Now on to Values

Businesspeople, me included, are resigned and cynical about company values; we question their authenticity and relevance. “Look at BP,” we scoff. “I’ll bet they have values. Enron and Arthur Anderson did, too.” But I have also seen other companies, our clients included, do the right thing over and over again based on their articulated values. I have done the right thing because I was standing for a personal value. This country has done the right thing—countless times—in standing for its values of free speech and individual rights. So there’s not a doubt in my mind that values can be authentic and practiced.

An organization only needs between four and six values. Too many and you end up with something like when you mix all the colors - a sort of a purplish, brownish goop.

In this process, when I say “values,” I mean behaviors, conduct, and beliefs that support the business’s interactions with customers and vendors positive and create productive interaction between employees. The behavior based values support the organization in fulfilling its Reason for Being and BHAGs.

Start out by asking the group what values they come to work with. Then ask, “If you did not have to work, would you still demonstrate those values and behaviors just because they are the right ones to have?” Finally - and here’s the kicker - ask, “What values would you want your children to adopt for work?”

Typically, I ask for more than a one-word answer. If the value is “integrity,” I ask the group to give me a sentence that describes what integrity means. Everyone then writes their four to six values on flipcharts and posts them on the walls. Afterward, participants present their values and the group can ask questions. Typically, the group discovers that their values are in the same ballpark; they find comfort and reassurance in that fact.

The next step begins when you split the larger group into smaller groups of five to seven people to develop the organization’s values. Ask the groups: “Given our Reason for Being, what behaviors and values will support the business, employees, and customers? What are the ‘right’ values to have, even if they are not advantageous in some business situations?”

Again, I now demonstrate my unbelievable worth as I reveal commonalities between the two versions and draft one version that incorporates what the groups have created. Then we form a group that will generate the final cut of the values. The leader of the group and its “by when complete” date are established. This methodology is simple, easy, and it works.

Here is an example that was developed by this process:

Company’s XYZ core values

1 Passion
We are passionate about what we do, what the company is about, and our customers.

2 Integrity
We honor our word; what you see is what you get.

3 Fun
We find enjoyment and satisfaction in what we do.

4 Respect
Truly listen to others; build open and honest relationships with communication.

5 Innovation
We are into it. We eat change for breakfast.

Get a brand new BHAG

BHAGs—again, Big Hairy Audacious Goals—are a term you hear frequently in the business world. Some leave the “hairy” off and just refer to BAGs, but I like leaving the hair in. Maybe it’s a jealousy thing. In any case, a BHAG is a 5 to 10-year stretch goal that should light people up and fill in what is missing within the organization. BHAGs are unreasonable, yet still possible; Collins and Porras say that a BHAG should have a 70 percent chance of fulfillment. I have seen value for organizations in simply rolling around in this BHAG territory. It allows a leadership team creative freedom to put some positive, bold goals in front of the organization.

To begin the BHAG process, sit around in loincloths and smoke a peace pipe with some very special tobacco. As the smoke wafts to the top of the corporate wigwam, imagine what the company could produce and become. Okay … in reality sit in your business-casual uniform in a generic conference room at the company or some other meeting place and imagine what the company could produce and become.

The first part of creating BHAGs for your business is to ask the leadership group to brainstorm worthwhile goals for the organization. These goals should, by their very nature, require employees to demonstrate the organization’s reason for being and values. (See? It is all coming together.)

An example of this is my plastics manufacturing client. The company’s BHAG was to prove that its model of manufacturing could thrive in the United States. Achieving this BHAG required the organization to live out of its values of passion and improvement and necessitated the organization to fulfill two other BHAGs: 1. Grow the company to $50 million and 2. Fully integrate five unique and useful technologies. This company just had its most profitable year. It was also recognized as the leading manufacturer of its state. This company is on track to reach the $50 million mark within three years.

Back to the process; to create BHAGs, follow a similar process to the one for creating the Reason for Being. Record the team’s ideas on flip charts, post the charts and discuss. Then divide into two groups to share and synthesize the suggestions. Ideally, get a facilitator involved, such as yours truly, and work with the group until there are between one and four BHAGs. Finally designate a group and leader to wordsmith and fine-tune the BHAGs by a target deadline.

As a personal example of a BHAG, I aimed to write a book within two years. When I first articulated this goal in 2009, it seemed impossible; I almost flunked out of college because I could not write papers. Writing my Master’s thesis nearly ended my marriage and almost killed me. At first, I kept my BHAG a secret, only mumbling and muttering about it in private. I discussed it only with my writing group. However, I felt that striving towards my BHAG—whether I achieved it or not—would be beneficial. At the very least I would have writing for my blog, newsletter, and articles. I would be forced to improve my writing and take the next steps in developing as a consultant. In retrospect, my BHAG sent my life on a completely different trajectory. In the end, I did publish my book. Now I think of myself as an author, and so do others.

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Foundation a la Brucie

The foundation is elegantly simple. When constructing a building what is need to construct upon to have a strong building? The answer is obvious, you need a strong foundation. What do all religions have? Foundation documents: the Torah, the bible, the Koran and the like are examples. What do we call these documents? The foundation of the faith. What do the Constitution, the Declaration of Independence and the Bill of Rights do for the good old US of A? Why it forms our foundation. Are you getting this? There is a theme here.

Organizations also need a foundation that outlines its goals and purpose. As an organization grows and develops, having mission and vision (or in my words, “Reason for Being”), BHAGS (Big Hairy Audacious Goals) and values can create a “True North” for the organization. (“True North” is a Steven Covey term that relates to the true direction of an organization. It is based on the analogy of a compass.) 

The Reason for Being, BHAGs, and Values of a company can be critical to the overall success of the organization but they’re often forgotten. The corporate Reason for Being is typically created by the senior leadership team, captured on posters, and strategically tacked up around the building. Meanwhile, the Reason for Being, BHAGs, and Values are seen as irrelevant to the organization’s day-to-day operations. In other words, the organization’s behavior is not congruent with its declaration of ideals.

However, at their best the Reason for Being, BHAGs, and Values, a give an organization a future to live into. This potential future galvanizes and focuses the organization. Whether or not goals are met entirely, movement toward them develops teamwork and is valuable to the company.

How exactly can you create the foundation material of an organization? One of the issues with this topic is that each bloodsucking consultant like yours truly and especially the other ones writing this book —God bless our souls because the world would be a boring place without us—has a different idea of what a mission statement, values, BHAGs, etc., should be. The lack of an agreed-upon definition creates lots of confusion. Corporate citizens argue about what a mission is, what a vision is, and what the differences are. Yikes! Save me or stab me with a stick.

So, in the face of all that, let me finally give you the right definitions. KIDDING! There is no “right” way to do this kind of foundational writing—the exorbitant fee charged by the bloodsucking consultant claiming to have the right way notwithstanding. There are only two necessary ingredients to foundational writing: that the work is relevant to the participants and that the participants are prepared to demonstrate, through committed action, their adherence to what they created—no kidding.
Over the next couple weeks, I'll post some tips and thoughts for creating meaningful and relevant Reason for Being, BHAGs, and Values for your organization.

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