1Organizational Core

Values

Yeganeh MajidiNOV. 2015

2 WHAT ARE VALUES?

3

A Belief.A Mission.

A Philosophy.That is meaningful.

4 Values

Values represent basic convictions that- A specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence.

Value is a judgmental element of what is right, good, or desirable.

Values are our fundamental beliefs. They are the principles we use to define that which is right, good and just. Values provide guidance as we determine the right versus the wrong, the good versus the bad. They are our standards.

Review dictionary definitions of values

5 IMPACT OF VALUES The values are integrated into the company's way of doing business (policies,

procedures, compensation practices, performance appraisals, etc.). They affect all aspects of the company from what products get made or sold to how people are treated.

They stand for something--that is, they have a clear and explicit philosophy about how they intend to conduct their business.

Organization's values are always in line with its purpose or mission, and the vision that the organization is trying to achieve.

Values form the foundation for everything that happens in your workplace. Founder’s values premate the workplace. Founder will hire people who share the same values.

Values largely govern the actions of the workforce.

Values hold a major role in daily decision making, norms and relationship guidelines and how people interact with each other and customers and suppliers.

6 IMPACT ON STRATEGY

7

8 Importance of Values

1 2Individuals enter organizations with notions of what is right and wrong with which they interpret behaviors or outcomes

3

Values generally influence attitudes and behavior.

Values lay the foundation for the understanding of attitudes and motivation because they influence our perceptions.

9

The Area

Represent

Constituents Special Interest Groups

Lobbyists

Values Funnel for Politicians

10

Advertised

Social ResponsibilityIntegrityCustomer

Service

ProfitsShare Holder Dividends

11

PowerRecognition

$$$$

DiversityHonesty/

IntegrityEmployee Development

12

TeamworkQuality

Customer Service

Individual RecognitionPower

Automony

13 Organizational Values. Organizational values define the acceptable standards which govern

the behaviour of individuals within the organization.

Organizational Values are a set of beliefs that specify universal expectations and preferred modes of behaviour in a company. They point the way to purposeful action and approved behaviour.

-- Sears' commitment to trusting the customer.

-- Apple Computer's belief in the values of solving problems of society.

-- Marriott's values of systemization and standardization.

14 Definition of Values for organizationA value is a belief, a mission, or a philosophy that is

really meaningful to the organization. An example of a business value is: "Customer Satisfaction." Another example of a value is "Being Ethical and Truthful." Every organization has one or more values, whether they are consciously aware of it or not. Another way of saying it is that a value is a statement of the organization's intention and commitment to achieve a high level of performance on a specific QUALITATIVE factor.

15 IMPORTANCE OF ORGANIZATIONAL VALUES

1. Formation of mission and vision statement

2. Formation of organizational objectives

3. Formation of policies and procedures

4. Fulfilling customers needs

5. Competitive advantage

16 Values and Goals StatementBusinesses and other organizations

develop strategic plans in which they list out their goals and values.

E.g., one organization indicated, "Provide growth opportunities for our employees. Create economic value for our customers and shareholders. Return value to the communities we serve."

17 Utility of Values in Business:

18 Steps to Implement and Institutionalize Values Selection.

Commitment.

Standards.

Structure.

Jobs, Activities and System.

Employee Responsibilities.

Skills.

19 PURPOSES OF VALUES

They help us to decide whether

preferences or events are

good or bad, right or wrong,

desirable or worthless,

important or insignificant.

They become the basic

determiners of perceptions, opinions and

attitudes.

Using values will always mean going

through certain

processes: motivation, selection, appraisal

(evaluation).

Values have also a social

function. Those derived

from commonality of experience unite families,

tribes, societies and

nations.

20

CALSSIFICATION DEPENDING ON WHO

EXERCISES THE VALUES

21Accepted by a majority as reflecting the basic orientation of a given society.Ex. Sense of nationhood, enlightened and useful citizenship, democratic way of life, and humanism.

General Values “The

operationalization of general values in personal life of each individual”.

Ex. Honesty, fairness, charitableness, courtesy and self-discipline

Personal Values

22

CLASSIFICATION ACCORDING TO THE NATURE OF THE BENEFITS EXPECTED

23

Category • Material and physical • Economic• Moral • Social• Political• Aesthetic• Religious(spiritual)• Intellectual • Professional• sentimental

Examples• Health, comfort, safety• Productivity, efficiency• Honesty, fairness• Charitable, courtesy• Freedom, justice• Beauty, symmetry• Piety, clearness of

conscience• Intelligence, clarity• Professional recognition and

success• Love, acceptance

24

CLASSIFICATION ACCORDING TO THE NATURE

OF THEIR BENEFICIARIES

25

BEHAVIORAL VALUES

• Cleanliness and orderliness, respect for others , like falling in line and demonstrating fair-mindedness

PROCEDURAL VALUES

• Values of science and truth, including critical thinking, rationality and thoughtful skepticism

26

(Person as self)

HUMAN PERSON

(Person in community)

Physical

Intellectual Moral

Spiritual

Economic

Social Politica

l

27

HUMAN DIGNITY

Truth 2Love

3

Spirituality 4

Nationalism and

Patriotism7

Economic Efficiency

6

Social Responsibilit

y5

Health 1

28 Core Values

Building your organization’s vision(Collins & Porras, 1996)

Companies that enjoy enduring success have core values and a core purpose that remain fixed while their business strategies and practices endlessly adapt to a changing world.

29

Core Values:

30 Core Values

Core values - A small set of timeless guiding principles

Only a few values can be truly core

To identify the core values, determine the values that are central and passionately held

Values must stand the test of time, they do not change with the market, organization’s change markets to remain true to core values.

31 Core ValuesCore Purpose is the organization’s reason for being

Reflects people’s idealistic motivation for doing the organization’s work.

Captures the soul of the organization.

You might achieve a goal or complete a strategy, you cannot fulfill a purpose.

Nike’s core purpose - to experience the emotion of competition, winning and crushing competitors

3M’s core purpose - to solve unsolved problems innovatively

Walt Disney’s core purpose - to make people happy

32 Core ValuesGeneral Electric "I believe that our reputation for integrity and honorable dealings is our

most important asset. Your GE team believes that strong integrity is the foundation of great performance. I hold myself to a high standard, and I know you will do the same.

" Jeffrey Immelt, Chairman & CEO

Google “We’re building a culture rooted in transparency, innovation, and scale.”

Sergey Brin & Larry Page

The Soul of Dell - Dell's success is built on a foundation of personal and professional integrity. We hold ourselves to standards of ethical behavior that go well beyond legal minimums. We never compromise these standards and we will never ask any member of the Dell team to do so either. We owe this to our customers, suppliers, shareholders and other stakeholders. And we owe it to ourselves because success without integrity is essentially meaningless.

Michael Dell, Chairman

33 Core ValuesPeople who articulate core values must answer a few questions:

What core values do you personally bring to work? What would you tell your children are the core values at

work and that you hope they will hold at work someday?

If you awoke tomorrow with enough money to retire, would you continue to live those core values?

If you start a new organization, what core values would you build into the new organization?

34 Core Values of Carroll School of Management Honesty & Integrity, We are committed to promoting the highest standards

of honesty and integrity Mutual Respect, We are committed to fostering an environment in which

every member of our community nurtures the spirit of trust, teamwork, openness and respect

Pursuit of Excellence, We are committed to creating an environment where all members of the community pursue the highest possible level of academic performance and personal development.

Personal Accountability, We are committed to fostering an environment where every member of the community understands and accepts responsibility for upholding and reinforcing our values

35 Why are Core Values Important? There is a need for alignment between personal

values and organizational values

When there is misalignment, bad things usually

happen

When there is alignment, your potential increases

significantly

36 How Core Values Can Improve Your Organization

Increase productivity, help guide decision making, and boost employee morale.

Kelly BatkeDirector of Marketing

Wendy Pat FongDirector of Customer

Success

37 WHAT ARE CORE VALUES?

Core values support the vision, shape the culture,

and reflect what the organization values.

They are the essence of the organization’s

identity – the principles, beliefs, or philosophy

of values.

38

• They help companies in the decision-making

processes.

• They educate clients and potential customers

about what the organization is about and clarify

the identity of the organization.

• They can be a primary recruiting and retention

tools.

WHAT ARE THE ADVANTAGES?

39

• They are copied from another

organization.

• They are not tied to your actual work

processes/goals.

• They are not specific enough.

• They are written by the wrong people.

WHY THEY HAVE FAILED

40

Step 1:

Select 5-7 people who have a gut-level understanding of your core values, are distinguished as the highest performers, and are well respected by their peers and management team.These 5-7 people become your Mars group…

WHERE TO START

41

Step 2:

Ask this group to list what they think the core values of the organization are.

Then ask them questions relating to each of the core values they have chosen:

Are the core values that you hold to be fundamental regardless of whether or

not they are awarded?

If you woke up tomorrow with enough money to retire for the rest of your life,

would you continue to hold on to these values?

WHERE TO START

42 WHERE TO STARTStep 2 cont’d.Can you envision these values being as valid 100 years from now as they

are today?

Would you want the organization to continue to hold these values, even if

at some point, they became a competitive disadvantage?

If you were to start a new organization tomorrow in a different line of

work, would you build the core values into the new organization

regardless of its activities?

43 LIVING YOUR VALUES

Lead and live by example!

Teaching the values

Recognizing the values

Hiring based on values

Incorporating core values as part of your performance

management

44

Examples of Organization Core Values

45 NIKE, INC.NIKE, INC was incorporated in 1964 as Blue Ribbon Sports by BILL BOWERMAN

and PHILL KNIGHTS and officially became NIKE,INC in may 1971.

Mission statement-

BRING INSPIRATION AND INNOVATION TO EVERY

ATHLETE* IN THE WORLD*

IF YOU HAVE A BODY, YOU ARE AN ATHLETE.

Values- Innovation, creativity, maintaining brand value, simplicity, fashionable, consumers decides, dynamic, responsible(doing the right thing) , transparency, promoting young and talented people.

46

MATCHING THE VALUES :

In 1972, Nike footwear introduced “moon shoe” that features a

waffle sole in US Olympics.

Nike has always sponsored young, talented and aggressive

sports person. Nike pays top athletes in many sports to use their

products and promote and advertise their technology and design.

47 In 1973 the company sponsored Romanian tennis star Ilie

Năstase and American record holder athlete Steve Profantaine . In 1978 endorsed tennis “bad boy” John McEnroe.

In 1979, it introduced Nike Air. Gas- filled plastic membranes were inserted in the sole to provide cushioning.

In 1984, Nike signs Michael Jordan(NBA Player)into endorsement contract with Jordan Air (originally banned by NBA).

Nike introduces Nike Air Max shoe with a television ad featuring the “Beatles” song “revolution”.

In 1989, Nike enters European football market. Nike has also sponsored many other successful track and field

athletes over the years, such as Carl Lewis, Jackie Joyner-Kersee and Sebastian Coe. The signing of basketball player Michael Jordan in 1984, with his subsequent promotion of Nike over the course of his career, with Spike Lee as Mars Blackmon, proved to be one of the biggest boosts to Nike's publicity and sales.

Nike also endorsed Tiger Woods soon after he gave up his amateur golf status in 1996.

48 StarbucksStarbucks is a good example of an organization that is clear about its core values. Note that while all six of their core values are equally important, the order in which they appear speaks volumes about how Starbucks operates.

49 Starbucks Core Values1. Provide a great work

environment and treat each other with respect and dignity.

2. Embrace diversity as an essential component in the way we do business.

3. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

4. Develop enthusiastically satisfied customers all the time.

5. Contribute positively to our communities and our environment.

6. Recognize that profitability is essential to our future success.

50Starbucks Core Values

At Starbucks, performance is measured on the basis of these core values. The information is translated into a scorecard and readily shared with managers, who in turn brainstorm ways to continually improve. All decisions are driven by these core values. The result? Starbucks has enjoyed extraordinary growth and is widely recognized as a high-performing organization, even during times of economic turbulence.

51 Starbucks

Our Coffee

Our Partners

Our Customers

Our Stores

Our Neighborhoods

Our Shareholders

52 Procter & GambleProcter & Gamble is one of the world’s leading makers of consumer products. With billions in sales, P&G has a reputation for excellence in marketing. It is a organization whose leaders have assured its enduring success by continually reaffirming and communicating its core values.

53Procter & Gamble Core ValuesPeople• We attract and recruit the finest people in the world.• We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance.• We act on the conviction that the men and women of Procter & Gamble will always be our most important asset. Leadership• We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results.• We have a clear vision of where we are going.• We focus our goals to achieve leadership objectives and strategies.

Ownership• We accept personal accountability to meet the business needs, improve our systems, and help others improve their effectiveness.• We all act like owners, treating the organization’s assets as our own and behaving with the organization’s long-term success in mind.

Integrity• We always try to do the right thing.• We are honest and straight-forward with each other.• We operate within the letter and spirit of the law.• We uphold the values and principles of P&G in every action and decision.• We are data-based and intellectually honest in advocating proposals, including recognizing risks.

Trust• We are determined to be the best at doing what matters most.• We have a healthy dissatisfaction with the status quo.• We have a compelling desire to improve and to win in the marketplace. Passion for Winning• We respect our P&G colleagues, customers, and consumers and treat them as we want to be treated.• We have confidence in each other’s capabilities and intentions.• We believe that people work best when there is a foundation of trust.

54Wells Fargo

With $390 billion in assets, Wells Fargo is one of the few survivors of the global banking crisis. Wells Fargo underscores the importance of its values by saying that “if we threw out all the policy manuals, we could still make decisions based on our understanding of our culture.” Look at Wells Fargo’s Core Values and supporting behaviors to decide for yourself how well they succeeded.

55 Wells Fargo Core ValuesEthics • Maintain the highest standards with customers, team members, stockholders and our communities.• Value and reward open, honest two-way communication.• Be accountable for our conduct and our decisions.• Only make promises you intend to keep—do the things you say you’ll do.• If things change, let people know.• Avoid any actual or perceived conflict of interest. Customer Satisfaction• Consider the customer in all we do.• Exceed the expectations of internal and external customers—surprise and delight them.• Do what’s right for the customer.• Talk and act with the customer in mind.• Build long-term customer relationships.• Treat customers with care. 

Leadership and Personal AccountabilityEvery team member contributes to our success and should:• Run it like you own it.• Take prudent risks.• Lead by example.• Make decisions locally, close to the customer.• Know your numbers.• Consider customer, stockholder, team member and community needs when making decisions.• Care about each other.

Diversity• Respect differences among team members, customers and communities.• Behave in a way that supports our corporate values.• Take advantage of different perspectives.• Support the diversity of our team members, customers, and communities.• Leverage diversity as a competitive advantage.

56 Avoid Hollow Values

When you’re defining an organization’s core values, it’s critical to avoid making them sound hollow by inserting, for example, your own personal values for those of the organization, or making the exercise too cute.

57 Here’s an example of a set of “core values” that one management team came up with: 

 

This list is incomplete. It’s also not well-organized. Some are legitimate core values, such as acting with integrity. Some are key values, such as celebrating successes. Some obvious core values are missing. It should come as no surprise that this particular set of values had little impact on this organization.

• We work as a team• We act with integrity and honesty• We champion and celebrate diversity• We expect and support exceptional service• We celebrate our successes• We encourage creativity and innovation• We care about our community

58 Symptoms of "Hollow" Core Values

Related Causes

• People “go it alone”— working at odds with one another. • People aren’t held accountable.• People are confused about how their activities and performance

objectives tie into the organization.• People take actions contrary to the organization’s interests.• People are reluctant to ask tough questions or clarify their priorities.

• Failure to identify the organization’s core values and communicate them.

• Failure to communicate and clarify the core values throughout the organization.

• Failure to articulate performance measures tied to core values.• Lack of feedback and performance measurement tied to the core

values.• Lack of training tied to the core values.

59 Examples of Hollow Values

Here’s another example of what I consider to be hollow values from Jamba Juice, a health-oriented seller of fruit-based shakes and other products. Its values spell out the word “fiber.” The sentiment behind these values is heartfelt. But they don’t reflect what’s essential to Jamba Juice. It’s a cute marketing gimmick, not a reflection of what’s truly important to the organization.

Fun – Have fun. Smile and create a spirit of celebration for your customers.

Integrity – Do what you say. Demonstrate good character and encourage an atmosphere of mutual trust and respect.

Balance – Live a balanced life. Consider the needs of customers, team members, and shareholders alike.

Empowerment – Believe in yourself. Be responsive and innovative. Do whatever it takes to make your customer happy.

Respect – Be respectful. Help each other to grow. Contribute to a vibrant and diverse community.

Jamba Juice Core Values

60 ZAPPOS“The most important thing in creating a strong culture is that it

creates strong alignment within the organization. What the culture

is actually doesn't matter as much as the commitment to the

culture and core values of the organization.”

— Tony Hsieh, CEO

61 AVIS BUDGET GROUP“The best strategic decision we made was making this a value-based

recognition program. The organization’s core values stay the same;

these are values that you want employees to carry with them. By basing

your program on core values, it eliminates the flavour of the month

feeling and the program is tied to something deeper and that makes it

better understood.”

— Mark Servodidio, Executive VP of Human Resources

62 Wegman’s Values1.We care about people

2.High standards are a way of life. We pursue excellence in everything

we do

3.We make difference in every community we serve.

4.We respect our people

5.We empower our people to make decisions that improve their work

and benefit our customers and our company.

63 Walmart

Since Sam Walton founded Walmart Stores, Inc., it has always

been a values-based, ethically led company. The values that

guide our decisions and our leadership are the 3 Basic Beliefs:

• Respect for the Individual

• Service to our Customers

• Striving for Excellence

64 Red Lobster

Hospitality

Fairness

Caring

Respect

Quality

Zip

Balance

Fun

65

Service

Diversity

Inclusion

Openness to Change

66

Respect

Communication

Integrity

Excellence

?

67

Ethical Behavior 90%

Commitment to Cust. 88%

Commitment to Ees 78%

Teamwork/Trust 76%

Commitment to Shareholders 69%

Honesty/Openness 69%

Accountability 68%

Social Respon. 65%

Innovativeness 60%

Drive to Succeed 50%

Environ Respon. 46%

Initiative 44%

Commit to Diversity 41%

68 ConclusionYou need to listen carefully for clues that your

organization has failed to engage in a deep examination

of the organization’s core values. If you sense this, or

inherit a listless organization, resolve to do something

about it right away. Nothing is more important if you

want to build a leadership culture.

69

Thank you!