Values Drive Value

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Values Drive Value

• Ross Peat
• Managing Director
• Microsoft New Zealand

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Values

• Something (as a principle or quality)
• intrinsically valuable or desirable
• Merriam-Webster dictionary

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Values

• On a group of theories one can found a
  school but on a group of values one can found a
  culture, a civilization, a new way of living
  together among men.
• Ignazio Silone

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Values

• Happiness is that state of consciousness which
  proceeds from the achievement of one's values.
• Ayn Rand

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Values

• If we are to go forward, we must go back and
  rediscover those precious values -- that all
  reality hinges on moral foundations and that all
  reality has spiritual control.
• Martin Luther King Jr (1929 - 1968)

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Value

• is the desirability of a thing.its worth,
  merit or importance.
• Collins Dictionary (Online)

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The Value of Values

• Strong link between strong values based corporate
  culture and an organisations effectiveness
• Companies focused on strong corporate culture
  outperformed (data compiled over 2 decades)
• other companies which dont by a factor of six
• general stock market by factor of 15

Source Collins and Porras (1994) Built to
Last, Successful Habits of Visionary Companies
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Strategic Role of Values

• Corporations must see values as the foundation
  upon which the edifice of value creation must
  rest.
• Professor Mohanbir Sawhney, Kelloggs School of
  Management (2002)

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Strategic Role of Values
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Values drive Value

• Research shows that when it comes to an
  organisations values, it is attitudes, gestures
  and everyday actions at all levels that are as
  important as broader organisational initiatives.
  When values are transparent and embedded in
  organisational behaviours, an organisation or
  agency can better deliver real value to its
  various stakeholders and the community.

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Values in the Public Sector

• Are values seen (and articulated) as being an
  important part of core operations?
• What is the public/citizen perception?
• How do citizens perceive public sector values as
  opposed to the Government values?
• How do you measure the value of values in the
  public sector?

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• Inland Revenue's charter
• How we will work with you
• We will be prompt, courteous and professional.
• We will follow through on what we say we will do.
• We acknowledge your individual, cultural and
  special needs and will look for solutions to
  them.
• The person you are dealing with will give you
  their name.
• We will continually improve our service by
  collecting information about how we are doing and
  using it to raise our performance.
• Reliable advice and information
• We will provide you with reliable and correct
  advice and information about your entitlements
  and obligations.
• We will assist you to get in touch with the right
  people for your needs.
• We will be well-trained and competent.
• We will keep looking for new and better ways to
  give you advice and information.
• Confidentiality and privacy
• We respect your privacy and treat all information
  about you as private and confidential.
  Information you provide will be kept secure and
  will be used or disclosed only as required by
  law.
• Consistency and equity
• We will apply the law consistently so everyone
  gets their entitlements and pays the right
  amount.
• We will take your particular circumstances into
  account as far as the law allows us to.
• Your right to question us

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• Code of ACC claimants rights
• The rights are designed to meet claimants'
  reasonable expectations every time they contact
  ACC, whether by phone, letter or face-to-face.
• Each right is accompanied by specific obligations
  on ACC to ensure the rights are met.

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• The core purpose and values of The Warehouse
  Group  
• The Warehouse communicates its core
  purpose and values to all team members.
• Core PurposeWe make a difference to New Zealand
  by making the desirable affordable. 
• Our Values The Warehouse New Zealand is a values
  based business. Its key values are
• Where People Come First The culture of The
  Warehouse is unique and has been one of the key
  reasons behind the success of the company.
• Where Everyone Gets A BargainWe are focused on
  ensuring that we provide great value products for
  our customers every day.
• Where The Environment MattersThe Warehouse has
  an extensive programme of environmental and
  social initiatives, which we feel are improving
  our community and our environment. View our
  Triple Bottom Line Report for more information
  about our most recent environmental and social
  activities. We aim to ensure that these values
  flow on to our stakeholders - our team members,
  customers, suppliers, shareholders and our
  community.

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Benefits of values - NZ

• It is proven that New Zealanders most respect
  companies which deliver quality products and
  services, build good relationships and care for
  their own people.
• The Warehouse - most respected company last year,
  and since 1999?
• perhaps similar benchmarking is relevant in the
  Public Sector?

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Values underpinning the basics

• Business research shows that
• Companies which are most successful over the long
  term are those which incorporate their cultural
  values at the core of their everyday business
  operations, i.e. they implement a values-based
  management practice.
• It is the basics that matter comprised of both
  the business values that underpin a companys
  culture and the business value proposition
  offered to customers and stakeholders.

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Values BasedManagement Practice

• Evergreen Project
• 42 formula
• Excellence in the 4 primary management practices
  strategy, execution, culture, structure
• Excellence in any 2 of the secondary management
  practices talent, innovation, leadership,
  mergers and partnerships

Harvard Business Review 2003
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Aligning Primary Business Management Practices to
Values Building Blocks
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Relevance to government

• In terms of government, New Zealanders expect
  integrity, honesty and accountability.
• The government sector has to drive citizen value
  NZ public servants viewed amongst most honest in
  the world
• In comparison corrupt states have no values, no
  trust, a lack of a citizen experience and dont
  have the basics right.

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Public Service Code of Conduct

• THE THREE PRINCIPLES
• FIRST PRINCIPLE
• Public servants should fulfil their lawful
  obligations to the Government with
  professionalism and integrity.
• SECOND PRINCIPLE
• Public servants should perform their official
  duties honestly, faithfully and efficiently,
  respecting the rights of the public and their
  colleagues.
• THIRD PRINCIPLE
• Public servants should not bring the Public
  Service into
• disrepute through their private activities.

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State Services values and integrity

• Citizens trust and respect of government is
  based on the integrity of its institutions
• The State Services Commissioner has particular
  responsibility for maintaining the standards of
  integrity and conduct that apply to the Public
  Service.

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Transparency International Corruption
Perceptions Index 2002
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Transparency International Corruption
Perceptions Index 2003
Top scoring governments
Low scoring governments
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Relevance to government
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Localising values my experience

• What does this mean to our local stakeholders?
• Customers
• Partners
• Vendors
• Staff
• Shareholders
• Citizens
• What is the framework?

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Microsoft Approach
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Microsoft localising global tenants

• Microsoft New Zealand is working on localising
  the tenants developed by the global team
• Internal values team
• Staff workshops this is both very open and very
  challenging
• Values are included in individual goals
• Listening to customer feedback
• Live the values

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Thank you!
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The future

• Public sector organisations develop a values plus
  value model
• IT departments include values and value delivery
  in their goaling
• A consistent benchmarking model across government
  is developed to assess and recognise best practice

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Contrasting the Product Mindset with the Customer
Value Mindset