We keep hearing about the importance of company values. But it often feels like the fluffy, nice to have, side of organisation development.
Company values shape and set the tone for what the organisation stands for, the behaviours and actions that drive individual performance – what is acceptable and what is unacceptable. Once the work is done around identifying and communicating those values, conversations around them often take a step back; relegated to posters in reception, at work desks and a one sentence question on the annual performance review.
Now contrast that with the emphasis and energy put into strategic planning – the development, execution and monitoring of; annual planning, monthly reporting and forecasting.
Well research shows that organisations may have their focus in the wrong area. A focus on culture and values contributes 17% of performance variability, whilst focus on strategy only contributes 2% of performance variability. Check this out below.
Source – Professor Mike West (Dean of Aston Business School) in a study of 100 companies
Michael Henderson, Corporate Anthropologist, suggests that the role of leaders in business today should be primarily focused on the effective alignment of the company culture to the organisation’s strategy and structure to enhance its ability to achieve its strategic objectives.
The people at Z energy have taken this to heart, and literally put ‘culture’ at the heart of their business. You’ll have noticed their growth in a short space of time, from the ‘Z’ service stations popping up around you. They’re clearly onto something!
source: The Z Energy Story: HRINZ Conference 2013