2. PwC
Value as an enabler of growth
A values driven organisation utilises
values as levers to influence
organisational culture to enable process
excellence. An organisation’s values must
be developed through collaboration and
consultation with the organisation and
must be aligned to the organisation’s
strategy and embedded within its
operations.
Whilst most organisations are typically
value driven, there are two critical issues
that are often overlooked. The first is if
the values are conscious, shared and lived
by the organisation whilst the second is if
the values are operationalised within the
organisation.
Why revisit values
2
Research demonstrates that values driven
organisations have superior profit
performancesof up to 750 times higher than
companies without cultures of shared value
and adaptability (Kotter and Heskett,
Corporate Culture and Performance).
The values driven organisation must
consciously create the future it desires by
aligning the paradigmsof people, customers,
community and products to develop a
consistent ethical basis for decision making.
The values bridge people aspirations to the
corporatesoul. The values stem the tide of
disenchantment converting it instead to
positive engagement.
At PwC, our model
for a values driven
organisationwill
guide you through
your transformation
journey from
definitionand
formulationof
values, through to
the alignment and
integration of
operationalising
values to realise
benefits.
Shape
Drives
Influence
Enables
Align to
Strategy
Embed in
Operations
Typically organisations start with process changes to drive behaviour with limited success
VDO will leverage values to enable greater success in process excellence
StartEnd
Start End
You need a
high
performance
culture
Your recent
products failed
to deliver
expected margin
improvements
Your talent lack
initiativeand
innovation
Your
competition
is growing
faster than
you
Your
operating
costs are out
of control
Your
process
changes are
repeatedly
failing
Your
customers
are
disengaged
and
dissatisfied
Risk
management is
an issue in
your
organisation
Your staff
turnover is
unusually
high
3. PwC 3
We will help define new values or
refresh existing ones to better reflect
the beliefs and principles of the
organisation.
Values driven organisations are
effective only when the values
espoused are collectively determined
by the organisation as opposed to
simply selected by the leadership.
We guide your value development
through the quad lenses of people,
products, community and customers.
Shaping your values
Typicallyexternal facing values of
community and customers will include
social concerns such as the environment
and customer experience.
Internal facing values of people and
productswill include commitment for
continuous improvement, leadership by
example, ethics and product research.
Each paradigmwill have a customised
set of metrics to guide value formation
and definition for the organisation
through an inclusive facilitative
approach.
Values driven organisations tend to
have more emphasis on self-prescriptive
behaviour based on their values and
thus prescriptive governance for human
capital management is reduced.
A culture of self-governance will be
inculcated within the organisation
which will drive behaviour to enable the
maintenance of a high performance
culture.
People
Customers
Community
Products
Vision tells you where you are headed
Mission outlines what you will need to do to get there
Values illustrate how you will get there
Our new tool which gives you a snapshot
of where you are and an in-depth
analysis of how to get where you need to
be.
4. PwC 4
Resurfacing Embedding & Sustaining
Strategy Formulation& Validation
Business Case Definition & Analysis
Strategic Planning &
Implementation
VISION
Pillar 1
Pillar 2
Pillar 3
Pillar 4
Value 2
Value 3
Value 4
Value 5
Value 6
Metrics
Value 1
Metrics
KPI
KPI
KPI
KPI
KVI
KVI
KVI
KVI
KVI
CORPORATE
CORPORATE
INDIVIDUAL
INDIVIDUAL
Tools
Achieved
Partially achieved
Not achieved
Surveys Value Dashboards ContinuousEducation
Operationalising Values
The alignment of values to strategy will
ensure that values will guide strategic
initiatives along a clearly defined path.
The embedding of values into the
operations of the organisation through
linkage to KPIs and KVIs will enable
management with a tool to shape
behaviour to enable cultural change.
The use of other tools such as surveys
will provide periodic pulse checks on
progress and indicate areas for
attention.
Thus it is possible to make progressive
advances to the organisational culture
with a view to achieving a clearly
defined end state.
5. PwC
Source: Thomas T., Schermerhorn J.R., Dienhart J.W., Strategic Leadership of Ethical Behaviour in Business, Academy
of Management Executive, Vol.18, No.2, 2004.
Sharon Beder, 'Putting the Boot In', The Ecologist 32(3), April 2002, pp. 24-28, 66-7
McLean & Elkind, The Smartest Guys in the Room, 2003.
Mall’s sarcastic ‘magic’ remark gets a virtual bashing, Yahoo! News, May 31, 2012.
“A global utilities company
scandalgrew out of a steady
accumulationof habits and
values and actions that began
years before and finally
spiraled out of control.”
- McLean & Elkind (2003), The Smartest
Guys in the Room
Canbemanagedthrough“prescription”andprocess
changes
Canbemanagedthrough“self-prescription”,processandcultural
changes
Governmentfinesand
penalties
Administrativeandaudit
Legalandinvestigative
Remedialeducation
Corrective actions
Governmentoversight
Customerdefections
Loss ofreputation
Employee cynicism
Lostemployeemorale
Employee turnover
Governmentcynicism
Governmentregulation
Level1Costs
Level2Costs
Level3Costs
Lessdamagingcosts
Leastunderstated
Getsmoreexecutive
attention
Moredamagingcosts
Mostunderstated
Getslessexecutive
attention
As the digital age progresses, businesses jump onto the social
media bandwagon in the hopes of getting a wider reach. But
knowing how to use a social media platform is not enough –
businesses have to embed and portray the right culture and
identity at the risk of harming their brand and reputation
A prominent sportswear
apparel came under fire for its
child labor practices and poor
working conditions.By the
late 1990s, this company had
become synonymous with
sweatshop labour, and the
damage to their reputation
was beginning to show in
their account books.
5
Visibility of Cost
High Low
FinancialImpact
ThousandsBillions
Cost of ignoring values and culture
6. PwC
How we can help you
Value
definition
and validation
1
Value alignment
to strategy and
embedding to
operations
2
Value
implementation
and benefits
realisation
3
ResurfacingValues
Our Offerings What We Do
We help you by assessing the relevance of current
values and facilitating the exploration of new values
through an inclusive approach that aims to obtain the
support and collaborationof the organisation for new
ways of working. We involve the organisation with
developing value themes and initiatives and work with
stakeholders to assign owners for key initiatives.
We guide your organisation in defining your concept
for value transformation.This will include identifying
the benefits of a values driven organisation be it
financial or non-financial.Our research team will draw
on our global thought leadership and subject matter
experts to investigate new value paradigms or refresh
existing ones whilst carefully identifying industry
trends and analysing shifting global trends. Our
guidance extends to developing comparative analysis of
your organisation to benchmark against industry and
competitors. Our facilitative approach of guiding the
organisation utilising proven methodology aims to align
prioritized values to strategy and develop high level
implementationplans to operationalise your values to
achieve your vision.
Sustaining&Embedding
Values
We facilitate and guide the implementation of a value
framework to monitor, manage and influence culture in
the organisation to achieve business outcomes. Values
defined by the organisation are embedded into
operations by way of scorecards and dashboards that
link performance indicators to value indicators. The
tools provide for a mechanism that can influence and
shape organisational culture allowing for a highly
adaptable and change ready organisation.
6
7. PwC
Value definition and
validation
1
How we can help you
• Engage the organisation with defining and refreshing
organisational values
• Identify best in class features of values driven
organisations and tailor to individual requirements
• Obtain consensus from across the organisation on shared
values and beliefs
• Deploy organisation wide change management
communications
• Validate identified values with relation to value to
organisation and impact to market
7
Client What we did
Medical University We performed focus group interviews with internal and
external stakeholders to analyse their strengths and
weaknesses and identified opportunities and threats in
the current and potential future industry environment.
We then mapped the industry critical success factors
(strategic canvas) based upon the Medical University
against their peer group and best practices. By using the
Blue Ocean concept, participants were forced to think
out of the box and challenged the 5-year strategy to the
next level. As a result, a refined ambition was developed
for the coming 5 years. This ambition was translated
into strategy maps with key value driversand key
activities supporting the organisation’s strategic focus.
Implementation plans were also drawn up to align the
organisation, processes, systems and people to execute
the refined 5-year strategy.
8. PwC
How we can help you
8
Value alignment to
strategy and embedding
to operations
2
Client What we did
Media Company PwC facilitated the development and validation of
the company’s 5-year business plan through
workshops that were conducted with senior
management. The workshops were conducted to
agree on the overall strategy and assess the
viability of each business plan to determine
implementationpriority. Concepts such as the
Blue Ocean Strategy was shared to stimulate
participants to strategise how the company can
create uncontested market space and win out the
competition.Strategy canvases were also
developed and presented to discuss on the
strategy and positioning for the company’s core
product offerings. In addition to the overall
strategic business plan, a Human Resource and
Technologyblueprint were also developed to
support the implementation of the strategy.
• Prioritise organisational values identified
• Facilitate alignment of organisational values to strategy
• Develop tailored value driven framework
• Engage organisation to evaluate embedding options for
operationalising value framework
• Develop and assess suitable business cases
9. PwC
Client What we did
A Market Regulator PwCAS was engaged to review and improve business processes
within the organisation, with the aim of improving
effectiveness, efficiency and institutionalisation of key
processes. Two key areas were selected i.e. Performance,
Planning and Management (which includes Key Performance
Indicators) and Human Capital Management. The engagement
involved reviewing existing processes, conducting discussions
with key stakeholders, and improving/developing new policies
and procedures. In addition to the policies and procedures
developed, several new frameworks (e.g. a scorecard
frameworkand a succession management framework) were
also developed. Several 'roll-out' sessions were held to
communicate the changes made and address any concerns.
The engagement resulted in several new policies and
proceduresbeing developed and executed. Throughout the
engagement, PwCAS worked closely with an internal team, to
ensure that the project would be sustainable (after PwCAS's
formal involvement). The organisation now has an internal
team that is not only monitoring the progress of policies and
proceduresdeveloped, but are also undertaking new initiatives
to improve processes within the organisation.
Value implementation
and benefits realisation
3
How we can help you
• Develop and implement roadmap for value framework
implementation
• Develop roadmap of benefits to be realised
• Develop key value indicators and align to performance
framework
• Operate and review values driven organisational
framework through continuousorganisation wide
engagement
9
10. Naresh Alagan
Manager
Email: naresh.alagan@my.pwc.com
Direct line: 60 (3) 2173 0971
Mobile phone: 60(12) 546 1057
Fax: 60 (3) 2173 1288
Experience
Naresh works within PwC Consulting’s Strategy,
Sustainability and Transformation practice in Kuala
Lumpur. He has developed and implemented strategy
frameworks including governance and benefits
management for clients within the financial services,
education, telco and airline industries.
Naresh has proven expertise in building sustainable
revenue growth, identifying profitable opportunities,
developing strategic focus and applying consultative
techniques to deliver winning business solutions. He
has improved stakeholder value for organisations such
as Westpac Banking Corporation, Bankers Trust, Swiss
Banking Corporation, NRMA Finance, Rothmans, Lend
Lease, University of Sydney, Raidnet Australia,
Commercial Metals Company, Malaysia Airlines MRO
and Bursa Malaysia (Malaysian Securities Exchange).
Qualifications
• Bachelor of Law (Honours)
• Bachelor of Business (Accounting)
• Master of Management
• Master of Business
Administration (MBA)
• Certificate in Global Strategy and
Operations
Management
• Certificate in Legal Practice
• CPA Professional Program
• CPA Public Practice Program
• Lawyer – Supreme Court of NSW
Australia
• Accountant – CPA Australia
Our Team Thought
Leadership
This survey explores CEO confidence in their
company’s growth prospects, and how
they’re building local capabilities and
creating new stakeholder networks in new
markets. We spoke to 1,258 CEOs based in
60 countries, and carried out a further 38 in-
depth CEO interviews.
This report was prepared in cooperation with
the Economist Intelligence Unit and discusses
the outlook for six retail and consumer
products sub-sectors in Asia.
15th Annual Global CEO Survey
Strong & steady: 2011 Outlook for the
retail and consumer products sector in
Asia
Driving enterprise performance
This paper introduces and explains several
emerging developments in enterprise
information management (IM) that will
likely pave the way for dramatic advances in
the next two to five years. Big data mining,
discovery, unwritten knowledge, security,
social machines, cloud and mobile
enhancements, and the emergence of “The
Participative Web” are some of the
developing areas which will have significant
impact for individuals and organisations.
Qualifications
• PhD in Social Sciences
• Master in Social Sciences (German
Diploma)
Dr Jens Ballendowitsch
Associate Director
Email: dr.jens.ballendowitsch@my.pwc.com
Direct line: 60 (3) 2173 0600
Mobile phone: 60 (12) 323 0890
Fax: 60 (3) 2173 1288
Experience
Jens has extensive experience in the areas of
Employee, Customer Engagement and
Organisational Change. He has led consulting
engagements in various GLCs, MNCs and large local
companies in Malaysia, Germany and Australia.
Jens has significant expertise in data architecture
and dissemination strategy. In addition to this, he
has significantly developed thought leadership in the
areas of human governance and is an active speaker
and researcher in this area.
