Seventh and last entry in the series of 7 posts in which we are exposing in detail the McKinsey 7S Model. This time it is the turn of the “Shared values” variable.
Shared values play a fundamental role in business strategy. These values act as a solid foundation on which to build an organization’s decisions and actions. In this way, they directly impact its performance, culture, internal cohesion and, ultimately, its long-term sustainable success.
First, shared values create a distinctive corporate identity and culture. By defining common ethical principles, behaviors and attitudes, companies are able to unify their teams around a shared vision and mission. This drives internal cohesion, fosters a sense of belonging and purpose, and attracts like-minded talent that aligns with those values.
McKinsey 7S Model: Shared values
Shared values act as guides for decision making and strategy formulation. When all members of the organization share a set of fundamental principles, alignment in decision making is facilitated. This ensures that decisions are aligned with the company’s long-term goals and objectives. This reduces the likelihood of internal conflict and allows for greater agility and adaptability in a constantly changing business environment.
Therefore, shared values strengthen relationships with customers and other stakeholders. When a company acts in accordance with ethical principles and transparent values, it builds trust and loyalty in its customer base. Values can also be a powerful magnet to attract investors, partners and suppliers who share a similar philosophy.
They also have an impact on the company’s reputation and its image in the public eye. Positive reputation can lead to increased market share and consumer preference.
Finally, shared values reinforce organizational resilience. In times of crisis or challenge, companies with strong values can remain steadfast in their approach, make tough decisions and adapt without compromising their long-term vision. This enables them to overcome obstacles and continue to move toward success.
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