I was trying to figure out a way to work the Pittsburgh Steelers into a Weekly Insight, particularly after our hometown team earned the right to be called “World Champions.” I realize that not everyone who reads these Weekly Insights hails from Western Pennsylvania (and some of you might not care for the Steelers at all), but hang in there with me on this one.
“Steelers mean business” was the title of an Associated Press article on February 4, 2006. Dr. Joanne G. Dujansky, the founder of KEYGroup, a Pittsburgh business that counsels companies on creating a successful corporate culture was quoted in the article as follows: “The Steelers’ winning tradition didn’t start yesterday. It started when Art Rooney purchased the franchise 73 years ago and set in motion a strategy for success that embraced his vision and values.”
Note that Mr. Rooney’s strategy included “values” as well as “vision.” This past week a student in my marketing strategy class did some research on jetBlue Airways. When she could not find their mission statement on the company website, she emailed the company and asked if they would provide her with jetBlue’s mission statement. The company responded that they did not have a mission statement. Instead, they found success in the marketplace by living out their core values: safety, caring, integrity, fun and passion.
The key words here are “living out.” Values do matter.
With that in mind, let’s examine some of the principles outlined in the book Lasting Change: The Shared Values Processâ„ that Makes Companies Great (by Rob Lebow and William L. Simon). The authors take the concept of values and define two components:
People Values - basic human issues that affect daily work performance such as honesty, truthfulness, trust, risk-taking, and receptivity to new ideas
Business values - define how the organization and its people function; these are the principles upon which everyone in the organization operates; business values clarify who we are, what we stand for, and why we do business the way we do
For an organization to function effectively, these two are always in balance.
It’s interesting that the authors contend that although every company has a set of Business Values, most people, even managers, aren’t aware of them. Or even better, just ask several people what the Business Values are for your organization and get ready for a lot of different answers.
In my tenure as President of Zion Industries, I learned that Business Values can’t be taught. They must be “absorbed” by individuals in the organization as they see executives and managers making decisions based on Business Values"and explaining to the employees the “why” behind tough decisions (“We did this because our Values state”).
There is a great story in this book about old man Coleman, the founder of the company. Although retired, he dropped in one day on a production meeting. He listened as the executives in the room discussed a defective gas jet in one of the products that leaked under pressure. They had to make a decision: should the company, famed for its impeccable quality, publicly admit the defect and launch a product recall?
Since only a few of the several hundred thousand units already on store shelves were thought to have the leaking problem, the marketing person suggested that they just wait until the bad ones were found and sent back, thus avoiding a costly recall.
Mr. Coleman slammed the table and demanded, “What’s the matter with you people! Don’t you know that Coleman lanterns have to work?!”
To the company founder, the values were clear. There was no room for negotiation or discussion about a defective product. Is there such clarity in your organization?
Values do matter. Values drive decision making. Values drive behavior. Values drive thinking. Yet how much time do we spend thinking about our Personal Values, our Business Values? How often do we assess whether the Business Values we espouse, the ones printed on the wall, etc. are actually being lived out day to day in the marketplace"during the good and bad times?
Living out your values makes them meaningful. Consider these words regarding values:
“As officers and employees of _______...we are responsible for conducting the business of the Company in accordance with all applicable laws and in a moral and honest manner. _____ stands on the foundation of its Vision and Values. Everything we do evolves from our vision and Values statements.” The above is a short extract from Enron’s award-winning Code of Ethics. As events have shown, Enron’s Values were not meaningful at all; in fact, they were meaningless. And their lack of meaning stemmed from the actions and attitudes of their executives.
And so the challenge becomes one of understanding and committing to my own Personal Values and to the Business Values of my organization. Here’s an assignment for each of us to do this week in response to this challenge.
1. Write down your Personal Values. What do you stand for? Do these values really guide your behavior?
2. Write down your organization’s Business Values. What does your company stand for? Can you think of decisions made during the past month or so that were made because of your Business Values? Do you see your company’s Business Values reflected in your personal actions within your organization? How about in the lives of company employees?
Values do matter"but only if they are lived out. Values are more “caught” than “taught.” Thus, our children, our employees, our community know our values, not by reading our Core Values document, but by watching us every day. How are we doing?
What do you think? Does this make sense to you? If you’d like to share your thoughts with me, please do so at keith@daystarconsulting.com or visit http://www.daystarconsulting.com.
Keith Starcher is President of DayStar Consulting, Inc., a firm serving small business owners by providing insights and ideas regarding marketing strategy and strategic planning. Dr. Starcher has 30+ years of experience in both Fortune 500 and small, family-owned companies. His primary objective in counseling small-business owners is to help them create a blend of resources and capabilities that lead to competitive advantage in the marketplace and bring glory to God while doing so.
Keith also is an associate professor in the business department at Geneva College, Beaver Falls, Pennsylvania where he studies and lectures in marketing strategy and strategic planning at the undergraduate and graduate levels
Dr. Starcher spent several years with General Electric and, prior to joining the full-time teaching staff at Geneva College, he was President of Zion Industries, an induction heat-treating firm with plants in Ohio, North Carolina and Michigan.
