So how can companies go about confirming whether their values norms and

So how can companies go about confirming whether

This preview shows page 17 - 19 out of 29 pages.

So how can companies go about confirming whether their values, norms and policies are deeply rooted within the layers of the organization? Just as marketing and communication professionals at consumer products companies craft messages to create clear and meaningful brand identities and personalities in the minds of consumers, leaders often use the same types of techniques to create a shared view about the way things get done inside the organization. The look and feel of communications of all types (written, video, audio, imagery, etc.) can help reinforce the company’s ethos in a way that people understand and identify with. Of course, leaders’ actions often speak louder than words, and can be critical to helping align people on what is important in the organization. In today’s world, it can be insufficient to allow the company’s culture to freely take shape without nurturing it to support the strategy of the organization. It may need to be clearly represented by the values, norms and policies supported by internal company initiatives. Organizations that do this can be one step closer to donning the value- centered culture cloak. 3. Clarifying why value is important and empowering managers to execute Getting people aligned on creating value is furthered if everyone understands not only what “value” means (in other words, be very clear about what the target is) but also the rationale for the target (why the target is important). A manager who is supposed to commit to a target can be further motivated by feelings that he has sufficient control over the forces that influence their ability to achieve the target—which we call “manageability” (the X axis on the matrix illustrated in Figure 2). In the ferry analogy, for the crew to do their jobs, they need to have a very clear explanation of what the destination is and why a particular route has been mapped out to that destination. They will also need clear roles and responsibilities for tasks needed to contribute to the overall work. Thus, a company can benefit from communicating clearly its vision and strategic/ tactical plans for its organization and taking the necessary steps so everyone understands why they need to execute on those plans. For example, by using an external perspective to inform its target definition, a company can create rationales for meeting investors’ expectations for growth in free cash flow: “We have to meet a RONA (Return on Net Assets) of 15 percent three years from now to sustain our enterprise value. If we want to increase our value (by increased stock price), we need to deliver even better on RONA.” Each manager will also need to understand why he is managed on a certain target and how he can have an impact on target achievement.
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17 Figure 2: Manageability / Sensitivity Matrix “Watch Factors” Key Value Drivers Value Driver Prioritization Matrix Sensitivity Manageability Low Low High High Distractions Tactical Source: Accenture 4. Striving for a high degree of “sensitivity” for
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