Producing value by practising values

Sri Lanka aims to double its per capita income by 2015. This can only happen when we create more value. To do so, we need to practise values. What is the nexus between value and values? How does it become relevant in the present context?

As a basic economic concept, value is the worth of goods and services as determined by the market. It is the net worth of an organisation. From the customer's point of view, price is 'what you pay' and value is 'what you get'. Hence, it is imperative that any progressive organisation should continuously produce value to survive and to succeed.

As gurus always advocate, the prime role of managers is to produce value. This can only happen when they see things clearly and do things cleverly. For that to happen, we need values. Values are associated with behaviour. The Oxford dictionary defines them as standards of behaviour.

Stephen Robins, a scholar in organisational behaviour, describes them, as "the basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence".

Flowing river

In brief, it is a preferred way of thinking, feeling and doing. Are we talking about something fluid and flexible here? The answer is no. Values tend to be relatively stable and enduring. As Robins

said, a significant portion of the values we hold is established in our early years. They can be compared to the two banks of a flowing river.

The way the banks of the river prevents water from overflowing, and ensuring the flow in a predetermined direction, our values govern the way we lead our lives. Of course, there can be occasional floods, in challenging us to cling on to our values.

Values also refer to the preferences reflecting our orientation.

In other words, it refers to selecting a specific mode of conduct. In the organisational context, we talk about shared values, organisational values or core values.

They can be defined as acceptable standards which govern the behaviour of employees of an organisation. Without such values, people will pursue behaviour that are in line with their own individual value preferences, which may lead to behaviour that the organisation does not wish to encourage.

Value through values

I would like to bring in a metaphor here; a clay lamp with oil and a flame.

As a lamp emanates light from a solid base, economic value could be obtained by having the right set of organisational values. Organisations across the world have shown us that no sustainable value can be achieved without adherence to core values.

One clear example is from the Southwest Airlines, an American low-cost airline based in Dulles, Texas. As the largest airline in the world by number of passengers carried per year (as of 2009), and also as one of the world's most profitable airlines, it tells us a story of connecting value with values. As Fred Luthans tells us, the link between core values of South West Airlines and the impact on organisational performance in creating values is strong and robust.

Examples

Hire for attitude. Train for skill. The company deliberately looks for applications with a positive attitude that will promote fun in the workplace and have the desire to 'colour outside the lines'. This has to be the golden rule in recruitment in any organisation.

Do it better, faster, cheaper. Cost control is a personal responsibility for employees at Southwest and is incorporated into all training programs. Waste cutting should be the prime aim with sufficient emphasis on cost management. Deliver positively outrageous customer service to internal and external customers.

The Southwest philosophy is to put their employees first and they will take care of the customers. Empowered employees will ensure that they do their best with passion in delighting the customers.

Walk a mile in someone else's shoes. At Southwest, a pilot, for an example, works with ramp agents for a full day. A reservationist works in a university for people. A customer service agent helps the porters. Interestingly, the president of Southwest frequently passes out peanuts and serves drinks on flights. He even helps the baggage handlers load and unload on holidays. This is something rare in our part of the world.

Celebrate and let your hair down. When people have fun on the job, their productivity and performance improves. As positive psychologists say, success breeds success. Celebrating is one sure way to ensure the continuity of the winning streak.

Celebrate your mistakes and your triumphs. Turning failures into personal growth is part of celebrating mistakes, a philosophy that encourages trying new ideas without the fear of repercussions. This is one area that our organisations can learn how to support creative employees by offering encouragement to take risks.

Keep the corporate culture alive and well. At Southwest, members of the culture committee regularly visit stations all across the country, infusing the corporate culture, reiterating the company's history and motivating employees to maintain the spirit that made the airline great. Such an endeavour ensures the consistency and continuation of the preferred behaviour.

One overarching theme among all the above values is that they ensure people contribution to business success. Above values are not mere 'motherhood statements', but practical and actionable. Samuel J Palmisano, the CEO of IBM emphasises such a need for value focus.

"In my view", he says, "the defining value that IBM has provided over the years has been the way we think, and our employees are drawn to a set of values that reflect their own". From all the above, one thing is quite clear. In order to achieve sustained results, we got to practise values, and thereby produce value.