Archive for the ‘Values’ Category
Wednesday, July 27th, 2011
A recent study performed by the Institute of Business Ethics found that companies displaying a ‘clear commitment to ethical conduct’ consistently outperform companies that do not display ethical conduct. The director of IBE, Philippa Foster Black stated, “Not only is ethical behavior in business the right thing to do in principle, we have shown that it pays off in financial returns.” Part of your commitment as a business leader is to create and maintain the processes and a culture that dictates ethical behavior. Ethical behavior is not an easy path, nor is it a path taken without thought and consideration. As a leader, decision with value connections will be presented frequently. Examples could include employees stealing from the company, doing personal business on company time, modifying accounting records, or extending a customer discount that was not earned, etc. Clearly defined organizational goals and clearly stated organizational values are integral to your ability to make the best decisions and take the right actions. As you deal with different types of situations you are being evaluated very closely by your team. As you lead by example, you become a champion for the organization’s commitment to ethical behavior. As you look to enhance the ethical policies and processes within your company, take into consideration the following five principles.
- Be trustful: Recognize that customers and employees want to do business with an organization they can trust. When trust is at the core of an organization, it is easy to recognize.
- Meet obligations: Regardless of the circumstances, do everything in your power to keep commitments and obligations to employees and customers. An incredible amount of trust is built when an organization honors its commitments. If unforeseen events stand in the way of meeting an obligation, immediately communicate the challenges and work together to find resolution.
- Reevaluate all documents and materials: Make sure all department and organizational documents and literature are clear and precise. Make sure they don’t misinterpret or misrepresent.
- Have documented processes: Every organization is structured differently. However, having documented processes and policies on how your organization interacts with customers and employees is critical. If processes are properly documented there is no question what a product or service should be or whether a customer exception falls within the acceptable guidelines. Take a hands-on approach to all accounting and record keeping as it will allow you to end an inappropriate action in a timely fashion.
- Be respectful: Treat employees and customers with respect regardless of differences, positions, titles, ages, or diversity. Always treat others with respect and courtesy even if you agree to disagree.
Successful implementation of these five principles becomes a leader’s daily commitment and responsibility. Oprah Winfrey said it quite simply, “Real integrity is doing the right thing, knowing that nobody’s going to ever know whether you did it or not.”
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses achieve sustainable results through leadership development and executive coaching. For information on creating a leadership succession plan visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: commitment, ethics, ibe, institute of business ethics, integrity, oprah, processes, resource associates, respect, trust
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Wednesday, February 23rd, 2011
“Let us suppose that we were asked for one all purpose bit of advice for management, one truth that we were able to distill from the excellent company’s research. We might be tempted to reply, ‘Figure out your value system.’ Decide what your company stands for. Clarifying the value system and breathing life into it are the greatest contributions a leader can make.” Peters and Waterman, In Search of Excellence.
Many people have given little more than a passing thought to identifying the values that govern their personal behavior, and even fewer organizations have done so. Instead, they accept the values of others and let situations determine their values. In almost all cases in which values are not clearly defined, good decisions are more difficult to make. Without values, people are easily influenced and decisions are subject to frequent change or compromise. “Situational values” confuse people and create problems as well as complexity.
Successful leaders make important decisions based on a set of core values … doing the right things for the right reasons. Within an organization, personal values may differ. A leader will help everyone focus on a “common good” value that will engender a desire for cooperation and teamwork without invalidating those personal differences.
What are your values? Can you easily and specifically identify them? What about the people throughout your organization? Are they committed to the organizational values? Take time to clarify or review the values you hold as a leader. Focus on what is really important to you and ask yourself, “What are the beliefs that I value so strongly that I will not compromise?” Sometimes when crystallizing your values, it helps to identify and clarify those values that you respect in other leaders you hold in high regard. What values do their actions, habits, and life-style exemplify? Often the values you see and respect in others are indicators of what you hold as personal values. How do these values exhibit themselves in your business decisions, in your relationships with customers, employees, stockholders, suppliers, and your community?
The true test of commitment to values is whether or not those values are upheld during a crisis. What does your behavior, or the behavior of the people throughout your organization, express about your values? Will you compromise any of your values for expediency or will you champion values under pressure?
At one time in history, it was said that the Iroquois Indians made decisions only after they examined the effect of those decisions on seven generations. We have come a long way from that point of view. At one time we looked up to our leaders as heroes and role models. We held them up for our children and future generations to emulate. Today, it is becoming increasingly difficult to find someone worthy of recognition and role model status. We must change that for our own good and for the survival of a value-based society. The future of our society rests on the ability of our leaders to articulate, exemplify, and operationalize personal and organizational values.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses improve customer loyalty and eliminate employee disengagement. Learn how at www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: good decisions, In Search of Excellence, Iroquois Indians, Peters and Waterman, Search for Excellence, United States, value-based society, Values
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Thursday, July 29th, 2010
Valueship is not a new concept. Those who are leading successful companies are doing so because they are practicing valueship.
James L. Heskett, former UPS Foundation Professor of Business Logistics at the Graduate School of Business Administration, Harvey University, and Leonard A. Schlesinger, the George Fisher Baker Jr., Professor of Business Administration, senior associate dean and director of external relations for Harvard Business School, have studied the correlation between leadership, behavior, and organizational performance. They found that leaders of the best-performing organizations defined their jobs as:
- Identifying and constantly communicating commonly held values
- Shaping such values to enhance performance
- Ensuring the capability of people around them, and
- Living the commonly held values
Never before has Valueship been more important than today. Role models, athletes, corporate leaders, and government officials are accused and convicted of crimes both small and large. Our daily entertainment consists of television and video games filled with violence, impropriety, and questionable values. Implicit in all of this is a subtle approval of behavior we then verbally condemn. By our actions or our apathy, we are setting the standards and values or lack of them for our employees, our children, and the next generation. The need for Valueship can be seen in every profession, rank, and industry. The important decisions we make in life and in business should be influenced by values.
Valueship is a process of leading people and organizations with as much focus on doing the right things as doing things right. When people, processes and structure are in alignment with the values, vision, and strategy, the individual and the organization is balanced and the actions of each produce positive results for the other. When people feel as if they are an important part of the organizational whole, are committed to the goals and values of the organization, and see the leaders living these goals and values, they will generally be motivated to do good and even exceptional work. The result is a strategic alignment of resources and true organizational cohesion.
Value-based leadership begins with identifying core values. Core values are the basic principles that we have chosen to guide our actions. Core values define beliefs, standards, and acceptable behavior. Once determined and communicated throughout the organization, they guide and govern the decisions and actions of the individuals and the organization. The core values shape the organizational culture the behavior and the actions of all who are associates with the organization. The core values provide the framework for decisions, priorities, and actions.
Many people have given little more than a passing thought to identifying the values that govern their personal behavior, and even fewer organizations have done so. Instead, they accept the values of others or let situations determine the values. In almost all cases in which values are not clearly defined, good decisions are more difficult to make. Without values, people are easily influenced and decisions are subject to frequent change or compromise. Situational values confuse people and create problems and complexity.
Successful leaders make important decisions based on a set of core values and do the right things for the right reasons. In an organization, personal values may differ. A leader will help everyone focus on common values that will engineer a desire for cooperation and teamwork, without invalidating those personal differences. What are your values? Can you easily and specifically identify them? What about people throughout your organization? Are they committed to the organizational values?
“My firm belief is that values are the buoys in the channel of commerce. During the course of your career, you’ve got to make thousands of decisions. You’ve got to react to what happens every day. But if you can’t tie your decisions back to your core values, you get lost. Totally lost.” James R. Houghton, former chairman and CEO of Corning Incorporated.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses achieve sustainable results through management consulting, strategic planning, leadership development, executive coaching and youth leadership. For information on creating a leadership succession plan visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: Corning, Harvard, Leadership, people, process, RAC, Resource Associates Corporation, strategic alignment, strategy, UPS, Values, valueship
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