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Business
planning emphasizes strengths, weaknesses, opportunities and threats. A Vision and/or
Mission are standard fare. However,
the most meticulous strategy plan can still derail without the guidance of core
values. They are the standards
for behavior that define your culture. Defining
core values is a critical step. From there, the real work begins. Two high profile cases offer classic examples. Both companies have carefully crafted value statements. The difference in outcomes lies in leadership walking the talk.
The Tylenol poisoning deaths that occurred in the Chicago area proved to be regionally isolated. Johnson & Johnson’s management took no chances and immediately recalled all product from all store shelves nationally. They acted instantly in accordance with their values. If their statement read our first responsibility is to our shareholders, we might have seen a more short sighted response. Strong adherence to values simplified their decision and not only preserved but strengthened their brand.
Andersen
has become an easy target. But, there are lessons to be learned.
Integrity was their number one stated
value. At some point, integrity was replaced by greed. Andersen developed a
cavalier consulting arm to design and build businesses, while
its other arm audited those businesses. They successfully lobbied to prevent legislation
to limit such conflicts of interest. Are these the actions of an organization that
stands for integrity? We
witnessed the
results, a values domino effect.
In contrast to Tylenol’s customers, Andersen clients rushed for the exits,
never to return.
Impact on Customers Who is the number one over-the-counter pain relief brand today? Who has fallen from Big Three Accounting status? How did the adherence to core values contribute to each scenario? Are core values just for big companies? If
you are a restaurateur, what happens when an expensive cut of meat accidentally
falls to the floor? What if it was
the last serving? Do you maintain the same standards for meat in the kitchen
as you do for spoons in the dining room? Core values cannot be conditional.
You
are a manufacturer and are potentially late with an end of month delivery. Defective product
is discovered as the truck is being loaded. What do you do?
Prioritized values provide your people with the answer. If you have
institutionalized your values, executive involvement is unnecessary.
What are your organization's values? If
your business plan was written primarily to impress your bankers and investors, a values
statement is likely missing. If you need to
check to find out, it might just as well be missing. If your core values
are not communicated and understood by all, what are your criteria for decisions
in times of crisis?
Sustained Success and Values Driven Leadership When
a crisis occurs, your success depends on your people's ability to make
prompt decisions. Will you
prosper like Tylenol or collapse like Andersen?
More: The Impact of Core Values on Your Marketing Message Tom Lemanski of Vista Development serves as an executive coach and performance facilitator for the strategic development of SMARTer executives, managers and sales professionals. |
