IT HR подкаст 66 _ MASTER

IT HR подкаст 66 _ MASTER

Introduction to the Podcast

Welcome and Technical Setup

  • The host, Alena Petrova, checks audio functionality and mentions a special router purchased for better connectivity.
  • Alena expresses excitement about the audience's presence across various platforms.

Topic Announcement

  • Today's discussion focuses on the company's mission: its necessity, objectives, and whether AI can assist in crafting it.
  • A reminder is given about the upcoming HRP conference in St. Petersburg on June 19-20, encouraging participation as speakers or attendees.

Guest Introductions

Introducing Guests

  • Alena introduces guests Alla Guzova and Svetlana Grinkova, inviting them to share their backgrounds.

Alla Guzova

  • Alla shares her new role as Director of Strategy at a company specializing in integrated surgical operations and emphasizes her extensive knowledge of corporate branding and communications.

Svetlana Grinkova

  • Svetlana represents an HR blog with experience in both successful and unsuccessful mission implementations within companies, promising an engaging discussion on this critical topic.

The Role of Company Mission

Discussion on Company Mission

  • Alena poses a fundamental question regarding whether a company mission is merely a trend or an essential management tool that genuinely benefits organizations.

Svetlana's Perspective

  • Svetlana argues that while not mandatory, if a mission exists, it should serve practical purposes beyond mere decoration; it must provide strategic direction during changes or growth phases within the company.

Importance for Employees

  • She highlights how candidates assess potential employers based on their understanding of the company's mission, making it crucial for attracting talent and guiding employee decisions.

Effective Implementation

  • A well-crafted mission acts as a decision-making language during conflicts; however, if imposed without proper integration into company culture, it risks becoming ineffective or irrelevant over time.

Mission and Business Ethics

The Role of Mission in Business

  • Discussion on the importance of a mission that transcends mere profit, suggesting that if a company cannot sacrifice for its mission, it may not have been genuine.
  • Inquiry into whether the concept of "cargo cult" applies to businesses with lofty missions; highlights the need for clarity in purpose.

Historical Perspectives on Business Responsibility

  • Reference to Milton Friedman’s views from his 1962 book "Capitalism and Freedom," emphasizing that a business's sole social responsibility is to increase profits while adhering to fair competition rules.
  • Many businesses today operate under Friedman's principles, asserting that their only mission is profit generation.

Evolution of Economic Thought

  • Shift in economic paradigms during the 1970s and 1980s led to new inspiring phrases about business missions, which are often pragmatic rather than idealistic.
  • Agreement with previous speaker on how missions can unify teams and improve employee retention but also serve as strategic guidelines for business operations.

Examples of Effective Missions

  • Tesla's mission focuses on accelerating the world's transition to sustainable energy without explicitly mentioning electric cars, allowing flexibility in future endeavors.
  • Patagonia’s mission statement emphasizes environmental conservation over profit-making, showcasing a commitment beyond just selling products.

The Complexity of Corporate Missions

  • Discussion about how some companies develop missions primarily due to investor pressure or marketability rather than genuine intent.
  • Personal anecdote about working in industries like gambling or alcohol where employees questioned their purpose despite good conditions; highlights the disconnect between product offerings and personal fulfillment.

Individual Purpose vs. Corporate Mission

  • Emphasis on how individual motivations can vary widely; people often seek deeper meaning when considering career changes or life goals.
  • Example illustrating different paths one might take based on personal interests—teaching versus entrepreneurship—demonstrating diverse interpretations of one's mission.

Discussion on Mission and Management

The Nature of Global Goals

  • The conversation begins with the idea that global goals are often unattainable, likening them to a horizon that continually shifts away from reach.
  • A positive example is given regarding Tesla's ability to transform and launch new products while remaining true to its core identity.

Differences in Management Approaches

  • A question arises about the differences between Western and domestic management styles, particularly concerning their relationship with mission statements.
  • It is noted that sometimes the implementation of missions can be trend-driven rather than genuinely meaningful, serving as a tool for personnel management.

Rules and Principles in Business

  • The discussion emphasizes that just like sports have rules for winning, companies need missions, principles, and values to align actions towards common goals.
  • There’s a contrast drawn between Western missions being more rational and globally oriented versus domestic ones being more results-focused.

Crafting Effective Missions

  • An example is shared where a company developed a mission centered around customer care with clear actionable verbs aimed at all employee levels.
  • The importance of making the mission understandable for every employee is highlighted; it should guide daily practices while aiming for broader ambitions.

Cultural Perspectives on Purpose

  • One speaker shares insights from their MBA experience in England, noting how sustainability is deeply intertwined with mission statements in Western contexts.
  • There's an emphasis on meaningful work—comparing mundane tasks to building something significant (like a temple)—to illustrate the depth of purpose in business activities.

Consciousness in Business Practices

  • The conversation touches upon the concept of consciousness within business operations, questioning motivations behind earning money and societal contributions.
  • It’s acknowledged that while terms like "consciousness" may be overused or misinterpreted domestically, they still reflect an awareness of purpose in business endeavors.

Implementing Mission as a Tool

  • A key point made is that leadership must cascade the mission down through all levels of staff to ensure it becomes an effective operational tool.
  • Insights are shared about adapting missions based on specific goals within organizations rather than viewing them solely as lofty ideals.

Understanding Mission and Goals in Organizations

The Nature of Mission vs. Goals

  • The speaker discusses the difference between missions and goals, emphasizing that while goals can be achieved and measured, a mission is an ongoing journey that cannot be fully attained.
  • In their company, there exists a long-term global goal set for ten years, which transcends strategic objectives and is described as abstract yet beautiful.

Hierarchical Structure of Objectives

  • The speaker outlines a four-level system of goal-setting that includes an ideological layer where both the mission and the ten-year global goal reside, cascading down to five-year and one-year objectives.
  • It is crucial for these elements to be integrated into the organizational model and management systems; without this integration, they are unlikely to succeed.

Importance of Employee Engagement with Mission

  • There’s a consensus on the necessity for employees to understand how the mission relates to their work; simply having a mission statement displayed does not suffice.
  • The speaker raises concerns about whether the mission influences hiring practices or employee recognition within the organization.

Common Pitfalls in Defining Missions

  • A significant error organizations make is creating generic missions similar to others without understanding their unique purpose or failing to implement them effectively.
  • Merely having a mission statement without practical application leads to disengagement among employees who may not even remember it.

Real-world Examples Highlighting Missteps

  • An anecdote illustrates how even high-ranking officials can forget core values if they are not internalized; this reflects broader issues in organizational culture regarding mission awareness.
  • The discussion emphasizes that crafting a meaningful mission requires collective input from leadership rather than relying on pre-existing documents.

Understanding the Importance of Mission in Organizations

The Role of Mission in Employee Engagement

  • Every employee, including top managers, should understand their role and its impact on the company's mission. This understanding is crucial for motivation and alignment.
  • The initial evening with the company focused entirely on defining the mission, which became a foundation for subsequent changes in retail operations.
  • A comprehensive project was developed to implement the mission over six months, emphasizing communication and acceptance among employees.
  • Various tools were utilized to ensure that employees not only understood but could articulate how their actions influenced the mission during challenging situations.
  • Visual artifacts were integrated into all touchpoints with candidates and current employees to embed the mission into daily life.

Unique Mission Formulation

  • The uniqueness of a company's mission does not lie solely in its wording; it must reflect unique meanings specific to that organization.
  • Crafting a mission involves extracting unique insights from within the team rather than merely adopting phrases from other companies.
  • While many companies may share similar missions, what matters is how these resonate uniquely within each organization based on their values and beliefs.
  • Distinguishing between a "mission statement" and broader concepts like vision, strategy, values, and principles is essential for clarity in organizational identity.

Strategic Sessions for Mission Development

  • Strategic sessions aimed at developing a mission can reveal underlying disagreements within teams or leadership about direction and priorities.
  • These discussions often highlight conflicts among owners or stakeholders that need resolution before moving forward with a unified mission statement.
  • An example illustrates how misalignment between management perceptions of target audiences can lead to confusion about core messaging strategies.

Enhancing Communication Through Involvement

  • Engaging more people in developing the mission fosters ownership but requires balance to avoid overwhelming communication processes.
  • Facilitating dialogue helps bridge gaps in communication across different levels of an organization, enhancing overall coherence regarding shared goals.

Involvement of Leadership in Company Development

Importance of Leadership Engagement

  • The highest level of leadership must be involved in the development and formulation of a company's core values and DNA.
  • The owner plays a crucial role in setting direction; their active participation influences company culture significantly.
  • Companies often reflect their founders' characteristics, emphasizing the need for engaged ownership to facilitate smoother implementation of changes.

Resistance to Change

  • Resistance to change is inevitable within organizations; people generally prefer stability over disruption.
  • Only about 10-15% of individuals are early adopters willing to embrace innovation, while the majority resist change due to comfort with the status quo.

Strategies for Overcoming Resistance

  • Effective change requires more than just communication; it necessitates altering behaviors, organizational structures, and processes.
  • Involving employees in idea generation can reduce resistance when they feel ownership over the changes being implemented.

The Role of External Consultants vs. Internal Teams

Formulating Company Mission

  • Questions arise regarding whether companies can independently formulate their mission or if external consultants should be involved.

Utilizing AI Tools like ChatGPT

  • Engaging with tools like ChatGPT can be beneficial if users understand how to effectively prompt these systems for quality outputs.

Balancing Internal and External Input

  • While external consultants can provide valuable insights, companies must not fully delegate responsibility for ideation and meaning-making to them.

Extracting Internal Knowledge

  • Successful external consultants often bring out ideas that already exist within a company but have not been articulated or recognized internally.

Mission Development Insights

The Importance of Strategic Work in Mission Formulation

  • The discussion highlights the delicate balance in strategic work that defines a company's future direction, emphasizing the need for careful consideration during mission formulation.
  • A participant recalls their experience with a similar group size (10-12 people) involved in mission development, describing it as an intense and exhausting process akin to a challenging game.
  • Despite fatigue, the team focused on refining their mission statement, recognizing its significance and the necessity to avoid prolonged delays due to costly consultants.

Characteristics of a Good Mission Statement

  • The conversation shifts towards defining what constitutes a good mission statement, prompting participants to consider essential criteria or checklists for evaluation.
  • One participant shares their definition of a mission as an intangible idea guiding company existence and stakeholder service, suggesting it should represent long-term aspirations (10-20 years).

Qualities of Effective Mission Statements

  • A list of desirable attributes for effective missions is discussed: uniqueness in meaning rather than wording; conciseness for memorability; inspiration to motivate stakeholders; clarity to avoid ambiguity; and sincerity reflecting genuine company values.
  • The importance of being inspiring is emphasized, with the notion that missions should encourage forward-thinking and ambition.

Realism vs. Aspirational Nature of Missions

  • There’s debate over whether missions should be realistic. Some argue they can be aspirational or even unrealistic, serving as dreams that inspire rather than mere goals.

Practical Application of Mission Statements

  • From an HR perspective, it's crucial that employees can articulate the mission without needing reference materials. This understanding connects individual contributions to broader company objectives.
  • An anecdote illustrates how referencing the mission during decision-making processes signifies its effectiveness within organizational discussions.
  • A specific example is provided where customer-centric decisions were made based on the company's mission statement, demonstrating its practical application beyond profit motives.

Understanding the Integration of Mission in Corporate Culture

The Role of Mission in HR Processes

  • The speaker emphasizes that a working mission is effectively integrated into all processes, particularly HR. Competencies derived from the company's mission are used during recruitment and evaluation.
  • During onboarding, new employees are immersed in the company's principles and rules aligned with its mission. Evaluation processes assess these competencies to ensure alignment with desired behaviors.
  • Rituals and annual events reinforce these competencies over time, creating a lasting impact rather than a one-time implementation. Special publications celebrate employee success stories that reflect the company’s mission.

Recognition and Motivation Tied to Mission

  • Employees demonstrating desired behaviors are recognized through awards at events, fostering motivation and reinforcing the mission's importance within the corporate culture.
  • The mission serves as a criterion for decision-making, helping employees navigate complex situations while ensuring profitability remains a priority for sustainability.

Checklist for an Effective Mission

  • A basic checklist includes ensuring that the mission is embedded in processes, widely known among employees, and applicable in real-life activities.
  • The discussion transitions to how corporate culture elements relate to the effective implementation of missions across various organizational tools.

Insights on Corporate Culture Formation

  • Reference is made to Edgar Schein's article on corporate culture formation by founders, highlighting ten mechanisms that facilitate effective integration of values and missions within organizations.
  • Various aspects such as hiring practices, reward programs, and termination processes contribute significantly to making a mission functional within an organization.

Product-Centric Approach to Mission

  • In contrast to previous experiences where HR led initiatives, current discussions focus on how product orientation aligns directly with the company’s mission from inception.
  • This approach simplifies restructuring HR processes since they align closely with business objectives driven by the overarching mission.

Distinction Between Values and Principles

  • Ongoing work involves defining distinct values and principles that support corporate culture but do not necessarily overlap or share origins with the company's mission.
  • There is recognition that missions can exist independently from principles or values; clarity in formulation allows for diverse interpretations while maintaining effectiveness across organizational functions.

Visualizing Company Concepts for Clarity

  • To communicate concepts like vision, mission, principles, and values effectively to employees, visual aids were created depicting pathways representing each concept's role within daily operations.
  • This visualization helps clarify what constitutes each element (mission as a path; principles as guiding posts), facilitating better understanding among staff members about their significance.

Discussion on Strategic Management and Company Values

Importance of Visualization in Strategy

  • Maxim emphasizes the significance of visualization in strategic management, highlighting it as a guiding principle that stems from the company's mission and values.
  • The conversation acknowledges the challenge of discussing such an important topic but aims to conclude with actionable insights.

Recommendations for Further Reading

  • Svetlana suggests reading "Built to Last," which discusses how companies reflect their founders' principles and values, reinforcing the idea that these elements shape company strategy.
  • She also mentions books about corporate culture, including one focused on Starbucks, illustrating how missions are created and integrated into business practices.

Insights on Corporate Values

  • Svetlana notes that stories from other companies can inspire new missions without direct imitation, emphasizing extracting essence rather than copying.
  • Val recommends Edgar Schein's article on aligning company values with founder beliefs, stressing practical applications over theoretical discussions.

Observations on Consistency in Business Practices

  • Val critiques Simon Sinek's "Start With Why," suggesting a focus instead on observing businesses for consistency between declared values and actual practices.
  • IKEA is highlighted as a prime example of a company living by its foundational principles since the 1970s, showcasing enduring mission alignment.

Evolution of Company Missions

  • Val argues that while some companies maintain consistent missions over time (like IKEA), others must adapt as they evolve—comparing this to human development.
  • She warns against viewing missions as immutable; businesses should be flexible to change their missions when necessary due to market dynamics or internal growth.

Mission and Strategy in Business

The Essence of Company Mission

  • The discussion emphasizes the importance of a company's mission, likening it to the "soul" of the organization, which guides its existence and operations.
  • A metaphor is introduced where strategy is compared to the "brain," suggesting that while the mission provides purpose, strategy outlines how to achieve it.
  • Participants express satisfaction with the conversation, highlighting both practical recommendations and philosophical discussions about company missions.

Key Questions Raised

  • The conversation raises critical questions regarding the formulation of a company's mission:
  • Is it necessary for all employees to be involved in this process?
  • Can only owners effectively communicate and formulate the mission?
  • Should there be a grounding or practical application of the mission within business operations?