Sales Savvy

Looking back at the last eighteen months, the public has had an in-depth look at the quality of leadership in many companies.  What we’ve learned is that companies can be easily derailed by the wrong management team, unclear values, etc.  Looking forward, it seems as if the tide is turning in terms of leadership and what the public expects of businesses—large and small. In an era of increasing pressure to determine the new normal and build a sustainable foundation for the future is leadership the “new thing”?

I started writing this post in early August and prior to finishing it, I ran across a great article by Rosabeth Moss Kanter in Harvard Business School’s weekly newsletter. The topic for her article is  The Strategic Value of Values: A New Guidance System.  In her article she spells out what it takes for companies to ensure that the values (in both word and action) are transmitted throughout the organization and to the external market. She calls these companies “Vanguard companies” who use their value system as a “strategic guidance system”.

Perhaps because we’ve seen the impact when companies falter with their value system, one of the most positive outcomes is what she calls “Public accountability via end-to-end responsibility”. What is emerging in the new normal are businesses that are equally cognizant of their public responsibility as opposed to a singular view of shareholder or fiscal responsibility. This becomes a distinct advantage for businesses, not just an act of societal responsibility. These companies are directly addressing the emerging demands of the new normal, responding to everything from eco-friendly requirements to talent management to visible corporate standards, etc.

Beyond the realm of public responsibility, values-driven leadership is re-emerging to be the guidepost for companies and employees. It not only serves as a competitive advantage to the external market but as a means to attract top talent who also demand more in the “new normal”.  Top talent wants companies whose decisions and actions are shaped by an accountable value system and whose values are compatible with their own. It assists in retention, job security and building longer-term intellectual capital within an organization.

Interestingly, she also talks about the pitfalls of emerging as a value-oriented company and leader. The challenge is whether or not companies can live up to the expectations that both the external and internal markets demand—and its impact to the business. You can lose focus on the core business and fiscal responsibility or you can fail to meet the heightened demands of the public or your employees.

Somewhere in between the old ways and the new is a viable answer in the new normal. Companies will need to determine how to best address this in their specific marketplace. The good news is that despite the prevalence of media on what’s gone wrong, there are many businesses who already have a strong foundation in values-based leadership—in both corporate guidance and employee actions. These are companies who don’t see leadership “as the new thing” but a continuation of old habits and will likely lead the way in the future.