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<h1 class="nist-page__title">C V = D (Culture Minus Values Equals Destiny)</h1>
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<div class="daterange"><time datetime="2020-12-15T12:00:00Z">December 15, 2020</time>
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<span>By: </span>
<a href="/blogs/blogrige/authors/harry-hertz-baldrige-cheermudgeon" hreflang="en">Harry Hertz “The Baldrige Cheermudgeon”</a>
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<p>I have long believed that culture, senior leadership, and strategy set the tone for organizational success. But culture is unique because a healthy culture has to be set and demonstrated by senior leadership and is the basis for employee engagement and therefore customer loyalty, satisfaction, or dissatisfaction. Furthermore, strategic success is accelerated by—and maybe even achieved through—a healthy organizational culture.</p><p>I also believe organizational <em>Destiny</em> can take one of three directions depending on organizational culture. When C V &gt; 0, that is, when culture builds on and surpasses the basic core values of the organization, the “<em>D</em>” becomes <em>Delight</em> for employees, customers, and other stakeholders. When C V = 0, that is, culture exactly follows the core values, the “<em>D</em>” becomes <em>Deliver</em>; the organization is poised to deliver on its brand promise. When C V &lt; 0, that is, the culture does not demonstrate how the organization is living up to stated core values, the “<em>D</em>” becomes either <em>Disappointment</em> or <em>Disaster</em> for employees, customers, and other stakeholders.</p><p>Given the importance of a healthy organizational culture, I explore core values, culture, and how organizations establish culture (positive and negative) in this Insights column. I have relied on my own observations from years of looking at organizations and, most important, seeing role-model organizations, as exemplified by Baldrige Award recipients. I have also looked at a body of studies and scholarly works on the topic. I will reference some of them as I share my insights with you.</p><p>I will look at culture and values from nine perspectives: definitions of the concepts; a focus on core values; a focus on culture; establishing and propagating a healthy organizational culture; hiring for cultural fit; when culture and values are misaligned; assessing organizational culture; the Baldrige perspective on culture and values; and role-model performance.</p><h3>Definitions of Values and Culture</h3><p>There is frequent confusion about the definitions of core <em>values</em> and <em>culture</em>. And some organizations use the terms interchangeably. According to a study authored by <a href="https://sloanreview.mit.edu/article/when-it-comes-to-culture-does-your-company-walk-the-talk/">D. Sull, S. Turconi, and C. Sull in the July 2020 MIT Sloan Management Review (SMR)</a>, there are more than 50 distinct definitions of <em>corporate culture</em> in the academic literature. Furthermore, 72% of the companies in their study of nearly 700 large companies referred to the companys culture as values or core values. They are not the same.</p><p>According to the <a href="/baldrige/products-services/baldrige-excellence-builder" data-entity-type="node" data-entity-uuid="8a100b91-e1be-46aa-9365-bb9d4107e50f" data-entity-substitution="canonical" title="Baldrige Excellence Builder"><em>Baldrige Excellence Builder</em></a>, <em>values</em> are “the guiding principles and behaviors that embody how your organization and its people are expected to operate.” They can define what makes your organization unique.</p><p>I like to define <em>culture</em> as “the shared beliefs, norms, and values that are (uniquely) practiced within your organization.” In other words, culture is the behavior demonstrated in your organization when no one is looking.</p><p>According to an <a href="https://www.virgin.com/about-virgin/latest/difference-between-culture-and-values">editorial on the Virgin.com website by Alex Bard</a> (CEO of Campaign Monitor), core values are foundational, deeply held principles, while culture is formed by the organizations people and is subject to variation and gradual change. A healthy organizational culture stems from the organizations values. One of the most unique company values I have read is the “number one value” of Campaign Monitor. True to its Australian roots, the value is “make mum proud.” It serves as a constant reinfor
<img loading="lazy" src="/sites/default/files/styles/960_x_960_limit/public/images/2018/12/14/2019-2020-baldrige-excellence-framework-cover.jpg?itok=jpscXFFP" width="224" height="288" alt="2019-2020 Baldrige Excellence Framework Business/Nonprofit cover artwork" title="2019-2020 Baldrige Excellence Framework Business/Nonprofit cover" typeof="foaf:Image">
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</div><div class="grid-col-9"><h2>Baldrige Excellence Framework</h2><p>The <a href="https://www.nist.gov/baldrige/publications/baldrige-excellence-framework">Baldrige Excellence Framework</a> has empowered organizations to accomplish their missions, improve results, and become more competitive. It includes the Criteria for Performance Excellence, core values and concepts, and guidelines for evaluating your processes and results.</p><h3><a href="https://www.nist.gov/baldrige/publications/baldrige-excellence-framework"><strong>Purchase your copy today!</strong></a></h3><p>Available versions: <a href="https://www.nist.gov/baldrige/publications/baldrige-excellence-framework/businessnonprofit">Business/Nonprofit</a>, <a href="https://www.nist.gov/baldrige/publications/baldrige-excellence-framework/education">Education</a>, and <a href="https://www.nist.gov/baldrige/publications/baldrige-excellence-framework/health-care">Health Care</a></p></div></div><hr>
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<a href="/blogrige-categories/baldrige-excellence-framework-criteria" hreflang="en">Baldrige Excellence Framework (Criteria)</a> and <a href="/blogrige-categories/insights-road-performance-excellence" hreflang="en">Insights on the Road to Performance Excellence</a></div>
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<h3 class="nist-teaser__title"><a href="/blogs/blogrige/authors/harry-hertz-baldrige-cheermudgeon"><span>Harry Hertz “The Baldrige Cheermudgeon”</span>
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<div class="text-with-summary"><p>I am Harry Hertz, the Baldrige Cheermudgeon, and Director Emeritus of the Baldrige Program. I joined the Program in 1992 after a decade in management in the analytical chemistry and chemical sciences laboratories at the National Institute of Standards and Technology (NIST), the home of the Baldrige Program. I started my career at NIST (NBS) as a bench analytical chemist.</p>
<p>My favorite aspects of the Baldrige Program are: (1) the opportunity to interact with leading thinkers from all sectors of the U.S. economy who serve as volunteers in the Baldrige Program, who participate in the Baldrige Executive Fellows Program, and who represent Award applicants at the forefront of the continuous journey to performance excellence, and (2) the intellectual challenge of synthesizing ideas from leading thinkers and from personal research into <em>Insights on the Road to Performance Excellence</em> and other blogs that tackle challenges at the “leading edge of validated leadership and performance practice,” and contribute to&nbsp;the continuous revision of the Baldrige Performance Excellence Framework.</p>
<p>Outside of work I spend my time with family (including three beautiful granddaughters), exercising, baking bread, traveling, educating tomorrows leaders, and participating on various boards and board committees.</p></div>
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<div class="text-with-summary"> In a blog last week, I provided a multitude of reasons to apply to be a 2025 Baldrige examiner®. The benefits of serving in this volunteer role were conveyed by
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<div class="daterange"><time datetime="2025-01-08T12:00:00Z">January 8, 2025</time>
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<div class="text-with-summary"> IYKYK. * But if you dont know why its beneficial to be a Baldrige examiner®, I invite you to find out what experienced Baldrige examiners have discovered
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