Why are company principles important? What is the key to establishing organizational standards?<\/p>\n\n\n\n
A company culture<\/a> with consistent goals and standards is important for any business. To achieve this, Patrick Lencioni in The Advantage<\/em> says you must carry out four principles.<\/p>\n\n\n\n To learn about these essential company principles, keep reading.<\/p>\n\n\n\n\n\n\n\n Lencioni says that leadership teams must create a company culture with clear and consistent organizational goals<\/a> and standards.<\/strong> These goals and standards will provide employees with clarity on the organization\u2019s purpose and their role in it and will unify them through shared values and ideals.<\/p>\n\n\n\n To create a company culture with clear and consistent goals and standards, Lencioni says the leadership team must establish four company principles: the organization’s core purpose<\/a>, its behavioral values, its strategies for success, and its top priority.<\/p>\n\n\n\n (Shortform note: In The Culture Code<\/em><\/a>, <\/em>Daniel Coyle similarly emphasizes the importance of a strong company culture<\/a> with clear and consistent goals and standards. However, rather than the organization\u2019s purpose being one<\/em> component of a strong organizational culture<\/a>, he says purpose is the foundation<\/em> of other cultural elements, like behavioral values, success strategies, and priorities<\/a>. He elaborates that putting purpose at the core of the organization will increase the energy employees put towards tasks, make people learn faster, and increase connection and empathy among coworkers and customers. Ultimately, these benefits will maximize the organization’s success.)<\/p>\n\n\n\n Lencioni says that all organizations function to help people in some way. To determine your organization\u2019s core purpose, reflect on <\/strong>what<\/em><\/strong> your organization does and <\/strong>why<\/em><\/strong>. Your what<\/em> should be pretty straightforward, but your why<\/em> will probably be somewhat unique\u2014who are you trying to benefit and how? The possibilities are endless, but your answer must be specific, true, and concise.<\/p>\n\n\n\n For example, if you run a dry cleaning business, your what<\/em> would be \u201cwe wash and dry people\u2019s laundry.\u201d Your why<\/em> could be \u201cwe wash and dry people\u2019s laundry so that clean, professional-looking clothes are accessible to all.\u201d<\/p>\n\n\n\n (Shortform note: In Find Your Why<\/em><\/a>, <\/em>Simon Sinek<\/a> agrees with Lencioni that your purpose<\/a> statement must be specific, true, and concise. However, he emphasizes one more characteristic that Lencioni doesn\u2019t mention: Your purpose statement must be constant<\/em><\/a>. This means that your purpose should be upheld<\/em> in all aspects of your work and should endure<\/em> over time. For example, if your core purpose is to help people save money on essentials, you can uphold this purpose by providing employees with free hygiene essentials like toothbrushes and deodorant.)<\/p>\n\n\n\n Lencioni explains that healthy organizations must identify their behavioral values so employees align with and uphold the company\u2019s cultural expectations.<\/strong> These values should encompass (1) positive behaviors that are already<\/em> represented in your organization and (2) behaviors that you aspire<\/em> to incorporate into your organizational culture. When compiling your list, Lencioni recommends writing these values as they would look in action rather than as one-word adjectives\u2014this makes them more specific and actionable for employees.<\/p>\n\n\n\n For example, avoid one-word values like charity, altruism, and drive. Instead, say \u201ca passion for helping those who are less fortunate,\u201d \u201cwillingness to sacrifice personal wants for others\u2019 needs,\u201d and \u201ctenacity to accomplish personal and professional goals<\/a>.\u201d<\/p>\n\n\n\n Lencioni explains that another company principle healthy organizations should have are three primary strategies<\/em> that they use to achieve their core purpose.<\/strong> To identify these strategies, brainstorm a long list of all the possible ways that you can achieve your purpose. Then, divide similarly themed ideas from your long list into groups and label each theme\u2014for example, ideas that are related to keeping consumer costs low can be lumped into an \u201caffordability\u201d-themed group. Finally, narrow down the three themes you think are most important to upholding your core purpose\u2014these will be your primary success strategies.<\/p>\n\n\n\n Lencioni says that this method will ensure that your company\u2019s actions align with and progress your core purpose. This will result in organizational clarity and consistency, two factors that are vital for healthy organizations.<\/p>\n\n\n\n For example, imagine your dry cleaning business\u2019s core purpose is to \u201cwash and dry people\u2019s laundry so that clean, professional-looking clothes are accessible to all.\u201d Some strategies on your long list might be: Keep prices low, use hypoallergenic detergent, be located within walking distance of public transportation, and remain open 24 hours a day. These strategies can be lumped into the overarching theme of \u201cinclusivity,\u201d which is an important strategy for upholding your core purpose.<\/p>\n\n\n\n The last company principle every business should have is a single, short-term goal that\u2019s their top priority.<\/strong> This will ensure that the organization solves issues that could harm it and continues to improve. Your short-term goal should be achievable within three to 12 months and should be a shared effort among the leadership team.<\/p>\n\n\n\n To determine your short-term goal, consider one thing that must<\/em> be done in the next year or less to improve or maintain your organization<\/strong>. Then, create a to-do list<\/a><\/em>\u2014determine exactly what must happen to solve the problem or achieve the goal. Finally, determine the areas of improvement <\/em>your organization must focus on to accomplish each item on your to-do list.<\/p>\n\n\n\n (Shortform note: In Traction<\/em><\/a>,<\/em> Gino Wickman also emphasizes the importance of short-term goals, but his recommendations slightly differ from Lencioni\u2019s<\/a>. While Lencioni recommends creating goals that can be accomplished in three to 12 months, Wickman says that you should give yourself a full <\/em>12 months to complete your plan. The plan must include a revenue goal, a profit goal, and measurables (like a number of clients to gain or a number of products to produce). You must also identify seven priorities you\u2019ll complete within the year to propel you toward the goal\u2014a more specific version of Lencioni\u2019s to-do list<\/em>. Finally, Wickman recommends creating a budget to ensure you have the necessary resources to complete the plan\u2014something Lencioni doesn\u2019t address.)<\/p>\n","protected":false},"excerpt":{"rendered":" Why are company principles important? What is the key to establishing organizational standards? A company culture with consistent goals and standards is important for any business. To achieve this, Patrick Lencioni in The Advantage says you must carry out four principles. To learn about these essential company principles, keep reading.<\/p>\n","protected":false},"author":14,"featured_media":52081,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[774],"class_list":["post-81857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-the-advantage","","tg-column-two"],"yoast_head":"\nEstablish Clear and Consistent Organizational Goals and Standards<\/strong><\/h2>\n\n\n\n
Principle #1: The Organization\u2019s Core Purpose<\/strong><\/h3>\n\n\n\n
Principle #2: Behavioral Values<\/strong><\/h3>\n\n\n\n
Principle #3: Success Strategies<\/strong><\/h3>\n\n\n\n
Principle #4: The Short-Term Goal<\/strong><\/h3>\n\n\n\n