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The Economics of Values
Why Strategy?
  “70% of organizations with a formal execution
 process outperform their peers”
 – Balanced Scorecard Collaborative

  “Only 30% of employees are engaged…
 costing companies 75% of their profit growth”
 – The Gallup Organization
  “Without vision, the people perish..”
 – Proverbs 29
Most Effective Tools
2 Questions
 1. Does what you are planning differentiate
    you from your competition?

 2. Does it (how you are different) matter to
    your current or future customers?
How Strategy Starts
What matters:
The Economics of Values
Core Values – Southwest Airlines
    Profitable 39 of 41 years
    Largest U.S. carrier
    “Best Place to Work” in 2010
    Most unionized, but never had a strike
    Highest paid employees, use 30% fewer
Core Values – Southwest Airlines
Core Values – The Southwest Way

   Warrior Spirit
   Servant’s Heart / Golden Rule
   Fun-LUVing Attitude
Core Values


   YOUR CORE VALUES
Purpose: Proctor & Gamble
P & G’s Purpose

  We will provide branded products and
  services of superior quality and value that
  improve the lives of the world’s
  consumers.
Core Purpose


    YOUR PURPOSE
Define Your Vision

    Big Hairy Audacious Goal
   Vivid Description
GET THE RIGHT
   PEOPLE
Hire for Skills and Values

            High


   Skills

            Low



                   Low            High

                         Values
Hiring for Skills & Values
  Have a pipeline
  Scorecard:
     Mission
     Outcomes
     Competencies & Values
  Know your questions
  Take your time
  2 Separate Interviews
Creating a Great Workplace

 The Basics
  Trust        Vision
  Comraderie   Autonomy
  Mastery      Greater Purpose
Creating a Great Workplace


    “How does what I’m doing
    impact the company’s vision?”
It’s not just about your goals!

  Be
  Do
  Have
  Help
Creating the Great Workplace

          ASK
          YOUR
          TEAM
Questions
                ?




www.valuesdrivenresults.com

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The Economics of Values

  • 2. Why Strategy?  “70% of organizations with a formal execution process outperform their peers” – Balanced Scorecard Collaborative  “Only 30% of employees are engaged… costing companies 75% of their profit growth” – The Gallup Organization  “Without vision, the people perish..” – Proverbs 29
  • 4. 2 Questions 1. Does what you are planning differentiate you from your competition? 2. Does it (how you are different) matter to your current or future customers?
  • 8. Core Values – Southwest Airlines  Profitable 39 of 41 years  Largest U.S. carrier  “Best Place to Work” in 2010  Most unionized, but never had a strike  Highest paid employees, use 30% fewer
  • 9. Core Values – Southwest Airlines
  • 10. Core Values – The Southwest Way  Warrior Spirit  Servant’s Heart / Golden Rule  Fun-LUVing Attitude
  • 11. Core Values YOUR CORE VALUES
  • 13. P & G’s Purpose We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers.
  • 14. Core Purpose YOUR PURPOSE
  • 15. Define Your Vision  Big Hairy Audacious Goal  Vivid Description
  • 16. GET THE RIGHT PEOPLE
  • 17. Hire for Skills and Values High Skills Low Low High Values
  • 18. Hiring for Skills & Values  Have a pipeline  Scorecard:  Mission  Outcomes  Competencies & Values  Know your questions  Take your time  2 Separate Interviews
  • 19. Creating a Great Workplace The Basics  Trust Vision  Comraderie Autonomy  Mastery Greater Purpose
  • 20. Creating a Great Workplace “How does what I’m doing impact the company’s vision?”
  • 21. It’s not just about your goals!  Be  Do  Have  Help
  • 22. Creating the Great Workplace ASK YOUR TEAM
  • 23. Questions ? www.valuesdrivenresults.com

Editor's Notes

  1. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  2. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  3. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  4. Core Values: those values that are most important to the direction of the company, that will never be violatedDisney – Imagination and wholesomenessSouthwest Airlines = LUV & FunCore Purpose: reason for being beyond making a profit / Noble CauseMerck – To preserve and improve human life.Zappos – To deliver happiness.
  5. Hedgehog Concept, Your Core Focus
  6. Visionary = 15:1 ($1 invested in 1926 = $6,536 vs $415), FOE – 8:1, GPTW = 3:1*Imagine what those results can do for your retirement portfolio. Imagine the impact on your community!Visionary: 3M, American Express, Merck, Johnson & Johnson - Firms of Endearment: Costco, Starbucks, LL Bean, BMWCollins: 18 companies/comparisons, 12 primary differentiators
  7. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  8. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  9. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  10. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  11. P&G : Make Soap, Toilet Paper & Paper Towels (Dawn, Charmin, Bounty)
  12. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  13. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  14. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  15. Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
  16. Be, Do, Have & Help
  17. Take your time = cross trained
  18. Helps Attract & RetainComraderie = Be, do, have, help
  19. Take your time = cross trained
  20. Take your time = cross trained
  21. Business complexity grows exponentially as # of employees grow.