Rosabeth Moss Kanter published a thought-provoking post on The Change Master blog at The Harvard Business Review recently. “Inside Procter & Gamble’s New Values-Based Strategy” featured insights gleaned from an interview Ms. Kanter conducted with new CEO Bob McDonald, who took the reins at the world’s largest CPG giant this past July.
Kanter writes: “New CEO Bob McDonald, who assumed office in July, is on the road promoting P&G’s “purpose-inspired growth” strategy of ‘touching and improving more consumers’ lives in more parts of the world… more completely.’” Then, the article goes on to emphasize McDonald’s desire to return more purposefully to P&G’s cultural roots.
But here’s where I think the article provokes: “Procter & Gamble, the world’s largest consumer products company, has just announced a stunning new business strategy to jump-start growth. It begins in a startling, almost counterintuitive way – with company values and sense of purpose. Invoke the heart and care about human needs, the strategy seems to say, and the money will follow.” Startling? Counterintuitive?
Clearly, Kanter is grabbing our attention with these words. She understands the importance of committing to underlying business values in a world where trust has been lost as values were clearly put aside. A commitment to values starts from the top. It starts from the inside out–employees’ embrace of a true company mission.
Yes, we all know we’re in business to make a living as well as a profit. But, as Kanter points out: a “more promising approach to capitalism is rising.”
As I’ve pointed out in my posts and articles time and again, consumer value encompasses much more than price. Kanter succinctly points out: “Any business can adopt a variation of this strategy if leaders understand the rising importance of values. Leading with values is important for the new generation of employees, for finding innovations in underserved markets, and for getting respect from the public and favorable treatment from government”.
Couldn’t agree more. Especially in light of recent events that have caused consumers to lose faith in many businesses, if not entire sectors. I think this is an excellent time for companies to enumerate and articulate what their values are–in a clear, concise manner. It’s also a great time to put some passion behind those values for employees, customers and stakeholders. Time for that tried and true business equation of stating and living a mission.
Questions:
- How important is it to you to do business with a company that follows clearly articulated mission and values?
- Do you consciously choose to buy goods or services from a company that you feel has solid values?
- Do you consciously choose to pay more if you perceive one company to have stronger values than its competitors?
- Which business values matter most to you?
- Which companies best exemplify solid values and why?
I’d love to hear from you.
A timely piece, Ted. The interesting thing is (as is often the case) – there have been companies focused on this for a while, so other companies have some “best practices” they could study. Consider the early members of organizations called Businesses For Social Responsibility (there is a strong chapter here in Vermont) a good resource. Socially responsible businesses most consumers might recognize today would include Seventh Generation or Timberland, as examples. The much more traditional brands actually have a lot of catching up to do. Consumers have an amazing opportunity to put their money where their ideals are.
Thanks, Andrea, for weighing in on this topic. Agreed: social responsibility is the centerpiece for many companies like Seventh Generation that were born out of environmental concerns, for example. But many mainstream companies are increasingly adapting their businesses to socially responsible issues, as well. S.C. Johnson in Wisconsin comes to mind, for example. There isn’t any reason why companies can’t “do well by doing good”, right?
In recent marketing articles I’ve seen, with trust having been so violated in the consumer product and service sectors, companies are working very hard to restore faith in their customers. Social responsibility is being touted as a “new” differentiator. This concept is hardly new, in my view. What is really needed: when companies commit to these values, they really mean them and adhere to them. Wouldn’t that be terrific?
Committing to, meaning it and adhering to values would be AMAZING. This all seems pretty obvious to us, but I think – like anything else, a lot of brands will take a shortcut at first. They’ll want to see if they can get away with leveraging something they aren’t really integrating (talking the talk, but not walking the walk). I am admittedly a bit cynical, but like you – ever hopeful. Social responsibility is the differentiator I am most interested in these days…
A point well taken, Andrea. Just one thing: if companies choose to “talk the talk, but not walk the walk” these days, they tend to be quickly found out. The backlash due to the quick spread of information these days, isn’t desirable in the least. Let’s hope people come to understand that truth, honesty and transparency are the only way for companies to proceed.
Thanks for such intelligent, insightful conversation, Andrea. I appreciate your input.
Hey, Ted. Thanks for the insightful post.
I really enjoyed reading the articles, as well as the short (but really smart!) discussion you and Andrea had.
In my own point of view, a company sticking to a core set of values and going back to its cultural roots is a great thing — as long they put their mouth where their money is.
Thanks for the kind words, Strategic Growth Advisors. “Sticking to a core set of values and going back to cultural roots” is important. And I also think companies are smart to add social responsibility to those values–if they haven’t in the past. But as you say, they have to demonstrate they are living those values every day. . .otherwise, it will be rightfully seen as a sham.
Thanks for weighing in on this topic, SGA. Much appreciated.
P&G has a long history, a culture of innovation and stated values of creating products that save customers time/money. Utilizing localization strategies makes sense as micro markets and segments provide lots of opportunity for profit growth.
A bigger challenge for some comapanies (particularly in financial services) is how to get along in a world of “values” if before they hadn’t any other stated mission than making the most profits.
Good observations, Paul. Thanks for sharing your insights. To your point about financial service companies, why not go for these values: honesty, fairness, transparency, and oh yes, ethics. So many banks and financial institutions have violated the public trust that it seems to me, this would be well-received. Again: it has to be said and then be demonstrated day by day. And there’s one other important point that you raised: that of localization. No matter how large a bank or financial group is, why not make a commitment in every community to get to know their customers and become part of finding solutions for their local communities?
Your way of writing posts is great and I think this was and will be your best strategy to win the attention of your readers. Content was king before but now I think link baiting contents are the ultimate king.