(P) Leaders, values and culture

Dr. Robert Hogan, founder of Hogan Assessment Systems

The CEO’s job is like no other in the organization. Broadly speaking this huge responsibility boils down to two basic functions: setting the organization’s aspirations and mobilizing the organization to meet them. We deliberately use the word aspirations because to set direction for an organization is more than just a cognitive exercise. Setting direction also has a strong component of emotion. The ultimate destination becomes something people in the organization want to reach; therefore, effective leadership taps into people’s core values and ensures everyone is striving toward the same goal. Leadership and Values Values are important to understanding leadership because they explain the focus and direction of people’s actions. In our work, we use the Motives, Values, and Preferences Inventory (MVPI), a 10-scale instrument designed to assess an individual’s core values. While studying the relationship between values and leadership, we uncovered four different values clusters. Each of the clusters produces a coherent, explicit managerial character. They are: the strategist, the analyst, the mentor, and the innovator. The Strategist Executives who use this approach are driven by power, recognition, and excitement. Interpersonally, they are forceful and decisive. Accordingly, they create a work environment that is competitive and confrontational. For them, devising a winning strategy is the highest priority. As a result, time is devoted largely to matters external to the organization’s operations—customers, competitors, technological advances, and market trends—as opposed to internal matters such as hiring or control systems. They rely on employees to whom they can delegate the day-to-day operation of their organizations, as well as those who possess excellent analytical and planning skills. The Analyst Executives who exhibit this character desire to control resources and pursue stability and predictability. Interpersonally, they are polite and businesslike. Accordingly, the internal climate of the organization is formal and structured. Their primary concern is creating an efficient system, one that provides customers with a consistent and risk-free experience. As a result, this person maintains the structure and flow of work. In addition, they devote much of their time to developing detailed prescriptive policies, procedures, and rewards to reinforce desired behaviors. Lastly, these executives prize experience and usually promote people with many years of service to the corporate team. The Mentor These executives value collaboration, helping others, and maintaining high standards. Interpersonally, they are open, warm, and friendly; thus, they create an internal climate that is comfortable and cordial. Their primary job is to hire and cultivate people. Accordingly, these executives spend the majority of their time in personnel-related activities, such as recruiting, performance reviews, and career planning. For them, superior execution is imperative, and this depends upon individuals who will act intelligently, swiftly, and appropriately without constant supervision. Finally, because they strive for continuity, they prize employees who embody the “company way.”