When a company is fixated with the bottom line, there's a good chance it won't survive. The dollar sign isn't a cause. It doesn't stir the soul. Operating margins and return on investment don't excite and inspire. As an ultimate objective on its own, the pursuit of profits is hollow and unsatisfying. It is one-dimensional, without depth. It comes from, and leads to, the naked selfishness of "what's in it for me."
Few people today want to buy from, work for, or partner with, a company that's only out for itself. For example, I can't imagine sitting down with my team, producing a set of elaborate architectural drawings for a huge, luxurious dream home, and saying, "if you all work really hard, someday this will be mine."
David Packard, co-founder and inspiration of Hewlett Packard, one of the world's most respected international businesses, put it this way: 'Why are we here? I think many people assume, wrongly, that a company exists solely to make money. Money is an important part of a company's existence, if the company is any good. But a result is not a cause. We have to go deeper and find the real reason for our being.
As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company, so that they are able to accomplish something collectively that they could not accomplish separately – they make a contribution to society, a phrase which sounds trite but is fundamental.'
One trend in business is that employees, especially young employees, want a sense of purpose in their work. We all want a sense of purpose in our lives, but in the past we didn't demand it from our jobs. Now workers increasingly do. They want to know that what they do at work is good and right in some large sense.
Of course, if a company isn't profitable and financially strong, it won't exist long enough to serve any other purpose. That's the paradox to be managed: Companies that exist only to produce a profit don't last long, while companies that don't pay attention to profits can't exist to fulfil their long-term purpose.
The key is to find the right middle ground, because pursuing profits without a higher purpose, or pursuing a purpose without profit, are equally fatal strategies.
Studies of the role and impact of values or ethics on corporate performance show that profits follow from worthy and useful purposes. Fulfilling the purpose comes first, and then the profits follow. Profits are a reward. The size of our reward depends on the value of the service we've given others.
Developing a purpose that's aimed at serving others adds a richer sense of meaning to our lives. It taps into the deep craving we all have to make a difference. We need to feel that the world was in some way a little bit better off for the brief time we passed through it.
Vision, Values, and Purpose
Single dimension managers create a sterile and passionless culture. Their strategies, budgets, and business plans are cold and lifeless. So, most people go through the motions, put in their time, and go home. In this environment, change and improvement programs have no spirit. These programs may build up some speed and even get off the ground — but they don't soar.
A strong focus and context is at the core of a vibrant culture ("the way we do things around here"). It gives direction and guide's behaviour. It energises the heart, soul, and spirit of teams and organisations. Three interconnected questions lie at the centre:-
· Where are we going?
· What do we believe in?
· Why do we exist?
Over the years we've been involved in too many "vernacular engineering" debates as management teams argue about whether the statement they've been crafting is a vision, a mission, a statement of values and goals, or the like.
Often these philosophical labeling debates are like trying to pick the flyspecks out of the pepper. Unless we're in the dictionary business, we shouldn't worry about the precise definition of vision, mission, values, or whatever we may be calling the words we're using to define who we are and where we're trying to go.
What does matter is that our teams have discussed, debated, and decided on the answers to these three questions (in no particular order): Where are we going What do we believe in? Why do we exist?
They are critically important questions. They are fundamental to leading others. This is the beginning point of effective leadership. These basic issues are the fabric with which we weave our focus and context (vision, values, and purpose). If we're attempting to change our team or organisation culture, our answers to these basic questions define the culture we're trying to create.
If we're going to further improve our leadership effectiveness, we need to have thought through and answered these questions on our own. If you have a spouse or life partner, you need to work on these questions together.
Whatever we call our answers to these questions doesn't matter. They can be termed vision, mission, values, strategic niche, aspirations, purpose, and so on.
And how "snazzy", "different", or "original" our words are doesn't matter as much either. What does matter is: Can we give a unified answer to these questions? Is whatever we've developed clear and compelling? If we're a management team — and especially a senior management team — does everyone on our team passionately own what we've developed?
Do we give these critical leadership issues a sharp focus and meaningful context for everyone? That can only be done through skilled, live communications and consistent management behaviour.
There are no right answers to these questions. No consultant, expert, or anyone else can answer them for us.
There is no one way to answer them. Each of us has our own style and approach.
Perhaps it was best summed up by the message on the voice mail that said ‘this is not an answering machine, it's a questioning machine. There are really only two questions in life: Who are you and what do you want? Please leave your answer after the tone’
Today it's a rare organisation that doesn't have a set (most often a laundry list) of values. In fact, values have become one more item added to the requisite organisation checklist (Organisation chart? Check. Strategic plan? Check. Budget? Check. Vision statement? Check. Values? Check.) Frequently when we ask about the organisation's values, a dusty old piece of paper is produced. Quite often is followed by a debate about whether or not this is the right version of the organisation's values.
Many organisations can point to a list of values. The real question is how the values are lived. Have we just done our "values thing" during a planning session or are they actively used in our daily operations? Do they have a high "snigger factor" to be greeted with rolled eyes when they are occasionally brought forward?
A key test of whether core values are alive and real in an organisation is to ask team members at random to recite those values. If they can't do it without referring to a piece of paper, there are either too many values or they aren't being used in daily operations.
Here are some examples of how highly effective leaders keep core values alive:
- Make "values fit" a key criterion in hiring. Most effective leaders know that you can improve a person's skills and experience with training and development, but it's much harder to train for attitude and almost impossible to change a person's core values.
- Replace rules and policies with values and trust. Effective leaders treat team members as responsible adults who want to do the right thing for the team or organization. They know that with good support, training, and examples to follow, most people will exercise good judgment. The exceptions can be dealt with on an as-needed basis.
This principle can also extend to customers. For example, we know of one courier company that automatically sends customers up to $300 for any damage claims. Experience has shown that customers are dishonest less than 1% of the time.
- Promote only those people who are role models for the organization's values. Promotions are the clearest indication of whether values are lived or simply espoused. All too often, a manager will declare the values of teamwork, customer service, and trust, but then promote someone who is the meanest SOB in the place, manages by email, rarely sees customers or team members, and "snoopervises" rules like the Gestapo – simply because he or she gets the job done. In such cases, it becomes evident just how important (or unimportant) lived values really are.
As Mark Twain once remarked ‘everyone talks about the weather but no one ever does anything about it’.
For purpose and values to really work in helping take the the individual and the organisation from good to great they must first be deeply understood and beyond that integrated into routines.
If you are serious about refining the effectiveness of your your organisation or if you want to quicken the pace of your own personal leadership skills and growth call us now to learn more on how this can be achieved.
Home | About Us | Services | Clients | Library | Links | Contact Us
