The Economics of Values
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This document discusses the importance of strategy and values in business. It provides examples of how core values have led to success at Southwest Airlines, focusing on values like "Warrior Spirit" and "Servant's Heart." The document also discusses defining purpose, as Procter & Gamble did through committing to "improve the lives of the world's consumers." Finally, it outlines how to create a great workplace through hiring for both skills and values, and ensuring employees understand how their work impacts the company's vision.
The Economics of Values
- 1. 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?
- 7. The Economics of Values
- 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
- 12. Purpose: Proctor & Gamble
- 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
- #3: Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
- #4: Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
- #5: Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
- #6: 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.
- #7: Hedgehog Concept, Your Core Focus
- #8: 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
- #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: Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
- #12: Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
- #13: P&G : Make Soap, Toilet Paper & Paper Towels (Dawn, Charmin, Bounty)
- #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: Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
- #17: Core Focus: Who you are (Values / Purpose). What you can be best in the world at.
- #18: Be, Do, Have & Help
- #19: Take your time = cross trained
- #20: Helps Attract & RetainComraderie = Be, do, have, help
- #21: Take your time = cross trained
- #22: Take your time = cross trained
- #23: Business complexity grows exponentially as # of employees grow.