Page 168 - Performance Leadership

Chapter 9 Values and Culture • 157

so that the right behaviors are triggered. The impact of performance
management, through instruments such as the budget and method-
ologies such as the balanced scorecard, should not be underestimated.
What gets measured, gets done. If values and culture trigger different
behaviors than performance management practices, then there is a
serious misalignment problem. The actions of the organization will
not reflect what the organization believes it stands for. At the same
time, organizational values need to align with the external perception.
Table 9.8 uses an auto industry example to show where organizational
values match customer values.
Performance management has an impact on the customer value
proposition. Misaligned behavior (perhaps even schizophrenic behav-
ior) does not drive a positive external perception. Stakeholders become
disappointed as the organization’s daily behavior doesn’t match the
image the organization tries to convey. The organization will not be
seen as authentic. Unless the organization truly has a unique product
or service, or is a strong cost leader, what grounds are there left to ask
for a premium or to expect any form of customer loyalty. The concept
of alignment between self-perception and external perception is devel-
oped very well in the field of corporate communication as corporate
10
identity and corporate image. Corporate identity is the manifestation
11
of the personality of the company. Corporate image is the sum of all
12
experiences that someone has with the institution. This includes what
people read in the newspaper, the reputation of a company as an
employer, as a citizen of society, and obviously what the company has

Table 9.8

Organizational and Customer Values

Organizational
Values (Passionate Customer Values
Car Manufacturer about ...) (Looking for ...)
BMW (Germany) Cutting-edge design, High automobile
technology performance
Volvo (Sweden) Safety Comfortable and relaxed
driving experience
Toyota (Japan) Operational excellence, Reliability, minimal
quality maintenance