have open discussions about growth opportunities in the company and help employees set short- and long-term goals to move up in the company.  Training also has the added benefit of boosting productivity and improving performance by empowering employees to put their new skills to the test. h. Develop a social culture The new reality of remote work has left many employees feeling isolated and disconnected from their peers. Encouraging healthy work relationships between co-workers can result in stronger team bonds and lessen the risk of disengagement. Social connections in the office can foster a more positive work environment and boost job satisfaction. Employees may feel more confident about sharing their ideas and providing feedback, while friendly teams are more likely to seek collaborative solutions in challenging situations. i. Live the company mission Most people want to work for a company with a strong vision and mission. Employees whose personal values align with the company’s mission are more likely to be satisfied with their jobs as they know their work has meaning and contributes to the greater good. j. Reduce ineffective operations Ineffective or inefficient operations can be a considerable roadblock to keeping employees motivated. Job satisfaction might drop when an employee spends more time navigating processes and dealing with red tape than on productive, meaningful work. Wasted time can result in an employee worrying about their deadlines. They may even disengage from their work completely. Managers can improve employee well-being and productivity by streamlining operations, removing hurdles, and allowing employees to focus on their work. k. Give employees more control over their role While managers often understand their employees’ strengths and where they can improve, letting employees shape their own roles can often produce better results. Employees who can tailor their tasks to their strengths are more likely to excel at that role and will often be more proactive and produce high-quality work. Giving employees more control doesn’t mean that management cedes control entirely. Managers can use feedback sessions or performance reviews to evaluate an employee’s role and function and ensure that it still aligns with the greater needs of the business. 2. Employee Retention Adopting strong core values in your work culture also helps you to retain your top talents. If you’re wondering how?Then let me ask you if you would rather stay in an organization that hasn’t got a vision or move to another that thrives on a set of core values.  You’ll choose the latter. Adopting specific values right from inception adds stability to the functions in the organization. And with stability comes satisfaction which motivates everyone to work together towards a better future, thus, keeping the workforce together on track and fueling their zeal to achieve more. 3. Talent Acquisition Since you have read about retention, you might have got this point very well then. Talent acquisition is where every organization needs to ensure they get the best people for their workforce. However, the catch here is money may not be everything to attract them to work for you. Challenging the status quo, the top talents now first lay their eyes on the organization's future. They desire to be a part of an organization with a predefined vision and learn and grow there. As such, organizations must emphasize creating a culture based on solid workplace values supporting long-term goals. 4. Company Branding This is where company core values play the trump card. First, let’s not confuse company branding with the logos and tagline that are used on its products or services. The deal here is not to sell products but to project your organization as the perfect destination for business and recruitment. Every successful company has some core values associated with it. These values act as the pillars that help the organization earn goodwill. Thus, creating a much-needed positive image for the organization that affects it both internally and externally. Internally, the employees feel good and stay motivated as the positive image adds more value to their work and themselves. Externally, attracting the top talents and businesses to work for and with you becomes much easier. 5. Customer Satisfaction To grow in your field of business, you must always keep a check on your customer satisfaction levels. The happier you keep your customers, the better your business is going to be. Many of successful companies around the globe ensure top customer service to their clients as a part of their company values. Why? Company core values allow organizations to implement their goals efficiently and continuously improve them. On the bottom line, ensuring the best customer service depends mainly on the employees of the company. As such, core values help employers instill the same principle in the minds of every employee. 6. Fair Business Practices “You can make money without doing evil” Did you ever come across this sentence? No? It is one of the 10 core values adopted by Google. Corporations often go rogue with regards to their business practices in the lust for more revenue. Situations like this put everyone associated with the company in jeopardy, causing a loss of trust and integrity within the organization. However, this can be kept in check and avoided from happening by firmly abiding by the set of core company values. When applied by an organization in its day-to-day activities, these values would prevent malpractices from occurring. 7. Growth and Stability The company’s core values play a vital role in its growth and stability. The workflow becomes smoother when everyone knows the end goal based on the core values. A survey by Imperative on LinkedIn found that, 58% of companies with an articulated and understood purpose experienced growth of +10% compared to the rest 42% that don’t lay much emphasis on purpose. When employees are connected and showed the purpose of their work, they involve themselves at work in a much better way. And with better involvement in the workplace comes greater stability that further fuels the growth of the organization.