While traveling to Rwanda
in June of 2009, Howard Schultz, CEO of Starbucks, visited with the farmers and
families partly responsible for producing some of their world famous Arabica
beans. Celebrating Schultz’s visit and
his commitment to their continued collaboration, thousands of jubilant Rwandans
stood shoulder-to-shoulder hanging on his every word. In his book Onward, he writes, “Never before had the human side of the equation
that guided Starbucks—a commitment to balancing people and profits—been so
palpable. Less than 50 feet away from me
were thousands of lives that Starbucks had the power to help—or to hinder” (p.
290).
And the people cheered.
After the deregulation of
the energy markets in 1998, Ken Lay and Jeffrey Skilling of Enron employed
nearly 22,000 people and were voted America’s
Most Innovative Company for six consecutive years from 1996 to 2001 (Yukl,
2010, p. 433). However, all was not what
it appeared. With the help of
accountants and attorneys, top executives created subsidiaries that looked like
partnerships and made it possible to sell assets and create false
earnings. Under Lay and Skilling,
unethical practices ran rampant. When
the gig was finally up, Enron sunk and thousands of individual hopes and futures
went down with it. It would become the
biggest and most complex bankruptcy case in U.S. history (Yukl, 2010, p. 434).
And the people cried.
Schultz (2011) said, “How
leaders embody the values they espouse sets a tone, an expectation, that guides
their employees future behaviors” (p. 294). Ken Lay, shortly after his arrest by the FBI,
said he took responsibility for Enron’s collapse but denied that he did
anything wrong. “I continue to grieve,
as does my family, over the loss of the company and my failure to save it,”
said Lay, speaking forcefully. “But failure does not equate to a crime”
(Crawford, 2004).
Peel back the layers of
most leadership failures and you’ll find a thin veneer of values. Behind the fancy suits and corner office are many men and women driven by greed, power, and control. Incompetence and ignorance, while
disappointing and frustrating, can be forgiven.
Malicious dealings and unethical practices done solely for profits cannot.
Hemingway & Maclagan
(2004), in their article Managers’
Personal Values as Drivers of Corporate Social Responsibility said,
“Individual managers’ organizational decisions are driven by a variety of
personal values and interests, in addition to the official corporate
objectives” (p. 36).
Organizational values
start with leadership. Period. No excuses.
What leaders say and do flow down
to their people. The ethical value of an
organization is a reflection of its top-tiered leadership team. In the competitive world of corporate
business, churches, sports, or retail services, the values of its leaders—at
all levels—ultimately influences the depth of its decision making. Understanding ones personal values and the
values of the organization is the starting point for aligning and synergizing
those values.
Stephen Denning (2011)
identifies four different types of values:
- Robber barons – firms whose only value is to crush the competition by whatever means.
- Hardball strategist – these firms avoid illegality, but in all other respects they pursue a single-minded focus on winning.
- Pragmatist – these firms pursue instrumental values, that is, values that are a central part of the organizations business strategy.
- Genuine ethical values – firms that identify values as a principle motivating force; values that go beyond what is necessary for the business strategy and that possess a genuine moral basis.
Rather
than discover six months or a year into a job, individuals should have a rich
understanding of their values and principles.
Highlighting workplace values such as, work/family life balance, truth
and honesty, environmental consciousness, stability, and clear advancement
tracks can steer potential employees toward a fulfilling position with a
pragmatist and genuine ethical organization.
Employees
who value competition, strong financial rewards, power, and adventure may find
themselves more confortable in an organization led by robber barons or hardball
strategist.
Mother Teresa would never work for
Steve Jobs. Billy Graham would never
work for Donald Trump. Compatible values
between employer and employee are instrumental factors toward an employee’s job
satisfaction and an employer’s ability to motivate their workers to increase
profits. Identifying the corporate
atmosphere is key to revealing its value set.
Denning
(2011) identifies three components of an ethical community and atmosphere. The first is trust: general expectation among members that their fellows will
behave ethically toward them. The second is loyalty:
acceptance of the obligation to refrain from breaching one another’s trust and
to fulfill the duties entailed by accepting that trust. And lastly, solidarity: caring for other people’s interest and being ready to
take action on behalf of other, even if it conflict with personal interests (p.
132-133).
As an
employee of Lockheed Martin, I have experienced each of these components in
various forms. For instance, in my
supervisor’s absence, he asked me to fill his position as team lead. When there have been disagreements about
aircraft performance or logistical challenges, each member of our team has been
able to communicate and disagree without being disrespectful.
Lockheed
core values identified as “do the right thing, perform with excellence, and
respect others” complement my personal values very well. Dr. Randall Hansen’s values assessment led me
to identify my top five workplace values as (1) integrity and truth, (2)
opportunities for influence, (3) friendship and warm working relationships, (4)
stability and security, and (5) work/life balance.
Lockheed
Martin policies and directives support and enhance my top five values. In times of tight budgets and leaner
organizations, job security can be a factor. However, Lockheed has shown in the event
positions are eliminated, they diligently work to place employees in other
positions. If they cannot come to an
agreement with the employee on a job, they offer strong severance packages and
transitional assistance.
Denning
(2011) said, “Shared values in an organization create trust. People have confidence that others will do
what they say” (p. 149). With nearly
120,000 people employed at Lockheed Martin, it would seem difficult to ensure
their core values persist through every division. I believe they have been successful because
they recognize and reward employees who do the right thing and perform with
excellence. Like any company, there are
individuals that test the limits of values, in these instances; the company
response reaffirms its commitment to ensuring their values are in tact.
In Built to Last, Jim Collins (1994)
debunked the myth that most successful companies exist first and foremost to
maximize profits. He said, “Contrary to
business school doctrine, maximizing shareholder wealth or profit maximization
has not been the dominant driving force or primary objective of visionary
companies.” “Yes,” he added, “they seek profits but they’re equally guided by a
core ideology—core values and a sense of
purpose beyond just making money” (p. 8)
On April
26, 2013, Marillyn Hewson, CEO of Lockheed Martin sent an email to all Lockheed
employees that read; “One of the qualities that distinguish Lockheed Martin is
our constant focus on the future. We never stop thinking about what’s ahead and
how we can make tomorrow’s world better than today’s. Our progress on that
front will be measured not just by our balance sheet, it will be measured by
the value we create for everyone who’s counting on us, including our customers,
our communities, our partners and our shareholders, and you, our employees.”
From
what I’ve seen, she means it.
Legacy
values.
Steve
References:
Collins,
J. (1994). Built to Last. New York, NY: HarperCollins.
Crawford,
K. (2004). Lay Surrenders to Authorities. Retrieved from
Denning, S. (2011). The Leader’s Guide to Storytelling. San Francisco, CA: John Wiley & Sons,
Inc.
Hansen,
R. (n.d.). Workplace Values Assessment. Retrieved from
Hemingway,
C.A. & Maclagan, P.W. (2004). Managers’ Personal Values as Drivers of
Corporate Social Responsibility.
Journal of Business Ethics, 50(1), 33-44.
Schultz,
H. (2011). Onward. New York, NY: Rodale.
Yukl, G.
(2010). Leadership in Organizations. Upper Saddle River, NJ: Pearson Prentice
Hall.
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