"Each of us carries a set of values by which we live and work. Suppliers have values. Customers have values. Employees have values. Owners have values. Your organization has values. They may be perceived as good values; they may be perceived as bad values. The important question for CEOs is this: Have you thoughtfully developed and articulated these values, or are they simply a random collection of individual norms of behavior?
Business leaders often get sidetracked by individual behaviors that needlessly consume their time and energy. Some real examples:
A customer calls and profanely berates your customer service representative while complaining about your company's service.
Your purchasing manager accepts favors from a supplier in exchange for overlooking invoice errors.
Your sales manager argues against informing your customer of product quality problems.
One employee "covers" for another who takes unauthorized time off.
What's often missing in these organizations is a statement of core values. Core values are the organization's essential and enduring tenets, not to be compromised for financial gain or short-term expediency, according to Jim Collins and Jerry Porras in Built to Last. The authors found that visionary companies tend to have only about four to six core values, and that there is no universal set of right or wrong values among successful companies. To me, core values provide enduring context for making otherwise difficult decisions within the organization. Without clear core values, poor performance is often tolerated, bad behavior is often ignored, and difficult decisions are often postponed.
Let's consider each of the above examples. If one of your core values was respect for others, wouldn't it be a straightforward decision for you to call that customer and let her know that her behavior on the telephone was unacceptable and that you are willing to work with her, but in a more civil manner? If one of your core values was integrity, wouldn't it be easy to inform your purchasing manager of the consequences of his actions? If one of your core values was trustworthiness, would your sales manager even consider not telling his customer about the quality problems? And if one of your core values was accountability, wouldn't it be clear that both employees have acted inappropriately?
"Values are not trendy items that are casually traded in," wrote columnist Ellen Goodman. They are fundamental and enduring. It is the CEO's responsibility to keep core values alive within the organization. How? By printing them on the front page of the employee handbook and the annual report, incorporating them in the performance appraisal process, providing employees with relevant education and training, and communicating them in some form at every encounter with employees, customers, suppliers and shareholders. The CEO must also live those values in every action and decision, regardless of who may or may not be watching.
Try this: As you walk around your place of business start asking people what your organization's core values are. Jot down their replies. If they do not center around the four to six values that you want your organization to live by, then you have some more work to do.
Louis Allegra is president of Allegra Management Consulting, Inc. He chairs CEO advisory boards in affiliation with Vistage International, the world's leading CEO membership organization, to help Lexington-area executives become better leaders, make better decisions and get better results. Lou can be reached at Louis@AllegraManagement.com.