CORE VALUES ADOPTION is difficult because core values are *always* short-term costs.
Employees are afraid to be reprimanded for having incurred these short-term costs before their long-term benefits materialize.
They need guarantees this won't happen.
(thread, 1/N)
Employees are afraid to be reprimanded for having incurred these short-term costs before their long-term benefits materialize.
They need guarantees this won't happen.
(thread, 1/N)
2/ For example, if Safety is a Core Value, an employee has to decide whether taking his time to respect safety standards might get him scolded by his manager because he's too slow.
He'll take the decision based on what he's been thought he's the most likely to be scolded about.
He'll take the decision based on what he's been thought he's the most likely to be scolded about.
3/ There are two ways managers can get their employees to act in accordance to Core Values.
- Reprimand them more frequently for when they skip Core Values than for when they follow them
- Performing personal visible costly signals that Core Values are costs worth their benefit
- Reprimand them more frequently for when they skip Core Values than for when they follow them
- Performing personal visible costly signals that Core Values are costs worth their benefit
4/ A CEO who spends his precious time to wear the safety helmet when he visits the production line sends a clear message: it's worth paying the costs that will get us the rewards of Safety.
One that doesn't sends an equally clear message: Safety is not worth its costs.
One that doesn't sends an equally clear message: Safety is not worth its costs.
5/ It's important that the action is conspicuous so that the employees can safely incur the costs of Core Values knowing that they can later defend themselves as "I did what the boss does"
The top manager must have been so visibly conspicuous that there can be no objection to 👆
The top manager must have been so visibly conspicuous that there can be no objection to 👆
6/ It is important that the action is costly (performed by the top management with their time) because, this way, it authorizes everyone to always practice the Core Values, even when they are costly (rather than suggesting that they should be practiced only when inexpensive).
7/ For example, if a plant manager only says that employees have to wear the safety helmet, he passes the message "do so when there is time; not when we're rushing production".
If the plant manager always wears the helmet when on the line, he shows that it's always to be done.
If the plant manager always wears the helmet when on the line, he shows that it's always to be done.
8/ "A flower is a weed with an advertising budget" – @rorysutherland
Many managers are flowers with external-facing issues and weeds with internal-facing issues such as Core Values.
They do not perform COSTLY SIGNALS to demonstrate their employees the importance of Core Values.
Many managers are flowers with external-facing issues and weeds with internal-facing issues such as Core Values.
They do not perform COSTLY SIGNALS to demonstrate their employees the importance of Core Values.
9/ The most important factor on whether Core Values are performed is whether management perform the VISIBLE COSTLY signals that makes the employees feel like they are expected to follow Core Values even when it is costly to do so.
10/ I talk more in detail about this and about more operational management topics in my book "Best Practices for Operational Excellence" (link: gum.co/opexbook).
