Values as Differentiator

In the process of undertaking the PxP process, you will need to develop strategic core values. These are principles that are generated in response to the strategy. Whether or not an organization uses a strategy map (my preference) or any other means of articulating strategic thought, the strategy acts as the guide for final values development.

Another way of thinking about this: Given your differentiator, what core value best expresses it? And, given the behaviors that your differentiator will require (this piece is work worth doing, by the way), what core values best engender those; Or, what core values would be essential to performing those necessary behaviors?

These are, respectively, direct strategy-enablers and indirect strategy-enablers.

Consider the Southwest business model.(read The Southwest Airlines Way by Jody Hoffer Gottell) One key element of their low-cost, non-spoke and wheel-hub system is that they have super-fast turnaround of planes on the ground. In fact, everyone in the organization can be overheard saying "we can't make money on the ground--only in the air" regularly. In order to support the low-cost model, one explicit direct core value is "Deliver the most reliable service at the lowest cost". Most low-cost airlines do that by cutting wages. However, if you cut wages you get less employee retention, morale problems and less teamwork and cooperation--not to mention resentment between tiers of pay grade. Why does this matter?

Well, being able to turn planes quickly requires certain behaviors. Specifically, it takes a high level of cooperation and teamwork, a flexibility amongst workers to do any job that is needed, and a respect between departments so that resentment doesn't impede the flow of work. On that basis, the indirect strategy-enabler is "Good people are essential to success" and "Invest the time to connect with employees and customers". Furthermore, although it isn't stated as a core value per se, the overriding principle that guides Southwest and that endures over time despite shifting conditions and challenges, is that they focus on relationships and have built every aspect of their organization to support that key value.