Wednesday, June 11, 2008

Company Values

Twenty years ago, I had the first opportunity to manage a group of (knowledge) workers. I served in the army in a computing unit of the Israeli Air Force. One day, a new commander arrived. He had new ideas that seemed very odd to us, back then. A few weeks after he arrived all the building was filled with big signs: "Quality counts". Today, twenty years later, I understand the rational behind this move. At the time, I did not. I was not the only one. No one explained. The signs turned to be a joke, and so did the commander.

Years passed by, and methods became more sophisticated. We started to see, in organizations we worked in, visions and missions, and we took part in teams that have helped defining parts of them. I cannot say that a vision existed, in every organization I worked in. Some organizations dealt with these issues, others did not. I cannot even state that there was any correlation between immediate business success and existence of company vision and values.

A few years ago, I decided that the company, which I established, could be considered as an organization (we reached 10 employees). We were mature enough to have our own vision and company values. We worked thoroughly on definitions. I handed in the first draft, rather excited to one of the company founders, that was not involved in the daily activities. His response was rather chilly: Why deal with values? Better deal with numbers. And do not misunderstand: the company was profitable.

This is a real dilemma. Is there place for vision and company values in 21st century organizations? Is their importance or place different from what it was before?
I spent many hours dealing with this issue. This founder, with whom I spoke, was a special man, a leader that managed several organizations and has strategic thinking. Yet, something important has been said. It could not be ignored. I examine the society in which we live; a society that seems to be materialistic and hedonist; a society in which cynicism is appraised. Is there place in such society for company values?

The truth must be said. As much as I thought about the issue, I had and have no doubt that company values are a necessity. Values are the road signs, guiding us how to appropriate work and behave; both as managers and as workers. Moreover, today in the 21st century, I feel that we need them more and not less. People move from one work to another. No one career, of course no one working place. People, wiser than me, have discovered that what holds an employee in the organization is not salary. Of course, salary has to be fair. Otherwise, the dissatisfaction will be so great, and nothing else will be considered. People, despite the materialistic shell, want to come and work in some place that they feel good in it. Feeling good is a consequence of the nearby environment- the team, and the larger environment- the organization. Feeling good- is a place with which they identify with, and are proud to be part of. This is where the company values come in. The forbidden and "must" are defined by regulations and procedure. The right and justified, the appropriate, is defined by the company values. If we do not have values, we are just a bunch of workers sitting in the same place; little will connect us one to another. Such organizations will experience difficulties in retaining employees in the long run.

The process of designing the company values starts in peoples' hearts in the first years of the organization's life, refines and becomes instituted within the next years, as the organization grows and builds its unique culture. In fact, writing down the company values, is not supposed to invent anything new, rather document the existing, focusing us; assisting us to distinguish between what is important, and what is more important; stating to all employees, that this is our way of life.

A few tips I believe in, all to do with designing and documenting the company values. Some I have learnt the hard way:
  • Do not define too many values. Three years ago, we worked on a set of values for our organization. We defined nine values, all reflecting the company's spirit, and way of work. One day, recently, I tried to memorize the list. I found out, that I, as the manager of the company, could not remember the whole list. If anyone will test me, I for sure distinguish between principles that are part of our values, and those that are not. Yet, I could not remember the whole list! I understood that something is wrong. If I would have nine children, I would remember all their names, for sure. I have twenty employees and I remember all their names. Etc. There was no excuse. If the entire list was that important- I should remember it. Today we are in a process of rewriting the values. The process is more difficult than the initial one, as this time we are focused on choosing the most appropriate values from this list. We limited ourselves to four values.
  • Share; make people part of the process. Otherwise, they may think that it is all declarations and not something we mean to act upon. Just the way I thought twenty years ago when I saw the sign (and I must state that back then, I was even part of the management team). If we want people to feel comfortable with the values and we want the values to connect them to the organization, it is obvious that they have to be part of the process. Even though it takes time; even though it is instead of other working activities.
  • Make sure that the values are planted in peoples' hearts. There is importance to visibility; there is more importance for assuring that the values do not stay on the wall (or in the website), rather affect practical behaviors. As part of defining the values, define desired behaviors.
  • Last, but not least. I spent many hours lately, going through other companies lists of values. We all want to be the same. It is natural that all companies want to be professional, but having the same lists brings us back to square one. If so, how do we convince our employees that we have a special organization, through the value list? Why to stay and not move on? Yet, the shared values are so correct. Shall we give them up, as other organizations have chosen them before we did? Examining happy families, one call tell that the common is greater than the differentiators are. I recommend, adding some values that other have, if they really define us as a company, but leave place also for some unique values, that no one else has. All this (and this is the hard part), without adding more values altogether, than defined in our limits (see above).



At the end of the day, the values are our company's spirit. Do not stay without them.

Yours,
Moria

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