Vital Values

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Presentation by Leo Hauska. HR conference in Riga, 23/04/2009

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  • The key question is whether we are driven by the change or whether we can drive the change Conditions for that are better in the East We have to be open for change Wer have to accept change We have to see the opportunities
  • Vital Values

    1. 1. VITAL VALUES Leo Hauska 23 . 04 . 2009
    2. 2. Why are we talking about values?
    3. 3. VALUE & VALUES <ul><li>Focusing on what matters, on valuable things, on values. </li></ul><ul><li>Value/s as t h e orientation during any transition. </li></ul><ul><li>Creating value through values. </li></ul>
    4. 4. TODAY‘S AGENDA <ul><li>Issues </li></ul><ul><li>Trends </li></ul><ul><li>CEO‘s Positions </li></ul><ul><li>Opportunities </li></ul><ul><li>The Role of HR </li></ul><ul><li>Threats </li></ul><ul><li>Options to Start </li></ul>
    5. 5. ISSUES WITH VALUES It‘s a very personal issue! We are not priests but businessmen. Ethical values cannot be managed. We don‘t have any tool for measuring. Nobody is in charge.
    6. 6. ISSUES WITH VALUES We have it since decades. There are too many different people. There are always the same values. It‘s written down. We live it anyway.
    7. 7. ISSUES WITH VALUES <ul><li>Booz Allen Hamilton and the Aspen Institute, 2004: Global study of corporations; 30 countries, 365 companies: </li></ul><ul><li>Values Included in Corporate Values Statements: </li></ul><ul><ul><li>Ethical behavior/integrity…….. 90% </li></ul></ul><ul><ul><li>Commitment to customers….. 88% </li></ul></ul><ul><ul><li>Commitment to employees….. 78% </li></ul></ul><ul><ul><li>Teamwork and trust………….. 76% </li></ul></ul><ul><ul><li>Commitment to shareholders.. 69% </li></ul></ul><ul><ul><li>Honesty/openness…………… 69% </li></ul></ul><ul><ul><li>Accountability………………… 68% </li></ul></ul>Differentiation <ul><ul><li>Social responsibility………………… 65% </li></ul></ul><ul><ul><li>Innovativeness/entrepreneurship… 60% </li></ul></ul><ul><ul><li>Drive to succeed……………………. 50% </li></ul></ul><ul><ul><li>Environmental responsibility………. 46% </li></ul></ul><ul><ul><li>Initiative……………………………… 44% </li></ul></ul><ul><ul><li>Commitment to diversity…………… 41% </li></ul></ul><ul><ul><li>Adaptability………………………….. 31% </li></ul></ul>
    8. 8. ISSUES WITH VALUES Example: Hauska & Partner Instead of „customer orientation / customer satisfaction“: CONTRIBUTION DEDICATION & PASSION EXCELLENCE RELIABILITY DIVERSITY Provide the best consultancy, tangible/intangible benefits Identification with clients, loyalty & energy Highest standards, ongoing development, innovation Responsibility & trust Appreciating differences
    9. 9. ISSUES WITH VALUES <ul><li>The group's values are: </li></ul><ul><li>Result-oriented - we want to achieve good results in everything we do </li></ul><ul><li>Open - we are transparent and open in our communication </li></ul><ul><li>Innovative - we are willing to learn new things and change </li></ul><ul><li>Committed - we are jointly builiding a sustainable business </li></ul>Example:
    10. 10. VALUES MANAGEMENT TRENDS <ul><li>Values Management is one of the biggest opportunities if we do it right. </li></ul>
    11. 11. VALUES MANAGEMENT TRENDS <ul><li>Booz Allen Hamilton and the Aspen Institute, 2004: Global study of corporations; 30 countries, 365 companies: </li></ul><ul><ul><li>89% Written values statements </li></ul></ul><ul><ul><li>75% Significant pressure to demonstrate strong corporate values. </li></ul></ul><ul><li>„ More and more companies … are questioning … their ability to … reinforce values that benefit the firm … and the wider world … </li></ul><ul><li>… more firms are taking action to turn their corporation‘s values into a competitive asset .“ </li></ul>
    12. 12. VALUES MANAGEMENT TRENDS <ul><ul><li>Most companies believe values influence relationships and reputation but do not see the direct link to growth – however: </li></ul></ul><ul><ul><li>Top performers connect values and operations! </li></ul></ul><ul><ul><li>Practices to Reinforce Values: </li></ul></ul><ul><ul><ul><li>85% Explicit CEO support </li></ul></ul></ul><ul><ul><ul><li>81% Corporate values statement </li></ul></ul></ul><ul><ul><ul><li>77% Performance appraisals </li></ul></ul></ul><ul><ul><ul><li>74% Internal communications </li></ul></ul></ul><ul><ul><ul><li>72% Training </li></ul></ul></ul>
    13. 13. VALUES MANAGEMENT TRENDS <ul><li>Values Management: Aligning Employee Values and Organization Goals </li></ul><ul><li>Laurie E. Paarlberg, San Francisco State University James L. Perry, Indiana University–Purdue University, Indianapolis </li></ul><ul><li>© 2007 Sage Publications </li></ul><ul><li>“ Values management as a social process that influences individual behavior and organization performance through shared values systems.” </li></ul>
    14. 14. VALUES MANAGEMENT TRENDS <ul><li>Communicating “the values of the organization” is not enough. </li></ul><ul><li>Employees are motivated by societal & cultural values. </li></ul><ul><ul><li>Success factors: </li></ul></ul><ul><li>Employees respond to organization values within a “zone of existing values”. </li></ul><ul><li>Middle managers play key roles as “integrators”. </li></ul><ul><li>Aligning values requires routine interactions between employees, managers – and other stakeholders. </li></ul>
    15. 15. VALUES MANAGEMENT TRENDS INDIVIDUAL VALUES ORGANIZATIONAL VALUES Vital Values SOCIETAL VALUES ECONOMIC VALUES
    16. 16. CEO‘s POSITIONS <ul><li>“ Corporate Values helped save Xerox during the worst crisis in our history. </li></ul><ul><li>Living our values has been of Xerox’s five performance objectives for the past several years.” </li></ul><ul><li>Anne Mulcahy </li></ul>
    17. 17. CEO‘s POSITIONS <ul><li>&quot;The only thing that works is management by values. </li></ul><ul><li>Find people who are competent and really bright, but more importantly, people who care exactly about the same things you care about.&quot; </li></ul><ul><li>Steve Jobs </li></ul>
    18. 18. CEO‘s POSITIONS <ul><li>“ Leading by values is … empowering. Rather than burden our people with excessive controls, we are trusting them to … act based on values … they themselves shaped. </li></ul><ul><li>… We have to innovate in ways that truly matter … by taking personal responsibility for all of our relationships - with clients, colleagues, partners, investors and the public at large.” </li></ul><ul><li>Samuel J. Palmisano </li></ul><ul><li>Chairman, President and Chief Executive Officer </li></ul>
    19. 19. CEO‘s POSITIONS <ul><li>CEO Round Table 2008 Multinational Companies Regional Headquarters: </li></ul><ul><ul><li>Current Issues: </li></ul></ul><ul><ul><li>A broad variaty of cost cutting programs </li></ul></ul><ul><ul><li>Pro-active strategies: </li></ul></ul><ul><ul><ul><li>How can we link our company to the real needs of the society? </li></ul></ul></ul><ul><ul><ul><li>How can we make our corporate culture inspiring for our key people? </li></ul></ul></ul><ul><ul><ul><li>How can we ensure sustainability? </li></ul></ul></ul>
    20. 20. OPPORTUNITIES <ul><li>„ In our experience, corporate responsibility must be a driver of profitable growth.“ </li></ul><ul><li>Roland Berger Strategy Consultants </li></ul><ul><li>„ Sustainable Development. Now is time for action, no further diagnosis.“ </li></ul><ul><li>The Boston Consulting Group </li></ul>
    21. 21. OPPORTUNITIES <ul><li>“ Companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders. </li></ul><ul><li>It opens a way of managing change and of reconciling social development with improved competitiveness.” EU Kommission, 2001: Green Paper </li></ul>Corporate Social Responsibility
    22. 22. OPPORTUNITIES <ul><li>Spending money </li></ul><ul><li>Giving back to the society </li></ul><ul><li>Costs </li></ul><ul><li>Additional projects </li></ul><ul><li>Philanthropy </li></ul><ul><li>Sponsoring </li></ul><ul><li>Charity </li></ul><ul><li>Welfare </li></ul><ul><li>Earning money </li></ul><ul><li>Improving the competitiveness </li></ul><ul><li>Investment </li></ul><ul><li>Core business </li></ul><ul><li>Corporate Strategy </li></ul><ul><li>Innovation </li></ul><ul><li>Sustainability </li></ul><ul><li>Public-private-partnership </li></ul>
    23. 23. OPPORTUNITIES STAKEHOLDER maximize opportunities minimize risks re-active pro-active VISION VALUES CORPORATION s o c i a l e n v i r o n m e n t a l e c o n o m i c
    24. 24. OPPORTUNITIES Organizations are embedded in the society and the entire environment …. ORGANIZATIONS SOCIETY ENVIRONMENT
    25. 25. OPPORTUNITIES .... and depend on these fundaments. Therefore, efforts should not be directed against it, but strengthen it.
    26. 26. OPPORTUNITIES The best way to do it: relationships with relevant people and organizations outside the company („external stakeholders“) ….
    27. 27. OPPORTUNITIES .... to identify the most important issues and to work on them together.
    28. 28. OPPORTUNITIES This enables win-win-situations, prevents crisis, but also opens new business opportunities.
    29. 29. OPPORTUNITIES The success factor: a new level of stakeholder relations that includes a dialogue on values and an openess for collaboration.
    30. 30. THE ROLE OF HR CFO CEO HR PR <ul><li>Monitoring </li></ul><ul><li>Issues Management </li></ul><ul><li>Stakeholder Relations </li></ul><ul><li>Internal & external Communications </li></ul><ul><li>enable co-operative relationships </li></ul><ul><li>Personal Development </li></ul><ul><li>Appraisal System </li></ul><ul><li>Training </li></ul><ul><li>Recruitment </li></ul><ul><li>Organizational Communications empower & encourage people to shape and to live corporate values </li></ul><ul><li>Controlling of Key Performance Indicators </li></ul><ul><li>Financial & Non Financial Reporting </li></ul><ul><li>ensure economic sustainability </li></ul>VALUE THROUGH VALUES
    31. 31. THREATS <ul><li>From „customer satisfaction“ to „total customer satisfaction“ and „customer delight“ </li></ul><ul><li>Sustainable is becoming one of the most used attributes </li></ul><ul><li>We have to use communication for defining values, sharing values, organizing and enabling all necessary interactions to live values – but as less as possible for promotional purposes . </li></ul>Too much focus on communications “ If CSR becomes all about PR and spin, then it won't be about changing the way business behaves in the world.” PRWeek, 2004 CSR MANAGEMENT PUBLIC RELATIONS
    32. 32. THREATS Credibility Annual Report 2008 Professional ethics govern our actions as a company. A good corporate reputation is a company’s most valuable and competitive asset. It is directly linked to uncompromising compliance with applicable laws, regulations and internal guidelines. Compliance is thus a central pillar of our management and corporate culture and, at the same time, an integral part of all business processes. Achieving outstanding performance and maintaining the highest level of ethical integrity is certainly not a contradiction. On the contrary: this mindset and approach have made Siemens strong. Our message is clear and straightforward: Only clean business is Siemens business. CSR <ul><li>With CSR </li></ul>
    33. 33. THREATS Fear?
    34. 34. 4 OPTIONS TO START Code of Conduct Defining the corporate values and link them to value Stakeholder Map Knowing values & expectations of your counterparts Issues Index Prioritizing the issues you have to deal with Reporting System Shaping the framework for your values management
    35. 35. 1 - VALUES MANAGEMENT <ul><li>Identification and interpretation of the relevant values of your company </li></ul><ul><li>Tools: Research, presentations, workshop, WorldCafé, etc. </li></ul><ul><li>Result: Unique set of values, “DNA” of your company </li></ul><ul><li>Success factor: Top-down and bottom-up approach </li></ul>Code of Conduct Defining the corporate values and link them to value Code of Conduct Samuel J. Palmisano: “ For 72 hours last summer, we invited all 319,000 IBMers around the world to engage in an open &quot;values jam&quot; on our global intranet. IBMers by the tens of thousands weighed in.”
    36. 36. 2 - STAKEHOLDER MANAGEMENT <ul><li>Identifying and analyzing relevant people / organizations </li></ul><ul><li>Overview about the people you should deal with </li></ul><ul><li>Tools: Screening, Mapping, Analyzing </li></ul><ul><li>Results: Stakeholder Map, Stakeholder Manual, Guidance for Stakeholder Relations </li></ul><ul><li>Success factor: openess, neutral/external point of view </li></ul>Stakeholder Map Knowing values & expectations of your counterparts Stakeholder Manual
    37. 37. 3 - ISSUES MANAGEMENT <ul><li>Identifying and prioritizing of current trends and issues </li></ul><ul><li>Basis for scenario development and strategic recommendations </li></ul><ul><li>Tools: Screening, analyzing </li></ul><ul><li>Results: Overview about / ranking of all relevant issues </li></ul><ul><li>Success factor: methodology of analysis, time </li></ul>Issues Index Prioritizing the issues you have to deal with ISSUES INDEX
    38. 38. 4 - CSR MANAGEMENT CSR Report Reporting System Shaping the framework for your values management <ul><li>Establishing reporting structures </li></ul><ul><li>Using existing standards (Global Reporting Initiative) </li></ul><ul><li>Managing Values in the broader context of responsibility & sustainability </li></ul><ul><li>Tools: According to reporting guidelines </li></ul><ul><li>Results: CSR Report </li></ul><ul><li>Success factor: Using standards </li></ul>
    39. 39. Many valuable strategies are required….
    40. 40. Hauska & Partner Latvia Antonijas 20b Riga LV 1010 Tel: +371 6761 0010 www.hauska.com Hauska & Partner Group Kärntner Strasse 21-23 1010 Vienna, Austria Tel: +43 1 513 1700 www.hauska.com [email_address]
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