September 7, 2009 · 4:39 pm

Corporate Values

In my most recent book, I defined the Organizational Goals Breakdown Structure (OGBS) as a tool to define the organization’s strategic plan and develop the portfolio of projects to achieve that plan. I used the Balanced Scorecard model to identify the organization’s values as the primary objectives for the OGBS. Utlimately, the strategic plan and project portfolio must map up and support these objectives.

I’m now working on a new model and I’d like your feedback. The Balanced Scorecard model identifies 4 perspectives:

  • Customer
  • Finance
  • Internal business process
  • Learning and growth

The model I’m proposing is:

  • Market penetration
  • Internal processes
  • Financial health (and growth)
  • Stakeholder value

Note: if you’re a for-profit organization, you may want to add “and growth” to Financial health, if you’re a not-for-profit, you can leave that off unless you’re planning expansion.

Also, notice that the last item is stakeholder value not stockholder value.

I request your comments and suggestions. Also, please tell me about your organization’s value statements.

Cheers.

2 Comments

Filed under OGBS, Value Tracks

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2 responses to “Corporate Values”

  1. Kimi Hirotsu Ziemski
    September 13, 2009 at 8:40 am

    I’d be interested in your assessment of how balanced these elements have to be – ultimately you will have to make choices based on some sort of prioritization.

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    • Michael Bender
      September 14, 2009 at 8:07 am

      Kimi — Thanks for the comment.

      In my opinion, establishing and balancing corporate goals (not necessarily the value statements) is one of the primary jobs of senior management.

      The value statements themselves require no balancing or prioritization. When properly written, they do not offer specific targets, but rather provide a framework for the operations of the organization. When well written, they are durable and immutable.

      The next tier down is where executives must prioritize and balance — in the strategic plan. This is where VPs and market managers (at least should) earn their money. This is where the leadership of the organization decides whether they should reduce near-term profit in favor of increasing market share; or whether they should cut back on new products to save cash.

      When the organization’s leaders fail to make these decisions at the strategic level, the decisions fall to the middle managers, project managers, and supervisors. These individuals may not have the right perspective, and as senior management as failed to provide further guidance, they’re opinions will be as individual as they are. The result is: priorities de jour, half-done projects, and demoralized employees.

      I solicit other opinions. Thanks for the comment!

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