The core values of an organization are those values we hold which form the foundation on which we perform work and conduct ourselves. We have an entire universe of values, but some of them are so primary, so important to us that through out the changes in society, government, politics, and technology they are STILL the core values we will abide by. In an ever-changing world, core values are constant. Core values are not descriptions of the work we do or the strategies we employ to accomplish our mission. The values underlie our work, how interact with each other, and which strategies we employ to fulfill our mission. The core values are the basic elements of how we go about our work. They are the practices we use (or should be using) every day in everything we do.
I:What are Core Values_filesbdblue.gifGovern personal relationships
I:What are Core Values_filesbdblue.gifGuide business processes
I:What are Core Values_filesbdblue.gifClarify who we are
I:What are Core Values_filesbdblue.gifArticulate what we stand for
I:What are Core Values_filesbdblue.gifHelp explain why we do business the way we do
I:What are Core Values_filesbdblue.gifGuide us on how to teach
I:What are Core Values_filesbdblue.gifInform us on how to reward
I:What are Core Values_filesbdblue.gifGuide us in making decisions
I:What are Core Values_filesbdblue.gifUnderpin the whole organization
I:What are Core Values_filesbdblue.gifRequire no external justification
I:What are Core Values_filesbdblue.gifEssential tenets
CORE VALUES ARE NOT:
I:What are Core Values_filesbdblue.gifOperating practices
I:What are Core Values_filesbdblue.gifBusiness strategies
I:What are Core Values_filesbdblue.gifCultural norms
I:What are Core Values_filesbdblue.gifCompetencies
I:What are Core Values_filesbdblue.gifChanged in response to market/ administration changes
I:What are Core Values_filesbdblue.gifUsed individually
The core values are a few values (no more than five or so) that are central to the firm. Core values reflect the deeply held values of the organization and are independent of the current industry environment and management fads. One way to determine whether a value is a core value to ask whether it would continue to be supported if circumstances changed and caused it to be seen as a liability. If the answer is that it would be kept, then it is core value.
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Another way to determine which values are core is to imagine the firm moving into a totally different industry. The values that would be carried with it into the new industry are the core values of the firm. Core values will not change even if the industry in which the company operates changes. If the industry changes such that the core values are not appreciated, then the firm should seek new markets where its core values are viewed as an asset.
For example, if innovation is a core value but then 10 years down the road innovation is no longer valued by the current customers, rather than change its values the firm should seek new markets where innovation is advantageous.
The following are a few examples of values that some firms has chosen to be in their core:
excellent customer service
The core purpose is the reason that the firm exists. This core purpose is expressed in a carefully formulated mission statement. Like the core values, the core purpose is relatively unchanging and for many firms endures for decades or even centuries. This purpose sets the firm apart from other firms in its industry and sets the direction in which the firm will proceed.
The core purpose is an idealistic reason for being. While firms exist to earn a profit, the profit motive should not be highlighted in the mission statement since it provides little direction to the firm’s employees. What is more important is how the firm will earn its profit since the “how” is what defines the firm.
Initial attempts at stating a core purpose often result in too specific of a statement that focuses on a product or service. To isolate the core purpose, it is useful to ask “why” in response to first-pass, product-oriented mission statements. For example, if a market research firm initially states that its purpose is to provide market research data to its customers, asking “why” leads to the fact that the data is to help customers better understand their markets.
Continuing to ask “why” may lead to the revelation that the firm’s core purpose is to assist its clients in reaching their objectives by helping them to better understand their markets.
The core purpose and values of the firm are not selected – they are discovered. The stated ideology should not be a goal or aspiration but rather, it should portray the firm as it really is. Any attempt to state a value that is not already held by the firm’s employees is likely to not be taken seriously.
The visionary goals are the lofty objectives that the firm’s management decides to pursue. This vision describes some milestone that the firm will reach in the future and may require a decade or more to achieve. In contrast to the core ideology that the firm discovers, visionary goals are selected.
These visionary goals are longer term and more challenging than strategic or tactical goals. There may be only a 50% chance of realizing the vision, but the firm must believe that it can do so. Collins and Pores describe these lofty objectives as “Big, Hairy, Audacious Goals.” These goals should be challenging enough so that people nearly gasp when they learn of them and realize the effort that will be required to reach them.
Most visionary goals fall into one of the following categories:
Target – quantitative or qualitative goals such as a sales target or Ford’s
goal to “democratize the automobile.”
Common enemy – centered on overtaking a specific firm such as the 1950’s goal
of Philip-Morris to displace RJR.
Role model – to become like another firm in a different industry or market.
For example, a cycling accessories firm might strive to become “the Nike of
the cycling industry.”
Internal transformation – especially appropriate for very large corporations.
For example, GE set the goal of becoming number one or number two in every market it serves. While visionary goals may require significant stretching to achieve, many visionary companies have succeeded in reaching them. Once such a goal is reached, it needs to be replaced; otherwise, it is unlikely that the organization will continue to be successful. For example, Ford succeeded in placing the automobile within the reach of everyday people, but did not replace this goal with a better one and General Motors overtook Ford in the 1930’s.
The three components of the business vision can be portrayed as follows (Figure1):
Figure1: Three Components of Vision and Mission
The Vision and Mission Statement
Many organizations develop both a mission statement and a vision statement including the core values and core purposes and visionary goals. Thus, the mission statement answers the question, “What is our business?” and the vision statement answers the question, “What do we want to become?”
While a business must continually adapt to its competitive environment, there are certain core ideals that remain relatively steady and provide guidance in the process of strategic decision-making. These unchanging ideals form the business vision and are expressed in the company mission statement. In their 1996 article entitled Building Your Company’s Vision, James Collins and Jerry Pores provided a framework for understanding business vision and articulating it in a mission statement. The mission statement communicates the firm’s core ideology and visionary goals, generally consisting of the following three components: Core values to which the firm is committed Core purpose of the firm Visionary goals the firm will pursue to fulfill its mission
The firm’s core values and purpose constitute its core ideology and remain relatively constant. They are independent of industry structure and the product life cycle. The core ideology is not created in a mission statement; rather, the mission statement is simply an expression of what already exists. The specific phrasing of the ideology may change with the times, but the underlying ideology remains constant.
An effective vision statement must have following features-
It must be unambiguous.
It must be clear.
It must harmonize with organization’s culture and values.
The dreams and aspirations must be rational/ realistic.
Vision statements should be shorter so that they are easier to memorize.
A mission statement differentiates an organization from others by explaining its broad scope of activities, its products, and technologies it uses to achieve its goals and objectives. It talks about an organization’s present (i.e., “about where we are”). Mission statement is the statement of the role by which an organization intends to serve its stakeholders. It describes why an organization is operating and thus provides a framework within which strategies are formulated. It describes
What the organization does (i.e., present capabilities),
Who all it serves (i.e., stakeholders) and
What makes an organization unique (i.e., reason for existence).
Mission statement should have following features.
Mission must be feasible and attainable. It should be possible to achieve it.
Mission should be clear enough so that any action can be taken.
It should be inspiring for the management, staff and society at large.
It should be precise enough, i.e., it should be neither too broad nor too narrow.
It should be unique and distinctive to leave an impact in everyone’s mind.
It should be analytical, i.e., it should analyze the key components of the strategy.
It should be credible, i.e., all stakeholders should be able to believe it.
Following characteristics should be concerned about in developing a mission statement.
A Declaration of Attitude
A Customer Orientation
Good mission statements identify the utility of a firm’s products to its customs.
Benefits of Having a Clear Vision & Mission Statement
There are many benefits of having a clear vision and mission for an organization.
Achieve clarity of purpose among all managers and employees.
provide a basis for all other strategic planning activities, including internal and external assessment, establishing objectives, developing strategies, choosing among alternative strategies, devising policies, establishing organizational structure, allocating resources, and evaluating performance.
Provide focal point for all stakeholders of the firm.
Resolve divergent views among managers.
Promote a sense of shared expectations among all managers and employees.
Project a sense of worth and intent to all stake holders.
Project an organized, motivated organization worthy of support.
Achieve higher organizational performance.
Five Multinational Companies’ Visions, Missions and Values
As an employee of Toyota Material Handling UK, you are part of the global Toyota organization, which includes more than 500,000 people worldwide.
The Toyota Group includes two of the world’s largest and most respected corporations: Toyota Industries Corporation – the parent corporation of Toyota Material Handling – and Toyota Motor Corporation.
Every member of the Toyota organization is expected to know and apply a set of common principles – The Toyota Way – that have made the name Toyota synonymous with quality and innovation. These, along with our Mission Statement, form the core values of Toyota Material Handling.
To be the first choice partner for all customers looking for materials handling solutions and to be widely recognized for our innovative products and services as well as our respect for society.
We build trust and confidence with customers by delivering outstanding quality products and services which add real value to their businesses.
We respect the expectations and ambitions of employees, stakeholders and suppliers through a never ending search to improve.
Toyota Values: The Toyota Way
The Toyota Way is based on the Guiding Principles at Toyota. Its five core values express the beliefs and values shared by the Toyota Group. All Toyota team members, at every level, are expected to use these values in their daily work and relations with others.
Challenge: At Toyota, we maintain a long-term vision and strive to meet all challenges with the courage and creativity needed to realise that vision.
Kaizen: Kaizen means striving for “continuous improvement. As no process can ever be declared perfect, there is always room for improvement.”
Genchi Genbutsu: Genchi Genbutsu involves “going to the source to find the facts to make correct decisions, build consensus and achieve goals.”
Respect: Toyota respects others, makes every effort to understand others, accepts responsibility and does its best to build mutual trust.:
Toyota stimulates personal and professional growth, shares opportunities for development and maximises individual and team performance.
The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what’s to come. We must get ready for tomorrow today. That’s what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a “Roadmap” for winning together with our bottling partners.
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
To refresh the world…
To inspire moments of optimism and happiness…
To create value and make a difference.
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
Winning Culture and Values
Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.
Our values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it’s up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
Focus on the Market
Focus on needs of our consumers, customers and franchise partners
Get out into the market and listen, observe and learn
Possess a world view
Focus on execution in the marketplace every day
Be insatiably curious
Act with urgency
Remain responsive to change
Have the courage to change course when needed
Remain constructively discontent
Act Like Owners
Be accountable for our actions and inactions
Steward system assets and focus on building value
Reward our people for taking risks and finding better ways to solve problems
Learn from our outcomes — what worked and what didn’t
Be the Brand
Inspire creativity, passion, optimism and fun
As a member of HSBC family which has been serving its millions of customers worldwide since 1865, to take our place among Turkey’s most powerful, most profitable, most admired leader banks.
Having regard to ethical values; to meet its customers financial needs in the fastest and most appropriate way, to continue innovative works in order to achieve: human resource with superior qualities, technological infrastructure and service packages.
1) To exceed customer expectations in service quality.
2) To be a pioneer in the implementation of technologies those create distinction for its customers, employees and shareholders.
3) To keep its reliability at the utmost level with the contribution of its strong capital structure and liquid assets.
4) To make a positive contribution to the community
5) To respect meritocracy during hiring processes, improving knowledge and skills of its employees, creating the mostly preferred work environment.
We will manufacture quality and cost effective tires, tracks, and wheel systems, effectively and efficiency for our worldwide customers trough empowered and self driven team, working together and improve our people, company, society and environment.
To be the premier manufacturer of mobility systems for the productive world by harnessing and nurturing people’s abilities.
Respect for individuals striving for excellence in customer satisfaction honesty and integrity commitment accountability and shared of respect for environment and culture.
Hierarchy of Goals and Plans
The hierarchy of goals can be divided such as,
1. Hierachy of goals,
2. Hierarchy of plan.
When consider hierarchy of goals there are three stages of how involves parties who are achieving organization goals objectives, then
Strategic goals -Top management are broadly take over role decision regarding targets &result
Tactical goal -Top management & middle management are try achieve future result specific division or functional unit.
Operational goals -Middle managers & Front line manager’s specific target to be achieved department wise or individuals within the functional unit or the business division.
It’s also include three stages such as,
Accordingly, the visions. missions and core values of five multinational companies given above show that they are in line with the hierarchy of goals and plans. Thus it can be illustrated as follows (see Figure2). The top level is about organization’s overall achievements. The middle management is about functional achievements and the operational level concerns about the short term achievements.
Figure2: Hierarchy of Goals
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