AF ELS 18C Pre-Reading

be shut down, its brand names would be shelved forever, and so on. The company would utterly and completely cease to exist. Would you accept the offer? Why or why not? What would be lost if the company ceased to exist? Why is it important that the company continue to exist? We’ve found this exercise to be very powerful for helping hard-nosed, financially focused executives reflect on their orga- nization’s deeper reasons for being. Another approach is to ask each member of the Mars Group, How could we frame the purpose of this organization so that if you woke up tomorrow morning with enough money in the bank to retire, you would nevertheless keep working here? What deeper sense of purpose would motivate you to con- tinue to dedicate your precious creative energies to this company’s efforts? As they move into the twenty-first century, com- panies will need to draw on the full creative energy and talent of their people. But why should people give full measure? As Peter Drucker has pointed out, the best and most dedicated people are ulti- mately volunteers, for they have the opportunity to do something else with their lives. Confronted with an increasingly mobile society, cynicism about corporate life, and an expanding entrepre- neurial segment of the economy, companies more than ever need to have a clear understanding of their purpose in order to make work meaningful and thereby attract, motivate, and retain outstand- ing people. Discovering Core Ideology You do not create or set core ideology. You dis- cover core ideology. You do not deduce it by looking at the external environment. You understand it by looking inside. Ideology has to be authentic. You cannot fake it. Discovering core ideology is not an intellectual exercise. Do not ask, What core values You discover core ideology by looking inside. It has to be authentic. You can’t fake it. should we hold? Ask instead, What core values do we truly and passionately hold? You should not confuse values that you think the organization ought to have – but does not – with authentic core values. To do so would create cynicism throughout the organization. (“Who’re they trying to kid? We

all know that isn’t a core value around here!”) Aspi- rations are more appropriate as part of your envi- sioned future or as part of your strategy, not as part of the core ideology. However, authentic core val- ues that have weakened over time can be consid- ered a legitimate part of the core ideology – as long as you acknowledge to the organization that you must work hard to revive them. Also be clear that the role of core ideology is to guide and inspire, not to differentiate. Two compa- nies can have the same core values or purpose. Many companies could have the purpose to make technical contributions, but few live it as passion- ately as Hewlett-Packard. Many companies could have the purpose to preserve and improve human life, but few hold it as deeply as Merck. Many com- panies could have the core value of heroic customer service, but few create as intense a culture around that value as Nordstrom. Many companies could have the core value of innovation, but few create the powerful alignment mechanisms that stimu- late the innovation we see at 3M. The authenticity, the discipline, and the consistency with which the ideology is lived – not the content of the ideology – differentiate visionary companies from the rest of the pack. Core ideology needs to be meaningful and inspi- rational only to people inside the organization; it need not be exciting to outsiders. Why not? Because it is the people inside the organization who need to commit to the organizational ideology over the long term. Core ideology can also play a role in de- termining who is inside and who is not. A clear and well-articulated ideology attracts to the company people whose personal values are compatible with the company’s core values; conversely, it repels those whose personal values are incompatible. You cannot impose new core values or purpose on peo- ple. Nor are core values and purpose things people can buy into. Executives often ask, How do we get

people to share our core ideology? You don’t. You can’t. Instead, find people who are predisposed to share your core values and purpose; attract and retain those people; and let those who do not share your core values go elsewhere. Indeed, the very process of articulating core ideology may cause some people to leave when

they realize that they are not personally compatible with the organization’s core. Welcome that out- come. It is certainly desirable to retain within the core ideology a diversity of people and viewpoints. People who share the same core values and purpose do not necessarily all think or look the same.

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HARVARD BUSINESS REVIEW September-October 1996

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