February 28, 2006
Blended Values Strategies
Blended values strategies are choices about all the usual aspects of strategy -- but with a twist: neither the pursuit of value (money, profits, winning, wealth) nor the pursuit of other values (social, family, political, technological, environmental, spiritual, creative, legal or medical) is the trump card for all critical (or even non critical) decisions. In blended values strategies, the organization -- the business -- constructs a narrative of successful performance by and through which all key stakeholders both gain from and contribute to the success and happiness of the other stakeholders.
Blended values strategies do not put the interests of any constituency first. Businesses that identify and pursue blended values strategies do not allow 'shareholder value' to trump all other concerns. Nor do such strategies make 'the customer king', or operate to the exclusive benefit of executives and employees.
Rather, the narrative of sustainable success is an interative one that stretches out into the foreseeable future -- telling a story by which shareholders provide opportunities to the people of the enterprise and their partners to provide value and values to customers who generate returns to shareholders who provide opportunities to the people of the enterprise and their partners.... and on and on and on.
Each link in this story is ornamented with SMART outcome-based goals by which those involved know the answer to this key question: "How would we or anyone know we had succeeded with this blended values strategy?"
For shareholders, yes, those SMART outcomes will include share price, profits, market share, brand equity and more. For customers or beneficiaries, those SMART outcomes would speak to quality, speed, loyalty, share, innovation and more. And, for the people of the enterprise and their partners, the SMART outcomes would reflect success at skills, opportunities, and values as well as dollars -- whether direct or in terms of benefits.
Blended values strategies are intentionally win/win for all stakeholders. They are not 'put up' jobs that talk the talk about how 'employees are our most important assets' and 'the customer comes first', but, in the end, only walk the walk of 'shareholder value and executive compensation'.
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