There seems to be a misconception in business that one has to choose between doing the business (business results) and living up to one’s values. I believe it’s a false assumption that influences the possibilities that we see, the decisions we make, how we behave, how we treat our colleagues and how we feel. From this perspective we are forced to choose: either doing what’s best for the business or doing what we believe to be right or true, often opting for a dissonant compromise of both. In my view this is not only unnecessary, but does a disservice to the people and companies that work from this premise.
Scenarios and observations
When making choices from this perspective four scenarios are possible:
- Choices focus primarily on business targets. P&L, share price and efficiencies are the main drivers. People are not able to stick to their beliefs, but opt for choices that maximize the business results. Those driven by such an approach are normally energized in pursuing maximum outcomes. Those that believe in a more values driven approach find it difficult to motivate themselves and be inspired.
- Choices focus primarily on adhering to their values. Here people choose to follow their values, and give up on many of the business goals that may be on the table. Although this can inspire many, the business could suffer from missed opportunities and thus lower performance.
- Choices focus on finding a compromise between values and business goals. People tend to look for consensus, in finding compromise, and choosing for an option somewhere in the middle. People who are driven by finding consensus are energized. Those that are not, are unhappy because they feel their position has been partly traded off. This approach often leads to a half-hearted execution of actions decided upon, and suboptimal performance.
- Switch between 1 and 2 above, and decision makers are seen to be inconsistent in their position. There is no compromise. Such jumping to-and-fro can lead to lack of clarity in how or why decisions are taken and can also lower trust in the company leadership, as people aren’t able to tell where they stand. This leaves people feeling confused and without guidance on what they should base their decisions on.
The four scenarios mentioned above lead to suboptimal outcomes. But more importantly, they are the result of a way of thinking that is zero-sum, based on a fixed pie notion. What if we don’t have to compromise on our values or doing the business? What if we could have both, switch our thinking to a growing pie and discover spaces of new value?
Finding a new way
Finding this new way focuses people on discovering new possibilities, going for blue ocean stuff. When a company discovers what that new way is and is able to execute it, it performs better than under either of the four scenarios mentioned above. Everyone tends to be energized, inspired, motivated. No one feels like they are giving up something important. For all of this we need great leaders.
Great leaders are able to see and uncover things that are not easily evident. They are creative in finding solutions and are always looking for win/win. They will not accept a solution that feels lose/lose or mediocre. They will not compromise their values and what they believe, but they will always try hard to do what is best for the business. They don’t think values OR the business, they think values AND the business.
This might sound obvious and perhaps a bit simple, but the implications of going for a solution that is innovative and doesn’t compromise is anything but simple. It asks people to be creative and to keep an open mind as to how to come up with the new company decisions that will deliver outstanding results while living up to our deeply held values. This is hard work and takes self-discipline.
The process often leads companies to strategic choices that they never would have even thought possible before. It does so because it forces them to be creative, brainstorm and think deeply about their business and the people that drive it. This is the stuff of growth and breakthroughs.