Strategy – Does Stating What Your Company Stands for Affect Your Bottom Line?

How do you see your self 10 years ago?

And can you see your self today?

What about in next 10 years?

Let say a man, just been graduated from his master degree, with less working experiences.

He want to have a great job and salary.

Then, he start with small roles and did not shame with this start.

He saw in front of a mirror, looked back 10 years ago, when he was a junior employees, with a hope and dream.

He valued my self as a small employees with dream to reach a level of Manager, with house, a car, and some investment for my retirement plan.

He knows this impossible since too many candidate in a world.

Then, he see his self now, today.

He saw that he can accomplish the dream.

The dream that seems impossible 10 years ago.

He saw and valued his self as a new person compare with 10 years ago.

For him, the valued of his is lets say grow 10 times.

From nothing, have no money, still stay with parents, asked them some money for live.

To become a person that can live with his own feet, own a home, small car, and good pension preparation, helping family, friends, and others.

He valued my self as a success people, compare with 10 years ago.

Remember, definition of success is different each others.

For him, this already success.

Then he look again his self in front of mirror.

He want to become a success business owner people in next 10 years.

He think this goal for a year, asked a view from expert.

Then he took a decision to leave the company that has been gave a good salary for a couples years.

This is a hard situation but he need to be brave, to see a new world, start again from zero.

Leaving a comfort zone, leaving his big salary and its benefit, to start a business by his own.

He value his self as a new people.

I bet you wait for the rest of story, right?

I will continue in next season :).

For resume, his value 10 years ago and for next 10 years are

1. Leadership – courage to create a new look, achieve personal goals.

2. Integrity – be real, honest, and consistent with his life principles.

3. Accountability – responsible for his act, admit if wrong, and fix the failure.

4. Passion – do the best for his interest, not only see a financial benefit, more world and macro ideas.

5. Diversity – personal branding as a friendly, warm, helpful, and always smile.

Lets get back to value.

On above example, he always maintain his value from 10 years ago until next 10 years.

Of course you can change it, but just in specific case.

You need to consistent with your own value.

As same as your personal goals and career.

You can change it but please don’t change every months :).

This is similar with your company or business.

You need to create and live with that.

Okay, you can change it,  but with specific condition.

Let say you want to create a dramatic change in your organization.

Or, peoples said “value creation”.

Hmn, do you understand the meaning?

Okay, I explain a few about value creation.

Few days ago, I got a complimentary seminar on a local great university.

It’s about value creation for some big companies in Indonesia.

The speakers has did change and value creation to Telkom, and other big company’s since year 2002.

The point is a dramatic change.

You need to change company’s culture, mission, values, strategy, reduce cost, change marketing, new company’s branding, etc.

This moment, we don’t discuss it, I just want to explain what is value creation.

For some companies, values is a core of companies.

Based on European Management Journal, they found that the more values a firm lists on its website, the better its financial performance. And the more those values differed from competitors’ values, the better the company performed.

The point is no matter who you are now.

Personal, company, new business owner, or else, you need to create your own value.

The more is the best.

You can read another article, as follow.


Image result for company value funny

Coca Cola Company (

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.

  • Leadership: The courage to shape a better future
  • Collaboration: Leverage collective genius
  • Integrity: Be real
  • Accountability: If it is to be, it’s up to me
  • Passion: Committed in heart and mind
  • Diversity: As inclusive as our brands
  • Quality: What we do, we do well

Focus on the Market

  • Focus on needs of our consumers, customers and franchise partners
  • Get out into the market and listen, observe and learn
  • Possess a world view
  • Focus on execution in the marketplace every day
  • Be insatiably curious

Work Smart

  • Act with urgency
  • Remain responsive to change
  • Have the courage to change course when needed
  • Remain constructively discontent
  • Work efficiently

Act Like Owners

  • Be accountable for our actions and inactions
  • Steward system assets and focus on building value
  • Reward our people for taking risks and finding better ways to solve problems
  • Learn from our outcomes — what worked and what didn’t

Be the Brand

  • Inspire creativity, passion, optimism and fun




Respect, integrity, communication, and excellence: these were Enron’s self-professed values, before accounting fraud brought down the firm. So you’d be justified in thinking that the values listed on corporate websites don’t really matter.But researchers at INSEAD and IMD business school weren’t so sure. Yes, talk is cheap, and public proclamations aren’t the same thing as living up to one’s values. (The Enron example is included in their paper.) Still, stated values might also represent a firm’s aspirations, the type of company it strives to be. If that’s the case, maybe the values on a company’s website are meaningful after all; perhaps Enron is the exception rather than the rule.

The upshot from the researchers’ paper, published earlier this year: don’t dismiss the corporate values statement. It seems to be linked to financial performance.

The paper, published in the European Management Journal, isn’t the first to look at the values firms list on their websites; a 2013 paper tried something similar but found no correlation with performance. But Charles Galunic of INSEAD and Karsten Jonsen, John Weeks, and Tania Braga of IMD did a few things differently than the earlier researchers. First, they looked not just at which values are listed but at the total number of values each firm includes. Second, they compared firms’ values to the values of their competitors. Finally, they considered how values change, the idea being that firms that don’t shift their values over time may fall behind more agile competitors. They measured all this for the Fortune 100 in 2005, and compared each measure to the firm’s return on assets over the subsequent three years.

They found that the more values a firm lists on its website, the better its financial performance. And the more those values differed from competitors’ values, the better the company performed. These relationships might not be causal, the authors caution, but they offer a plausible reason for the link. “One could argue that espoused values are the calling card to recruit talent and to show good citizenship,” they write. If firms that take recruiting seriously are more likely to post more values, that could help explain the relationship.

Why does listing different values than competitors correlate with performance? The authors argue that this reflects a timeless principle of competitive strategy: differentiating yourself is one classic way to stay profitable.

These results suggest that values do matter, and that when firms state those values publicly, they’re saying something meaningful about who they are. That’s likely no surprise to HBR readers. As James Collins and Jerry Porras wrote in their 1996 classic “Building Your Company’s Vision”:

Core values are the essential and enduring tenets of an organization. A small set of timeless guiding principles, core values require no external justification; they have intrinsic value and importance to those inside the organization. The Walt Disney Company’s core values of imagination and wholesomeness stem not from market requirements but from the founder’s inner belief that imagination and wholesomeness should be nurtured for their own sake.

But the new paper’s third finding contradicts the idea that values should be timeless. Companies that changed their values between 2005 and 2008 had higher return on assets than those that did not. You might argue that this is merely capturing short-term financial performance, and that more stable firms — the Disneys, with their timeless principles — will win out in the end. Maybe. But the paper hints at another explanation.

Companies that changed their values also tended to have more differentiated values, a key part of strategic advantage. So perhaps the lesson isn’t quite that dynamic values beat stable ones. It’s that even timeless values aren’t a substitute for good strategy.


Author by Walter Frick, August 03, 2015

Access on 5 August 2015


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s