The principles shared by the people who make it up can contribute very significantly to the value of a company.
So that companies do not just survive, the culture and philosophy of management They will have to face with renewed drive and dynamism all the challenges that a competitive, changing and complex world generates. How we compete And how do we improve the profitability of the company?
The traditional response has been to take care of the relationship with the client, to grow profitably and sustainably; in contemporary language, increase economic added value, VAE, acquire technological advantage and provide high-end products or services. The definition of mission, vision and its strategies, in coherence with the previously declared values, have helped companies to better define the market niches in which to compete. To improve the profitability Or to give the appearance that it was going to improve, many executives have, in the last decade, taken a quick and easy path: lay off employees when the economy entered depressive cycles and rehire when the economy improved. After years of studies, most researchers have concluded that the philosophy of down sizing or right sizing is a short-term solution, with subsequent negative consequences on the image, the value economic of the company and the behavior of the employees; so the epidemic of `corporate anorexia` is not the sustainable answer to the question of how to be competitive and boost business profitability.
The human resources function plays a key role in creating value for the company, helping executives learn and update their ability to motivate and satisfy the professional needs of their employees. In a book Recent Dolan and Martin -The 10 commandments for managing people, from Efficient 2000-, the authors affirm that they know few managers who recognize their lack of skill and competence to lead people and teams; on the other hand, the managers boast of possessing a great ability to direct, when in their environment the facts seem to demonstrate the opposite. To obtain maximum efficiency and profitability, it is necessary to know how to motivate and retain effective collaborators who identify with the values of the company, who believe in their project, endorsing the vision and strategy necessary to achieve success. This philosophy represents the heart of the concept of cultural reengineering. How do you change a culture of direction by instructions -DPI- and direction by objectives -DPO- to one of direction by values -DPV-?
Transform values into behaviors
Traditionally companies They define values that are subsequently communicated through the bulletin board, in the report annually, in speeches to employees or in corporate portals. The most advanced companies go beyond the mere statement or communication: they work on transforming values into behaviors and use them as a guide for leadership development. Some examples of company value formulation are presented in the table on this page. At the beginning of the last century, the philosophy of good management on the part of the managers it was based on giving instructions -DPI-; in the 1997s, emphasis was placed on management by objectives -DPO-. However, the new century requires a new philosophy. In the book by García and Dolan - Management by values, McGraw Hill, XNUMX - it is argued that approaching the business culture from management by values -DPV- is the most appropriate method to face the challenges of management in the XXI century. It is more than a play on words to affirm that the values shared by the people that make up the company can contribute significantly and sensitively. Shared values are laborious to build and constitute intangible assets, but absolutely decisive for the success of the company. That is the spirit that underlies the novel concept of engineering values.