{"id":28886,"date":"2013-12-13T10:00:39","date_gmt":"2013-12-13T15:00:39","guid":{"rendered":"https:\/\/balancedscorecard.org\/staging\/?p=28886"},"modified":"2022-08-23T11:02:57","modified_gmt":"2022-08-23T15:02:57","slug":"whats-the-value-in-having-values","status":"publish","type":"post","link":"https:\/\/balancedscorecard.org\/staging\/blog\/whats-the-value-in-having-values\/","title":{"rendered":"What\u2019s the Value in Having Values?"},"content":{"rendered":"

[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.0.89″ background_layout=”light”]<\/p>\n

\u201cIt\u2019s not hard to make decisions when you know what your values are.\u201d<\/em> \u2013 Roy E. Disney<\/p>\n

\"\"<\/p>\n

Values can sometimes seem like the stepchild of strategic planning.\u00a0 The guts of a strategic plan can include a results-oriented vision translated into specific objectives, measures and initiatives that will support it.<\/p>\n

Values, on the other hand, can feel a bit fuzzy. Often, people think of values as a \u201cdo-gooder\u201d thing. The exercise of defining values may feel like an exercise in identifying lofty sentiments rather than guiding day-to-day behavior.<\/p>\n

Edgar Schein, who has made a career of studying organizational culture and values, makes a distinction between \u201cespoused values\u201d \u2013 the things we say we believe in – and \u201cshared tacit assumptions\u201d \u2013 the often unspoken assumptions about \u201cthe way things are\u201d that actually shape our behavior. All organizations have values, whether these are explicit or not.<\/p>\n

This last point is important. For example, Enron had a list of four values that sounded very convincing: respect, integrity, communication and excellence. There also were a number of other values, such as \u201cconsistent profits quarter over quarter no matter what,\u201d that weren\u2019t stated, yet were the primary drivers of management behaviors \u2013 hidden from public view until it was too late.<\/p>\n

These kinds of values \u2013 stating things that sound nice but don\u2019t really guide our behavior \u2013 are what we call \u201clobbyware.\u201d They look good on a plaque but don\u2019t really say anything about how we make decisions.<\/p>\n

There\u2019s nothing wrong with having a value based on profit\u2014this is how businesses grow and sustain over time. I was working with the executive team of a privately-held company, defining values as part of Step 1 of the Institute\u2019s Nine Step process<\/a>, and the CEO proposed a value of \u201cprofit.\u201d Some of his executives were mildly horrified, to say the least.\u00a0 They were coming from the paradigm that all values have to be \u201cnice,\u201d and felt that somehow focusing on profit just wouldn\u2019t be very motivating to most employees.\u00a0 The CEO\u2019s response was telling \u2013 \u201cIf we don\u2019t make a profit, we\u2019re out of business. And we\u2019re all out of a job.\u201d\u00a0 Similarly, in the non-profit world, we hear the slogan \u201cNo margin, no mission.\u201d<\/p>\n

And, all values aren\u2019t necessarily \u201chumanistic\u201d attributes like teamwork, respect, or public service. Values create both an ethical and<\/em><\/strong> a practical compass that influences actions and decision in every-day situations. In a \u201clean\u201d company like Toyota, for example, values include \u201cGo to where the work is done and find the facts,\u201d \u201cEncourage Consistency,\u201d and \u201cReduce Waste\u201d \u2013 all part of a rigorous emphasis on continuous, measureable process improvement.<\/p>\n

Ultimately, values reflect the personality of the organization, and are an important component of the organization\u2019s culture \u2013 part of the foundational perspective we refer to as \u201cOrganizational Capacity.\u201d As part of this, well-articulated values can be a powerful way to attract and screen new employees who are compatible with the culture of your organization.<\/p>\n

Finally, the assessment of an organization\u2019s strengths and weaknesses may show that the current values of the leadership or workforce are incompatible with what is needed to move forward, seize opportunities, or adapt to change.\u00a0 In that case, a strategic theme addressing cultural transformation may be called for.\u00a0 This cultural transformation may be essential to achieve other goals of the organization.<\/p>\n

Read more about Values in The Institute Way: Simplify Strategic Planning and Management with the Balanced Scorecard<\/em><\/a>.<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div> \u201cIt\u2019s not hard to make decisions when you know what your values are.\u201d \u2013 Roy E. Disney Values can sometimes seem like the stepchild of strategic planning.\u00a0 The guts of a strategic plan can include a results-oriented vision translated into specific objectives, measures and initiatives that will support it. Values, on the other hand, […]<\/p>\n","protected":false},"author":3,"featured_media":28887,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[25,23],"class_list":["post-28886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-strategic-planning","tag-strategy"],"yoast_head":"\nWhat\u2019s the Value in Having Values? - Balanced Scorecard Institute<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/balancedscorecard.org\/staging\/blog\/whats-the-value-in-having-values\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s the Value in Having Values?\" \/>\n<meta property=\"og:description\" content=\"\u201cIt\u2019s not hard to make decisions when you know what your values are.\u201d \u2013 Roy E. 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