I was in the meeting room of a local enterprise waiting to meet with the Chief Executive Officer. To get a feel for the company, I read the Mission and Vision Statements posted on the wall. Below these, in bold print, was a slogan-like statement:

The CEO arrived, and after exchanging pleasantries, I asked him about the statement, which seemed like an exhortation to his staff.

He explained his approach. "We are a small player in the market," he said, "and I will not expend resources to engage in sophisticated strategy formulations. We adopt a simple strategy, which is not vastly different from what most in this business do. We all adopt more or less the same strategies. Furthermore, product and pricing differentiations diminish over time. So how do we compete, except to do the right things right and do them better?"

To illustrate this, he sketched this diagram of an iceberg on the whiteboard.

I asked him why he had underlined the last bullet point.

"A management system will hold together the other three critical success factors for our company," he explained. "Corporate values may seem to be airy-fairy public relations stuff, but if people can really see the real import of living and breathing life into these values, they will find that they actually bond people, and they are indeed the lifeblood of the organization. The value system is the glue that holds the organization together, just like a family is bonded by truly shared values. Dysfunctional teams—and organizations—lack this."

To ensure that the values can be lived and are not mere platitudes, he explained, the organization can breathe life into them "by measuring value-driven activities like rituals, ceremonies, celebrations, traditions, and inductions. These are similar to activities performed in schools and communities, and they inculcate values. Likewise, business policies and procedures in business functions do ensure adherence to company values."

He stressed, however, that it is more important to "measure and appraise people against these values, and recognize and reward people for making these values a part of their working lives in the organization. Most, if not all, of the world's highly regarded companies are all values-strong and values-driven."

Intrigued by this perspective, I suggested that as well as looking at the business tangibles and numbers to predict outcomes stock analysts in the future would also be examining intangibles such as organizational values.

He agreed: "If we are fortunate enough to grow, either organically or by acquisition, we must have the same values mindset to provide impact to our brand. We can implant our organization structure. We can replicate our product/service delivery processes. We can export our management system. But without a set of values to show employees why we are doing things in a certain way—our way—these will merely be mechanical actions without passion or commitment. We need an organization with a character of its own to differentiate."

While I agreed with him, I pointed out that we cannot ignore how the organization is structured, how the product/service delivery process is executed operationally, or the need for a uniform integrated management system to provide the infrastructure to hold regional and global entities together.

He fully agreed: "That is part of breathing life into the values we hold dear. Most operational and interface problems that retard competitiveness are not reflected in organization charts. These charts look neat and logical. Unfortunately, however, energy-dissipating and emotionally draining role conflicts seldom reach top management levels, especially when matrix organization structures become necessary as a company becomes regional or global. Functional overlaps arise, authority levels get blurred, and accountabilities are neglected or avoided, resulting in loss of productivity. Organizations become less efficient, less effective, and less competitive."

I observed: "So you have to anticipate and resolve role conflicts by clarifying roles and assigning accountabilities."

He agreed: "Very much so. I might add that accountabilities must be specific, measurable and results-focused. In fact, we should require these to be written into job descriptions, which often cover only functional descriptions of duties and leave accountabilities as general expectations."

Again, I was intrigued and asked him to tell me more about the product/service delivery process.

"Most of us strive to compile our operational procedures to meet ISO certification requirements. We draw up flow-charts and procedures, but we do not pay much attention to detailing the specific results required from each step in the processes. But if only we could detail these results, members in the product/service delivery process would feel that they are managing a business within a business, and the next person in the delivery process is the internal or, ultimately, the external customer. Theoretically, we can outsource every step in the delivery process."

From his explanation it was clear that a system, such as a management system, provides the linkages to the value system, the inter-functional working relationships in the organization, and the product/service delivery process. "If all these are done according to specifications, to keep the system intact and functional, then a company will be that much stronger and more resilient in the face of competition," I observed.

He agreed: "When all the values, structures, processes and systems are in place, we would have provided the environment for people to work as a team, making teambuilding retreats a refresher rather than a corrective action. You see, most people will behave according to the environment that management creates. Senior management can inculcate and establish these values, structures, processes and systems but the line manager makes them work."

I had come visiting as a consultant. I left that meeting feeling inspired.

Ong Teong Wan www.managementwisetraining.com