Personal values & Corporate Strategy What are personal values? A value is a belief, a mission, or a philosophy that is meaningful. Whether we are consciously aware of them or not, every individual has a core set of personal values. Values can range from the commonplace, such as the belief in hard work and punctuality, to the more psychological, such as self-reliance, concern for others, and harmony of purpose. When we examine the lives of famous people, we often see how personal values guided them, propelling them to the top of their fields.
For example, one actor was motivated by his commitment to social justice, which led to important acting roles related to that value that made him world famous. Likewise, a well-known business CEO was motivated by the personal value that technology should be easy to use, which caused his company to spawn a technology revolution. Whatever one’s values, when we take them to heart and implement them in the smallest details of our lives, great accomplishment and success are sure to follow. Example: Sears’ commitment to trusting the customer. From the 19th century onward, any product could be returned to the company with a money back guarantee, which engendered great trust in both directions, enabling booming sales, and, the great success for the firm that followed. ] Apple Computer’s belief in the values of solving problems of society. [The company created the IPod player and ITunes online music store to overcome a conflict between those who sought to download copyrighted music for free and the music industry which sought to protect its artists and its Marriott’s values of systemization and standardization. The company created a standard model hotel, and then duplicated it hundreds of time around the world, enabling it to grow incredibly fast, and become the leader of its industry. ] We can energize our lives by making the full effort to implement the values we subscribe to. Once we identify values that are meaningful to us, we can develop strategies to implement them. When we make the determined effort to implement those strategies, good fortune is sure to follow — in the form of new opportunities, new sources of revenue and income, and other forms of material and psychological benefit.
Example of personal values: Simplicity In this time of great complexity and hurry, there is no more important personal value than “simplicity. ” Taking the time to simplify anything that is overly complex is a very helpful skill in these rapidly accelerating times. Simplifying a work not only streamlines it, but make it more effective and productive, leading to greater results when compared to its former complex arrangement. Strategies: -Take any important work or project in your life and come up with at least two ways to simplify it. -Develop a half dozen ways to simplify your life.
Practicality Often people with great talent, artistic temperament, or other qualities fail to achieve because they are not practical in their thoughts and deeds. For example, when important opportunities come their way, they shun them; or they have a prejudiced view about the value of money, i. e. they shun it. Any attempt on one’s part to be more practical will rapidly catapult one from one’s current status towards the pinnacle of success. Strategies: List two to four ways you have been or are impractical in life. Now make an effort to your ways. eep reaffirming your new approach till it becomes part of your being. If you are not sure if and how you are impractical, why not be brave and ask those who are looking out for your best interests for their opinions. What are Corporate Values? •Corporate values as basis for corporate culture Corporate culture refers to a company’s values, beliefs, business principles, traditions, ways of operating, and internal work environment. How is corporate culture developed? -Can originate anywhere: •From one influential individual, work group, department, or division •From bottom of the organizational hierarchy or the top Very often, many components of the culture originate with a founder or certain strong leaders who articulated them as a company philosophy or •A set of principles to which the organization should rigidly adhere or as company policies – The role of stories: Company’s culture emerges from the stories that get told over and over again to illustrate newcomers the importance of certain values and beliefs and ways of operating. Example: FedEx – is about a deliveryman who had been given the wrong key to a FedEx drop box.
Rather than leave the packages in the drop box until the next day when the right key is available, the deliveryman unbolted the drop box from its base, loaded it into the truck, and took it back to the station. There, the box was pried open and the contents removed and sped on their way to their destination the next day. The story vividly communicates the kind of commitment the company wants every employee to exhibit in helping the company live up its reputation of reliable delivery. -Perpetuating the culture Company cultures can be perpetuated by : screening and selecting new group members according to how well their values and personalities fit in, oby systematic indoctrination of new members in the culture’s fundamentals, oby efforts of senior group members to reiterate core values in daily conversations and pronouncements, o by the telling and retelling of company legends, oby regular ceremonies honoring members who display cultural ideals, and oby visibly rewarding those who follow cultural value and penalizing those who don’t. Forces that causes a culture to evolve -Arrival of new leaders and turnover of key members often spawn new or ifferent values and practices that alter the culture -Diversification into new business -expansion into different geographical areas -rapid growth that add new employees -merger with acquisition of another company can all precipitate cultural changes globalization and the Internet are today driving significant changes in the culture of companies all over the world What are the different types of corporate culture? 1. Strong culture- promote good strategy execution when there’s fit and hurt execution when there’s little fit oValues and behavioral norms are like crabgrass: deeply rooted and difficult to weed out
Three factors contribute to the development of strong cultures: 1. A founder or strong leader who establishes values, principles, and practices that are consistent and sensible in light of customer needs, competitive conditions, and strategic requirements; 2. A sincere, long-standing company commitment to operating the business according to these established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms; 3.
A genuine concern for the well-being of the organization’s three biggest constituencies- customers, employees, and shareholders. 2. Weak culture A companies culture can be weak and fragmented in the sense that -many subcultures exist, – few values and behavioral norms are widely shared, and -there are few sacred traditions. -There’s little cohesion and glue across organization units-top executives don’t repeatedly espouse any business philosophy or exhibit commitment to particular values or extol use of particular operating practices.
Because of a dearth of common values ad ingrained business approaches, organization members typically have no deeply felt sense of corporate identity. -Provide little or no strategy implementing assistance. 3. Unhealthy culture Unhealthy trait are: ?A politicized internal environment that allows influential managers to operate autonomous “fiefdoms” and resist needed change. ?One that can plague companies suddenly confronted with fast-changing business conditions is hostility to change and to people who champion new ways of doing things. Promoting managers who are good at staying within their budgets, exerting close supervisory control over their units, and handling administrative detail as opposed to managers who understand vision, strategies, and culture building and who are good leaders, motivators, and decision makers. ?An aversion to looking outside the company for superior practices and approaches Examples of companies that had unhealthy culture during the late 1970’s and early 80’: 1. Bank of America 2. Citicorp 3. Ford 4. General Motors 4. Adaptive culture