company values & the business case
TRANSCRIPT
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Company ValuesAND THEIR ROLE IN BUSINESS PERFORMANCE
SCOTT RUDI
PRINCIPAL, TURNUP, LLC
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Intro - Scott Rudi, MS, SPHR, SC-P Previously with Shell Oil, Frito-Lay/PepsiCo, Wells
Fargo, Mellon Financial
Enthusiastic support for aligning cultures and fulfilling company missionsCommunication StrategiesDefining Organizational PurposeMatching Business & People through organizational
health
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Values & Business Review the case for values and culture Discuss example value models Determine the connection between values and
business performance Integrating values and culture
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The Order of ThingsVision
MissionStrategy
StructurePeople
Values are the glue
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Strategy seems pretty important
Until you recognize
“Culture Eats Strategy for Lunch”
~ Peter Drucker
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Cultural Buzzword of the last 3 years
ENGAGEMENT
Why? Retention Ownership / Motivation Focus Results
Culture / Values determine Level of Engagement
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“We didn’t have formal core values”
(early on) “because it was something I’d always thought of as a very corporate thing to do”
Tony HsiehCEO, Zappos.com, Inc.
“But, it was the very thing we needed to do to scale and grow”
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Study found*Values and the S&P 500
Innovation (80%) Integrity (70%) Respect (70%) Quality (60%) Teamwork (50%)
* The Value of Corporate Culture; Guiso, Sapienza, & Zingales (2013)
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Core Values Example Deliver WOW through service Embrace and drive change Create fun and a little weirdness Be adventurous, creative and open-minded Pursue growth and learning Build open and honest relationships with communication Build a positive team and family spirit Do more with less Be passionate and determined Be humble
Zappos
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Another Example We want to work with great people Technology innovation is our lifeblood Working here is fun Be actively involved Don’t take success for granted Do the right thing, don’t be evil Earn customer and user loyalty and respect every day Sustainable long-term growth and profitability are key to our success We care about and support the communities where we work and live We aspire to improve and change the world
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- The Value of Having Values - Intersect the business?
Is there a correlation to performance of companies with a set of “advertised” values? *Study found
Tobins q – a measure of company value was negatively correlated
.02 correlation found with performance (net income) Only customer satisfaction was positively correlated
Conclusion: Values on paper yields little value* The Value of Corporate Culture; Guiso, Sapienza, & Zingales (2013)
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The Value of Living ValuesIntersect the Business?
Two questions from the Great Places to Work Index Highest Scores were correlated to business results
Performance factors affected and shown to improve at a 99% confidence interval Tobin’s q Profitability Reduction in represented workforce
Conclusion – Living Values Yields Value
*Study correlations from Great Place to Work Survey (referenced in Value of Corporate Culture)
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Stopping a “Paper on the Wall” values culture
Reinforced & threaded into the fabric of company practiceBut How? Hire based on the values Assimilate all to the values Teach and correct according to the values Cite values throughout company communications Reward based on the values Align performance management to values Leader model the values ..
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So it is said….“Your beliefs become your thoughts,
Your thoughts become your words,
Your words become your actions,
Your actions become your habits,
Your habits become your values,
Your values become your destiny.”
― Mahatma Gandhi
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Thoughts?