FROM MANAGEMENT BY VALUES – MBV

TO

MANAGEMENT BY HABITS - MBH

GARCÍA and DOLAN versus FERNÁNDEZ AGUADO

Miguel Ángel Alcalá García-Rivera1

1Miguel Angel Alcalá (Madrid, 1975) After working for years in the family business he is currently Supervisor of the

Studies Department in the professional services firm Deloitte & Touche, where he was previously a member of the Audit Department, serving clients in the financial industry. He is General Manger of the International Association for Management Studies (ASIEMA in its Spanish acronym), an organization focusing on the study and dissemination of best management and corporate management practices. In addition to these activities, he is a member of the Advisory Board of the Newsletter “Finanzas Corporativas”, published by Firma de Información and of the Spanish Association of Accountancy and Corporate Administration. He has taken part as a speaker in various conferences on corporate strategy and setting up enterprises and is co-author of various books and monographic studies in the area of management and finance (including La entrevista de selección, CIE DOSSAT, Madrid, 2001, Proverbios para la empresa; sabiduría de siempre para directivos de hoy, CIE DOSSAT, Madrid, 2000, Gestionar ciudades. Implicaciones financieras, Banca & Finanzas, Madrid 2000 and Manual Práctico de Gestión y Dirección de Recursos Humanos, ISTPB, Madrid, 2000).

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Deloitte & Touche studies collection

CONTENTS

Introduction

The need for new forms of motivation

From MBO to MBV

Prudence, a habit for good governance

Some proposals

Is consensus possible?

The individual, a fragile reality

Practical considerations

The limitations of MBV

Promoting functional habits

Conclusions

Appendix I

Appendix 2

Appendix 3

Bibliographical references

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Introduction

In recent years much has been said about “Management by Values”. Many use this

term without understanding it fully and regard it as a kind of panacea which will solve all the

organizational problems that continually crop up.

Two Spanish thinkers have gone into this question in depth. They have done so

independently. They are Salvador García, professor of the Psychology of Organisations at the

University of Barcelona2; and Javier Fernández Aguado, professor of Politics and the

Management of Human Resources at the University of San Pablo in Madrid 3.

Considering the enormous relevance of the subject, the present study sets out to

analyse – albeit briefly – the most significant contributions of these writers and also to propose

guidelines for reflection and work. The aim throughout is to improve the methods of

government in organisations, whether they be business enterprises or not, both in Spain and

elsewhere.

Since this is a comparative study I will be quoting the original texts at length. I wish to

point out from the start that the work by García and Dolan, is both original and also reflects

many preceding theses on motivation (Maslow, X, Y theories, etc.). The various works in

which Fernández Aguado addresses the question of Management by Values have a somewhat

non-conformist tone and strongly reflect the author’s very thorough knowledge of both

classical thinkers and the best contemporary literature on Management. Nevertheless, these

2 Salvador García is professor of the Psychology of Organsations at the University of Barcelona, where he teaches courses on change management and other management skills in the ongoing Training centre of Les Heures. He holds a doctorate in Medicine and applies his former experience in the field of individual psychotherapy to the analysis and improvement of business organizations. He has also done postgraduate studies in the Training and Development of Managers at the University of Harvard. His work, Managing by Values (La Dirección por Valores), together with Shimon L. Dolan, was published by McGraw-Hill in the year 2000. 3 Javier Fernández Aguado has been cited on numerous occasions as one of Spain’s foremost experts on Management. His training and consulting expertise have been sought by many institutions, both in Spain and abroad. He has published around a dozen books on organizational governance: Liderar. Mil Consejos para un Directivo (Dossat, 2002, 3rd. Edition); Dirección por valores (Aeca, 2001); Dirigir y motivar equipos (Ariel, 2002); Dirigir personas en la empresa (Pirámide, 1999), etc. Some of his studies have been published in the United States, Ireland, Italy, Chile, Finland, as well as in Spain. Currently, he has been Advisor for Top management programmes in Deloitte & Touche’s Department of Human Capital.

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authors are Spain’s foremost experts and are frequently to be heard, sometimes as

opponents, in the main academic and business debates.

The need for new forms of motivation

Fernández Aguado explains that “the main purpose of a business entity is to make

profits (…). Profits, linked with other factors that make up the entrepreneur’s vision of the

project – improvement of the country, attaining social renown, creating jobs, ensuring his

children’s future- will always be a goal. Otherwise, one would not really be talking about a

business entity, but about a NON-PROFIT organisation. (…).

In a free market direct policies of the win/win type are rarely found, as the consumer

target is limited. (…).

Business activity, like it or no, is a permanent battle field. In this fray company

directors aim to reap the greatest advantages from each of the arms they possess. Thus, to

name but a few:

1.- Maximise the production department

2.- Design new marketing techniques;

3.- Find ways of shaving down personnel costs;

4.- Go over financial expenses repeatedly in order to reduce them.;

5.- Re-negotiate conditions with suppliers;

6.- Review sales prices and alight on the slightest opportunity to raise them.;

7.- Promote the R&D Department so as not to miss a chance against competitors.

etc.”.

For quite some time it has been overlooked that there is only one factor of undefined

capacity in an organisation: its people. The task of governing an enterprise largely implies

projection. Behaviour changes for good or for ill- producing beneficial or harmful habits for

directors and workers , -implying the profit and loss accounts of the company as a whole. All

this will be discussed in due course.

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After a feeling of initial satisfaction, most people gradually get disillusioned about the work they do. This issue has been studied by Fernández Aguado in a highly instructive text: Managing the imperfect4. Here it is stated that all projects have similar beginnings: a person, or a team are keen to launch a new product or service which is hoped in some way to change the habits of the people to whom it is addressed. In the case of a business entity, by enriching the instigator. In the case of Non-profit organisations, by launching onto the market some idea that improves the world. “Any initiative”, writes Fernández Aguado- requires on the part of its entrepreneurs (…), both stalwart will, desire to make their mark, the ability to run risks and to persuade others to collaborate, together with a significant need to achieve. (...), etc. In the initial phases (and later) those involved in the launch (...) are usually prepared to “sell their souls” in order to see the birth of their ideal. Their eagerness to see their initiative become reality is worth any sacrifice. Those involved appear to be blind to everything that is not relevant to this aim. They believe they are promoting something “immortal”, different, exclusive, something with revolutionary impact, that will change people’s lives... Without this streak of madness it would be hard to launch a new initiative. To be in touch with the ancient myths is necessary. Many people feel the healthy desire to undertake work that will change the planet, at least in part, and try to anticipate the effect their projects will have. Without such expectations – regardless of how benevolent the intentions behind the desired change are – man would never move forward. Every organisation, - every department, every business unit, etc. undergoes a phase of becoming mature. (…).In the case of non-profit organisations the salt frequently lingers a little longer: maybe (...)until the professional or personal decease of their main instigator (...). The capacity to get used to things is such that even something that appeared sublime at a given moment rarely continues to do so (…). Certain behaviour inevitably has to change over the years, in line with the corresponding growth of the institution. Even if the founder – the director, in general – is particularly receptive towards his/her collaborators, if the entity – the actual area- has grown, the following phenomena start to appear when the directors are not sufficiently on the mark: 1.- Distancing from the needs of those fighting in the trenches. The perspective also changes because the initial budgetary anxiety is no longer felt and there are reasonable available resources (...). 2.- Superfluous panegyrics and adulation start to emerge. Any work, action or gesture from the person in charge of the area or department may be disproportionately acclaimed by those around him/her. (...).

4 The edition published by la Caixa is no longer in print; this study is included in: Dirigir y motivar equipos. Claves para el buen gobierno, Ariel, 2002.

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3.- Rigid rules are imposed. These are sometimes ordered by the head of department, area or of the organization, but more often they are promoted by his/her colleagues. On the one hand these colleagues aim to defend him/her from superfluous tasks and on the other hand they hope that some titbit of power from above will fall to them. (...). 4.- To some extent, governing means that one must view things abstractly, draw conclusions. But there is a risk of over-simplifying and an artificial distance between management and subordinates can be established. (…) Exaggerated summary distorts reality. The insufficiency of information is frequently the result of not deigning to talk openly with “inferiors”, as though their views were partial or deformed. One reason for this distancing from a specific setback may be the belief that ignoring problems helps to avoid the arduous task of trying to overcome an obstacle. “. Beating institutionalism and maintaining a process where motivation remains high will

never be achieved through imitation, but as both Fernández Aguado and García and Dolan

repeatedly insist, - it must stem from the individual’s capacity and that of organisations to re-

invent themselves, to project “post-conventional” proposals.

The so-called Management by Values – MBV- is one step further in the search for

effective means of improving business (and other) organizations. There is no doubt that it

implies a deeper understanding of the various aspects that make up the individual. With all its

positive and negative sides it is currently in the balance and is also frequently on the lips of

today’s management.

From MBO to MBV

García, Dolan and Fernández Aguado all coincide in their belief that one of the factors

fuelling a theory such as Management by Objectives (or MBO) is the desire to have profitable

Human Resources at one’s disposal. But MBO has proved to be insufficient. As Edward

Cadbury aptly pointed out and as quoted by García and Dolan, “Reducing the worker to the

level of a living tool, with various bonus schemes to encourage him to spend his last ounce of

energy, while he is barred from initiative, judgment and freedom of movement must, in the

long-term, demoralise the workforce or more likely, will provoke sharp resentment and lead to

serious differences between masters and people.. “ ”.

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According to García and Dolan, the various limitations of MBO are specifically that

“1.- it refers basically to what directors and mid-management “should do”, but tends to leave

out the rest of the employees. 2.- It tends to turn many companies into “a bureaucracy which

has to be complied with to prevent those at the top from interfering in the really important

daily work” 3.- It tends to produce vast volumes of paper: documentation, instructions,

records, etc. which are both highly bulky physically and are also create an excessively cold

and technical image; their compliance therefore hardly inspires any enthusiasm.”.

Furthermore, as García and Dolan put it, “the MBO has certain shortcomings:

1.- It produces a feeling of impotence, since the objectives that are established are

outside the individual’s power of influence and achievement;

2.- It fails to establish any real action plans, does not go beyond theoretical intentions.;

3.- it aims for too much (‘I ask them to sell 20 so it’ll end up by being 10; if I asked

them to sell 10 it would be 8).;

4.- It is implemented without a proper prior training programme.;

5.- It views objectives as a game that must be won at whatever cost, even becoming

obsessive and overlooking daily tasks or others that crop up unforeseen but which may have

greater strategic importance.”.

They conclude that “the main shortcoming of the MBO is its view that objectives are

something that are fully meaningful in themselves. Objectives are only meaningful if they are the

achievement of certain beliefs and fully assimilated values”.

MBV goes one step further. García and Dolan suggest the following relation between

values, objectives and reality:

Core concept Position in the

decision-making-

action sequence

Example

VALUES “This is how things

should be ”.

Initial strategic choice.

Foundational or

constitutional nature.

Quality, quality,

first.!!!

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OBJECTIVES “This is what we are

going to achieve”.

Intermediate

instrumental proposal

Manage to comply

with the ISO 9001

quality standard within

a year.

REALITY “This is what we have

achieved”.

Visible consequence

of completed action.

Award of the official

quality certificate.

Following the scheme of García and Dolan, which we are completing with Fernández

Aguado’s proposal, it could be held –anticipating reflections we will discuss later – that the

differences between MBI, MBO, MBV and MBH are as follows:

MBI MBO MBV MBH

PREFERENTIAL

SITUATION FOR

APPLICATION

Routine or

emergency

Moderate

complexity.

Relatively

standardised

production.

Need to solve

complex problems

creatively

Awareness of

people’s unlimited

capacity for growth

AVERAGE

PROFESSIONAL LEVEL

OF THE

ORGANISATION’S

MEMBERS

Low, school-

leavers

(management

of operators)

Intermediate-

moderate

professional level.

(management of

employees).

High professional

level (management

of professionally-

qualified staff).

High professional

level. (management

initially, of qualified

workers and mainly

Top Management).

TYPE OF LEADERSHIP Traditional

official control.

Resources

administrator.

Supervisor of

transformations.

Indicator of new

possibilities and

boundaries.

TYPE OF CONSUMER User-buyer. User-customer. Discerning

customer with

freedom of choice

Informed customer

with high

aspirations.

TYPE OF PRODUCT

SUPPLY

Monopolistic.

Standardised.

Segmented. Highly diversified

and changing.

Highly satisfactory in

any situation.

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TYPE OF

ORGANISATIONAL

STRUCTURE

Pyramid, with

numerous

levels.

Pyramid with few

levels.

Networks,

functional alliances,

project team

structures.

Basically flat

structure with highly

skilled managers.

NEED FOR

TOLERATING

AMBIGUITY

Low. Medium. High. Very high.

NEED FOR

INDEPENDENCE AND

RESPONSIBILITY

Low. Medium. High. Very high.

STABILITY OF

ENVIRONMENT

Stable

environment

Moderately

changing

environment.

Highly changing

environment

Indifferent

environment

SOCIAL

ORGANISATION

Capitalist-

industrial

Capitalist post-

industrial.

Post-capitalist. Post-capitalist.

PHILOSOPHY OF

CONTROL

Top-down

control-

supervision

Control- stimulus

for professional

performance

Promotes people’s

self-control

Capacity for

personal self-

governance.

AIM OF THE

ORGANISATION

Maintain

production.

Optimise profits. Ongoing

improvement of

processes.

Take up ongoing

challenges.

SCOPE OF STRATEGIC

VISION

Short-term. Medium-term. Long-term. Medium and long-

term, with impact on

the short-term.

BASIC CULTURAL

VALUES

Quantitative

production.

Loyalty.

Conformity.

Compliance.

Discipline.

Rationalisation.

Motivation.

Efficiency.

Measuring

performance

Development

Involvement

Ongoing learning.

Creativity.

Mutual trust.

Commitment

Development.

Long-term projects.

Initiative.

Confidence in

people.

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Prudence, a habit of good governance

García and Dolan set out the seven factors, which according to Peters and Waterman,

enable companies to achieve excellence:

1.- Action-geared.

2.- Close customer contact.

3.- Independence and enterprising internal spirit.

4.- Productivity achieved by people.

5.- Management through values in daily practice.

6.- Based on what they know how to do really well.

7.- Simple agile structure.

It is interesting to see how– as Fernández Aguado has pointed out – today’s authors

are constantly taking up questions that were addressed at other stages of our civilization, when

greater time was spent on considering root questions. On this point, as Fernández Aguado has

explained in detail in Dirigir y motivar equipos ( Direct and motivate teams) the key factor to

which Peters and Waterman refer is more or less what the classical authors defined as the

habit of prudence. It is worthwhile quoting a passage of his explanation of this functional habit:

“etymologically” - says the author of Liderar. Mil Consejos para un Directivo-(Leading. A

thousand tips for a Manager) the word prudence comes from the Latin procul-videre, “to see

far”: to foresee what will come. To anticipate the future is a faculty of all people, but is

particularly important in the case of someone who is to bear the responsibility of an

organization on his or her shoulders (…).

Freedom is the factor that allows the future of persons and organizations to be

designed . Making the correct choices in order to work on the following phases of one’s own

life and those who work with us depends on the exercise of free will.

These decisions should not be disconnected either from reality or from common sense:

they demand a specific response that is in line with the Company’s vision and mission. (…).

The internal consistency of our lives stems from the balanced harmony of our

decisions, which is the fruit of constantly exercising the habit of prudence. This is why it is

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fundamental to uncover this management skill and try to assimilate it. Although all habits are

important, this is primordial since, as Aristotle said, it is the auriga virtutum: that which

governs the others.

Prudence is a radically important quality in the world of business, where decisions

must be well gauged (…).A prudent person knows well how much it costs to perform a piece

of work to perfection. An imprudent person, on the other hand, may be disdainful of his

collaborators because he lacks the capacity to value what is good, putting what pleases

him/her first, without considering the consequences this may have for the other members of the

organization..

A prudent person, in the position of corporate manager, not only accepts advice, but

also knows how to make things work, by placing each person in the right place. He will

admit his own mistakes, learning how to motivate, striding on ahead, setting an example with

his efforts, like the masters (...). He who deliberates well in absolute terms makes calculations

that are aimed at achieving the best practical good for mankind, so that it is impossible to be

prudent without being good (or at least trying to be o).

Those governing are in a position to lead provided they are capable of governing

themselves. Where this quality is lacking there is no equilibrium. Or, it may be said that a

person who does not hold his future in his hands (who does not govern himself) is not in a

position to give of himself (to design the future of an organization, since his loyalty will only be

superficial).

The worst enemy of prudence is vainglory. Part of the training involved in learning how to

direct is to be aware that one does not know everything. Those who think they know

everything will receive no contributions. (…). Prudence is particularly necessary in times of

uncertainty, as this functional habit enables one to foresee solutions in the midst of the ever-

changing events that are so characteristic of business relations.

In its initial (cognitive) phase, prudence requires:

1.- Memory of actual reality (...).

2.- Honouring truth (...).

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3.- Objective discerning in the face of the unexpected, thus dispelling rigidity. The

flexibility that characterises a prudent person stems from wisdom. (...).

Some think that prudence means avoiding events that are considered to be undesirable

(…). In fact, prudence really reflects man’s ability to examine in depth the meaning of himself

and his surroundings. It does not imply a merely speculative analysis: when a decision has to

be taken prudence teaches us to be guided by the experience we have accumulated. (…).

The most challenging aspect of the functional habit of prudence is its creative

character: this is implied in any decision. Habits – according to the classical authors- are the

ultimum potentiae, the maximum mankind can aspire to (…).

Seeking advice (in Greek, Eubulia -eu: good; boulé: advice-: (...) there is no

prudence where there is no enquiry into causes. Prudence is opposed to haste. (…).

After advice comes judgment (…), whereby the person who is taking the decision

considers the appropriate means. This phase is opposed to thoughtlessness, an attitude of self-

deception, concealing information in order to take a decision without reliable facts.

Sometimes, driven by irrationality, a manger is tempted to hide part of reality to avoid having

to “enforce” the decision later, at the expense of his own intellectual integrity. (...).

Prudence (…) is not a mere accumulation of information, or envisaging possibilities.

(…). Without governance, without putting the opinion that has been expressed into practice,

there is no prudence (…). Once the appropriate end has been decided, nothing should stand

in the way of its fulfilment.”

Fernández Aguado goes on to say that in its mandatory aspect, prudence requires :

1.- Providence, which enquires into the future. It not only foresees the consequences

of action but also provides the person with the means to achieve his end

2.- Circumspection: which links principles and circumstances, considers whether such

an end is really advisable, given the circumstances and

3.- Caution and precaution: contingent actions usually bear a burden of paradoxical

paradigms. This is why haste should be avoided.

I will conclude this long reference to Professor Fernández Aguado`s ideas by

mentioning what he considers to be the most bitter enemies of prudence, which unfortunately

are evident in many managers:

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1.- Haste, which prevents him from seeing the truth and its application in present

decisions. This is due to a lack of counselling and triggers rashness.

2.- Unleashed self-interest, which clouds the mind and prevents objective decisions

from being taken.

3.- Stubborn tenacity to one’s own viewpoint

4.- Fickleness and

5.- Vanity, which thinks it knows everything.

Without prudence there is no way that Management by Values, and far less

Management by Habits, can prosper. We are not referring here to routines or repeated

customs but to practical intelligence in action.

Some proposals

Both García and Dolan and Fernández Aguado point out that many attempts have

been made to define a list of acceptable and accepted values. Matsushita Electric Co., for

instance, proposes the following to its employees:

1.- National Service Through Industry;

2.- Fairness;

3.- Harmony and Cooperation;

4.- Struggle for betterment;

5.- Courtesy and humility;

6.- Adjustment and assimilation and

7.- Gratitude.

Peters and Waterman’s option is:

1.- A belief in being the "best". Currently we would say, “ in being the very best”;

2.- A belief in the importance of the details of execution;

3.- A belief in the importance of people as individuals;

4.- A belief in superior quality and service);

5.-5 A belief that most members of the organization can and should be innovators;

6.- A belief in the importance of informality to enhance communication and

5 Currently we would say inter-entrepreneurs.

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7.- Explicit belief in and recognition of the importance of economic growth and profit.

Singh arrives at the following list of burgeoning values after interviewing 280 managers:

1.- Freedom versus supervision (no subordination).;

2.- Desire for new experiences: yes to challenges.;

3.- Exploit special skills or talents;

4.- Creativity/originality

5.- Social status and prestige;

6.- Opportunities for team work;

7.- Influence others;

8.- Earn a lot of money and

9.- A secure stable future.

Chakraborty proposes the following:

1.- Customer satisfaction first;

2.- Employees being the most important resource, they will be treated with respect

and dignity;

3.- Integrity, fairness and equity in business dealings;

4.- Positive encouragement to creativity and innovation;

5.- A fanatic belief in quality excellence;

6.- An ethos of discipline and commitment;

7.- Mutual loyalty and prosperity for vendors and suppliers and

8.- Contribution to a clean environment and the quality of life.

Nissan proposes the following principles:

“We consider that the employees of NISSAN are not only the Company’s best

resources, but are also the Company itself. We therefore act on the following principles:

1.- Flexibility: we are open to any changes, with an agile efficient organisation without

barriers and where the involvement of everyone is encouraged.

2.- Transparency: we foster an effective communication of information, ideas and

opinions.

3.- Impartiality: we pay special attention to decisions that are taken on the basis of

equal opportunities and dealings.

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4.- People-oriented: the quality of everything we do and our customer service

commitment are based on the part played by the men and women at Nissan.”.

There are various levels in the broad concept of “values” that make up a corporate

culture. Firstly, Core Purpose –which need not actually be a value, although it can be- come

Core Values and Around Values, which will change over time, in line, for instance with the

changes in the Company’s government.

A Company’s Core Purposes are its reason for existing. Those of some organisations

are:

3M: Resolve unresolved problems in a new way.

Cargill: Improve living standards throughout the world

Fannie Mae: Strengthen the social structure so that home owning is accessible to all.

Hewlett-Packard: Make technical contributions to develop the welfare of humanity.

Lost Arrow Corporation: Become a model and a tool for social change.

Pacific Theatres: Provide people with a place where they can develop and improve the

community.

Mary Kay Cosmetics: Provide women with unlimited opportunities.

McKinsey&Company: Help leading corporations and governments to enhance their success.

Merck: Conserve and improve human life.

Nike: Feel the thrill of competition, winning and beating competitors.

Sony: Feel the joy of progressing and applying technology for the public benefit.

Telecare Corporation: Help people with mental disabilities to fulfil their great potential.

Wal-Mart: Give normal people the chance to buy the same things as the rich.

Walt-Disney: Make people happy.

The Core Values are an entity’s enduring reference; they require no further

explanation as they have relevance for all the employees. To cite more than four or five would

imply mistaking them for cultural norms.

Some examples:

Merck

1.- Corporate social responsibility.

2.- Unequivocal excellency in all aspects of the company.

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3.- Innovation based on technology.

4.- Honesty and integrity.

5.- Profits gained by work for the benefit of humanity.

Norstrom:

1.- Customer service above all other principles.

2.- Work effort and individual productivity.

3.- Never be satisfied.

4.- Reputation of excellence for feeling part of a special organisation.

Philip Morris:

1.- Correct freedom of choice.

2.- Beat competitors in an honest fight.

3.- Foster individual initiative.

4.- Opportunities based on worth; nobody is “entitled” to anything.

5.- Hard work and ongoing self-improvement.

Sony:

1.- Promotion of Japanese culture and national status.

2.- Be pioneers, not followers, doing the impossible to achieve this.

3.- Foster skills and personal creativity.

Walt Disney:

1.- Reject cynicism.

2.- Boost and disseminate the values of the U.S.A.

3.- Creativity, dreams and imagination.

4.- Fanatic attention to rigour and details.

5.- Conserve and monitor “Disney magic".

The Around Values are to be found at a third level: the corporation’s values are not

usually the same as those of the individual, so making them coincide is a challenge. It is in this

effort of synergy of the employee’s will with the company’s interests that the core of

management action largely lies.

Is consensus possible?

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Given the importance of MBV for strategic management, it is inevitable to question

once again why values are inevitably the subject of healthy tension in an organisation between

its being and its ought-to-be, between what we see happening and what we would like to

achieve over time. Professor Fernández Aguado provides a few pointers:

1.- It is impossible to propose values that are universally valid.

2.- Values such as humility, that are so engrained in oriental civilisations are regarded

in the west almost as counter-values.

3.- The succession of phases in the life of organisations mean that different values have

to be promoted.

4.- Some values – particularly when it is suspected that they promote an increase in

work- will be rejected initially by those involved.

5.- Both optimism and pessimism should be tempered.

In this respect, this thinker quotes the exaggerated proposal made by Tannenbaum and

Davis (1967), when they explained, from their optimistic viewpoint, a certain transition of

values in the United States of America:

From: To:

Man is bad by nature Man is good by nature

Negative valuation of the individual Positive appreciation of each individual

People are static Each person is a process

Caution against the differences implied by each

person

Acceptance and the employment of diversity

The individual as a production factor View each individual holistically.

Avoid expressing feelings Appropriate expression and effective use of

feelings

“Use” of masks and “playing” roles Authentic behaviour

Status used for power and personal prestige Status used to serve the organisation’s

interests

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Mistrust of people Trust in people

Avoid sharing interesting information with others Share such information in an appropriate

manner

Avoid risk Embrace risk

Being concerned with processes implies

unproductive effort

Monitoring processes is essential to fulfil

tasks.

Emphasis on competitive attitudes Stress collaborative attitudes

6.- Defend personal values – devotion to one’s own family, cultivating friendship,

leisure, etc. when work poses as a threat to personal balance.

7.- Differentiate between emerging values (solidarity, globalisation, tolerance, ecology,

freedom, sincerity, spontaneity...), and accepted values (loyalty, respect for truth….).

8.- Just as the main aim of companies is to achieve success, the individual will also

forge the values that will enable him/her to manage failure.

9.-Calm is vital in the face of particularly significant obstacles.

10.-Good manners are important, but they reflect the deeper person.

11.- -Express enthusiasm when faced with a challenge.

12.- Respond with speed, as opportunities that are not taken up with agility become

threats.

13.- Initiative and creativity are boosted by daring and prudence.

14.- Good humour is highly valuable.

15.- Be capable of correcting, recognizing mistakes.

16.- There is no single culture, but many sub-cultures that should respect the basic

tenets.

17.- The appreciation of values depends a lot on age: eagerness for rapid, radical

change tends to give way to more a mature and conscious outlook over time.

18.- Values are not implemented once and for all but are the fruit of a learning

process.

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19.- -the organisation’s loyalty towards the weaker members is irreplaceable, since

when people are left to their own luck others will tend to protect themselves.

20.- Always count on people, because decisions dictated on a deus ex machina basis

are never well received.

21.- Profound values make up the culture of organisations and are not easily changed.

Personal habits, and far less those of organisations, do not change with any immediacy.

The individual, a fragile reality

As is obvious and both García and Dolan and Fernández Aguado point out, MBV

poses challenges. It is no longer a question of merely achieving the indispensable, i.e. merely a

non-hostile environment. The aim is to raise profitability as well as the humanity of those

working. MBV comprises various complementary perspectives: from what values are

appropriate, to how to define and implement them.

This point marks a considerable rift between the authors we have been analysing.

García and Dolan seem to regard MBV as merely another phase in the government of

organisations and one that is to replace MBO. Fernández Aguado, on the other hand,

considers that “MBV is not an isolated management tool, but a complement of other tools.”

With his profound knowledge of anthropology, Fernández Aguado reminds us that

“the individual is a “fragile” reality from both the physical and psychological viewpoint and that

many of his traits and reactions give rise to a “paradoxical structure”. This means that care

must be taken to avoid losing balanced harmony. Unlike animals, man is not born complete; he

gradually becomes whole. And surprising though it may seem, he has the capacity both to

create himself and to destroy himself. (…). Man is not a simple element, (…), he is complex,

paradoxical (…), both in his existence, in his outward expressions and in his work, the point

that most interests us here. An essential factor of this paradox is perhaps his own perplexity as

regards himself, which is only mirrored (…) in his relations with others. The individual is

neither as good nor as bad as he successively regards himself. Conflicting tendencies and

tensions are concealed, the effects of which are patent in both our own experience and that of

others.”.

In man - writes Fernández Aguado- “abilities, qualities, experiences, emotions,

reactions, aspirations, desires are continuously interwoven ... and is not easy to live in

20

equilibrium, “getting everything that boils within him to reach a point of peace”. One of the

responsibilities of a manager is to help people recognize their capacities, preventing these

capacities from remaining latent, since this harms both the organization and the individual. If

each of us is a verse in a poem (which would be the organisation) the full development of the

capacities of each person is not a fancy but a vital necessity that must be demanded of the

individual, for both his own good and that of the company”.

Assuming man’s paradoxical nature implies, according to this thinker, the following

conclusions:

1.- Creating expectations is fundamental but it has its limits.

2.- Errors resulting from creativity should not be praised, but nor should they be

censured; they should merely be used for learning purposes.

3.- Rest promotes performance. The need for rest is no caprice.

4.- Promote “open minds”, no labelling; rediscover the value of difference.

5.- False tolerance is linked to existential fragility.

6.- A person’s most powerful drive comes from within him, not from the outside.

7.- In the “technologically accelerated” society in which we live it would appear,

above all, that man knows more: paradoxically, the accumulation of information does not

appear to be matched by enhanced judgment in its interpretation. The capacity for abstraction

seems to have decreased, as though a vast majority remained “caught up in the senses”.

8.- The management of time is another bewildering factor.

9.- The individual is a combination of at least three elements: his personal, professional

and social life. Nowadays, people tend to be valued more for what they earn (or what they

have accumulated or inherited) than for what they are.

10.- There is also a contradictory factor in one of the elements that MBO aims to

galvanise: the feelings. Although feelings recognize- albeit with some effort – the force of

reason, they are irrational by nature, illogical in behaviour and are not straight-forward.

MBV – concludes Fernández Aguado- is a new approach to achieve a balance in this

paradoxical fragility.

21

Practical considerations

MBV – and far less MBH as we shall see later – is no mere wish. It does not imply

defining good intentions. If it is to be really fruitful MBV must be an effective tool – even

though it may not be exactly quantifiable- providing a competitive advantage in the

organizations in which it is implemented..

MBV is a method of corporate motivation that aims to promote and maintain values

that improve both the company’s profitability and the extent to which the employees feel part

of the organization. It is precisely this improvement which means that employees are keen to

continue giving the best of themselves for the entity’s good, thus creating a kind of vicious

circle that benefits both the Company and its Human Resources.

The specific characteristics of MBO include one that cannot be eluded: commitment

on the part of the managers, particularly Top Management, but also mid-management level.

Since personal involvement is demanded from the employees, conduct from managers that is

opposed to the proposed values will be lighted on as the ideal excuse for workers to feel that

they have no commitment to the MBO.

Leaders must assimilate attractive values, that are demonstrable, consistent, relevant

and solid. Subordinates demand solidity from those that govern them. This is why values, if

they are to be real values, whether in a leader or in anyone else, must be assimilated personally

and become functional habits.

On this point Férnandez Aguado makes one of his most relevant contributions: “a

value would not be a value if it was merely something to be viewed, an external motivator. It

must be a reality that produces movement, a change in the will”, in attitudes and behaviour.

In reality, one only knows what one can teach and only that which has been

assimilated in a vital capacity is communicated. This does not mean that leaders have to be

perfect, provided their errors do not directly affect their competencies as directors. The

excesses committed by some organizations in their zeal to put their managers on a pedestal

mean than when the reality is discovered, rejection is the natural outcome.

Assimilating values does not necessarily create leaders but it does set them apart from

mere administrative managers.

Bennis (1992) listed the main differences between a manager and a leader:

22

Manager Leader

Administers Innovates

Copies Creates

Maintains Develops

Concerned about Systems and

Structures

Concerned about people

Controls Gives confidence

Focuses on the short-term Designs on a long-term basis

Is keyed to How and When Is interested in What and Why

Focuses on the limit line Discerns horizons

Imitates Is original

Content with the status quo Risks

Is a “good soldier” Tries to be a person

Does things correctly Does correct things

The future of corporate governance undoubtedly implies drawing up an attractive

comparative table of the various styles of leadership currently in vogue. One essential question

is, “What are the competencies a manager should achieve in the future, whether he be a Top

Management or mid-management member, in order to transmit values that will get all the

“hidden energies” moving?

The first step is to “believe in” the effectiveness of MBV for the company. Developing

the capacity to learn and work in a team is the key factor of competitive advantage in the

future of organizations.

According to Fernández Aguado, these are the essential conditions for the

implementation of MBV, which will then lead to MBH:

23

1.- The values must be consistent.

2.- Explicitly communicated.

3.- Credible. The values must be stimulating but also feasible. They must be:

a) Few;

b) Specific;

c) "Easy" to fulfil, although not so easy as to require no commitment.

4.- Assimilated by the managers;

5.- Integrated in the organisation’s daily operations.

6.- Incentives must boost the specified values and

7.- Line managers, not only Top Management, must assimilate and defend them.

The limitations of MBV

In one of their highly interesting passages García and Dolan set out the developments

that may and should occur if governance is to take into account the tenets of MBV:

“1.- Rigid bureaucracy. The logic of a “rake” type of organisation chart, typical of

formal-bureaucratic companies of the beginning of the last century, of military or ecclesiastical

inspiration, continues to prevail in the majority of conventional static companies. In many

cases, structure frequently overrides strategy instead of strategy prevailing over the type of

necessary structure, as should logically be the case.

This occurs in organizations that believe they have a stable environment and where

most of the power is authoritarian and lies at the top of the company, with little or no real

appreciation of the differentiating potential that grass roots creativity may have. Although this

type of structure does not meet the requirements of the changing climates of companies today,

which require agile and rapid responses, many companies, particularly in the public sector, are

still organized this way.

2.- Bureaucracy with a close-knit management team . This structure is more agile

and capable of responding more fully to its surroundings, although the hierarchical features that

are essential to a formal bureaucratic organization are still in place. In fact, the features of such

an entity are the same as in the previous case, except that here power is not in the hands of

one person but in those of a real close-knit “management team”, which is not easy to achieve

24

fully. It usually consists of a committee comprising the General management and the various

heads of operational areas and departments that make up the company.

3.- Bureaucracy with project teams. This type of structure no longer reflects the

marked verticality of the previous organizations. Some hierarchical levels are cut out and

organization starts to be based on project teams. These teams handle tasks or given

engagements, and may join up temporarily with members in other areas of the company with

different hierarchical levels. Thus, the former formal structure’s respect for hierarchy, as the

basic regulatory power factor and water-tight division between areas tend to become diluted .

4.- Matrix Organisation. This type of structure is more complex and is marked by its

subdivision into functional support areas (marketing, IT, R&D etc..) as well as product lines or

projects, so that the former become a type of internal agency for the latter. In this case, the

paradoxical situation may arise of the same person discharging functions in two areas: his or

her own operating area (e.g. marketing) and also in the project in which he/she is engaged

(e.g. chocolates).

The main advantage of this is that the company can tailor itself better to the needs of

each of its main projects and customers. On the other hand, it requires a considerable amount

of tolerance in the face of ambiguity and a high level of maturity and humanity in inter-personal

relations.

5.- Organisation by project teams. This type of structure marks an advance over

bureaucracy with project teams. The traditional hierarchical structure has disappeared and

project teams are set up to fulfil the organisation’s specific missions and requirements. When it

is considered that the team objectives have been achieved, the team dissolves and its members

become part of another team.

Organisations that are structured in this way are highly agile and capable of responding

to outside requirements with great speed. Their members are expected to be capable of

adapting to different teams and different tasks. (…).

6.- Virtual network organisation. This last organizational structure is certainly the

structure that will be adopted by the majority of the companies that survive in the future. This

type of organization comprises a small core of partners and professionals, who make up the

company’s axis. Around this core a series of functional alliances or support networks are

25

created with suppliers and other associate enterprises that are brought into play to meet the

organisation’s specific needs.

In network or virtual molecular organisations part of the company’s functions are

outsourced to other companies and part of the workforce is versatile and can meet the needs

of the moment. This is the maximum example of an organization that can adapt to

circumstances, thus managing to cut the company’s fixed costs and turn them into variable

costs. MBV can be particularly useful as a means of agglutinating this type of organization.”

Clearly, MBV implies valuable contributions for Management theories, but it is

important to analyse some of the problems it entails.

From a conceptual viewpoint western civilisation has placed its trust in other realities

that are to be found in the individual that are of a pre-reflexive, non-programmed nature. Many

management theorists have “fallen” from rationalization into a new kind of confused

romanticism, which they try to use as reference for Management Action..

Only from a solid intellectual standpoint do organizations achieve their maximum

performance. Professor Fernández Aguado insists that methods of corporate motivation are

designed in terms of the way the accumulation of challenges and impatience that make up man

is understood.

Following the failures of other theories of motivation, MBV proposes that corporate

training should offer the employees that certain degree of happiness that is gained by someone

when the value that is proposed is positive. For Fernández Aguado MBV is significant in its

affirmations, but is insufficient in the areas that are overlooked. People cannot, in fact, be

permanently motivated by a priori values. MBV is not negative, but incomplete, because it

fails to take sufficiently into account that man is, himself, an efficient cause of self-fulfilment or

self-destruction.

The values proposed by MBV –points out the Madrid thinker – are exclusively

contained in the conscience and therefore do not improve internally. The fact that a worker

feels inclined to fulfil a value does not imply that he is really improving himself. MBV points out

the need for each worker to become what he should be, to fulfil his potential, but does not

define a motivating method that aspires to be permanent.

26

Assimilating functional habits does not imply a keen mind or a technical capacity to

perform certain work. It rather implies – as shall be explained shortly – achieving modes of

acting and understanding that raise performance and shed light on the meaning of effort.

García and Dolan also point out that the practical implementation of MBV must be

based on a gradual systematic definition of the values that are regarded as primordial. After

these have been adopted by the members of Top management they should be proposed to

mid-management. In cascade and after relevant adjustments have been made, they should then

be transferred to mid-management subordinates.

It is not sufficient to merely cite the values. They have to be promoted, made relevant

through external signs. For instance, by rewarding certain behaviour, while counter-values are

sanctioned. But this is not all: the achievement of functional habits must be promoted.

The main problems for MBV tend to be:

1.- Those involved reject the values that have been defined on the grounds that they

are not appropriate. ;

2.- Inertia;

3.- Fear that the specified values will change consolidated situations.;

4.- Laziness, since any new situation means overcoming former trends.;

5.- The cynicism of those who believe that nothing can be changed and

6.- Daily pressures, which limit the attention that can be paid to new proposals.

Promoting functional habits

As a further step in his study of what MBV implies, professor Fernández Aguado

establishes, through Management by Habits- MBH – a global view of work and the person

performing it. MBH, together with the fruit of such work, which various central European

authors call objective work (the external fruits of work: the car that has been constructed, the

book that has been written, the house that has been built, etc.), aims to perfect subjective

work at the same time: that which remains in man after performing his work, what happens

within himself. The same objective work implies various types of subjective and even

diverging efforts.

27

Karl Marx was pointing to some extent to subjective work when he tried to define the

capital gain the middle classes “nick” from the workers. He is not exactly referring to a specific

sum the proprietors swindle from the employees. The issue was more profound: the capital

gain pointed to what the worker leaves in the very fruit of his work, implying a sort of stolen

essence.

Subjective work builds or disfigures man over time. Individuals should try to

become a hive of initiative and shun the danger of becoming a source of paralysing thought-

patterns. We act and create ourselves- or destroy ourselves- both within and externally. This

is profoundly meaningful as every decision imprints its weight on future behaviour, which in its

turn will affect others.

To actually live habits – writes Fernández Aguado- is more demanding than to accept

values. MBV can be an intermediate step – appropriate, advisable and even necessary –

towards new effective tools for the Policies and Management of Human Resources.

MBH teaches that the real value of subjective work is derived from perfecting the

person. This takes place through causal, not emotional or even remunerative means. Each of

us fulfils himself, perfects himself, through his acts: feelings play a greater or lesser part but

they are not primordial.

MBH implies two challenges: defining the habits that are appropriate for the person

and pointing out the ways whereby they can be achieved. Strictly speaking, work means that

the person should achieve his true self in his actions, implying the greatest good for himself,

too, through his way of being: living the truth in the goodness that is performed in each act and

performing the good in accordance with the truth of his own being.

What are these habits that the person should exercise in his work? Fernández Aguado

mentions some. Several were widely discussed in his work Course on Management Skills

(Curso de Habilidades Directivas): loyalty, sincerity, punctuality, hard work, strength,

prudence, savoir faire, good taste, responsibility, cheerfulness, naturalness, simplicity,

generosity, magnanimity, fairness, understanding, patience, daring, friendship, bravery, good

humour, gratefulness. … ..

Will is not only self-created or self-destroyed in each act; each action also

predetermines will for the future. A deeper enquiry into the meaning of his being enables man

28

to appreciate and develop his capacities and competencies better, to make the best of

himself.

Those who adopt the right functional habits achieve true freedom. The implementation

of MBH must be able to count on the efforts both of the generations that are on their way out

and those that have just joined the job world.

Each person is aware of himself as the source of his own good or evil: MBH points out

the short-cuts to overcome limitations where possible. Putting MBH into practice is demanding

as it means dropping concepts as deep-rooted as that of strict justice. Those who are unable

to rise above that will obviously ten to keep a distance, even though this attitude is artificial,

rigid and against their nature. In MBH people have to excel themselves for the sake of work

relations marked by the desire for the good of others, rather than keeping an eye on the

accounts. Functional habits place us at the opposite end of the pole from a utilitarian

approach.

The values cannot only “be out there” in front of us. They must be assimilated and this

means developing them to the point that they will still be with us when we leave the

organization in which such values are promoted.

Habits are far more than mere routine, for one reason, because they have to be

cultivated continuously, whereas routine means the repetition of external or internal behaviour,

with no commitment.

What MBV lacks to some extent in order to progress is this inner processing. In the

case of a skill all that is required is a given degree of achievement, whereas assimilating values

consciously and wholly, so that they become functional habits, requires ongoing creativity. It is

always possible to discover new ways of improving, precisely due to man’s unique capacity in

this respect.

After placing – and continuing to place – such marked emphasis on the development

of skills, it is now the time to promote attitudes that enhance the humanity of work .

Increasingly, character-building is being pointed out as a key factor for the training of

managers, since technical skills are to some extent taken for granted.

29

Professor Fernández Aguado cites some of the greatest springs of classical thought. I

feel that this text would please him. It comes from a fourth century writer whom he often

quotes: “so you become famous a thousand times, this does not mean that you are better than

honourable men, but that you become more dishonoured as a result. Those who appear to

honour you and raise you to fame are the same people who laugh at you, as they watch you

resting on your laurels, which they in fact conferred upon you. Your efforts backfire: those

who formerly praised you now censure you.

When an adulterer or dishonest person is praised and flattered, he is condemned for

the same reason as he is praised. The same occurs with someone who thirsts for glory.

Although everyone praises him, as soon as we notice that he aspires to glory we censure

rather than praise him. Why, therefore, do you run madly after something that always tends to

turn out the opposite way from what you aimed at? If you want to attain glory despise glory

and you will be the most illustrious person in the world.

Why do you want the same thing to happen to you as befell Nebuchadnezzar? This

man set up a statue of wood and expected his fame to be enhanced from this lifeless object.

The living man wanted to acquire greater brilliance from something that has no life. Do you

realise the madness this implies? Believing he would gain honour for himself he merely gained

ill-repute. Indeed, how can one not consider a man ridiculous that has more confidence in an

inanimate object than in himself and in the living soul within him, which is why he raises wood

to such eminence, seeking to be praised not for his customs but because of an assembly of a

few wooden pieces? This is the way of those who choose to gain repute on account of the

floor in their houses or a beautiful staircase, rather than on account of their nature as men.

These days there are many imitators of Nebuchadnezzar among us. He sought to be admired

through his famous statue; others now seek to be admired because of their clothes, their

house, their mules, their carriages, the columns that support their palaces. The fact is that since

hey have lost their being as men they wander to and fro seeking glory, which is the height of

stupidity.”

This text suffices, as professor Fernández Aguado has frequently pointed out, to show

that Management by Habits is not exactly to be found in recent theories, but stems from the

very roots of anthropology–anthropos logia: the science of man -, which runs through the

30

history of universal thought and on which the professor is a great expert. He now gives us the

opportunity to apply this essential science to corporate governance.

The theses of Kurt Lewin, referred to by García and Dolan coincide –from the

viewpoint of psychology – with the anthropological theories put forward by professor

Fernández Aguado. García and Dolan state the following:

1.- Human conduct can only be understood if all the forces acting on the person at a given

moment are taken into account (political, psychological, technological, etc. forces). It is not

sufficient to understand the past. There have never been two identical fields of force or two

identical diagnoses to problems: every situation is different.

2.- All problems arising from unresolved change imply forces exerting pressure for and against

their resolution (forces of resistance). The easiest and most efficient solutions come from

reducing the forces of resistance rather than adding more pressure in favour of change.

3.- The best way to enhance knowledge is to have experts and workers jointly studying the

relations between people, tools, work and the situation.

4.- Only work that has been chosen freely has any meaning and the vital value that is required

to motivate high performance.

5.- People tend to commit themselves to adopting resolutions when they have been more

involved in designing them than when the adoption of resolutions has been dictated by an

expert.

6.-It is easier to change the conduct of a group than conduct at the level of an isolated

individual, since group rules (unwritten) have a strong influence over individual conduct.

7.- Democratic leadership achieves greater success and better relations than authoritarian

behaviour.

8.- It is easier to change group behaviour if the group can discuss the matter beforehand and

reach an agreement on the need for change and if their commitment to change is checked

subsequently.

Conclusions

31

In highly abbreviated form I wish to put forward some conclusions from the research

work that has been undertaken.

1.- Management by Values is a governance model that was originally defined by

certain authors of Indian origin and has spread to organisations in the United States of

America and elsewhere.

2.- The conceptual introduction in Spain of this model cannot and should not be

imitative. It is increasingly evident that a Spanish Management model that is not a mere

translation of Anglo-Saxon theories and origin, must be designed.

3.- Professors Javier Fernández Aguado and Salvador García (the latter in

collaboration with Shimon L. Dolan) have undoubted merit as deep thinkers and pioneers of

Management by Values in Spain.

4.- The contributions of García and Dolan are particularly relevant when it comes to

defining surveys on values. Furthermore, Professor García is responsible for the

“postconventional leadership” model.

5.- Fernández Aguado’s business experience and the fact that he has also spent many

years studying the classics enhance his proposals with profound anthropological references

and also great applicability.

6.- The combination of the intellectual foundations of Fernández Aguado and the

proposals put forward by García and Dolan, undoubtedly mean that they are basic references

for a matter as relevant as this.

7.- In his definition of Management by Habits Professor Fernández Aguado possibly

meets the individual’s needs more fully. The application he suggests is not simple, but it would

achieve a transformation of the Human Resources Departments, as he proposes.

So, in order to put into practice Management by Habits (or Management by Values),

a specific Survey of Climate and Values would have to be conducted, the points the

organisation wishes to improve would have to be specified and appropriate means adopted,

counting on the advice of some experts in the field.

A valid example could be one of the interesting proposals made by García and Dolan,

which they call: Reflection for action.

32

To what extent- they ask – do you think that the following behaviour is currently

prevalent in your company and should therefore be eliminated if cultural stagnation is to be

avoided?

Mutual mistrustful behaviour 1 2 3 4 5 6 7 8 9 10

Irritability, bad temper 1 2 3 4 5 6 7 8 9 10

Mutual reproaches 1 2 3 4 5 6 7 8 9 10

Rigidity 1 2 3 4 5 6 7 8 9 10

Conformism 1 2 3 4 5 6 7 8 9 10

Apathy, lack of initiative 1 2 3 4 5 6 7 8 9 10

Shoddy work 1 2 3 4 5 6 7 8 9 10

Hidden agendas (double intentions) 1 2 3 4 5 6 7 8 9 10

Fear of risk 1 2 3 4 5 6 7 8 9 10

Incapacity to delegate effectively 1 2 3 4 5 6 7 8 9 10

Be flustered because of time constraints 1 2 3 4 5 6 7 8 9 10

Late for meetings 1 2 3 4 5 6 7 8 9 10

No recognition of effort 1 2 3 4 5 6 7 8 9 10

Lack of planning 1 2 3 4 5 6 7 8 9 10

Tummy-button contemplations 1 2 3 4 5 6 7 8 9 10

Fear of change 1 2 3 4 5 6 7 8 9 10

Hiding the merits of subordinates 1 2 3 4 5 6 7 8 9 10

Spendthrift conduct 1 2 3 4 5 6 7 8 9 10

Inertia 1 2 3 4 5 6 7 8 9 10

Bad temper 1 2 3 4 5 6 7 8 9 10

Hiding mistakes 1 2 3 4 5 6 7 8 9 10

Gossiping 1 2 3 4 5 6 7 8 9 10

Superficial labelling of people (which sticks). 1 2 3 4 5 6 7 8 9 10

Bureaucracy (red tape) 1 2 3 4 5 6 7 8 9 10

Lack of commitment to objectives 1 2 3 4 5 6 7 8 9 10

Lack of imagination and innovation 1 2 3 4 5 6 7 8 9 10

33

Brusque customer relations 1 2 3 4 5 6 7 8 9 10

Individualist behaviour 1 2 3 4 5 6 7 8 9 10

Others 1 2 3 4 5 6 7 8 9 10

This is not a merely instrumental question. “Our Credo” by Johnson & Johnson, as

referred to by García and Dolan, reads as follows: “We must seek ways so that our

employees can fulfil their family obligations. We must be responsible for the communities in

which we live and work, being good citizens, giving our support to social work and paying our

taxes. We must keep the properties we have the privilege to use in good state, protecting the

environment and natural resources (…); by operating in accordance with these principles our

shareholders should gain greater profits.”

The analysis and implementation of an MBV and/or an MBH can never be undertaken

merely from a mediation standpoint. This would imply using people as tools. Although it is true

that profitability should always be considered in a company, it should not be the only and

ultimate criterion. It should be combined with what Professor Fernández Aguado has defined

as creating the conditions that can afford an honourable life to the people who work in that

institution.

It is in this direction, which would necessarily lead to enhanced performance in the

medium and long-term, that this interesting proposal should be implemented, since this has still

not taken place in the majority of enterprises in very many countries, including Spain.

Appendix I

For your interest a study carried out by Professor Fernández Aguado with a group of

employees a few years ago, which was included in Management by Values (Dirección por

Valores), published by AECA, is provided below.

CLASH OF VALUES AND COUNTER-VALUES

VALUES COUNTER-VALUES

34

A 1. Acceptance of criticism 11. Capacity for self-criticism 45. Active listening 89. Receptivity 95. Ability to refrain from interrupting others

4. Closed-minded attitude 7. Isolation

B 2. Capacity to adapt 81. Functional versatility

C 6. Support for others 15. Ability to work in a team 17. Co-ordination with others 20. Bonding with the group 21. Friendliness 22. Commitment to the group 24. Trust in others 25. Will to reach agreement 27. Co-operation 41. Empathy 60. Involvement in the group 78. Participation 90. Backing for others 107. Holistic vision

5. Tendency to accuse others 6. Aggressive towards the group 10. Anti-social behaviour 25. Detachment 26. Mistrust 33. Discord 34. Dispersion 35. Aloofness 60. Individualism 68. Insolidarity 71. Involution 93. Inactivity ? Reactividad

D 3. Admiration for work well done E 4. Broad perspectives 40. Narrow-mindedness F 5. Capacity for analysis

47. Capacity for reflection 74. Capacity for observation

G 7. Pleasure in learning 54. Desire to train 61. Interest in being informed 82. Have a solid background

H 8. Assertion 42. Lack of assertion I 10. Self-control

103. Moderation 105. Tolerance

3. Hounding others 14. Authoritarian manner 19. Fury 50. Hostility 52. Impatience 53. Imposition 54. Impulsiveness 69. Intolerance 72. Quickly angered 92. Overbearing 101. Tyranny 102. Tense manner

35

J 9. Self-confidence 12. Self-esteem

16. Blockage 47. Frustration 64. Immaturity 66. Insecurity

K 13. Good humour 101. Sympathy 75. Optimism

9. Antipathy 77. Bad temper 82. Tendency not to greet people 89. Pessimism

L 14. Polished manner 38. Politeness 32. Dignity 91. Respect

21. Sloppiness 43. Lack of respect 76. Bad taste 78. Bad manners

M 16. Capacity to take decisions. Initiative 68. Capacity for leadership

20. Conformism 39. Stagnation

N 18. Clear ideas 19. Consistent views

56. Incongruence

Ñ 23. Communication 50. Extraversion

46. Coldness 48. Impenetrability 84. Obscurantism 97. Secretiveness

O 26. Perseverance 29. Dedication to work 30. Zeal to finish things properly 33. Diligence 37. Availability for work 42. Energy 65. Hard-working 79. Steadfast 102. Overcoming the negative and ongoing improvement 104. Tenacity 108. Will to work

1. Gives up easily 2. Absenteeism 11. Apathy 22. Lagging 27. Negligence 29. Slovenliness 45. Makes no effort 57. Volatile 59. Unavailability 75. Slow 86. Passive 87. Time-wasting 88. Laziness

P 28. Creativity 63. Capacity to innovate

12. Archaicism 65. Immobility 96. Routine

Q 31. Delegation of responsibilities 67. Respect for freedom of action

70. Interference in the work of others

R 34. Diplomacy 44. Balance 72. Capacity to negotiate

28. Unbalanced 103. Clumsiness

36

S 35. Discipline 69. Ability to be methodical 76. Orderly 77. Organisation 94. Rigour

8. Anarchy 23. Extravagant style 32. Unorganised 44. Lack of rigour

T 36. Discretion 85. Prudence

38. Spying on others 58. Indiscretion 95. Prone to starting rumours

U 39. Effectiveness 40. Efficiency

61. Ineffectiveness 62. Inefficiency

V 43. Fairness 48. Ethical attitude 57. Honesty 64. Integrity

15. Amorality 41. Falseness 49. Hypocrisy 63. Fails to comply with the rules 79. Lies easily 81. Meanness 104. Perversity

W 46. Critical spirit 88. Critical capacity

X 51. Faithfulness 66. Loyalty

17. “Turn-coat” tendency 18. Cowardice 30. Disloyalty

Y 52. Knows how to set objectives 80. Plans easily 83. Knows how to set priorities

Z 53. Flexibility 37. Over-scrupulousness 94. Rigidity 99. Touchiness 100. Obstinacy

AA 55. Generosity 58. Humanity 96. Capacity for sacrifice 98. Sensitivity 100. Capacity for service

36. Egoism 67. Insensitivity

AB 56. Personal hygiene 24. Unkempt

AC 59. Humility 71. Naturalness 97. Simplicity

13. Arrogance 83. Pride 98. Haughtiness 106. Vanity

AD 70. Know how to motivate 31. Tends to de-motivate 105. Always seeking promotion

37

AE 49. Reject value judgements 73. Objectivity 87. Rationality 99. Common sense

73. Irrationality 85. Partiality 91. Tendency to be prejudiced

AF 84. Professional rigour 92. Responsibility

51. Ignorance 74. Irresponsibility 80. Mixes personal and professional factors 90. Little personal capacity

AG 86. Punctuality 55. Unpunctuality

AH 93. Continuous review 106. Capacity to verify

Appendix 2

García and Dolan’s proposal as regards the transformation that should be

accomplished in one of the private sectors- that of health- is also set out below:

From: To:

Patients/users Patients/customers

Spendthrift Aware of cost on the part of all

Treat illnesses Promote healthy habits.

Bio-clinical model Bio-psycho-social model

Managers/controllers Managers and accommodating leaders

Mistrust among managers and professional

health personnel

Collaboration between managers and

professional health personnel

Bureaucracy Company

General image Strategic positioning

Cold clinical atmosphere Friendly, warm atmosphere

Employees Professional staff

Change as a result of threat Change as a challenge

Hierarchies Networks

Centralism Decentralism

38

Short-term Long-term

Job security Professional development

Management by instructions Management by objectives

Management by objectives Management by values

Appendix 3

The implementation of MBV and/or MBH always encounters resistance. García and

Dolan explain the main mechanisms of defensive resistance in these terms:

“1.- Repression. Repression shows in gaps in the memory and forgetfulness; as though

there are no anxiety-producing factors in the individual’s conscious life. For instance, a

manager who forgets an appointment with a consultant to discuss a programme for change,

which he really does not accept, since at that moment it arouses intolerable anxiety, due to his

personal and professional circumstances.

2.- Regression. Regression consists in resorting to behaviour that provided us with

security in previous stages of our development, when we feel that our self-esteem is threatened

and handling stress is inadequate. For instance: a manager who goes back to more

authoritarian systems of leadership in a process of participative change where he sees himself

as being particularly vulnerable and which he finds difficult to accept.

3.- Projection. Projection means attributing one’s own attitudes or qualities to another

person or group. For instance: A General Manager who is clearly incapable of creating a

close-knit team around him, but who nevertheless, accuses a subordinate manager of this

failing and whom he uses as a scapegoat for his own mediocrity.

4.- Identification with the aggressor. Identification with the aggressor implies

thinking, feeling or acting as one imagines the aggressive individual or group thinks, feels and

acts. This is a defence mechanism, expressing apparent changes, rather than resistance to

change. For instance, a subordinate who becomes increasingly like his boss in his bad

treatment of his subordinates: to change over to a more polite style than that of his boss would

imply a threat of aggression and intolerable anxiety. It is on this type of mechanism that the so-

called “Stockholm Syndrome” is based, where the person who has been kidnapped ends up

by siding with the kidnappers and even falling in love with them.

39

5.- Reactive responses. This is a mechanism, termed “contra-phobic”, whereby

feelings of fear are concealed by exaggerating the opposite feeling. For instance, the fear that

one is not liked by one’s colleagues or bosses is concealed by an extraordinarily kind and

helpful manner. Another example would be when the fear of being labelled as reactionary or

not up-to-date drives a manager to undertake changes that are particularly risky or

spectacular.

6.- Denial. Denial is one of the defence mechanisms that is most frequently used in the

face of anxiety and consists in ignoring the unpleasant or undesirable reality. For instance: a

management team that cannot admit that the company is at a standstill because of its own lack

of initiative.”.

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