Navigating Organisational Values in a Changing World

The Importance of Discussing Organisational Values

Why are values crucial? Without them, an organisation lacks substance. At its core, people make an organisation. It's possible that, even without a clear set of values, people come together and achieve short-term success. However, this is unlikely to be sustainable in the long run due to a lack of shared direction.

Shared and compatible values lay the groundwork for prosperous growth. While these values might not be perfect and could evolve over time, and not everyone in the organisation might agree with them consistently, they are essential.

If these values aren't clear, somewhat aligned, and ideally community-oriented, the organisation will struggle to remain relevant in this ever-changing world.

The Evolving Landscape: Western European Perspective

There are many challenges ahead – more than there have been for a long time. Now the question is, what do we make of the situation? Do we try to muddle through, or do we adopt a more active stance and how does this affect our society?

Here are some partially overlapping challenges - with macroeconomic relevance:

Demographic Change aka Ageing,

Ecology aka anthropogenic greenhouse effect,

Security Situation aka War in Ukraine,

Automation aka Artificial Intelligence and

Isolationist (Economic) Policy aka Brexit.

Without dramatising or slipping into the negative, it can be said that things are generally getting "tighter". The important question is, what behavior will more "tighter situations" lead to? A classic pattern can be the "protection of vested interests" - trying to hold on to what has been achieved with everything. Another pattern can be a "now more than ever" behavior - trying to optimize the system and extract maximum value for oneself.

Both patterns probably lead primarily to one thing: to more selfishness. This can hardly be helpful when tackling and solving complex tasks. Accordingly, it is necessary to reverse these patterns from both a societal and an organisation-related perspective. But first, how do the framework conditions for organisations change as a result?

Shifting Organisational Conditions

The frequency of disruptions and the increasing "non-commitment" in society impact organisations significantly. The traditional career path within a single company is becoming a rarity. Organisations must become more adaptable, continuously reevaluating and realigning their structures and processes to handle change effectively.

Last but not least, the reference to "values" should be made here again. If the organisation is to sustainably exist, it must have a healthy value compass . The values ensure that new employees quickly find their way around the organisation and can act in the interest of the overall organisation.

Radical Organisational Concepts

The transition from traditional hierarchical structures to flat , decentralised, and purpose-driven organisations represents a significant shift. Questions arise about leadership, employee relationships, and adaptability in such structures. While modern approaches like Sociocracy or Holacracy offer insights, the most successful organisations still operate in relatively classic ways.

Traditional vs. Modern Success Models

The dominance of a few corporations in the digital world raises questions about their modernity and sustainability. These organisations, while efficient and adaptable, may not align with higher purposes beyond profit maximisation. The role and satisfaction of individual employees within these structures also need consideration.

From this point of view, it is important to consider how resilient these monoliths really are. Is this effectively the direction in which organisations should evolve? What would be the smallest possible set of "good" values?

Evolving Towards 'Good' Organisational Values

?????? ?????????????????? ?????? ?????? ?????????? ???? ?? ??????????:

?? ?????????? ?????????? ???????????? ???? ???? ?? ???????????? ????????????. All stakeholders of the organisation - principals, agents, and the organisation itself - should be able to identify with it (mostly).

?? ???????????? ?????????? ???????????? ???? ????????????????-?????????????? – a fair value proposition and also protection for the employees.

?? ?????????? ?????????? ???????????? ???? ?????????????? ???? ?????? ???????????????????????? - allowing the organisation to survive and develop sustainably.

If there is no personal union between agents and principals, ?? ???????????? ?????? ?????????? ?????????? should be related to the principals- realistically, this will often be clearly monetary in nature, and there is nothing wrong with the fact that you want to achieve a healthy return as an investor. A minimum and compatible set of good values allows for easy and clear alignment.

The Continuous Development of Values

The evolution of values in an organisation should shift from a top-down approach to a more participative and iterative method. Aligning individual value compasses with that of the organisation is crucial for preventing the undermining of the value system. And as long as automation has not yet completely taken over, the role of the employee remains central, influencing the success or failure of knowledge-based organisations.

Conclusion: Reflecting and Acting on Organisational Values

Organisations must continuously evolve their values to stay relevant and successful. Reflecting on the current values and considering the introduction of a participative and iterative process for value development is vital. As we navigate these complex times, organisations must adapt their values to meet the demands of our changing world.

Navigating the evolving landscape of organisational values and change management can be challenging. At inPositiv , we specialise in guiding this transformative journey. Our experts are ready to align your values with strategic goals, fostering resilience and success in your organisation. Contact us today!

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