xecutives
spend too much time drafting, wordsmithing, and redrafting
vision statements, mission statements, values statements,
purpose statements, aspiration statements, and so on. They
spend nowhere near enough time trying to align their
organizations with the values and visions already in place.
Studying and working closely with some of the world's most
visionary organizations has made it clear that they
concentrate primarily on the process of alignment, not on
crafting the perfect "statement." Not that it is a waste of
time to think through fundamental questions like, "What are
our core values? What is our fundamental reason for
existence? What do we aspire to achieve and become?" Indeed,
these are very important questions-questions that get at the
"vision" of the organization.
Yet vision is one of the least understood-and most
overused-terms in the language. Vision is simply a
combination of three basic elements: (1) an organization's
fundamental reason for existence beyond just making money
(often called its mission or purpose), (2) its timeless
unchanging core values, and (3) huge and audacious-but
ultimately achievable-aspirations for its own future (I like
to call these BHAGs, or Big Hairy Audacious Goals). Of
these, the most important to great, enduring organizations
are its core values.
Okay, all fine and good to understand the basic concept
of vision. But there is a big difference between being an
organization with a vision statement and becoming a truly
visionary organization. The difference lies in creating
alignment-alignment to preserve an organization's core
values, to reinforce its purpose, and to stimulate continued
progress towards its aspirations. When you have superb
alignment, a visitor could drop into your organization from
another planet and infer the vision without having to read
it on paper.
In fact, the founders of great, enduring organizations
like Hewlett-Packard, 3M, and Johnson & Johnson often did
not have a vision statement when they started out. They
usually began with a set of strong personal core values and
a relentless drive for progress and had-most important-a
remarkable ability to translate these into concrete
mechanisms. 3M, for instance, has always had a sense of its
core values-sponsoring innovation, protecting the creative
individual, solving problems in a way that makes people's
lives better. These defined the organization and gave it a
soul. But what really set 3M apart was the ability of its
leadership over the years to create mechanisms that bring
these principles to life and translate them into action. For
example, 3M allows scientists to spend 15 percent of their
time working on whatever interests them, requires divisions
to generate 30 percent of their revenues from new products
introduced in the past four years, has an active internal
venture capital fund to support promising new ventures,
preserves a dual career track to encourage innovators to
remain innovators rather than become managers, grants
prestigious awards for innovations and entrepreneurial
success, and so on. I don't even know if 3M has a formal
"values statement" (if it does, we never came across it in
all of our research into 3M), but because of its alignments,
I know-with absolute clarity-3M's core values, as does
anyone familiar with the organization and how it operates.
Creating alignment is a two-part process. The first is
identifying and correcting misalignments. The second is
creating new alignments, or what I call "mechanisms with
teeth." I'm going to discuss the process as it applies
primarily to core values, but the same basic process applies
to creating alignment with purpose and BHAGs.
Identifying and Correcting
Misalignments
The first task for leaders is to create an
environment and a process that enable people to safely
identify and eliminate misalignments. |
dentifying
misalignments means looking around the organization, talking
to people, getting input, and asking, "If these are our core
values and this is fundamentally why we exist, what are the
obstacles that get in our way?" For instance, many
organizations say they respect and trust their people to do
the right thing, but they undermine that statement by doing
X, Y, and Z. The misalignments exist not because the
statements are false: these companies believe what they say.
The misalignments occur because years of ad hoc policies and
practices have become institutionalized and have obscured
the firm's underlying values. For example, say an
organization launches a new service without coordinating its
internal processes, creating problems for customers. To make
sure it doesn't happen again, managers institute a sign-off
process for each new service that's introduced. The policy
remains embedded in operations long after people have
forgotten why it was created. At some point, people in the
organization begin to grumble about the organization's
elaborate sign-off process, recognizing its inconsistency
with the notion of respect and trust for the individual. The
first task for leaders, then, is to create an environment
and a process that enable people to safely identify and
eliminate these misalignments.
I recommend working collaboratively with people throughout
the organization. Ask each individual to identify something
in his or her daily work that is inconsistent with the
organization's core values. Randomly sort the individuals
into groups of three to six and ask each group to come up
with the three most significant misalignments pertaining to
each core value. Let's say you had 24 people involved-four
groups of six. Each of the four groups comes up with three
misalignments for each core value. Lo and behold-what do you
find? Typically, each group has identified the same
misalignments. This process allows your organization to
quickly identify-without pointing fingers-the four or five
most significant misalignments. Once you've agreed the
emperor has no clothes, you can begin to dress him.
Creating New Alignments
t's
one thing to eliminate misalignments that exist but
shouldn't. It's another to create something that doesn't yet
exist but ought to. Just being consistent is not enough.
True alignment means being creatively compulsive. It means
going over the top. Consider, for example, Granite Rock
Company, a small construction-materials outfit that won the
Baldrige award in 1992. The company espouses continuous
improvement in customer satisfaction. They tell their
customers, "If there's anything about an order you don't
like, simply don't pay us for it. Deduct that amount from
the invoice and send us a check for the balance." They call
it shortpay; I call it a thorn in the laurel or a mechanism
with teeth. While many successful organizations rest on
their laurels, Granite Rock does the opposite. They devised
a system that makes it difficult if not impossible to become
complacent about continuously improving customer
satisfaction. Would Granite Rock be inconsistent without
shortpay? No, but telling customers, "If there's anything
you don't like, don't pay for it," goes way beyond what
other organizations normally do.
Likewise, 3M could simply say, "We don't get in the way
of innovators." Fine. But that's very different from
creating mechanisms-like requiring that 30 percent of
revenues be generated by new products-to actually
stimulate innovation. By instituting these reinforcement
mechanisms, Granite Rock and 3M bring their values to life.
To take another example, it's easy to say, "We ought to
do more training of new people when they come in the door so
they'll learn our value system." But that's not creating
alignment. Alignment would be to enact a process in which
"Within their first 48 hours on the job all new employees
will go through an eight-hour orientation process to learn
what this organization is about. They'll study its history
and philosophy. They'll meet with a senior executive."
That's concrete and specific-two requirements of an
effective alignment mechanism. It also has teeth.
Suppose one of your core values is encouraging employee
participation and creativity, and therefore you want to
encourage input and ideas from people throughout your
organization. So you create a suggestion box. Is that
alignment? Yes, it is an alignment mechanism, but to make it
an effective mechanism, you must take the concept
much further. Instead of sticking a suggestion box off by
itself in some hallway, consider putting suggestion boxes in
every hallway, corridor, conference room, and lunch
room-anywhere people might be when they get an idea. And
don't stop there. Add the commitment that every submission,
anonymous or signed, will be responded to publicly within 48
hours in the form of a statement specifying what will be
done and who is responsible for getting it done. And beyond
that, perhaps give recognition, prizes, or bonuses for the
best ideas and suggestions or even give "thanks for the
input" prizes randomly to a subset of all suggestions, no
matter how valuable. Now, that's alignment.
Identifying Core Values
n
describing the alignment process, I have assumed that your
organization's core values are already clearly defined-a big
assumption. Let me make a few points about identifying core
values, for without this stake firmly in the ground, there
can be no effective alignment.
You cannot "set" organizational values, you can only
discover them. Nor can you "install" new core values
into people. Core values are not something people "buy
in" to. |
First, you cannot "set" organizational values, you can
only discover them. Nor can you "install" new core values
into people. Core values are not something people "buy in"
to. People must be predisposed to holding them. Executives
often ask me, "How do we get people to share our core
values?" You don't. Instead, the task is to find
people who are already predisposed to sharing your core
values. You must attract and then retain these people and
let those who aren't predisposed to sharing your core values
go elsewhere.
I've never encountered an organization, even a global
organization composed of people from widely diverse
cultures, that could not identify a set of shared values.
The key is to start with the individual and proceed to the
organization. One way to identify your organization's
authentic core values is to form what I call the Mars group.
Imagine you've been asked to recreate the very best
attributes of your organization on another planet, but you
only have seats on the rocketship for five to seven people.
Who would you send? They are the people who probably have a
gut-level understanding of your core values, have the
highest level of credibility with their peers, and
demonstrate the highest levels of competence. I'll often ask
a group of 50 or 60 people to nominate a Mars group of five
to seven individuals. Invariably, they end up selecting a
powerful, credible, group that does a super job of
articulating the core values precisely because they are
exemplars of those values. One caveat: top management has to
be confident enough to trust the Mars group to do its work.
In my experience, those executives willing to take this risk
find that the group identifies organic values that the
executive was tempted to impose from above. This experience
in itself strengthens the manager's belief in the core
nature of the values.
The Mars group should wrestle with certain basic
questions: What core values do you bring to your work-values
you hold to be so fundamental that you would hold them
regardless of whether or not they are rewarded? How would
you describe to your loved ones the core values you stand
for in your work and that you hope they stand for in their
working lives? If you awoke tomorrow morning with enough
money to retire for the rest of your life, would you
continue to hold on to these core values? And perhaps most
important: can you envision these values being as valid 100
years from now as they are today? Would you want the
organization to continue to hold these values, even if at
some point one or more of them became a competitive
disadvantage? If you were to start a new organization
tomorrow in a different line of work, what core values would
you build into the new organization regardless of its
activities?
The last three questions are key because they help groups
make a crucial distinction: core values are timeless and do
not change, while practices and strategies should be
changing all the time.
Distinguishing Between Values,
Practices, and Strategies
very
institution-whether for-profit or not-has to wrestle with a
vexing question: what should change and what should never
change? It's a matter of distinguishing timeless core values
from operating practices and cultural norms.
Timeless core values should never change; operating
practices and cultural norms should never stop changing. A
timeless core value in an academic institution, for
instance, is freedom of intellectual inquiry. A practice
adopted to support that core value is academic tenure. But
there's a lot of evidence to suggest that the practice of
tenure probably needs to be changed or discarded because it
no longer serves the purposes for which it was created.
But if I suggest that academic institutions should
seriously think about changing the tenure system, the
average academic is likely to say, "Never! You're violating
our core values." But that protest arises from a failure to
distinguish between values and practices. The core value is
freedom of inquiry; tenure is a practice. Frequently
institutions cling doggedly to practices that are in truth
nothing more than familiar habits. As a result, they fail to
change things that ought to change. And by defending
outmoded practices under the banner of core values, they
might actually be betraying their true core values.
Your core values and purpose, if properly conceived, remain
fixed. Everything else-your practices, strategies,
structures, systems, policies, and procedures-should be open
for change. The confusion between timeless and temporal
concepts shows up in every walk of life. On a national
level, for instance, the president of the United States
says, "We can't touch Medicaid in its current form because
that would be inconsistent with the core values of the
nation." But if you pull out the Declaration of Independence
and the Gettysburg Address-the two great statements of what
we stand for and why we exist-you won't see anything about
Medicaid in either of them. That kind of
obfuscation-intentional or not and from either side of the
aisle-inhibits debate, let alone change.
How to Spend Your Next Off-Site
Retreat
More often than not, off-site retreats are a wasted
opportunity. Yes, you need time away from the office.
But most organizations spend it the wrong way. |
ore
often than not, off-site retreats for the executive team or
for large numbers of managers and staff are a wasted
opportunity. Yes, you need time away from the office for
many reasons. But most organizations spend it the wrong way.
To stop everything while you spend days drafting and
revising a "values statement" is not the most effective use
of time -- especially if people come back the next year and
do the whole process again. Instead, get together and ask,
"How are our alignments working? What progress are we making
on eliminating our misalignments? Do we need to adjust what
we decided to do last year?" It becomes an ongoing process.
Your values are a fixed stake in the ground. You get it
right once, and the rest of the work consists of tinkering
with the organization.
Typically, executives devote a tiny percentage of their
time and effort to gaining understanding, a tiny percentage
to creating alignment, and the vast majority to documenting
and writing a statement. In fact, the distribution of time
and effort should be nearly the opposite (see figure below).
You should spend a significant percentage of time actually
trying to gain understanding, a tiny percentage documenting
that understanding, and the vast majority of your time
creating alignment. In short, worry about what you do as an
organization, not what you say.
Copyright © 1996 by James C. Collins. Reprinted with
permission from Leader to Leader, a publication
of the Leader to Leader Institute and Jossey-Bass.
This article is available on the Leader to Leader
Institute Web site, http://leadertoleader.org/leaderbooks/L2L/summer96/collins.html. |
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