Companies Reassess Their Values
22 August 2008
Read by 1928 persons
Most large groups display their values. But the uniformity of these statements proves counterproductive in motivating employees and differentiating themselves from competitors.
"No company without values," says the Safran communications department, a group born from the merger of Sagem and Snecma. More than four months after the official merger of the electronics giant and the engine giant, employees are still lacking direction. To unite its workforce, CEO Jean-Paul Béchat will appoint a committee in the fall to develop common values...
This operation, considered essential, is nevertheless delicate. "How to instill a culture that characterizes the company? How to make employees want to work together? These questions highlight the need for companies to refer to their values to make them a lever of performance," writes Jean-François Claude, author of the book *Management by Values*. In fact, most large groups endlessly repeat the same notions of integrity, respect for the individual, or team spirit, using brochures, codes of conduct, and corporate websites. Needless to say, these incantations provoke sarcasm and skepticism among employees. Companies, aware of this, are starting to revise their approach.
The concept of management by values, which arrived from the United States in the early 1990s, quickly conquered France. Nearly nine out of ten companies display their values, according to an indicator produced by the Wellcom communications agency (see table). The majority claim five values on which managers say they base their management and competitive strategy.
Involving Employees
"Innovation," cited by nearly one in three companies, is the most highly rated, followed by "integrity" and "responsibility." Too generic, these notions no longer unite employees, whose sense of belonging is constantly diminishing. To counter these trends, the association of communication directors (Entreprises & Médias) and the Union of Advertisers (UDA) are raising awareness among their members. Their conferences are packed... "Managers have long defined their company's values without consultation. Based on this observation of failure, they are now turning to a participatory approach involving employees," comments Thierry Wellhoff, president of Wellcom.
Last year, AGF used its services. "Defined before our privatization and our affiliation with the German company Allianz AG, our five values no longer corresponded to the daily reality of employees," explains Monique Chezalviel, human resources director of the insurance company. From January to September 2004, the human resources department set up a working group composed of ten members of the executive committee. Hand in hand with the communications department, it conducted hundreds of individual interviews at all hierarchical levels. Result: "ambition," "trust," "performance," and "talent" emerged. At the beginning of September, AGF will survey employees to verify that everyone has properly assimilated the group's new genetic code.
Inconsistencies Undermine the Approach
This is where the problem lies. "Often, nobody can name more than two. To be effective, values must first be carried by management," preaches François Lacombe, development director of ACR Logistics. On September 17, 2004, together with his CEO, he presented the group's new values, including "challenge," "results," and "reactivity," to the three hundred and fifty senior executives, before preaching the good word in the eleven international subsidiaries. Following this, a brochure, a DVD, and PowerPoint presentations were distributed internally. Next October, ACR Logistics will release a new DVD, this time aimed at clients and providers. "It's delicate. At the slightest inconsistency, the entire process is discredited," warns François Lacombe. Danone experienced this. Its values of "responsibility" or "respect for others" were undermined by the announcement, in 2001, of a social plan at LU, while the company was posting profits. Ninety percent of the 816 laid-off employees were redeployed. Four years later, the group's employees are still talking about it...
To cover its bases, Total has created an ethics committee since 2000, responsible for verifying the validity of its promises on the ground. "Values are long-term, while a company constantly faces unforeseen events. To overcome this paradox, we emphasize principles of action," emphasizes Richard Lanaud, president of the ethics committee. Its code of conduct encourages employees to "not find themselves in a conflict of interest." Not to mention the training courses followed by 1,800 operational managers over the past two years. Result: 70% of the 45,000 employees surveyed have integrated the group's values, according to the annual survey conducted by Ipsos.
However, if Total commits to "respecting human rights [...] in the countries where it operates," its presence in Burma was again denounced by the International Federation for Human Rights (FIDH) at the beginning of July. For nine years, complaints have been filed in the United States, France, and Belgium against the oil giant in a case of forced labor. Its detractors accuse it of supporting the Burmese junta. Total denies these accusations on its website. But the firm also acknowledges that "the map of hydrocarbon deposits in the world does not coincide with that of democratic regimes." That's clear enough.
Published September 8, 2005
Posted online August 22, 2008
Stratégies.Fr
"No company without values," says the Safran communications department, a group born from the merger of Sagem and Snecma. More than four months after the official merger of the electronics giant and the engine giant, employees are still lacking direction. To unite its workforce, CEO Jean-Paul Béchat will appoint a committee in the fall to develop common values...
This operation, considered essential, is nevertheless delicate. "How to instill a culture that characterizes the company? How to make employees want to work together? These questions highlight the need for companies to refer to their values to make them a lever of performance," writes Jean-François Claude, author of the book *Management by Values*. In fact, most large groups endlessly repeat the same notions of integrity, respect for the individual, or team spirit, using brochures, codes of conduct, and corporate websites. Needless to say, these incantations provoke sarcasm and skepticism among employees. Companies, aware of this, are starting to revise their approach.
The concept of management by values, which arrived from the United States in the early 1990s, quickly conquered France. Nearly nine out of ten companies display their values, according to an indicator produced by the Wellcom communications agency (see table). The majority claim five values on which managers say they base their management and competitive strategy.
Involving Employees
"Innovation," cited by nearly one in three companies, is the most highly rated, followed by "integrity" and "responsibility." Too generic, these notions no longer unite employees, whose sense of belonging is constantly diminishing. To counter these trends, the association of communication directors (Entreprises & Médias) and the Union of Advertisers (UDA) are raising awareness among their members. Their conferences are packed... "Managers have long defined their company's values without consultation. Based on this observation of failure, they are now turning to a participatory approach involving employees," comments Thierry Wellhoff, president of Wellcom.
Last year, AGF used its services. "Defined before our privatization and our affiliation with the German company Allianz AG, our five values no longer corresponded to the daily reality of employees," explains Monique Chezalviel, human resources director of the insurance company. From January to September 2004, the human resources department set up a working group composed of ten members of the executive committee. Hand in hand with the communications department, it conducted hundreds of individual interviews at all hierarchical levels. Result: "ambition," "trust," "performance," and "talent" emerged. At the beginning of September, AGF will survey employees to verify that everyone has properly assimilated the group's new genetic code.
Inconsistencies Undermine the Approach
This is where the problem lies. "Often, nobody can name more than two. To be effective, values must first be carried by management," preaches François Lacombe, development director of ACR Logistics. On September 17, 2004, together with his CEO, he presented the group's new values, including "challenge," "results," and "reactivity," to the three hundred and fifty senior executives, before preaching the good word in the eleven international subsidiaries. Following this, a brochure, a DVD, and PowerPoint presentations were distributed internally. Next October, ACR Logistics will release a new DVD, this time aimed at clients and providers. "It's delicate. At the slightest inconsistency, the entire process is discredited," warns François Lacombe. Danone experienced this. Its values of "responsibility" or "respect for others" were undermined by the announcement, in 2001, of a social plan at LU, while the company was posting profits. Ninety percent of the 816 laid-off employees were redeployed. Four years later, the group's employees are still talking about it...
To cover its bases, Total has created an ethics committee since 2000, responsible for verifying the validity of its promises on the ground. "Values are long-term, while a company constantly faces unforeseen events. To overcome this paradox, we emphasize principles of action," emphasizes Richard Lanaud, president of the ethics committee. Its code of conduct encourages employees to "not find themselves in a conflict of interest." Not to mention the training courses followed by 1,800 operational managers over the past two years. Result: 70% of the 45,000 employees surveyed have integrated the group's values, according to the annual survey conducted by Ipsos.
However, if Total commits to "respecting human rights [...] in the countries where it operates," its presence in Burma was again denounced by the International Federation for Human Rights (FIDH) at the beginning of July. For nine years, complaints have been filed in the United States, France, and Belgium against the oil giant in a case of forced labor. Its detractors accuse it of supporting the Burmese junta. Total denies these accusations on its website. But the firm also acknowledges that "the map of hydrocarbon deposits in the world does not coincide with that of democratic regimes." That's clear enough.
Published September 8, 2005
Posted online August 22, 2008
Stratégies.Fr
