1. Aligning People with Values to Increase Productivity and Profitability
A BPI Webinar March 13, 2008
Aligning People with Values to Increase Productivity and Profitability
Presented by
Dr. David S. Cohen
Strategic Action Group, Ltd.

2. My Goals For Today’s Presentation
To help understand why alignment between the employees’ values and the corporate values are central to productivity and profitability
To challenge the conventional thinking on corporate values
To explain why integrity is not a value
To answer the question: Why does culture (values) always trump strategy?
To answer your questions

3. What Is Corporate Culture?
Culture: A pattern of basic assumptions - invented, discovered or developed by people as they learn to cope with situations
The results of which have worked well enough ...
To be considered valid
To be taught to new members of the group as the correct way to perceive, feel, think, and act in relation to those problems

4. What Is Corporate Culture?
Corporate culture is the combined beliefs, values, ethics, procedures, and atmosphere of an organization that have, over time, become the way you get things done within the corporation
The culture of an organization is often expressed as "the way we do things around here" and consists of largely unspoken values, norms, and behaviors that become the natural way of doing things

5. What Is Corporate Culture?
Culture: A set of unwritten rules that members of an organization use to:
Relate to each other
Interact with the customer
Get things done

6. A Stable Culture Allows for Predictability
Consistency of decision making
Knowing what to do even when there is no precedence
This is linked to excellence in organizational performance because the organization has a set of values as its foundation that are defined specifically by the organization and commonly understood by all its employees

7. A Definition of Values Values are: Strongly held beliefs
Emotionally charged
Resistant to change
All values are of equal importance
When employees are successful, while violating the company values, the value is not a value

8. What Are Your Company’s Values?
Customer satisfaction
Ethics/integrity
Accountability
Respect for others
Open communication
Profitability
Teamwork
Innovation/change
Continuous learning
Positive work environment
Diversity
Community service
Trust
Social responsibility
Security/safety
Empowerment
Employee job satisfaction
Have fun

9. A Philosophical Perspective
What drives behavior?

10. Our Philosophical Foundation

11. Our Philosophical Foundation

12. Our Philosophical Foundation

13. Our Philosophical Foundation

14. Our Philosophical Foundation

15. Our Philosophical Foundation
Line of Sight

16. Role Specific Behaviours
What is Fit?
Role Specific Behaviours

17. Role Specific Behaviours
What is Fit?
Role Specific Behaviours
Knowledge

18. Role Specific Behaviours
What is Fit?
Role Specific Behaviours
Skill
Knowledge

19. Role Specific Behaviours
What is Fit?
Role Specific Behaviours
Skill
Knowledge
Fit
Values

20. Capability = Skills x Knowledge
What is Fit?
Role Specific Behaviours
Capability = Skills x Knowledge
Skill
Knowledge
Fit
Values

21. Capability = Skills x Knowledge Competency = Capability x Behaviour
What is Fit?
Role Specific Behaviours
Capability = Skills x Knowledge
Skill
Knowledge
Competency = Capability x Behaviour
Fit
Values

22. What is Fit? Fit Role Specific Behaviours Knowledge Skill Values
Capability = Skills x Knowledge
Skill
Knowledge
Competency = Capability x Behaviour
Fit
Values
High Performance =
Competency x Consistency x Values

23. Fit = Productivity Which Leads to Profitability
High
Demonstration
of the Values
Low
High
Achievement of Results

24. Fit = Productivity Which Leads to Profitability
High
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Low
High
Achievement of Results

25. Fit = Productivity Which Leads to Profitability
High
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Low on results
Low on competencies
Thanks for the memories / "Good-bye"
Low
High
Achievement of Results

26. Fit = Productivity Which Leads to Profitability
High
High on competencies
Low on results
Rethink Job Fit
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Low on results
Low on competencies
Thanks for the memories / "Good-bye"
Low
High
Achievement of Results

27. Fit = Productivity Which Leads to Profitability
High
High on competencies
Low on results
Rethink Job Fit
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Low on results
Low on competencies
Thanks for the memories / "Good-bye"
High on results
Low on competencies
Rethink Rewards & Recognition Create Consequences of their actions
Low
High
Achievement of Results

28. Fit = Productivity Which Leads to Profitability
High
High on competencies
Low on results
Rethink Job Fit
Stars
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Low on results
Low on competencies
Thanks for the memories / "Good-bye"
High on results
Low on competencies
Rethink Rewards & Recognition Create Consequences of their actions
Low
High
Achievement of Results

29. Fit = Productivity Which Leads to Profitability
High
High on competencies
Low on results
Rethink Job Fit
Stars
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Dead wood
Low on results
Low on competencies
Thanks for the memories / "Good-bye"
High on results
Low on competencies
Rethink Rewards & Recognition Create Consequences of their actions
Low
High
Achievement of Results

30. Fit = Productivity Which Leads to Profitability
High
Keepers
High on competencies
Low on results
Rethink Job Fit
Stars
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Dead wood
Low on results
Low on competencies
Thanks for the memories / "Good-bye"
High on results
Low on competencies
Rethink Rewards & Recognition Create Consequences of their actions
Low
High
Achievement of Results

31. Fit = Productivity Which Leads to Profitability
High
Keepers
High on competencies
Low on results
Rethink Job Fit
Stars
High on results
High on the competencies
Great / Recognition
Demonstration
of the Values
Dead wood
Low on results
Low on competencies
Thanks for the memories / "Good-bye"
Viruses!!!
High on results
Low on competencies
Rethink Rewards & Recognition Create Consequences of their actions
Low
High
Achievement of Results

32. How Values Work
When people feel alignment between their personal work values, their organization’s values and their manager’s values, we call it “good fit”
When values are clear, they guide all business decisions and personal decisions - especially when those decisions are tough and emotional

33. How Values Work
When an organization’s declared values and its real values don’t match, people become stressed, confused and cynical
When the organization’s values become the foundation for its vision, business strategy, and talent development, it has a sustainable competitive advantage

34. What Are Your Company’s Values?
Above ground: The values that are articulated by the company. Usually found on the website or the back of the business card or ID badge
Underground: The values that are taught by one generation of employees to the next. The true values of the company

35. What Makes The Values Clear To Employees?
The actions that define the values within your culture need to be articulated in clear and simple behavioral statements
What if you only provide them with the words and a generic, all encompassing definition?

36. How To Evaluate The “Truth” of Your Company’s Values
For your organization, are the following statements accurate?
Corporate values have been articulated by senior management in terms understood by all employees at all levels
Our organization believes in doing the ethical thing (values based), regardless of the cost
Failure to adhere to corporate values has a significant consequence

37. How To Evaluate The “Truth” of Your Company’s Values
For your organization, are the following statements accurate?
Employees know how my company’s values translate into job performance and the bottom line
My company’s public statements sometimes conflict with internal messages and realities
Our organization will always do what’s legal, not always what may be perceived as ethical
My company will always live the values in tough situations, not rely on the easy or legal way out

38. Questions For Your Consideration:
What might make employees cynical about a corporations values?
Why is integrity not a value?
Why does culture always trump strategy?

39. What Might Make Employees Cynical About A Corporations Values?
In the just released BPI research: “Best Practices in Leading the Global Workforce” what percentage of companies used the values as part of:
Development of high potentials
Selection of leaders
Decision making regarding people

40. Your Questions? Thank you for your participation
Contact information
Thank you for your participation