The Value of Building a Values-Based Enterprise

The country of Bhutan thinks differently. This country values happiness over productivity, as evidenced by their measurement of the Gross Domesic Happiness index. Recently, the Prime Minister of Bhutan, Jigme Thinley, pointed to the cause of the current economic crisis. His answer: "Greed, insatiable human greed." What a contrast between values such as the pursuit of happiness (a value first espoused in the United States' Declaration of Independence) and greed! In order to resolve the current economic crisis, businesses must inspect their operational values and ensure that greed or profitability is not the only one in evidence. It seems that we didn't learn this during the early 2000's when we watched corporations such as Enron and WorldCom self-destruct under the influence of greed and the pursuit of profits, at the expense of integrity, honesty and compassion. It is time that we learned to do better. Being an unabashedly proud capitalist, I am the first to espouse profitability as an important corporate value (otherwise, there would be no corporation) but there is trouble when profitability is the foremost - or only - value in operation. The trouble is, valuing profitability above all else may create short-term benefits but produces long-term disadvantages. It does nothing to contribute to employee engagement and happiness. Employees need to find meaning in their work and understand how it helps others. Modeling values such as integrity, wisdom, compassion and forgiveness creates a positive, happy work environment and contributes to the long-term profitability of the company. James Collins and Jerry Porras document the exceptional financial performance of what they call visionary companies in their book, Built to Last: Successful Habits of Visionary Companies. How can an organization create a positive, values-based climate? It employs a balancing act that creates organizational well-being. The five elements that need balancing are represented in the holistic well-being diagram shown above: values, body, heart, mind and spirit. Some of you may recognize this diagram from a previous article I wrote about individual well-being. What can be applied to the person can also be applied to the organization. Let's explore these elements briefly: Values: An organization defines its values through its vision and mission statements and perhaps a values statement. These strategic documents are common to most companies and need no further explanation. However, what is uncommon is a dedication to living the espoused values, using them to make everyday decisions, and executive commitment to walking the talk. We know that when leaders model the organization's values and explicitly use them in their decision-making, the rest of the organization follows suit. Self-assessment questions:

• Leaders, are you modeling the values of your organization?
• Do you consciously base your decisions on corporate values?
• Do you hold people accountable to the organizational values, and recognize others when they do?

Body: The corporation or organization must take care of the basic physical needs of its employees. This includes paying fair wages, providing adequate employee benefits and creating a safe and comfortable work environment. This includes also making sound business and financial decisions, which contribute to the fiscal health of the organization. Self-assessment questions:

• Is your work environment ergonomically sound?
• Are your employees paid at or above marketplace averages?
• Is the organization using its financial resources wisely and producing a healthy profit margin?

Heart: The heart pillar represents the emotional intelligence and the quality of interpersonal relationships in the organization. It assumes that leaders treat employees with compassion, respect, forgiveness and fai ess. This element can be measured by the number of positive values in operation in the workplace, which contribute to employee loyalty and therefore customer loyalty. This progression looks like this: Employee treatment = Employee loyalty = Customer treatment = Customer loyalty Self-assessment questions:

• Is there an absence of fear and suspicion in your workplace?
• Are employees comfortable expressing their opinions and offering suggestions?
• Do managers create an environment of trust and respect?

Mind: The organization can create an environment of continuous learning and discovery. This is accomplished on both an individual and corporate level. The organization should be open to feedback and take action upon receiving it. For employees, it is important to know that the employer will offer job-related training and the opportunity to advance in their careers. Self-assessment questions:

• Is there a defined career path for all employees?
• Are employees offered continual learning and training opportunities?
• Does the organization seek feedback on its performance from both employees and customers?
• Do managers act on the feedback received?

Spirit: The human spirit longs to serve others, find meaning in work and to make a difference in the world. In order for work to be meaningful, it must provide an opportunity to serve others, both inside and outside the organization. The spirit is fed by working for an organization that stands true to its vision and mission and lives its values everyday. Self-assessment questions:

• Do employees understand the overall mission of the company?
• Do employees understand how they contribute to the mission?
• Are employees provided opportunities to serve their community through their actual work and through charitable activities?
• Does the leadership discuss and act on ways to make a difference in the local and global community?

Construct your organization on the solid foundation of values while caring for the body, heart, mind and spirit, and you will create a sustainable and ethical business that enjoys long-term profitability!