Knowledge - Integrating Value, Valuing, Values and Valuation

May 10, 1996
Participating: Brian Hall, Charles Savage, Brenda Wisniewski, Elizabeth , Lee Hebert, Charles Armstrong, Hubert St. Onge

Purpose: If we get our act together in this area and the market senses this, our stock will greatly increase.

C. Armstrong - Values interesting starting point, by in own experience, values and valuation reason for considering how to leverage intellectual capital. From implementation standpoint, start with value and valuation and recognition that for private companies, the inability to have this on real time basis is an issue (is available to public businesses). Actually a spiral or systems loop where everyone has own jump-in spot and things revolve around it

L. Hebert - Wanted an organization that values people and focus that value on . Great tool to set foundation for First understand values within an organization; second, get to values to get to true learning mode of organization; third, how to change culture to become a learning organization

Both/and - start at value and valuation is traditional place to begin but they are all connected. Measurement of the culture has not been available before. Technology available to do this provides ability for major shift in linking the Vs.

Other piece that is and will be valuable is learning ability and communication enhancement that values technology affords. Increases awareness and provides context for discussion about abstract issues. The breadth and depth of tool requires broad mental framework or context to understand application and implication. This will probably by difficult to achieve, particularly below senior management. To rollout and get the learning and behavioral side means understanding how to communicate it and apply it with people who don't have such abstract frameworks.

Hall - Never go through theoretical when talking with the company. Real point is whether the tool has integrity. Actual rollout doesn't include phases, etc. Complex structure with intellectual capital depending on group involved. Introduction/application would be customized for each group.

Total quality management can have objective discussions because TQM is integrating and people are talking the same language. Applying the values tool may help people understand the dialogue better.

Elizabeth - Trying to empower people with broad range of sophistication - values, instead of being free standing, are integrated. The interrelationship of values is important concept. Also we have the power to change our values which is powerful notion. Once these two concepts are put across, empowers individuals in organization to energize them.

Savage - Test hypothesis. Suppose several companies have implemented some aspects of values. How does this impact value and valuation. Frustration because of not invented here syndrome to date. Values Technology provides tool for educating "up"

Referral: Bippin, Monsanto -

Hall - Education through values automatically means development which also means change.

Response of organization trying to move people through value chain and perhaps being manipulated? too personal? too rigid?

Hall - ten years ago, yes. Today, can be overcome with proper training of those implementing tool. Goes to design and quality. Design of enrollment process critical and different for each group.

Cultural differences - Doesn't open people up, but brings to the fore implicit information that the individual can then make explicit and act on it. Discovered that individual had aspirations that were driving him but didn't know about. Values identification helped him know what he really wanted, what values he needed and what choices to make to achieve his vision.
Tacit to elicit - So many things in organization that aren't working, but no way to address because there is no way to track it as the root cause may be tacit knowledge. Values may provide a track to move from tacit to explicit knowledge which will enable us to identify and address issues.

Teams are as bad as a hierarchy when it comes to hoarding knowledge. Teams with values exercise move from devaluing to valuing knowledge. If information remains tacit, the team or conflict remains at minimum level. When it becomes explicit, the team can move to working at much higher level. Requires team to recognize and share values, then deciding at what level it wants to operate on. For group to work through stages to become efficient, must move beyond conflict stage. Values make that information explicit more rapidly and emotions are addressed early on.

The reality of the marketplace is moving faster than we can adjust our assumptions. Values get to root of mindsets and examine them in light of changes in the marketplace. Important to do this work with high level of interraction. Then can look at organization in light of values held. Today organizations have ceased to be dynamic. Leadership having difficulty overcoming inertia because of inability to move culture in the right way.

Caution: must talk about behavior and skills. Perfectly aligned values isn't the answer in itself. Unless organization structured and focused in a way to walk the talk, people will slip back into old ways. Leadership, behavior, skills in organization must be able to support the right values. Often people have behavior and skills attached to the wrong values that creates dysfunction.

Studies where a group started with behavior and skills and letting people link them to the right values generally works only 50% of the time. Causes a lot of dysfunction.

Hubert - Skills very important, but more emphasis has been placed on skills than necessary. Sense is that many people have skills but they aren't being put to the right use.

Elizabeth - On shop floor, people have never worked in teams and don't know how to do simply things such as communicating needs and balancing personal/group needs.

Hubert - People looking for structure to tear down boundaries so we can share knowledge. Problem is that people don't have skills to make structure work. People get frustrated when they don't have way to acquire the right skills. CIBC approach to providing the way to acquire skills is exceptional.

Hubert - More leveraged approach. Encounter resistance. Introduce in way for people to discover on their own the value of values. Get involved in the executive coaching up front. Start with CEO to explore values; perhaps add or include selected others to discuss outcome in larger context. Starts to change texture of discussion. Position as investigation to explore how it might be applied at AA. You talk to people about it as little as possible until they have gone through the process. Map own values first, understand what it means then positions the person to understand its application to the organization. The next level of output is to develop common map and continue to bring on other people.

True change doesn't take place top down, but wherever you have a group that is open to change. Take "success" of that one group and take it to another group until there is critical mass that catches the attention of leadership. Customers area choosing to deal with us because we come closest to the aspirations they have for themselves. If our values reflect what the customer wants, we are more likely to form a relationship. Use values tool to map out values of customers of client service team -- written reports, etc. -- understand values of client service team and compare/align.