Management Consulting/organizational behaviour


Do the core values, really influence and have an impact on organizational development/ Explain.

Question:   Do the core values, really influence and have an impact on organizational development/ Explain.

What Are Core Values?
Core values are part of a company’s DNA. They define what an organization stands for, highlighting an expected and ultimate set of behaviors and skills. A company’s values lie at the core of its culture. Values are fundamental, enduring, and actionable.
Driving priorities and decisions, values help determine how a company spends its time and money. The actual values of an organization are determined mainly by where it invests its resources and how its employees behave, not what the leader says or what’s posted on company walls.
When properly executed at the leadership level, core values play a fundamental role in attracting and retaining talented employees, making difficult decisions, prioritizing resources, reducing internal conflict, differentiating the brand, and attracting the right breed of customers.
Why Corporations Need Core Values
Human capital is the lifeblood of today’s enterprises. Attracting top talent in a fast-changing global marketplace—and retaining them—takes more than high salaries and benefits packages. Talented people want to work in environments where they can develop and thrive. Top performers seek out organizations with values that match their own.
As a consequence, the importance of a company’s culture is becoming more apparent.  Numerous research studies have highlighted that corporate culture is a primary driver for innovation.
When core values are successfully integrated into an organization, they set the foundation for their culture. Values set the climate of the workplace and help determine how success is defined and measured.
12 Reasons Core Values Are Important for CEOs
Taking core values serious is a major organizational initiative. Wondering if establishing an authentic set of core values can impact your business?
Here are 12 reasons CEOs should take core values seriously:
1.   Core values can set a foundation for the organization’s culture.
2.   Core values can improve morale and can be a rich source of individual and organizational pride.
3.   Core values can align a large group of people around specific, idealized behaviors.
4.   Core values can guide difficult decisions by determining priorities in advance.
5.   Core values can help positively influence how employees interact with one another.
6.   Core values can help you attract, hire, and retain the right type of employees.
7.   Core values can help you assess performance (both individually and organizationally).
8.   Core values can help prevent conflict and mitigate conflicts that do arise.
9.   Core values can help you improve innovation.
10.   Core values can help differentiate your brand in the minds of your customers and partners.
11.   Core values can impact how the organization serves its customers.
12.   Core values can help you attract the right breed of customers.
Examples of Core Values From Successful Companies
Core values are the standard operating principles that guide an organization’s culture—its employee’s behaviors, attitudes, language, and focus.
Here are over 100 examples of values from 12 organizations that value their company’s culture:
Google’s Ten things we know to be true
1.   Focus on the user and all else will follow
2.   It’s best to do one thing really, really well
3.   Fast is better than slow
4.   Democracy on the web works
5.   You don’t need to be at your desk to need an answer
6.   You can make money without doing evil
7.   There’s always more information out there
8.   The need for information crosses all borders
9.   You can be serious without a suit
10.   Great just isn’t good enough
Zappos Family Core Values
1.   Deliver WOW Through Service
2.   Embrace and Drive Change
3.   Create Fun and A Little Weirdness
4.   Be Adventurous, Creative, and Open-Minded
5.   Pursue Growth and Learning
6.   Build Open and Honest Relationships With Communication
7.   Build a Positive Team and Family Spirit
8.   Do More With Less
9.   Be Passionate and Determined
10.   Be Humble
Whole Foods’ Core Values
1.   We sell the highest quality natural and organic products available
2.   We satisfy, delight and nourish our customers
3.   We support team member excellence and happiness
4.   We create wealth through profits and growth
5.   We serve and support our local and global communities
6.   We practice and advance environmental stewardship
7.   We create ongoing win-win partnerships with our suppliers
8.   We promote the health of our stakeholders through healthy eating education’s Leadership Principles
1.   Customer obsession
2.   Ownership
3.   Invent and simplify
4.   [Leaders] are right, a lot
5.   Hire and develop the best
6.   Insist on the highest standards
7.   Think big
8.   Bias for action
9.   Frugality
10.   Vocally self critical
11.   Earn trust of others
12.   Dive deep
13.   Have backbone; disagree and commit
14.   Deliver results
The Container Store’s Foundation Principles
1.   1 Great Person = 3 Good People
2.   Communication IS Leadership
3.   Fill the other guy’s basket to the brim. Making money then becomes an easy proposition.
5.   Intuition does not come to an unprepared mind. You need to train before it happens.
6.   Man In The Desert Selling
7.   Air of Excitement
IKEA’s Core Values
1.   Humbleness and willpower
2.   Leadership by example
3.   Daring to be different
4.   Togetherness and enthusiasm
5.   Cost-consciousness
6.   Constant desire for renewal
7.   Accept and delegate responsibility
Netflix’s Culture: Behaviors and Skills They Value
1.   Judgment (making wise decisions; identify root causes; think strategically)
2.   Communication (listen well; concise speech; respectful)
3.   Impact (amazing amounts of important work; consistently strong performance; focus on results, not process; bias to action, not analysis)
4.   Curiosity (learn rapidly; seek to understand; broad knowledge)
5.   Innovation (re-conceptualize issues to discover practical solutions; challenge prevailing assumptions; create new ideas that prove useful)
6.   Courage (say what you think; make tough decisions; take smart risks; question actions inconsistent with their values)
7.   Passion (inspire others with excellence; care intensely about company success; celebrate wins; tenacious)
8.   Honesty (candor and directness; non-political; quick to admit mistakes)
9.   Selflessness (seek what is best for Netflix; egoless when searching for best ideas; help colleagues; share info openly and proactively)
Southwest’s “Live the Southwest Way”
1.   Warrior Spirit (Work Hard; Desire to the best; Be courageous; Display a sense of urgency; Persevere; Innovate)
2.   Servant’s Heart (Follow the Golden Rule; Adhere to the Basic Principles; Treat others with respect; Put others first; Be egalitarian; Demonstrate proactive customer service; Embrace the SWA Family)
3.   Fun-LUVing Attitude (Have FUN; Don’t take yourself too seriously; Maintain perspective (balance); Celebrate successes; Enjoy your work; Be a passionate Teamplayer)
The Ritz-Carlton’s Service Values
1.   I build strong relationships and create Ritz-Carlton guests for life.
2.   I am always responsive to the expressed and unexpressed wishes and needs of our guests.
3.   I am empowered to create unique, memorable and personal experiences for our guests.
4.   I understand my role in achieving the Key Success Factors, embracing Community Footprints and creating The Ritz-Carlton Mystique.
5.   I continuously seek opportunities to innovate and improve The Ritz-Carlton experience.
6.   I own and immediately resolve guest problems.
7.   I create a work environment of teamwork and lateral service so that the needs of our guests and each other are met.
8.   I have the opportunity to continuously learn and grow.
9.   I am involved in the planning of the work that affects me.
10.   I am proud of my professional appearance, language and behavior.
11.   I protect the privacy and security of our guests, my fellow employees and the company's confidential information and assets.
12.   I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free environment.
Under Armour’s Brand Values
1.   Let’s be great. Build great product, tell a great story, provide great service, and build a great team.
2.   Integrity. Without it we cannot be a team.
3.   No one person is bigger than the brand—Team. No athlete either.
4.   Make one dollar spend like three. We must be creative with the resources we have.
5.   Help others. Volunteerism and serving others are vital parts of our mission.
6.   Walk with a purpose. Everything we do is part of a deliberate, long-term strategy/vision. Know where you’re going.
7.   Protect the UA culture, but embrace change. Evolve and innovate. We’re a different company every 6 months, and we can’t use culture as an excuse to not change product, process, or people.
8.   Be humble and stay hungry. Nobody’s going to give us anything. We have to earn it every day.
The Motley Fool's Core Values
1.   Collaborate: Do great things together.
2.   Innovate: Search for a better solution. Then top it!
3.   Fun: Revel in your work.
4.   Honest: Make us proud.
5.   Competitive: Play fair, play hard, play to win.
6.   Motley: Make Foolishness your own. Share your core value _____________.
Zipcar’s Core Values
1.   Obsess about the member experience (Build trust and confidence among our member community by delivering leading convenience, dependability and service excellence)
2.   Be the best we can be (Support personal growth, impact, and excellence)
3.   Deliver results (Create enduring value through growth)
4.   Keep it simple (Win through simplicity and continuous innovation)
5.   Have an impact
6.   Change the world through urban and environmental transformation
Notice how all of the above values are specific and actionable. They help define each company’s culture and encourage a specific type of behavior within each organization.
Seven Steps to Discovering Your Company’s Core Values
As the CEO and leader of your enterprise, this process begins with you—your interest, passion, and commitment to establishing a set of values that will guide your culture through decades of growth.
Taking the time to define your values, embody them, and to keep them fresh and alive in everyone’s minds are some of the most vital things you can do to promote a thriving culture.
Arriving at a concise and short list of values can be a daunting task.

Why? Values aren’t selected; they are discovered. Freely associating in a brainstorm sessions with your employees will invariably yield superior results.
Ready to get started? Here are seven steps to creating distinct and meaningful core values that will serve as a foundation for your corporate culture:
Step 1: Begin with a Beginner’s Mind
It’s too easy to presume we know the answer at the start and to therefore never truly embark on a creative discovery process. Adopting the the mind of a beginner—someone without any preconceived notions of what is—gives you access to more ideas and a fresh perspective on your business.
This is an important step in any kind of discovery process. In our firm, everytime we begin a new creative project or the discovery of psychologically-driven consumer insights for clients, we always start with a Beginner’s Mind.
We believe it is imperative to approach the discovery of core values without any preconceived notions and beliefs about your culture and your business. Simply taking a deep breath and momentarily clearing your mind may be all that’s needed. Remembering that your conscious mind doesn’t know all of the answers is helpful too.
Step 2: Create your own master list of internal values.
The more experienced and engaged employees you can enroll in this initial process, the better. Set up meeting with your leadership team first. Have everyone list what they believe to be your company’s imperatives, ideal behaviors, desired skills, and greatest strengths.
•   What do you believe defines the culture at [company]?
•   What values do you bring to your work that you consistently uphold whether or not they are rewarded
•   What do you truly stand for in your work? What do you believe [company] truly stands for?
•   What do our customers believe about us? What do they believe we stand for?
•   What values does our company consistently adhere to in the face of obstacles?
•   What are our company’s greatest strengths?
•   What are the top three to five most important behaviors we should expect from every employee (including you)? “Actual company values are the behaviors and skills that are valued in fellow employees,” explains Netflix CEO Reed Hastings.
Your goal is discover the pre-existing values within your organization (assuming you’re not an early-stage start up). It will be difficult to reinforce values that aren’t already part of your organization’s ethos. It’s best to highlight your organization’s current strengths and build on them.
While some companies hire an outside consultant to help uncover their core values (which is appropriate at times), it is vital that you as a CEO are playing a role in facilitating the discussion. Your employees need to see that you’re taking this process seriously and that its not just some “corporate agenda” for appearance purposes. If you don’t take this process seriously, it’s unlikely your employees will.
If you are going to lead the discussion, however, be sure that you’re not shaping the conversation or influencing people’s answers.
Step 3: Chunk your values into related groups.
Combining all of the answers from step 2, you now have a master list of values. If you and your team took this process seriously, you may have between 25 and 75 values. Obviously, that’s far too many to be actionable and memorable.
Your next step is to group these values under related themes. Values like accountability, responsibility, and timeliness are all related. Group them together.
Step 4: Highlight the central theme of each value group.
If you have a group of values that include honesty, transparency, integrity, candor, directness, and non-political, select a word that you feel best represents the group. For example, integrity might work as a central theme for the values listed above.
This process is best done with a small team, but this brainstorm session can be an open meeting as well.
Step 5: Sacrifice and Focus.
Now comes the hardest part. After completing step 4 you still might have a sizable list of values. Here are a few questions to help you whittle your list down:
•   What values are absolutely essential to your work environment?
•   What values represent the primary behaviors your organization wants to encourage and stand by?
•   What values are essential to supporting your unique culture?
You can’t be all things to all people. Your culture is unique. It should emphasize what matters most to your collective. It should highlight what makes your organization a place that talented people want to work. It should represent both your current and ultimate expression of your culture.
Strong values require difficult decisions to be made in order to uphold the values. Avoid prosaic or generic values (often listed in a single word, like “accountability”) because they won’t establish a strong, distinct culture.
In reviewing the cores from companies like Google, Zappos, and Amazon, you’ll notice that some of them are unconventional, even controversial. These values help create unique cultures. For example,’s “Have backbone; disagree and commit” is not a common core value for a multi-billion dollar retailer, but I bet this principle plays an important role in Amazon’s culture.
How many core values should your organization adopt? Too few and you won’t capture all of the desired behaviors and unique dimensions of your organization. Too many and your employees will get overwhelmed and they will lose their overall impact. While the number of core values differs for each organization, the magic range seems to be between 5 and 10.
Step 6: Craft Your Company’s List of Core Values.
Now creativity really comes into play. You’ll notice in the core values examples from successful brands that none of them list their values in a single word like Integrity, Accountability, or Fun. While a one-word value might be easier to remember, it is difficult for a single word to become a distinct expression of your culture. More importantly, it is incredibly difficult for a single-word value to trigger an emotional response with your employees.
Highlighting values into memorable phrases or sentences forces your organization to more succinctly define the meaning behind each value. It gives you the opportunity to make the value more memorable in the minds of your employees.
Be sure to enroll at least one strong writer from your team in this stage of the process. Here are a few tips and guidelines for crafting your values:
•   Use inspiring words and vocabulary. Our brains are quick to delete or ignore the mundane and commonplace. A phrase like “Customer Service Excellence” is not going to inspire you or your employees. Zappos’ “Deliver WOW Through Service” just might.
•   Mine for words that evoke emotion. Words and phrases that trigger emotional responses will be more meaningful and memorable in the minds of your employees.
•   Focus on your organization’s strengths. It’s fitting that a company like IDEOwould promote principles like “Encourage Wild Ideas” and “Build on the ideas of others.” Play to your strengths in crafting your values.
•   Make it meaningful. Slogans and taglines are not core values. Make your value statements rich and meaningful to your employees.
Step 7: Test the Ecology of Each Value.
Once you’ve finalized your list of core values, it’s time to test.
Here’s a quick checklist to test the integrity of your new core values:
1.   Will each value help you make decisions (especially the difficult ones)?
2.   Are your core values memorable? Will every team member be able to encode them in their minds?
3.   Does each value represent distinct elements of your overall culture?
4.   Does each value speak to at least one desired behavior?
5.   Will you be willing to uphold these values 50 years from now?
6.   Are your values congruent with the behavior of your leadership team? Are these values BS-tested? Will an employee be able to observe hypocrisy?
7.   Can your organization hold up these values in stressful and difficult situations (like increased competition, product recall, stock devaluation, or downsizing)?
8.   Are you willing to defend these values unequivocally? That is, does each value permeate through the entire organization?
How to Make Your Core Values Stick
Studies show that values have to be internalized by employees and integrated into the culture for them to have a meaningful impact. Here are eight tips on making this happen:
1) Clearly define, explain, and articulate your values to your employees.
Most of the core values from the organizations we’ve studied are backed by significant context for each one. This might take the form of a one paragraph description, a company video, or a slideshow to bring each value to life. The more depth, texture, examples, and images you can give to each value, the more power they will have.
2) Educate your organization on your values.
This is vital. If you don’t constantly educate your team and reinforce the importance of your values, they will become mere slogans and will not influence company culture. Hold a special company meeting denoted to rolling out and discussing your new value. Make your values an on-going part of your corporate dialogues.
3) Hire employees who embody your values.
If you’re doing a good job promoting, educating, and embodying these values as an organization, talented people aligned with these values will likely seek you out. Either way, it’s imperative that you hire for the attitudes and behaviors that shape your culture. If not, your new hires will only weaken your organization—no matter how talented they might be.
4) Defend and uphold your corporate values.
If you’re going to establish core values that define your corporate culture, what are you going to do when an employee clearly doesn’t honor them? You can’t change a person’s values; you can only hire people who share the same values. If you don’t let this employee go, what message are you sending about the importance of these values? Your core values shouldn’t be altered in difficult situations like economic downturns. These values were established as a guidepost to see the organization through both calm and rough waters. Your values should be timeless, sustainable, and unchanging.
5) Reinforce your values with consistency.
Using values in your business is like any other business discipline. All disciplines require consistency and practice.
•   Distribute a copy of your core values to every employee.
•   Create poster boards that highlight each value and hang them around your offices.
•   Reference the values in meetings; they need to become part of how everyone behaves and makes decisions.
•   Reward, recognize, and celebrate employees and teams that exemplify the company’s values.
•   Make sure you and your leadership are modeling behavior based on your values. If not, your values will lose their power and will not stick.
6) Bring your values to life through storytelling.
Keep your values fresh and relevant. Employees will ignore a wall plaque within days, if not hours. Continue to challenge yourself to find ways to keep your values fresh and alive in your employees’ minds. Take note when employees and team members are actualizing the values. When you reward and recognize these behaviors, be sure to share it with your organization. Ask employees to share stories of how they saw one of their core values in action within the past week. Storytelling of this nature is one of the best ways to encode these values in your employees’ minds and to give them a life of their own.
7) Make sure leadership embodies each value.
Recognize and rate your leaders and employees on how well they embody the core values as part of performance reviews. If the leadership of your enterprise doesn’t live the core values, you can’t expect that your employees will.
8) Promote your values on your website.
Remember that actualized corporate values will act like a homing beacon for talented people who share your values. The About Us or HR section of your corporate website is a great place to highlight the unique features of your culture. (See below for excellent examples.)
With intention, energy, and a healthy dose of creativity, your values will remain relevant and meaningful. Keep the story alive. Discover your culture’s shared values and live them every single day. It will lead you to a stronger organization.
How Brilliant Brands Use Their Corporate Websites to Attract Talented People
Can we determine which companies take core values seriously just by looking at their websites? Can we get an accurate feel for a business’s unique culture from the web? In many (but not all) cases, the answer is “yes.”
It’s also not too difficult to determine which companies aren’t taking core values seriously. Many corporations have a page on their website that lists its vision, mission, and values in their About or Human Resources section that lacks passion, emotion, creativity, and uniqueness. It’s as if a single company executive filled out a form in an effort to complete an assignment.
Remember that authentic corporate values will act like a homing beacon to talented people who share your values. The About or HR section of your corporate website is great place to highlight the unique features of your culture. It’s a simple tactic that too few businesses are using.
Here are a few noteworthy examples:
•   Zappos Family Ten Core Values has received significant attention in the media, partly because CEO Tony Hsieh set out to build his company around a particular culture and used these core values as an instrumental tool.
•   The Container Store’s What We Stand For demonstrates how the company puts employees first and how it seeks to actualize its seven foundation principles. No wonder they are ranked one of the top 100 places to work by Fortune magazine year after year.
•   Whole Foods Market’s Mission and Values section of their website shows they have invested resources in clarifying why they are in business and what’s most important to them. They are clearly attracting individuals who share their social mission.
•   Southwest Airline’s The Southwest Way is perhaps the quintessential example of a distinct company culture that lives its unique and playful set of values.
Notice that companies that are actively using core values to support their corporate culture tend to provide significant context for each of their chosen values. Beyond a simple word or phrase, they can clearly define what their values mean to them. And, that helps bring their values to life.
Naturally, the organization’s practices—both internally and externally with customers—must be congruent with their shared values. You must first discover your core values and the make them stick.
While an attractive culture section of your website obviously isn’t enough to lure talent,  showcasing your values and the unique elements of your culture is a powerful and often underutilized tool for recruiting and attracting talented employees.
Should You Promote Your Corporate Values to Your Customers?
Our discussion on the importance of core values has focused on the benefits and application in cultivating a distinct corporate culture. But what is the relationship between core values and your customers?
Your core values define the ideal behaviors of your employees and the principles by which your organization operates. Some of these values may be relevant to your customers, others are not.
So should you promote your core values directly to your customers? Generally, the answer is no. But, there are exceptions.
Zappos, for example, has built their brand around their ten core values. They go so far as to print one of their ten values on every package they ship to their customers, highlighting the importance they place on these values.
There are three benefits to this approach: (1) It makes Zappos stand out as a unique brand and not just another online retailer; (2) it works to attract customers that share the same core values;  and (3) it helps the company attract employees that share their values.
But for the most part, customers don’t specifically need to know your corporate values. If they’re interested, they’ll Google you.
Your customers do, however, need to observe how well you actualize your core values on a subconscious level. If you have a core value of “Wowing your customers,” wow them. If you have a tenet of putting your customers first, put your customers first. Not living up to your values won’t just impact your company culture; it will hurt your relationships with your customers.
Corporate Values versus Brand Values
Values extend in two directions: Inward to influence and guide the company’s culture and outward to communicate to its customers.
The inward direction, as we’ve seen, is discovered by the organization itself. The outward direction is based on the collective consensus of the business’s customers.
Branding, remember, is a co-authored experience with your customers. Your customers will determine for themselves what they believe your organization values based not just on what you promote or say, but on what they observe and feel.
Let’s make a distinction between corporate values and brand values: Corporate values are determined by you. Brand values are influenced by you, but largely determined by your customers.
The experience they have in their interaction with your brand will determine their perception of your brand’s values. If those perceived values are consistent with their own, they are more likely to do business with you. (And our firm as observed an unquestionable correlation between values alignment and customer loyalty—especially in cult brands.) If, however, those perceived values are in discord with their own, they may actual despise your brand.
Examples of Brand Values from Successful Businesses
While you may have anywhere from 3 to 12 shared values in your business, your customers will likely define you by a single value.
For illustration purposes, below is a list of successful brands and the brand value most likely perceived by their customers.
Company   Primary Brand Value
Apple   Creativity
Harley-Davidson   Freedom
Oprah   Self-empowerment
Southwest Airlines   Love (Their stock ticker symbol: LUV)
Nike   Victory
Zappos   Happiness
IKEA   Possibility
The Life is Good Company   Optimism
Whole Foods Market   Wholesome
Coca-Cola   Happiness
Virgin   Free-spirited
Ritz-Carlton   Exceeding expectations
LL Bean   Quality and assurance
Amazon   Ultimate convenience
Google   Accessible information
Walmart   Guaranteed lowest prices
Target   Affordable design
Starbucks   Energy for your day
Under Armour   Dominance
Home Depot   Do-it-yourself
It’s difficult to get your customers to associate your brand with a specific value. It certainly doesn’t happen by accident. It takes a consistent branding and marketing strategy, executed year after year.
But more than that, the company itself must find ways to live the value they represent. For as soon as they don’t, that position will begin to wither in the customers’ minds.
Upholding that value, however, places the company is in a unique position in the marketplace, one that its competitors have difficulty breaching.
Who would have thought values could be the ultimate competitive advantage?
Inside Cult Brands: Loyalty and the Power of Values
While the importance of core values is continually gaining traction within the business community, there’s one group of businesses that has been hip to the idea for decades.
Cult Brands—brands with an unusual level of customer loyalty and an established community of engaged fans—almost always have well-established core values.)

Why is this so? Customers rally around certain brands because they believe those brands stand for something meaningful to them. That is, customers become more loyal when they believe a business shares their values.
And while marketing messages and other branding efforts can help communicate these values, if these values don’t genuinely exist within the corporation itself, customers eventually find out.
In order for a business to effectively communicate its values to its customers, these values must be expressed throughout each customer touchpoint. This includes every potential interaction customers have with employees—whether in person, on the phone, via email, chat, Twitter, or Facebook. And if employees aren’t living these values—if the corporate culture isn’t consistently actualizing them internally—the gig is up.
Core values offer savvy CEOs a powerful way to unite both employees and their customers under a common flag. They can help you retain talented people and attract more loyal customers.
The Ultimate Approach to Core Values and Brand Values
The task of discovering a corporation’s core values is generally conducted within the organization. While some companies hire consultants to help unearth their values, the source of input is almost always the executive team. The Seven Steps to Discovering Your Company’s Core Values is a process any CEO can lead his or her team through whether it’s a 10-person startup or a 20,000-person multi-national empire.
But there’s a vital missing ingredient in the process of discovering core values and brand values: input from the customer.
Why would you want to get your customer’s take on your values?
Two reasons:
First, you understand that the purpose of business is to create a customer, as Peter Drucker noted. Your customers are the reason for the existence of your organization. Shouldn’t their input matter?
Second, your customers—the ones who genuinely care about you, at least—already believe that your organization upholds a certain set of brand values. This is vital information for the initial stages of your discovery process.
Think of your customers as a large consulting team ready to give you feedback and an outside perspective based on their experiences and interaction with your organization. What better stream of insights can you hope to tap?
How to Mine Your Customers for Core Values and Brand Values
Only surveying your customers about what they believe you value isn’t likely to yield meaningful results. The concept of values are too abstract for many people; too much explanation and discussion is needed to make a direct fill-in-the-blanket question effective.
Determining your brand values and assessing your core values, however, can be accomplished using more advanced psychological methods involving direct interaction with your best customers.
Your customers’ input can bring the added magical ingredient in your efforts to discover your core values, and especially your brand values. Be sure to bring your customers into the discussion.

organizational development depended internally on employees and externally influenced by


Positive Environment
A critical internal force that influences employee behavior is the actions of colleagues. According to, "creating an atmosphere of sharing and helping" was at the top of the list during a roundtable brainstorming session at the Metro Atlanta Chamber of Commerce when clients were asked to identify the primary forces that improve effective customer service. Companies that can effectively build an internal culture that is based on mutual respect, teamwork and support will notice increased productivity and a sharper focus on service to customers.
Technology is a significant factor that can have both positive and disruptive influences on employee behavior. While technology can often help streamline processes and make work easier for employees, learning how to use new technology while remaining productive can be stressful. Factor in the rapid advent of technology, in general, and employers seem to be faced with an almost ongoing need for new training, process improvement and documentation.
Customer Demands
Customer demands can be an external force that exerts pressure on organizations to continually stay ahead of the competitive curve. Lin Grensing-Pophal, a marketing consultant and author of "Marketing With the End in Mind," suggests that companies must always monitor the external environment to be alert to changes that can impact their operations—and their very existence. Employees must adapt to the changing needs of customers, the growing savvy of customers and the heightened expectations of customers, says Grensing-Pophal.
Locus of Control
Employees are influenced by both internal and external forces, but the impact of these forces depends a great deal on their own levels of internal and external locus of control, says Al Siebert, Ph.D., author of "The Resiliency Advantage," at Those who have an external locus of control are looking for people to tell them what to do. These are the employees who need a great deal of direction and expect managers to give clear and detailed feedback at all times. Those with an internal locus of control feel empowered to make decisions and act on their own---they feel in control of their destiny rather than at the mercy of external factors. These employees may sometimes act too independently and are not as concerned about the opinions or expectations of others.
Strategic Plans
Companies are wise to anticipate and plan for both internal and external changes, say the experts. According to a Medscape article on the impact of change on health-care organizations, "a thorough and ongoing assessment of external and internal factors exerting an influence on the organization is expected of senior leadership to define a proactive plan of action in anticipation of strategic threats." By remaining aware of how these internal and external factors could impact employees, organizations, their HR departments and managers can be prepared to respond to changing employee behavior. Negative behavior could be dictated by feelings of anger, confusion and depression.

Organizational development (OD) is a planned, ongoing effort by organizations to change in order to become more effective. The need for organizational change becomes apparent when a gap exists between what an organization is trying to do and what is actually being accomplished. OD processes include using a knowledge of behavioral science to encourage an organizational culture of continual examination and readiness for change. In that culture, emphasis is placed on interpersonal and group processes. The fact that OD links human processes such as leadership, decision making, and communication with organizational outcomes such as productivity and efficiency distinguishes it from other change strategies that may rely solely on the principles of accounting or finance.
The fact that OD is planned distinguishes it from the routine changes that occur in the organization, particularly through a more effective and collaborative management or organization culture with special emphasis on forming work teams. The focus on interpersonal and group processes to improve performance recognizes that organizational change affects all members and that their cooperation is necessary to implement change.
The forces compelling an organization to change can be found both inside and outside the organization. Internal forces toward change can affect changes in job technology, composition of the work force, organization structure, organizational culture, and goals of the organization. There are a variety of external forces that may require managerial action: changes in market conditions, changes in manufacturing technology, changes in laws governing current products or practices, and changes in resource availability.
An organization can focus OD change efforts in several areas: changes to structure, technology, and people using a variety of strategies for development. Some of the more common techniques for changing an organization's structure include changes in work design to permit more specialization or enrichment, clarification of job descriptions and job expectations, increase or decrease of the span of control, modification of policies or procedures, and changes in the power or authority structure. Another general approach to planned change involves modifications in the technology used as tools to accomplish work. The assumption behind enhancing technology is that improved technology or work methods will lead to more efficient operations, increased productivity, or improved working conditions. Examples of technological approaches to change include changing processes for doing work, introducing or updating computers or software, and modifying production methods. The third general approach to change focuses on the people in the organization. This approach is intended to improve employee skills, attitudes, or motivation and can take many forms, such as introducing training programs to enhance work skills, increasing communication effectiveness, developing decision-making skills, or modifying attitudes to increase work motivation.

3. Measurement has the power to focus attention on desired behavior and results," How it leads to
organizational development?


Performance MEASUREMENT / Evaluation is defined as structured formal interaction between a subordinate and supervisor, where the work performance of the subordinate is to be taken into consideration, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills  development . EVALUATION  results are used to determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotion .  Simultaneously appraisal results are also used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decrease in pay.

Performance MEASUREMENT/ evaluation  is a part of   ORGANIZATIONAL   DEVELOPMENT   AND  career development.


1    Know what your employees have achieved and can achieve
2   Know what your employees’ weaknesses are
3   Understand how each employee’s role fits into the overall business
4   Compare the efficiency of different staff members
5   Set realistic goals
6   Identify ways your business can be expanded or enhanced
They allow your staff to:
1   Feel valued
2   Understand what is expected of them
3   Understand the business they are involved in
4   Understand their weaknesses
5   Identify their strengths
6   Identify areas they need further training in
Offer opinions and insights that may improve the business as a whole

A performance  evaluation   system links achievements at all levels of the organisation with corporate, business and unit's  objectives. It provides the framework for:
• clarifying expectations, roles, responsibilities and resources required to achieve goals;
• improving communication and understanding between managers and employees in terms of work requirements, expectations, performance criteria and achievements;
• linking individual, team or unit performance with quality assurance, continuous improvement and evaluation processes of the organisation;
• facilitating, encouraging and assessing performance;
• encouraging structured feedback from employees and supervisors on performance and career planning and from the community on organisational performance;
• introducing an outcomes focused culture and increasing motivation;
• collecting data and information needed for management decision making or external review ;
• increasing the organisation’s capability to meet future requirements and to improve outcomes for the community;
• identifying performance which requires improvement; and
• recognising and acknowledging performance.

-an  opportunity  for  self  appraisal.

-an  opportunity  for  the  manager  to appraise  the  staff.

-helps  to  determine  the  strengths  of  the  employee.

-helps  to  determine  areas  for  improvements

-helps  to  determine  the  employee  training  needs.

-helps  to  determine  the  types  of  training  programs

-helps  to  determine  the  merit  rewards  for   the  employees.

-an  opportunity  to   acknowledge /  offer  recognition  for  performance

-an  opportunity  to  improve  the  employee's  capability/competencies.

-helps  to  develop  individual  development  plan.

Benefits of performance evaluation.
At a macro level performance  evaluation   assists organisations to match outcomes with organization objectives. It provides a system for improving organization  performance and outcomes, within the  organization's  policy framework, while maintaining good industrial relations. It generates benefits throughout organisational functions and processes.
Performance evaluation   recognises that people are the organisation’s most valuable resource, and that people are the key to an innovative, professional and service-oriented public service. Performance management emphasises the relationship between the management and development of people and an effective organisation, and provides a fair and equitable environment for improving performance.
A performance  evaluation   system links achievements at all levels of the organisation with corporate, business and unit's  objectives. It provides the framework for:
• clarifying expectations, roles, responsibilities and resources required to achieve goals;
• improving communication and understanding between managers and employees in terms of work requirements, expectations, performance criteria and achievements;
• linking individual, team or unit performance with quality assurance, continuous improvement and evaluation processes of the organisation;
• facilitating, encouraging and assessing performance;
• encouraging structured feedback from employees and supervisors on performance and career planning and from the community on organisational performance;
• introducing an outcomes focused culture and increasing motivation;
• collecting data and information needed for management decision making or external review ;
• increasing the organisation’s capability to meet future requirements and to improve outcomes for the community;
• identifying performance which requires improvement; and
• recognising and acknowledging performance.

1. The objectives of the performance evaluation system are clearly defined

Objectives of the system, and its underlying principles, are clearly defined in terms of potential benefits to the organisation, its employees and its clients.  Guidelines are clear and unambiguous.

2. The system is aligned with corporate objectives, priorities and strategies

The system reflects the organisation's goals and priorities and is linked with corporate and business plans.  The system has a strong strategic focus, with recognition given to performance and achievements that advance corporate priorities.

The system is designed in full consultation with employees and their representatives as it needs to be supported at all levels of the organisation to be accepted and workable.

3.  The system is equitable

The system is equitable; open; free from gender, race and other bias; and fairly and consistently applied.

4.    The organisation focuses on performance improvement

The organisation fosters performance recognition and realisation of the individual’s potential by taking a positive approach to cultural change and focusing on outcomes, continuous improvement and training.  Performance management is not used as a primarily punitive means of dealing with unsatisfactory performance or disciplinary matters.

5.    Commitment and ownership of the process is demonstrated

Managers and supervisors perceive performance management as a fundamental and ongoing management function and a key planning and evaluation mechanism.  The organisation fosters ‘whole of organisation’ ownership of performance management processes rather than managerial or human resource specialist ownership.

6.    Comprehensive training is provided

Training and education needs are determined and all employees, including supervisors and managers, receive adequate training.  Follow up support and maintenance training is provided.  Managers and supervisors obtain the necessary interpersonal and communication skills required for providing quality feedback.

Performance criteria and standards are clearly defined in workplans and are objective, job related and based on performance over which the team or individual can exert control.  Outcomes are measurable in terms of individual, work group or team achievement and goals are challenging yet attainable.

7.  Confidentiality is assured

Employees are confident in the system’s ability to provide anonymity and confidentiality and appropriate safeguards against bias.  Agreement is reached on documentation to be produced and guidelines for its retention.

8.  Data generated is used appropriately

Performance data is analysed when decisions are being made on organisational improvement strategies and training and development initiatives.  Inappropriate generation and use of performance data does not occur.

9.  The system is linked to a sound grievance handling process

The performance management process includes a complaint mechanism, or link to the organisation’s existing grievance and harassment policy and procedures.

10.  The system is regularly reviewed

Review mechanisms are in place to ensure that the system is effective, relevant and that it remains in line with corporate objectives and priorities.  The system is compared with other performance indicators (such as absenteeism, turnover, productivity levels) in order to gauge its effectiveness.  Attitude surveys are used to measure levels of motivation, commitment and job satisfaction.    

Performance management is the practice of actively using performance data to improve the organization's health. This practice involves strategic use of performance measures and standards to establish performance targets and goals, to prioritize and allocate resources, to inform managers about needed adjustments or changes in policy or program directions to meet goals, to frame reports on the success in meeting performance goals, and to improve the quality of management/organization practice.
Performance Management
is an ongoing dialogue between manager and employee that links expectations, ongoing feedback and coaching, performance evaluations, development planning, and follow-up.
Set Expectations
As a best practice, we encourage supervisors to define expectations for every position. These expectations and performance measurement standards should be communicated to new employees, and reviewed at least once a year with all employees. Expectations for each position can include: purpose of the position, key responsibilities - both tasks and duties, conduct expectations, and performance standards, as well as, measures such as quality, quantity, timeliness, initiative, and teamwork for each key responsibility.
Gather Data
Performance evaluations should not be a one time event. Supervisors are encouraged to gather data regarding employee performance in a systematic manner throughout the year. The Performance Record and the Coaching Log are guides that can be used by supervisors, in addition to their own best practices, to gather data throughout the year and provide ongoing feedback to employees regarding performance. This information will then be available to supervisors when drafting the Annual Performance Evaluation.
Performance Evaluations
As a supervisor, your role is to set expectations, gather data, and provide on going feedback to your employees to assist them in utilizing their skills, expertise and ideas to produce results. To provide this direction, you should communicate to employees what is expected of them, define satisfactory performance for those expectations, and then monitor and evaluate the performance on an on going basis.
The Annual Performance Evaluation should provide a comparison of actual on-the-job performance to established performance measurement standards. The Annual Performance Evaluation encourages periodic and structured communication between supervisors and employees about the job, and should take place continuously. While day-to-day evaluation is usually informal,
Annual performance evaluations are the final phase of an effective performance management system. As a best practice, we recommend that the process start with performance planning between the supervisor and the employee in which they discuss expectations, performance standards, and objectives for the next year. The performance management process both ends and begins anew with the Annual Performance Evaluation.
Feedback is a process by which effective performance is reinforced and less-than-desirable performance is corrected. Feedback should be information that highlights the relationship between what is expected and what has been accomplished after the work is performed or the action is taken.
Feedback can take many forms; it can be informal or formal. It can be given as praise in the form of reward and recognition, or it can be corrective in the form of disciplinary or corrective action.
Development Planning
Development planning is the process of creating experiences for your employees that promote skills and knowledge related to the position, as well as to professional growth.
Development plans draw from the Performance Evaluation:
Performance goals or needs (deficiencies) to be addressed
The employee, with supervisor assistance, identifies ways to achieve those goals and/or address performance deficiencies in systematic ways
Address opportunities for professional growth
Agreement and/or commitment between employee and supervisor
Planned follow-up
It is the policy to maintain a Performance Management System approved by the corporate management. Such a system includes several components:
a corporate / HR policy,
individual employee work plans,
work profile
development plans,
an education/training program,
a dispute resolution process, and
a performance management and pay history.
The organization views the Performance Management System as a communications system designed to help employees succeed. It is directed by managers and supervisors but requires active participation by employees. The Performance Management System ensures that employees:
are aware of their principal job functions,
understand the level of performance expected,
receive timely feedback about their performance,
have opportunities for education, training and development, and
receive performance ratings and rewards in a fair and consistent manner.
Performance appraisal information is one consideration in making other personnel decisions such as promotions, performance-based disciplinary actions, and salary increases. Proposed personnel actions must be consistent with overall evaluations. Although there is a relationship between performance appraisals and determining employee eligibility for performance-based salary increases and bonuses, the System's primary focus is on managing employee performance towards the successful achievement of expectations set forth in the employee's work plan.
Performance Management Cycle
The Performance Management Cycle includes the following elements:
Work Plan
Work Profile
Development Plan [ education /training/development programs]
Work Planning Conference
Interim Performance Review
Annual Performance Review


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Leo Lingham


management consulting process, management consulting career, management development, human resource planning and development, strategic planning in human resources, marketing, careers in management, product management etc


18 years working managerial experience covering business planning, strategic planning, corporate planning, management service, organization development, marketing, sales management etc


24 years in management consulting which includes business planning, strategic planning, marketing , product management,
human resource management, management training, business coaching,
counseling etc




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