From Well-Managed to Values-Led
In the 21st Century, most companies are - or can claim to be - well-managed. They have made great strides toward efficiency, focusing on corporate structures, operational processes, and performance excellence.
For the most part, companies are successful at what they do. They can recognize themselves as Well-Managed, as depicted in this chart.
However, in the face of increasingly complex globally competitive markets, it is no longer enough to simply be efficient and well-managed.
How do organizations handle random complexity?
How do they compete innovatively?
How do they enter new markets?
How do they respond to emerging technologies and changing expectations?
The challenge is no longer only operational excellence. The challenge is organizational effectiveness.
How do companies move beyond efficiency to create lasting value in the face of what Michael Porter identified as the five competitive forces shaping global markets?
How do they operationalize Porter's value chain to focus not only on products and services produced, but on the value created?
How do they institutionalize the insights of Peter Senge's The Fifth Discipline and become learning organizations capable of embracing complexity?
What We Do vs. How We Do It
Dov Seidman shifted the corporate conversation in his book How: Why How We Do Anything Means Everything in Business (and in Life). His argument was simple but profound:
Success is no longer determined only by what we do. It is determined by how we do it.
It takes values-driven leadership to transform an organization from well-managed to motivationally-led.
The values-driven leader builds a self-governed organizational culture - one where individuals understand not only what they must accomplish, but why it matters.
The Values-Driven Leader
In a values-driven organization, the leader:
- Has vision, communicates openly, and enlists others.
- Assumes responsibility.
- Plans and implements.
- Builds succession and continuity.
- Maintains an “in spite of” mindset - moving forward despite barriers and setbacks.
- Confronts complexity and ambiguity.
- Inspires others through principles, not simply position.
- Is rigorous about understanding the truth of the present.
- Reflects on personal capacity and actions.
- Takes calculated risks.
- Pursues significance, not simply success.
By contrast, the values-driven leader does not:
- Focus only on short-term outcomes.
- Hide behind a lack of transparency.
- Depend on heroics.
- Operate from a “because of” mindset - simply following rules and circumstances.
- Seek simplicity when complexity must be embraced.
- Rely only on formal authority rather than moral authority.
- Make decisions based only on immediate practicality while ignoring future possibilities.
- Pursue winning at all costs.
- Avoid self-reflection.
- Choose the path of least resistance.
- Allow limiting beliefs to define what is possible.
The Challenge
In the 21st Century, leadership is no longer only about managing performance. It's about creating the conditions where people can contribute, adapt, learn, and grow.
It's about building organizations where values guide decisions - even when rules cannot anticipate every situation.
Can you meet the challenge?
How do you nurture your leadership capabilities?
How do you become a values-driven leader?
Your Leadership Challenge
Think about a decision you made recently where there was no perfect answer.
Ask yourself:
- Did I make the decision primarily by following a rule, process, or precedent?
- What values guided my decision?
- Would I be comfortable if everyone in my organization made similar decisions using those same values?
Then ask:
Am I building a team that waits for instructions—or a team that understands what is right to do?