Institutional values, whether explicitly stated and formalized or implicit and informal, influence day-to-day practices as well as stakeholder specific goals and strategies. Some values as stewardship or mutuality are cornerstones for collaborative organizations. Institutional values will establish how the internal and external relationships and exchanges are developed, and to a large extent, whether or not they are successful.
Institutions have a variety of important stakeholders, and in some cases, the interest and demands of those stakeholders can conflict with one another. Thus, it is very important to carefully craft an institutional culture based on sound values, principles and normative premises that will provide the context within which adequate decision-making takes place. We are referring to decisions that support the long-term or the built to last perspective for organizations, and the dynamic stability of its relationships.
As the great theorist Mary Follet instructed over fifty years ago, businesses should realize that it is responsible to do something higher than the public will of a community, meaning that service to the society does not lie wholly in obeying, but in directing, educating and leading the public. A robust institutional culture can help organizations of all kinds to define something higher as a platform for their core undertakings.
Some of these values are, for example, system thinking as a central framework for collaboration in that it places institutions within the web of relationships that define and sustain them. A system view of the world implies a focus on the whole, not just the constituent parts. To identify and cultivate productive relationships, organizations and their portfolios of human capital must understand how they fit into the larger systems of which they are part. System thinking also signifies that leaders are actively involved in constructing reality, in interpreting information, and in making meaning for themselves and with others.
A strong service orientation involves a set of values and beliefs that puts helping people over the pursuit of an exclusive self-interest. Within these set of values and beliefs, employees, for example, see themselves as stewards of the institution and, beyond that, the community. Individuals who see themselves as stewards are naturally committed to ensuring the well-being of others and the sustainability of the institution and the broader society. Service is also aligned with the notion of reciprocity, the idea that give and takes are necessary and desirable sides of any constructive or healthy relationship. In this sense, everyone is a public servant and a private actor at the same time.
Authenticity and trust are vital ingredients for relationships to grow and for developing a sense that the other parties have their best interests at heart and they will act fairly. Trust is essential for building strong relationships.
The understanding that everyone has a contribution to make and each of the participants has wisdom and holds part of the truth is a core design premise for enhancing relationships. This goes hand-to-hand with the need of recognizing with generosity the contribution of all the members of a given social system.
Finally, there is the spirit of curiosity, risk taking, experimentation and willingness to innovate. A great society, and great institutions are built on central ideas, and in order to put ideas into actions, institutions and their leaders have to take risks and learn from research, situations, and experiences for identifying opportunities, develop innovative solutions, and continuously adapt to changing realities. This will occur only if the institutional culture is dynamic and supports innovation.
Copyright 2006 QBS, Inc.
