Any organization will sooner or later face the fact that it will have to reconsider its corporate values. The need for such an analysis is determined by a number of signs:
stagnation or decline in profits;
consistently low productivity;
deterioration in the quality of manufactured products or services rendered;
a decrease in the investor database level of employee engagement at work;
decreased customer satisfaction;
a long-term lack of innovation or ideas for business development;
rapid increase in competition in the industry;
the emergence of external threats (new government regulations, technologies, etc.).
It is believed that a working value system is effective for 3-5 years. But management needs to regularly monitor the situation, and if at least one of the above signs occurs, analyze the principles to understand whether it is time to revise them.
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Frequently Asked Questions About Company Values
Thus, company values represent principles, beliefs and goals that structure work processes within the organization. Thanks to them, the actions and decisions of employees are directed in the right direction in accordance with the company's mission.
Why are people considered the main value of a company?
Because they are the ones who make sure that the organization makes a profit.
Does the employee have the opportunity to realize personal values through the company's principles?
Yes, if personal values correspond to the company's standards by more than 60%.
How much value does a company need to operate effectively?
When developing a value system, use the rule "necessary and sufficient". There should be as many principles of work as are necessary to describe the key approaches. No more.
If the list of values is too long, people will have difficulty remembering them, as their attention is distracted. Usually, a person can easily remember 3-7 words. It will be difficult to perceive and remember a larger volume of text for a long time.
The importance of a value system is that it forms the background for interaction, provides the purpose and meaning of each process, and serves as the basis for corporate culture. If a company has a strong value system, it has a powerful competitive advantage.