Masonry Magazine October 2002 Page. 29
When speaking of quality assurance, we often fail to understand the value of values, both within the organization and in our relationships with our customers. Successful companies never overlook this important factor.
aily, our headlines shout of blatant disregard both for the law and for right vs. wrong by obscure and prominent businesses alike. We see headlines like "If you violate the law, you will pay for it," quoting Harvey Pitt of the SEC in response to questions related to the Enron debacle with its possible auditor complicity, witting or unwitting. Or headlines like "Tyson Foods Executives Indicted" for smuggling illegal aliens, aiding them in obtaining false documents, and paying INS undercover agents "recruiting expenses." Deplorable? Yes. Shocking? Maybe. New? No. The products of human greed and moral expediency have been with us almost forever.
Unfortunately, seldom do we see headlines that highlight those companies and organizations that consistently live out positive values. Our gut feeling is that these businesses must benefit from their positive, values-centered approach. But how much? Do the benefits rise above simply having well-rested employees with easy consciences? Does a values-centered approach produce a payoff that makes these companies significantly more successful at achieving their strategic goals over the long run than they otherwise would be?
Values-A definition
Let's define the term "values." First, consider what values are not. They are not operating or cultural practices, processes or policies. These are subject to continual revision in response to environmental changes. These may be values-based, but are not values themselves. Instead, (borrowing from the definition of Core Values in "Built to Last" by James Collins and Jerry Porras) values are the organization's essential and enduring tenets a small set of general guiding principles, not to be compromised for short-term financial gain or expediency.
Values include both the Commitment Statement portion of the Mission Statement and Goals in the Simplified Strategic Planning (SSP) process. For example, statements like "establishing Trust and Respect as the basis for relationships with all stakeholders"; "the Company exists to alleviate pain and eliminate disease" (Johnson & Johnson Credo); the biblical Golden Rule; and "respecting and encouraging each individual's ability and creativity" (Sony) would all qualify as values.
The term "values-centered" applies to an organization that only makes decisions that satisfy its values. A values-centered
Values are the organization's essential and enduring tenets - a small set of general guiding principles; not to be compromised for short-term financial gain or expediency.
organization is more likely to take a profit hit in order to better satisfy other values.
Values' value
Now we can address our question "does a values-centered approach make companies significantly more successful at achieving their strategic goals over the long run than they otherwise would be?" Studies resulting in hard information are very difficult to structure. The best-known and widely accepted study is the one reported in Built to Last. As you are probably aware, this study selected 18 world-class Visionary Companies that were the best of the best, enduring winners in their industries, and compared each to a similar Comparison Company whose long-term performance was substantially less stellar. One of the major areas explored was the difference in the existence and role of a core ideology in the paired companies. The following statements encapsulate the findings
"In nearly all cases (of Visionary Companies) we found evidence of a core ideology that existed not merely as words but as a shaping force."
"Although profit is consistently a value in all Visionary Companies, profit maximization does not rule. They pursue their ideological aims profitably."
"Visionary Companies tend to have only a few core values-3 to 6."
"In a Visionary Company, the core values need no rational or external justification. Nor do they sway with the trends and fads of the day. Nor even do they shift in response to changing market conditions."
The points above clearly indicate that companies with implemented values enjoy greater success than those that don't. If there is strong logic as to why this indication should be true,