Wednesday, 26 October 2011

How can we use values to formulate long-term business strategy?

The CRD Model of Values
Yet another values lens through which organisation can be viewed is the CRD Values Model where C = Control Values, R = Relational Values, D = Development Values. This model is useful in formulating long term business strategy. In a nutshell: if the control values are the highest priority for the group, strategy should focus delivering excellent business systems; if the priority is greatest for the set of relational values, business strategy should focus on customer relationships; if the developmental values set are the highest priority, strategy should focus on developing leading-edge products and/or services:

Values Set Strategic Focus
Control Values
Relational Values
Developmental Values
Operational Excellence
Customer Collaboration
Innovation, Product &/or Service Leadership
  • Control Values are necessary to maintain and bring together various organisational sub-systems. They include values relating to efficiency, discipline, and performance standards. These values guide such activities as planning, quality assurance, accounting and re-engineering. Examples of Control values include: Efficiency/Planning, Control/Order/Discipline, Law/Rule, Management, Rationality and Financial Security.
  • Relational Values guide people’s behaviour in a group setting. These values are based on beliefs about how people should conduct themselves in public, at work and in relationships. Examples of Relational Values are Honesty, Congruence, Respect and Loyalty. Relational Values influence how people behave and relate to each other when living their Control and Developmental Values.
  • Developmental Values are essential to create new opportunities for growth. They are values related to creativity, growth, knowledge expansion and innovation. Examples of Developmental Values include Creativity, Self-Actualization, and Growth/Expansion
In relation to leadership styles, the natural style for people whose dominant values are Control Values, is Transactional. For people whose Developmental Values are dominant, their natural style is Visionary. It follows that people who prefer to put most of their energy into the Relational Values will have a Facilitative style.

The interaction between the Control, Relational and Developmental sets of values has a strong influence on the nature of group and organisational culture:
Interaction Between CRD Values Shapes Culture
Values based strategic planning is grounded in the knowledge that there is a close connection between the successful execution of organisational strategy and the actual values of people charged with its execution.

The Control, Relational & Developmental values sets, when employed in strategic planning, underpin three related types of strategic focus, which, while not mutually exclusive, require very different skills.

We have developed a CRD Profile which enables groups to identify their dominant set of CRD Values. This information enables them to formulate long-term group strategy in a way that is congruent with their values and therefore have the best chance of successful execution.

Below is an example of a Group CRD Profile:

Group CRD Profile

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