Values Purpose Strategys Core V3
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The document discusses the relationship between an organization's values and the value it delivers. It argues that value is derived from values, and that focusing on sustainable value creation, especially social/environmental value, aligns with universal values and is key to competitive advantage. Sustainable profits result from sustainable value creation, not the other way around. Leaders must re-examine assumptions that sustainability diminishes profits and recognize that sustainable value strategies will lead to the greatest financial success.
![Mark Ranford www.stratagility.com [email_address] Mar 31, 2010 Copyright Stratagility 2003-2007](https://image.slidesharecdn.com/values-purpose-strategys-core-v3-100331140537-phpapp01/85/Values-Purpose-Strategys-Core-V3-128-320.jpg)
Values Purpose Strategys Core V3
- 1. Value, Values & Purpose Strategy's Core
- 2. Often people think that the values of an organization are something distinct Copyright Stratagility 2003-2007
- 3. from the value an organization delivers Copyright Stratagility 2003-2007
- 4. But my thesis is that value and values are inextricably linked Copyright Stratagility 2003-2007
- 5. value is directly derived from values Copyright Stratagility 2003-2007
- 6. Values should not be something just glibly put down at the beginning of a strategy exercise Copyright Stratagility 2003-2007
- 7. Values impact & define the very core strategy that defines value delivered Copyright Stratagility 2003-2007
- 8. Today many leaders consider maximization of shareholders profits ... Copyright Stratagility 2003-2007
- 9. ... as their ultimate goal Copyright Stratagility 2003-2007
- 10. Many see it as their legal obligation Copyright Stratagility 2003-2007
- 11. Many contend that it is ethically wrong for Boards and CEOs .. Copyright Stratagility 2003-2007
- 12. ... to do anything that threatens profitability for shareholders Copyright Stratagility 2003-2007
- 13. But ethically, how can anyone justify economic advancement when it threatens our whole human existence? Copyright Stratagility 2003-2007
- 14. whole in every aspect being Copyright Stratagility 2003-2007
- 15. Indeed the root of ethical leadership is ensuring the right balance between achieving good for the few ... Copyright Stratagility 2003-2007
- 16. ... without impinging on the good for the many Copyright Stratagility 2003-2007
- 17. Today there is a rising tide of informed opinion that sees the sustainability of society and the global ecosystem ... Copyright Stratagility 2003-2007
- 18. ... as something that must be included in any equation of the purpose and goals of organizations. Copyright Stratagility 2003-2007
- 19. Too often people assume that sustaining values and sustaining profits... Copyright Stratagility 2003-2007
- 20. ... are mutually exclusive Copyright Stratagility 2003-2007
- 21. An assumption prevails that social and ecological issues may somehow defocus and impact negatively on ... Copyright Stratagility 2003-2007
- 22. ... the organizations goal to maximize shareholder value Copyright Stratagility 2003-2007
- 23. ... It takes super-ethical, and global-networked perspective of Board members to accomplish both sustainability of the whole (race/earth) with a sustained, but perhaps somewhat diminished profitability... Doug MacNamara Copyright Stratagility 2003-2007
- 24. Misconception 1 Profit is the ultimate objective ... Copyright Stratagility 2003-2007
- 25. Misconception 1 ... above all other values. Copyright Stratagility 2003-2007
- 26. Misconception 2 values and profit are not 100% in alignment ... Copyright Stratagility 2003-2007
- 27. Misconception 2 ... So values become a drag on profits Copyright Stratagility 2003-2007
- 28. The sentiments of Doug McNamara, are common among many and addresses the 1 st misconception that leaders should see sustainability of society and the global ecosystem as something as at least as important as profits Copyright Stratagility 2003-2007
- 29. And that is a good start, But it still bows to the 2 nd misconception... Copyright Stratagility 2003-2007
- 30. ... That values will diminish profit Copyright Stratagility 2003-2007
- 31. Achieving sustainability of the whole (society and ecology) does not in fact need to equate to less profitability. Copyright Stratagility 2003-2007
- 32. There are strong reasons to think that business may actually be more profitable Copyright Stratagility 2003-2007
- 33. when the core values (and value offering) are sustainable wholistic values Copyright Stratagility 2003-2007
- 34. It is important to change these false beliefs Copyright Stratagility 2003-2007
- 35. Such a change is in fact in the best interests of leaders and the organizations and stakeholders or shareholders that they serve Copyright Stratagility 2003-2007
- 36. The belief that sustainability somehow diminishes or becomes a drag on the profit is based on flawed assumptions Copyright Stratagility 2003-2007
- 37. The view is a dangerous fallacy that has been allowed to prosper without objection for too long Copyright Stratagility 2003-2007
- 38. A strong strategic position is awaiting those organizations... Copyright Stratagility 2003-2007
- 39. ... that can successfully align their strategies so that the sustainability of society and ecology the whole - is achieved Copyright Stratagility 2003-2007
- 40. ... and in the process accomplishes profit sustainability for the organization Copyright Stratagility 2003-2007
- 41. Early examples are renewable resources. Those companies (BP) & nations (Brazil) that are adapting now to demands for renewable energy sources... Copyright Stratagility 2003-2007
- 42. ... are in a prime position for serving large potential markets - very sustainable profits油will likely emerge. Copyright Stratagility 2003-2007
- 43. New regulations emerging are a result of pressure from people around the world, they represent a very real trend, just like any market trend... Copyright Stratagility 2003-2007
- 44. ... sustainability of the whole is a growing theme that makes good business sense to deliver value in. Copyright Stratagility 2003-2007
- 45. Leaders, business people, ceos and boards of directors, governance bodies, shareholders and other stakeholders ... Copyright Stratagility 2003-2007
- 46. ... are severely failing to inform themselves so long as they dont examine their common assumptions on this issue Copyright Stratagility 2003-2007
- 47. Creating value should come before profit Copyright Stratagility 2003-2007
- 48. Profit is a by-product of value creation Copyright Stratagility 2003-2007
- 49. If leaders focus their strategy on creating value Copyright Stratagility 2003-2007
- 50. ... then as long as they do deliver value... Copyright Stratagility 2003-2007
- 51. ... profits - if that is what is needed - will follow Copyright Stratagility 2003-2007
- 52. The reverse is NOT true Copyright Stratagility 2003-2007
- 53. Focusing a business strategy on profit itself... Copyright Stratagility 2003-2007
- 54. ... does not necessarily require a company to deliver value Copyright Stratagility 2003-2007
- 55. The upshot is that they will probably end up spending millions on marketing lower value... Copyright Stratagility 2003-2007
- 56. ... to persuade markets that they should still want something of eroding value Copyright Stratagility 2003-2007
- 57. Such company strategies descend into business games such as monopolies, opaque markets, and protectionism... Copyright Stratagility 2003-2007
- 58. ... which have very little to do with delivering value, but everything to do with maintaining profits Copyright Stratagility 2003-2007
- 59. Such strategies are not sustainable in any sense (profit or wholistic)... Copyright Stratagility 2003-2007
- 60. ... in todays rapidly changing and complex world Copyright Stratagility 2003-2007
- 61. Such strategies backfire and prevent their authors from playing a constructive part in the real markets and societies of the future... Copyright Stratagility 2003-2007
- 62. and if they are not constructive they will become irrelevant Copyright Stratagility 2003-2007
- 63. future markets and societies can only truly be engaged... Copyright Stratagility 2003-2007
- 64. ... by organizations that identify and deliver real value Copyright Stratagility 2003-2007
- 65. For businesses such value doesnt need as much effort to sell... Copyright Stratagility 2003-2007
- 66. ...it is often very evident to customers when they see it Copyright Stratagility 2003-2007
- 67. Profit as the paramount goal guarantees drift... Copyright Stratagility 2003-2007
- 68. When companies put sustainable profits above all else, including sustainable value creation (which may or may not include sustainable social & ecological value creation)... Copyright Stratagility 2003-2007
- 69. ...they are saying that they really have no vision beyond "greater and greater profit creation" Copyright Stratagility 2003-2007
- 70. Such a vision is empty of real strategy, leaves the organization to the whims of changing leaders and certainly inspires very few Copyright Stratagility 2003-2007
- 71. Most leaders today accept that in order to "lead" an organization to success Copyright Stratagility 2003-2007
- 72. ...they need to build a vision that really drives their organizations strategy and direction Copyright Stratagility 2003-2007
- 73. One that really captures the imagination and passion of their staff, customers and stakeholders. Copyright Stratagility 2003-2007
- 74. Profit is just the means to an end Copyright Stratagility 2003-2007
- 75. ... the end is sustainability of the organization to deliver on its purpose Copyright Stratagility 2003-2007
- 76. Values not just Value Copyright Stratagility 2003-2007
- 77. the higher Values we hold ... Copyright Stratagility 2003-2007
- 78. ... determine what we see as value Copyright Stratagility 2003-2007
- 79. So when we put value creation before profit, we are also putting our values to the forefront... Copyright Stratagility 2003-2007
- 80. ... because our values determine what we see as creating value Copyright Stratagility 2003-2007
- 81. If we believe in a greener world, then we see value creation as ... Copyright Stratagility 2003-2007
- 82. ... something to satisfy the needs of a greener world Copyright Stratagility 2003-2007
- 83. Delivering Sustainable Whole Value in particular, is a key Competitive advantage Copyright Stratagility 2003-2007
- 84. Values that are universal , represent the future and ultimate keys to success Copyright Stratagility 2003-2007
- 85. They are Strategic Archetypes Copyright Stratagility 2003-2007
- 86. Sustainable value creation comes... Copyright Stratagility 2003-2007
- 87. ... before sustainable profits creation Copyright Stratagility 2003-2007
- 88. Moreover there is a specific niche of value creation that is focussed on delivering value in terms of sustainable whole (social/ecological) rather than just satisfying individual needs Copyright Stratagility 2003-2007
- 89. Business models based on creating value in terms of universal values Copyright Stratagility 2003-2007
- 90. making people, families and societies feel more whole Copyright Stratagility 2003-2007
- 91. Aligning strategy with value creation, and specifically the kind that is in terms of universal values (sustainable whole - social/ecological - value)... Copyright Stratagility 2003-2007
- 92. ...is the key to competitive advantage for many companies in the future Copyright Stratagility 2003-2007
- 93. Thats where the greatest financial profit is ultimately to be found Copyright Stratagility 2003-2007
- 94. Thats where the smarter strategies lead Copyright Stratagility 2003-2007
- 95. Today this is largely unrecognized and ignored Copyright Stratagility 2003-2007
- 96. our way of running business today will be viewed by future generations to be just as misguided and wrong Copyright Stratagility 2003-2007
- 97. as feudalism is considered today Copyright Stratagility 2003-2007
- 98. A strategy that delivers sustainable profit growth, through sustainable value creation Copyright Stratagility 2003-2007
- 99. ... and in particular the kind of value creation that delivers whole (social/ecological) value rather than just delivering personal value Copyright Stratagility 2003-2007
- 100. Value creation ... Copyright Stratagility 2003-2007
- 101. ... in touch with universal values Copyright Stratagility 2003-2007
- 102. ... is the height of achievement 油 Copyright Stratagility 2003-2007
- 103. This thinking is integral to thinking about strategy at Stratagility... Copyright Stratagility 2003-2007
- 104. in fact it is part of our own values that helps define what value we should deliver Copyright Stratagility 2003-2007
- 105. Our purpose is to create a better world Copyright Stratagility 2003-2007
- 106. ... by helping the adoption of better strategy & business practices Copyright Stratagility 2003-2007
- 107. ... through a new understanding of the relationship of values to value creation Copyright Stratagility 2003-2007
- 108. ... and how that impacts strategy Copyright Stratagility 2003-2007
- 109. ... and based on our values Copyright Stratagility 2003-2007
- 110. ... we believe that we will be riding a wave to the future Copyright Stratagility 2003-2007
- 111. ... One that leads to greater demand for the value we deliver Copyright Stratagility 2003-2007
- 112. ... helping others understand and leverage this thinking for success Copyright Stratagility 2003-2007
- 113. A key goal is to address McNamaras question: ".. How do we build the knowledge and understanding of Leaders, Governors, Board members, stakeholders, shareholders in order for them to absorb, appreciate and act upon such an important perspective? Copyright Stratagility 2003-2007
- 114. not just in terms of the 1 st misconception Copyright Stratagility 2003-2007
- 115. More importantly the 2 nd Copyright Stratagility 2003-2007
- 116. that sustainable value creation is not being altruistic Copyright Stratagility 2003-2007
- 117. but in fact is where the most valuable value creation (and profit lies) Copyright Stratagility 2003-2007
- 118. The key is to get the connection between our values and value creation Copyright Stratagility 2003-2007
- 119. It is necessary for leaders to revisit and re-evaluate what strategy and success is all about Copyright Stratagility 2003-2007
- 120. It means overturning deeply ingrained assumptions Copyright Stratagility 2003-2007
- 121. It means we need to get people to suspend their ingrained assumptions and examine the possibility that Copyright Stratagility 2003-2007
- 122. sustainable profit growth for shareholders is in fact a result of business strategy that sets sustainable value creation Copyright Stratagility 2003-2007
- 123. ... And especially sustainable whole (social/ecological) value creation - as an ultimate driver Copyright Stratagility 2003-2007
- 124. Sustainability of the organization requires that sustainability for society are core values Copyright Stratagility 2003-2007
- 125. Those values determine the value creation being offered, and the resulting profits or income sources Copyright Stratagility 2003-2007
- 126. Financial profits are merely one by-product on the road to success, but where value can be generated, profits soon follow Copyright Stratagility 2003-2007
- 127. Value, Values & Purpose Are you ready ? Mar 31, 2010 Copyright Stratagility 2003-2007
- 128. Mark Ranford www.stratagility.com [email_address] Mar 31, 2010 Copyright Stratagility 2003-2007