Insights
Three leadership actions that transcend any company's ideology
Business ideology is the foundation of corporate and organizational values. Before starting a company, consciously developing a business ideology will greatly help carry it from inception to maturity.
Business ideology is the foundation of corporate and organizational values. Before starting a company, consciously developing a business ideology will greatly help carry it from its inception to maturity. However, many founders never consider this deliberately, which can later cause friction among managers who hold different ideologies.
First things first: a company’s ideology traces back to its mission, philosophy, and code of ethics. These three elements serve as the framework for the operating values that shape behaviors, decisions, and activities.
Google, for example, has a strong mission: “to organize the world’s information and make it universally accessible and useful.” Google’s business philosophy includes principles like “fast is better than slow” and “democracy on the web works.” Its most famous principle, of course, is “don’t be evil.” These values encompass the company’s entire business ideology, which is reflected in its products and strategies.
Zappos, on the other hand, has a robust customer-service philosophy, one that gives every employee the prerogative to serve customers beyond the performance “manual.” Each employee is expected to use good judgment and discretion when serving customers.
For instance, when a customer once bought a pair of boots for her husband’s funeral, the Zappos employee handling the order sent her flowers on the company’s behalf. Zappos’s strong business philosophy gives employees the confidence to go above and beyond, time and again, without needing a supervisor’s sign-off.
Under Steve Jobs, Apple operated under the philosophy that “you shouldn’t ask customers what they want, because they don’t know.” This philosophy of innovation was behind the popularity of the iPod, the iPad, and the iPhone. And yes, Steve Jobs changed the way we buy and enjoy digital files, from audio to video, and the way we communicate using mobile phones. This “we know better than the customer” philosophy remains a core Apple ideology, and it explains why the company’s products have repeatedly reshaped the technology industry.
Google’s code of ethics, or code of conduct, further clarifies how to behave in specific situations, such as conflicts of interest, customer service, and confidentiality. Zappos and Nordstrom have a similar code of conduct around “going above and beyond” when dealing with customers. As long as the customer’s best interest is protected, the decision is considered appropriate.
With these three elements of business ideology as a guide, employees can perform with greater confidence. However, when a company is run by managers who hold different ideologies, conflicts will surface. The company’s leader is then expected to reconcile these differences, ideally well before they arise.
A leader can do at least three things when confronting differing business ideologies.
First, hire the right person with the right temperament and the right ideology. This will reduce the odds of a problematic ideological clash from the outset.
Second, lead by example. Actions speak louder than words. A leader who acts in accordance with their values will unite their followers, much like a conductor leading an orchestra. Staying constantly aware of one’s values will therefore be of great help in daily decision-making.
Third, correct mistakes immediately. When an action does not align with the company’s approved ideology, correct it right away. Don’t wait until the next results meeting. This way, team members will understand exactly what should have been done differently.
Finally, leading through ideological differences requires more than simply flagging whether an action is aligned or not. It requires a deep understanding of what ideology actually is and how it applies to behaviors, decisions, and actions.
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Jose Ruiz is CEO and Managing Partner of Alder Koten.