Evgen Klochkov
Meaning Based Management and Ideology
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© Evgen Klochkov, 2025
What is the role of meaning in determining business success? This book provides a rationale for, as well as concrete instructions on how to make, ideology a practical tool for business success. I will demonstrate how a clear set of values and beliefs can inspire a team and lead to better results, while also showing how a lack of clarity in ideology can lead to conflict and failure.
Ideology is the foundation upon which business and people management are built. Организация "Meta Inc." запрещена на территории РФ.
ISBN 978-5-0064-6889-4
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Contents
Introduction
“The world is not ruled by words and laws, but by signs and symbols.”
What factors contribute to success in business? This book reveals how an organization’s ideology can be a key factor in achieving business success. I illustrate how meanings can facilitate the transformation of an ordinary team into a cohesive entity, and how beliefs can serve as a driving force in achieving objectives. I illustrate how a comprehensive definition of overarching objectives and a transparent articulation of values can motivate employees to achieve new heights and become a pivotal element in business success.
This book is intended for executives, entrepreneurs, and managers seeking innovative strategies for building an efficient and profitable company over the long term. You will gain insight into how meanings and beliefs can propel you to the next level. This book serves as a personal guide and practical instruction manual. This book provides practical tools and techniques for implementing ideological principles in your business. You will learn how to develop a clear ideology and implement it to achieve optimal results. I will demonstrate how an organization’s ideology can significantly influence its business strategy and how it can be leveraged to gain a competitive advantage.
I will present to you a practical model that I have been utilising for many years in my business projects. This model will enable you to rebuild your organization, placing the principles, values, and ideas that form the basis of its structure at its core. In this case, while the organization will remain externally the same, it will be internally transformed into something new, with a completely different potential and opportunities.
Before I begin, I will provide some context about my own experience to illustrate the circumstances that prompted me to seek solutions. I will outline a number of straightforward yet highly significant concepts, namely responsibility and the planning horizon. Without this foundation, it will be challenging to build a high-level organization that is not only invulnerable but also anti-fragile. We
will transition from philosophical concepts of mission to tangible, operational business tools, including processes and job descriptions. We will explore the intrinsic link between these elements and how a company’s mission provides a foundation for all activities. Let us begin.
I am a staunch proponent of these concepts and do not align with the perspectives of those who have not encountered the circumstances they describe. When a person discusses business, I always look to gain insight into their experience in the industry by reviewing their biography. If he lacks experience in commercial structures but offers consultancy, his advice may be valuable but is unlikely to reflect reality, particularly in the Russian context. While other areas of knowledge may operate differently, in business, where I have spent over 20 years, this approach has proven effective.
Please allow me to provide you with some background information about myself. I began my career in sales at the entry level and started as a salesman in a small Canon store. After three months, I was recognized as a promising member of the sales team and presented with an award at the Hollywood Nights club in St. Petersburg, a memento I still retain. Six months later, a conflict arose between the owner and the manager, resulting in the entire sales department being forced to seek alternative employment. My subsequent position was with an automotive products company. I enjoyed the sales role, particularly the personal sales and negotiation aspects. I was keen to pursue a career in this field. Over time, I had the opportunity to work with some of the most accomplished professionals in the field, which allowed me to gain valuable insights and expertise. I gained my experience through hands-on learning. It was challenging, but always engaging and driven. One of my mentors once informed me that at the age of 25, he had already assumed the role of commercial director, and that I would have approximately a year and a half to reach that same level. A few months before my 26th birthday, I was appointed Commercial Director of a small St. Petersburg company that was part of a large logistics holding company. In 2006, I was engaged in high-risk driving in a sports car with street racers, attending the most exclusive nightclubs, and the bartender at a popular bar on Nevsky knew me by sight and would inquire about my usual drink order. For an individual who had departed from the confines of a military academy four years prior, this represented a notable achievement. At least I was not aware of any other individuals who had pursued a comparable career trajectory.
During the summer months, I utilized my sports car to navigate to Crimea, with a subsequent transit through Moscow. Moscow made a significant impression on me, particularly in terms of its sheer scale and pace of operation. I came to the realization that my life would never be the same and that I would have to relocate. It was a decision with no clear destination and no guarantee of success. I was forced to relinquish my vehicle and all my personal belongings. I required funds for the relocation and, for the first time in Moscow. It was unclear how long this initial period would last. On September 26, 2006, at 7 a.m., I was at the Leningradsky station in Moscow, calling newspaper ads for renting an apartment. Indeed, the advent of the internet, mobile phones and property search platforms has transformed the way we search for and rent properties. At the time, renting an apartment in Moscow was a challenging process. I viewed the first apartment in the afternoon and the second in the morning at 11 a.m. I was fortunate that the second option proved to be a suitable match for my needs, despite the landlord’s reluctance to negotiate. Despite the lack of a bed due to the apartment’s recent construction and incomplete furnishing, I accepted the offer. I was without accommodation and required to purchase an air mattress and other necessary items at Mega Mall. However, this did not present a problem as I was able to establish myself in the capital city.
After a period of approximately six weeks, I secured a position in the sales department of an advertising company. Six months later, colleagues from my former company in St. Petersburg, which handles automotive products, contacted me and offered me an interview for the position of “Sales and Marketing Director” at their Moscow headquarters. The following year, I assumed responsibility for the automotive products division of the company, where I had previously served as a branch manager five years earlier. However, I remained unconvinced that even such a position and such an income would allow me to truly establish myself in the capital. The cost of real estate was prohibitively high, and there were no prospects of purchasing it. At that time, there were no full-fledged mortgages available, and my parents frequently inquired about my plans to settle down, get married, and purchase an apartment. In general, I decided to move on, and on an ad I came to a somewhat mysterious organization occupying a whole entrance of a residential building on Leningradsky Prospekt.. They were looking for a sales director for Italian VIP helicopters. After a series of meetings, I accepted the position and joined in a unique office. My desk was very similar to the desk of our President. Well, at least the one we see on the news.
The process of becoming familiar with the products was akin to navigating a parallel reality. AgustaWestland helicopters in VIP configuration, in collaboration with the Versace fashion house. All of this was a truly remarkable experience. I had the opportunity to travel to Milan to visit the AgustaWestland factory, attend aviation exhibitions in Europe, and participate in private events in Moscow. Everything would have proceeded according to plan had it not been for the global economic downturn of 2008.
In September 2008, I signed the first Letter of Intent for the delivery of a VIP helicopter with a client. This was while sitting in his office, with a large plasma screen displaying market quotes on the wall, showing a sharp decline. The client indicated his intention to sign the agreement, but requested a one-week delay in the money transfer to allow for further consideration. As a result, the contract was not executed. I was able to finalize my first deal a year and a half later. It was a one-of-a-kind transaction. Firstly, this was the first time that Italian manufacturers had sold this particular model of helicopter in Russia. Secondly, the financing was provided by a large Russian bank. Despite the signing of the sales contract on
December 29, the top management of my company, who resided primarily in Israel, remained unconvinced until the last minute. However, I was aware of the established procedures and the imminent conclusion of the financial year. Therefore, it was necessary to proceed with determination. The upper management only demonstrated confidence once the initial payment had been received in the settlement account on the morning of December 31. Additionally, I engaged in a distinctive negotiation with the Ministry of Emergency Situations, which later resulted in a transaction for Dmitry Anatolyevich. At that time, he held the most senior position in our government. Subsequently, a series of events and transactions occurred.
Despite the assurances from my Israeli managers that I would be rewarded financially for my achievements, I was ultimately disappointed. I was required to negotiate my commission on a piecemeal basis. Ultimately, I determined that this situation was untenable. While the project’s prospects are clear and it is gaining momentum, there is no financial compensation in place for my contributions. I have accepted an offer from a Swiss business aviation company that operates private jets. It later came to light that two-thirds of the company’s clientele are ultra-high net worth individuals from Russia, and the company is truly legendary.
My first task at the company involved a complete clean-up of the office, which was infested with unscrupulous rodents and had a reputation for petty theft. I arrived at the office to find it empty, with the exception of the secretary, who was finishing her last day. I began from the beginning. In just three years, my office achieved results that surpassed the most successful years in the history of the Moscow office. Consequently, for three consecutive years, we were named the best brokerage company in Russia. In the fourth year, we were also selected as the “Best Foreign Business Aviation Company.” This was my final year in the role of Managing Director and as an employee in general.
I established a company, ANG Intellectual Bureau, with the objective of acquiring crisis management firms, implementing a restoration plan, and subsequently selling them. I had considerable experience in crisis management. Six months later, I updated my profile to reflect my expertise in strategic consulting, ideology consulting, and meaning-based management. It proved to be a much more engaging venture. However, I chose to pursue further opportunities and expanded my portfolio to include luxury real estate. Upon observing a Bentley automobile in Sevastopol, it became evident that substantial capital had arrived in the region, and the trajectory of its development became apparent. The entire region will undergo a comprehensive restoration and revitalization effort, returning it to the exemplary standards of a modern health resort and resort as it once was during the Soviet era. I selected Crimea as the initial point of operation and a testing ground for my hypotheses. Six months later, the portfolio of 360 properties had reached a billion rubles in sales value. By a couple of years later, our portfolio included several distinctive properties, each costing a billion rubles, with an average property value exceeding 100 million rubles. After four years, the company was selected as a nominee for the national competition in the category of “Best Luxury Real Estate Agency.” A couple of months later, it added unique properties from Dubai and Turkey to its portfolio. During my next visit to Crimea, one of my top brokers at “360 FLAT” proposed a joint venture in the VIP tourism sector in Crimea, which I accepted. As a result, the project on VIP tours in Crimea, Tavrida Trip, was launched, and the employee became a partner. Subsequently, one of my senior managers at 360
FLAT proposed the concept of establishing a concierge service in Crimea. The region is distinctive, the potential for growth is significant, and there are numerous complexities. There will always be a need to provide leisure opportunities for VIPs. This is how the Tavrida Prime project came to fruition, resulting in yet another salaried employee becoming a partner.
In my professional endeavors, I have consistently inquired as to whether there might be a more efficient, expedient, or superior approach to achieve the desired outcome. I am committed to ensuring that time and resources are used efficiently. I have consistently sought out more precise and effective tools to enhance my performance. Upon relocating to Moscow, I completed all the training modules in the field of NLP within two years, earning the international certification of Master Practitioner in the Science and Art of NLP. This knowledge and expertise have positioned me at the forefront of negotiation and influence. The difference was evident almost immediately. I subsequently obtained an MBA in Political and Business Communications and a Doctor of Business Administration (DBA).
In every class and every hour spent at the desk, I attempted to assimilate and transform the material into a tangible, workable tool.
If a lecture was not clear or relevant, I had the option to leave. Furthermore, I was not particularly interested in the opinions of teachers who were not up to date with the latest developments in the business world. My objective was to learn how to apply my knowledge in order to make my business more effective and profitable. I subsequently came to the conclusion that I wished to oversee the business on a strategic level. The operational aspects of the business became straightforward and uninspiring.
I chose to pursue a career as a manager of managers. Over time, I was tasked with developing meta-strategies, conducting long-term planning, and influencing at the meta-level. It took approximately four years to develop not only principles but also concrete, practical tools to become the leader of leaders. In other words, the role of a manager of managers is to create meaning for highly competent and intelligent individuals with strong energy and charisma, for those who oversee entire teams and possess unique long-term experience. I have over 20 years of personal experience in this field, including seven years spent in a managerial role at an advanced age, and have encountered questions that the vast majority of people do not even consider.
If you are in that 0.1%, then we can proceed to the next stage.
The information you read next is likely to provide valuable insights. You will have access to a technology that is highly effective and can be easily applied, while also being simple and logical because it is based on the laws of nature and evolution.
About ideology
Ideology (from the Greek ιδεολογία, from ιδεα (“prototype,” “idea”) and λογος (“word,” “reason,” “doctrine”) is the doctrine of ideas.
The term “ideology” first appeared in the 18th century, introduced by the French philosopher and writer Etienne Bonneau de Condillac. In his book, On the Spirit of Laws, he defined ideology as a science of thinking that studies the connections between concepts, language, and society. In the following years, the concept of ideology gained significant traction and was used to describe a system of ideas, beliefs, and values that drive specific political, economic, or social outcomes.
In this book and in my role as a mentor, I am defining ideology as a set of higher values and ideals about the meaning of life that motivate individuals and societies to act. I am most aligned with the concept of ideology when it is derived from the word “ideal” rather than “idea.” An ideal represents the pinnacle of goal-setting in human activity and development. The ideology under consideration in this paper is a set of specific private ideals as values. An entrepreneur who successfully combines their idea with the highest ideals of society and fulfills the necessary function at the optimal time and place is destined for success. Formulate your business ideas in alignment with your core values.
“Without the supreme idea, neither a person nor a nation can exist.”
F.M. Dostoevsky
It is surprising to note that despite the commonly held view that humanity is indestructible, it is in fact highly vulnerable due to its dependence on ideas. Ideas, whether political, religious, or business-related, act as a lens through which people view the world, establish their place in it, and select their course of action. These systems become the basis for beliefs that generate emotional and actual reactions in a physiological sense, prompting action.
Consider the religious zealot who is passionate about defending the merits of his faith. Or consider the soccer fan who is unable to accept the existence of any team other than his own. Does this sound familiar to you? This is just one illustration of how ideas can influence our thoughts and actions. The question then becomes: how can we leverage these principles and patterns to our advantage? How can an entrepreneur leverage this ancient technology to their advantage? What is the optimal starting point? To illustrate this concept, I will reference a saying by Antoine de Saint-Exupéry:
“If you want to build a ship, don’t drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea.”
It provided a framework for consolidating and organizing my thoughts and insights on this subject. However, I began by noting a notable aspect. In the early 2000s, while employed as a sales manager at various retail outlets, I frequently observed a competitive dynamic between representatives of two international sparkling water brands. It was surprising to note that, regardless of the representative, one brand consistently held the advantage.
They had the most optimal shelf space and display, and in general, they claimed to be able to take the second brand off the market altogether. Despite the similar age and income levels of the personnel on both sides, I observed these scenes and could only explain and formulate this situation for myself by noting that one representative is “more charged.” However, I was unsure of the exact meaning and composition of this phenomenon, as well as the most effective means of replicating it in a business setting as a manager.
My experience
For some time now, situations of this nature have commanded my attention. Such instances have also occurred within my own company, at the outset of my career in the automotive product sales sector. Our sales team was the most effective in the city. In just 1.5 years, the company had captured a significant market share and, with my arrival, began actively expanding in the Northwest region of Russia. We were experiencing remarkable growth and success, and there were even legends about the company that we were doing something illegal. Otherwise, it was difficult to explain such rapid growth.
I have had the opportunity to observe and contribute to a number of highly successful cases. A commercial director with experience in tobacco and advertising, and a unique personality, negotiated with large Western oil companies that own a chain of gas stations. In just two hours, he transformed their initial dismissive and squeamish attitudes into warm and friendly ones. A handshake, an embrace, and a mutual desire to commence work. Naturally, deals were concluded promptly and effectively, resulting in the permanent removal of competitors from the market. However, five years later, when I assumed a managerial role in the Moscow office, it became evident that the “charged” atmosphere was unique to the St. Petersburg office. I was disappointed to find that the head office did not set the pace or provide an example. A few years later, when I was in charge of the Moscow office of a Swiss company, I observed a similar situation. After five years, the Moscow office had become more efficient than the head office in Geneva. This bias in the system began to create some unexpected situations. From that point forward, I will devote more attention to studying this issue.
The foundation of any successful enterprise is the vision and guidance of its founder. As one astute and seasoned professional advised me: “A company is a reflection of the duality of its leader.” It is difficult to dispute this assertion. A manager’s perception of the world and their ability to influence it directly impacts the success of the entire company. In essence, if a manager believes that he can influence the world, he is perceived as strong, smart, and influential by his subordinates, who then adopt this vision and sense of self in the workplace. Over time, they begin to work from new positions and gradually become what they believe in. This is an exemplar of leadership in its purest form.
However, I have chosen to take this a step further. What if a manager is unable to be physically present and provide daily guidance to the entire team? In a smaller company, personal guidance and presence are important and valuable. How should one proceed when dealing with a large company that has several offices in different cities? What if the company has operations in different countries? Moreover, how do multinational companies maintain a unified approach to work? A prominent fast food chain demonstrates consistent efficiency and profitability across all of its international markets. Sweet American sodas are also highly regarded and well-positioned in the market, holding leading positions on store shelves and in the hearts of customers.
I also focused my research on the activities of Western companies operating in Russia. At that time, I was the head of the Swiss office of a company, which provided me with invaluable opportunities to gain insight into the inner workings of the company as well as access to communication with top managers of Western companies. I was therefore able to make a great many discoveries and gain unique insights.
Western companies in Russia
One particularly striking example that left a lasting impression on me and prompted further reflection came from the business aviation market. One UK brokerage company, a highly successful enterprise with a global network of offices, caught my attention. Despite the challenges it faced, it had remained profitable for an extended period. The company’s top managers and employees changed, but it continued to thrive. We met with the top and line brokers, and I was impressed by the competence with which everything was organized. Not only in terms of business processes, but also in regard to the intangible aspects that imbued the office with a distinctive ambience and a pervasive corporate culture, effectively transforming any challenge into an opportunity. In other words, an individual with no prior experience in the industry can become a highly successful broker with the right training and guidance.
I inquired of numerous individuals for an extended period of time as to who was responsible for developing this matrix. However, no one was able to provide an accurate interpretation of my request. This is where the adage, “A fish does not notice the water it lives in,” became clear. After an extensive period of research, I discovered that the primary architect is the founder of this business. He is a man of advanced age who established the company in the USA in the early 1990s and subsequently spearheaded its global expansion, including into Russia. Upon hearing this, I inquired: “Does anyone here realize that a person created a business in Moscow more than 20 years ago, established key processes, provided autonomy within the strategic framework, and then departed? “And he has never returned. The company has continued to operate without him for many years and has remained a market leader.” In the context of the business aviation market, it is notable that structures created by Russian management have rarely survived to celebrate a company’s 10th anniversary. I was intrigued for some time, sharing this example with various individuals and attempting to ascertain the answer to the question, “How?”
Following several years of research, I have reached the conclusion that Western companies tend to limit their involvement in Russia and other countries where they have opened offices to executive functions only. The strategy remains with the parent company. Furthermore, the discussion of metastrategies, or strategies of strategies, is not permitted. The branches are provided with informational materials, including sales kits. In summary, this is a set of arguments and strategies for negotiations, sales and marketing plans, theses on upcoming PR actions and events, and other highly specific instructions and guidelines for conducting business. It is noteworthy that the creation of this documentation is carried out by individuals who are not publicly known, particularly within the branch. The company thus protects its business at the highest level, ensuring that key strategic issues remain within its control while allowing for flexibility within defined limits, with a system of control and incentives in place. Consequently, a notional corridor is established, which, if executed correctly, will lead the company to achieve its desired outcomes with a high probability. It is essential that the head office consistently collects feedback and analyzes it alongside the planned strategies, making any necessary adjustments to ensure optimal future performance. It’s an excellent system. It should be noted that the above description is a collective representation of a Western business operating in international markets and should therefore be treated as an idealised model.
Planning horizon
Another aspect that has been a surprising discovery for me is the planning horizon. All of the aforementioned companies plan a decade ahead, then create a sales plan for the year that branches split into quarterly and monthly plans. Even companies operating in Russia have a long-term plan in place. For an extended period, my inquiries regarding the “how” of the process went unanswered. There was a lack of trust. However, I began to receive responses.
One of the prominent Swiss business leaders who has had a significant impact on my professional development once stated that he consistently employed a strategic approach, even when he initiated his operations in Russia during the mid-1990s. At a minimum, for a period of 10 to 15 years. This was in the 1990s. At that time, planning was generally viewed as an unproductive exercise due to the rapid pace of change in the country. Moreover, the majority of Russian entrepreneurs remain unconvinced by this approach. This is due to the fact that the technology in question is no longer in use.
As previously stated, international companies only transfer executive functions to Russia, whereas strategic planning is a management function. Consequently, this knowledge is not shared at the local level, and in general, it does not extend beyond the head office in the West. Furthermore, Russian technologies were effectively buried under the remains of the former Soviet Union and its Gosplan. First, the significance of the country and its five-year plans was diminished, and subsequently, essential abilities and expertise in long-term goal-setting were neglected. At one time, for instance, these contributed to the nation’s advancement in space exploration or facilitated a breakthrough in nuclear power. The fact that we have forgotten how to do it does not mean that it is impossible to relearn.
As a first step, I suggest familiarizing yourself with foresight technology. For your information, Google employs this method to describe scenarios for the next 50 years. As an example of strategic planning, we can look to the approach taken by Ilon Musk. I recall that in 2015, few people were aware of his reputation. That’s when I had a conversation at the Higher School of Economics, where I was pursuing my MBA, and such conversations were relevant. I was promoting the idea that Tesla’s core business is not cars. It’s about a high-end takeover of the entire automobile market and expansion into other markets, even those that are not directly related. In summary, the key takeaway is that.
Lesson from Ilon Mask
The internal combustion engine has a relatively low efficiency rating of less than 25%. The physics curriculum in our educational institution. The most efficient electric motors achieve 90—95% efficiency. Furthermore, the use of an electric motor obviates the necessity for a gearbox. Furthermore, this is a highly complex and costly component in the overall design. In summary, electric motors offer a more efficient, cost-effective, and straightforward solution for automotive applications. Therefore, 99% of the automotive industry as a whole is eliminated. The results show that the top performers are not the industry incumbents.
The next item on the agenda is Artificial intelligence technologies, which were initially perceived as ambitious but which Google was already actively developing, eventually resulted in the advent of autonomous vehicles that do not require a human driver. From a technical standpoint, this has already been achieved. It is common knowledge that Tesla has developed an autopilot system and that Yandex has made significant advances in this field. The vehicle is therefore capable of driving itself.
This is where my expertise in financial matters becomes relevant. Therefore, the vehicle purchased and situated in close proximity to your residence, rather than being utilized on the road and generating revenue for you, is merely idling and incurring losses due to depreciation, taxes, inflation, and the cost of capital if the vehicle is financed. The vehicle could be operational on a 24/7 basis. This is why Tesla designed models with cameras pointed into the cabin. Ultimately, it is the passenger rating and other cab chips of the future. We bid you a warm welcome to the world of social ratings.
The next item on the agenda is… It is essential that cars be charged. It would be prudent to consider whether it is necessary to outsource this significant and valuable source of power. Let us consider generating our own electricity. Traditional methods are dominated by government-owned entities, and then Tesla Powerwall and Solar Roof products emerge as competitive alternatives. These products afford customers the ability to charge their vehicles, utilize electricity for their homes, and also sell excess electricity generated to the general grid. The subject of energy efficiency is a vast and ever-evolving field.
The next item on the agenda is… The smart car will serve as an active initiator of Internet traffic. That is a market segment that Tesla is keen to retain for itself. However, they have taken this a step further. We offer worldwide coverage. From any location on Earth. Starlink is currently in development. The ability to do so is at your fingertips, with no restrictions in place.
The next item on the agenda is… It is essential to understand that the Starlink satellites cannot be launched without human intervention. Why not retain ownership of this piece? Roscosmos? In the early 2000s, Mr. Musk approached Russia with a request to purchase a rocket. Any type of rocket would be suitable. However, they declined his proposal and sent him away. He ultimately founded SpaceX and pioneered the development of reusable rockets. Until recently, there were even jokes about delivering astronauts via trampolines. However, SpaceX ultimately emerged as the dominant player in this field. A review of SpaceX’s cost of delivering cargo to space is instructive. We will not be discussing the interaction with the Pentagon at this time. There were no actual prototypes produced. The distinction between ideas and technologies on paper and those that are embodied in an organizational structure and a product is a crucial one.
The next item on the agenda is… The construction of spacecraft requires a comprehensive understanding of materials science. As my instructor in materials science and technology of structural materials used to inquire on all examinations: “Please define eutectic.” If you are unsure, please do not hesitate to ask. This is to certify that the answer is F. It is likely that the Cyber track case will not be painted, but will be made of space metal instead. It would appear that the extensive research into material wear and tear, and the creation of demand for highly technological materials within the company, has not been as fruitful as anticipated.
What is the final outcome? The production of a single Tesla electric car has prompted the company to expand into a number of new areas. Furthermore, industry leaders such as Mercedes, BMW, and even Roscosmos have already established themselves as competitors in this field. This was the inaugural segment of the strategic planning master class led by Ilon Musk. Please see Part 2, which will address the topic of humanoid robots and their impact on the labor market.
Intangible and non-obvious
Let me elaborate further on this point, as I believe it is crucial for you to understand that the planning horizon is of paramount importance. Long-term planning enables an organization to navigate through challenging circumstances and reach its objectives.
Historical data demonstrates that truly outstanding results can only be achieved through long-range planning. Let us examine the age of the wealthiest individuals in the world.
This list does not include those who have recently become wealthy and/or well-known bloggers. It is not merely the matter of income and the amounts involved that are of consequence; time is of even greater importance. It is challenging to reach the pinnacle of success, but it is even more difficult to maintain that position.
Bernard Arnault, the richest man according to Forbes in 2023 and head of the French holding company LVMH, which includes more than 70 premium brands — from Christian Dior and Louis Vuitton to Chandon and Dom Perignon — has the following to say: “When we discuss a brand, I always consider what it will be like in five or ten years’ time, rather than focusing on its profits in the next six months.” Consider, for instance, Louis Vuitton, the global leader in luxury goods. My focus is not on the immediate profitability of the venture, but on maintaining its esteem and success over the long term.
However, it would be prudent to avoid attempting to immediately transition to the Premier League. Let us consider an everyday example to gain an understanding of what is meant by a planning horizon. Let us consider our society.
The planning horizon of homeless individuals is constrained to the immediate future, typically within a single day. The primary objective for these individuals is to satisfy their physiological needs and to identify and consume alcohol. Despite their talents and skills, they remain trapped at the social margins due to their tendency to live in the moment. The majority of workers are financially unstable, living one month at a time and relying on each new paycheck to meet their expenses. This is already a significant improvement. It is worth noting that banks, which are often criticised in society for engaging in unfair practices, actually make life more comfortable for workers. Even if the cost exceeds a month’s salary, it can be financed through credit, and housing can be mortgaged. However, all costs must be covered. The middle class is known for its long-term thinking, often considering decisions over years and decades. They are prepared to invest several decades in education, savings, or career development. Those in the upper class are able to consider the long-term implications of their decisions. They frequently possess a background that facilitates success, thanks to a favorable beginning in the form of inheritance, connections, and upbringing. Notable examples include Donald Trump’s father, who was a highly affluent individual, and Xi Jinping’s father, who was Mao Zedong’s closest associate. To avoid an exhaustive list, I will simply state that the upper class thinks globally and aims for long-term results.
In terms of planning, a strategic plan for 10—15 years should be viewed as a set of principles rather than a series of specific, timebound actions. It is unfortunate that the most common planning tool used by entrepreneurs is a school diary. This is due to the fact that the only planning available in our lives was technology, which helped us to effectively manage only one week at a time. The weekly segments were consolidated into quarterly periods, which were then folded into the academic year. However, this was not to exceed a one-week period. The remainder was not within the students’ scope of knowledge. This was the result of the efforts of teachers and methodologists. It was evident from the outset that there was no consensus on the proposed methodical plan of education for the first to eleventh grades. In general, the entire education system is primarily designed for a ten-year period, during which students can complete the program, but there is no guarantee of success. It permits, but does not guarantee. This is an acceptable situation. Higher education represents an additional level of opportunity, offering a refined filter for those who succeed in this arena. It offers opportunities, but does not dictate. In life, there are no guarantees. However, there are always opportunities.
What should a long-term planning model entail? The concept is straightforward. If you are at the tactical level, trust your instincts and allow your emotions and reactions to guide you to the optimal outcome. There is no need to engage in analysis or contemplation. Simply act in accordance with your natural instincts and inclinations in the present moment. Your body is an invaluable source of information. Trust your instincts. However, there are ways to enhance its efficiency. To achieve this, it is essential to develop the appropriate and valuable skills. Sports, reading books, and an optimal work environment. Develop the appropriate skills. It is important to learn, experiment, and then move on. The body will retain all the necessary information at the optimal time, allowing you to apply it effectively. Consider the example of Mike Tyson’s fights. The result is a high level of automaticity, achieved through thousands of hours of training. In the moment, the body reacts automatically, without the need for conscious thought.
In the context of medium-term planning, it is essential to include concrete figures and details. The SMART model and the goal specification from NLP are effective tools for developing mediumterm plans.
The SMART model is an acronym that stands for Specific, Measurable, Attainable, Relevant, and Time-bound. These criteria are essential for defining goals that are clear, measurable, and achievable within a defined timeframe. These criteria provide greater specificity and facilitate measurement, enabling a more precise definition of the desired outcome and a clear framework for evaluating goal achievement.
A goal specification from NLP can also be a valuable tool. It includes a detailed statement of the goal, a specified completion date, a comprehensive description of the desired outcomes, and clear indicators that the goal has been achieved. This allows the goal to be stated with greater precision and in greater detail, which helps to develop a clear plan of action for achieving it.
Furthermore, the use of SMART and goal specifications can assist in managing expectations and creating a clear picture of what can be expected from a specific goal. Furthermore, they can serve as a motivational and productivity tool. Defining specific and measurable outcomes allows for progress to be tracked, fostering motivation to work towards the goal.
As you progress to the long-term planning stage, it is important to bear in mind a crucial aspect of brain function. Our brain begins to develop long-term strategies only after approximately 40 minutes of inactivity. It requires time for the brain to process and store current information before it can focus on more important tasks. However, in today’s fast-paced environment, where information is constantly flowing, we often fail to allow these crucial processes to even begin. From a physiological standpoint, we fail to allow these processes to occur. There are numerous important tasks to be completed, including monitoring news, responding to messages, and managing social networks. Additionally, there is a need to consider the possibility of incoming calls. Please estimate the amount of time you have spent alone with yourself, engaged in unstructured, undisturbed activities, over the past week. Could you kindly allow for approximately five minutes? Could you kindly provide an estimate of the amount of time you have spent alone with yourself, engaged in nothing in particular, over the past week? It is beneficial to experience boredom on occasion. It is a well-known fact among drivers that after a certain period of continuous driving, the brain enters a state of automatic pilot, whereby the driver is effectively unconscious of their actions. It is an agreeable state of mind. It is a state of driving in a trance-like state. This is precisely the state in which new insights, ideas, approaches, and dimensions emerge. This is how new ideas are generated that are qualitatively different from existing ones, and which can lead to increased efficiency. This state is typically referred to as meditation.
“Thinking, you don’t solve problems — thinking, you create them!
The solution always arises when you step out of your thinking and enter a state of Silence and Absolute Presence, even for a moment.
Then a little later, when the thought returns to you, suddenly there is a creative insight that did not exist before. Leave the excessive thinking, and see how everything changes.”
Eckhart Tolle
Once the skill of getting out of “thinking” and entering the state of silence has been mastered, the transition to long-term planning can commence. This is an ideal time to gain insight into your own capabilities. Temet Nosce (Latin) — become acquainted with yourself. These are not mere empty words. There are specific methodologies that assist in clearly defining and articulating not only one’s personal principles (or values), but also one’s primary role and mission within a larger system. You may wish to engage the services of an external professional, such as a coach or consultant, to assist you with this work. It is likely to be a worthwhile investment. This level of awareness increases your personal effectiveness. When you view your daily activities from the perspective of your primary objective and your role in the larger system, it becomes easier to identify the actions required to achieve your goal. This also allows you to focus your efforts more clearly, and to decline tasks that are not essential to your main role. This can be a liberating experience.
Furthermore, modifying the planning horizon will naturally elevate your social status. Another factor to consider is the length of time you can maintain focus on the task at hand. Furthermore, when considering the inertia of the material world, it will require sustained focus on the new horizon, including a comprehensive assessment of the situation and the formulation of all decisions from a new perspective.
Consider how the quality of your business decisions might improve if you were to view today’s choices from a different perspective — that of eternity. Or, at the very least, from the vantage point of the next five years. Would you be satisfied with this decision? Will this continue to be an effective solution for you? Will the balance of benefits remain in your favor? We are here to make a qualitative leap forward, and you have one of the key pieces of information in your hands.
Responsibility
A clear understanding of the concept of responsibility has a substantial impact on an individual’s quality of life. When we recognize our responsibilities, we gain control of our lives and cease relying on others to make decisions for us. This can result in a more conscious and productive lifestyle, as well as enhanced relationships with colleagues and clients. Furthermore, taking responsibility enables us to make decisions that are more closely aligned with our values and beliefs, which can enhance our overall satisfaction with life.
I have considered for some time at what point to present the concept of responsibility, in order to avoid falling into the commonly held but highly distorted view that responsibility is guilt and inevitable retribution for wrongdoing. I received an answer within a week. The explanation was comprehensive and detailed. Here it is.
Indian society is divided into four castes: Brahmans (priests), Kshatriyas (warriors), Vaishyas (traders), and Shudras (farmers and servants). Those who are not part of the caste system are referred to as “untouchables.” They are typically engaged in manual labor that is considered to be of a lower status. Therefore, there is a systematic basis to the society, with clearly defined roles and rights. Plato’s society was structured similarly, with artisans and farmers, warriorguards and sages, and philosopher-rulers. Before forming an opinion as to whether this is beneficial or detrimental, it is essential to first consider the following question: “What were the reasons for the formation of these castes?”
I will inform you of the relevant details. It’s all about taking responsibility. The concept of responsibility is distinct from that of guilt. Responsibility is the capacity to provide a satisfactory response. Let us examine the caste system through the lens of responsibility.
Individuals who did not assume responsibility for their circumstances or actions were designated as shudras (cultivators, servants). They were solely accountable for their survival, without any commitment to broader responsibilities.
A Vaishya is an individual who assumes responsibility for their own affairs, as well as those of their family and the wider community. Consequently, he was permitted to engage in trade. In the past, a trader was a person who stored grain and other essential supplies. When the need arose, the trader would distribute the supplies to the community. Consequently, every community had Vaishyas who stored goods and distributed them when necessary. These individuals assumed responsibility for their families and, to some extent, for the smaller communities in which they lived.
Kshatriyas were individuals who assumed responsibility for an entire community or country. They were individuals who were prepared to use force to protect their nation and society, and were willing to make the ultimate sacrifice for their people. They were responsible for governance and also had control of the military apparatus.
The Brahmins were responsible for the provision of educational services. Spiritual processes and religion were within their purview, as evidenced by the etymological link between the term “Brahmin” and the realization that one is part of the divine. Therefore, a Brahmin is driven by an unparalleled sense of responsibility. It is crucial to engage individuals with an unlimited sense of responsibility in the fields of education and religion, as these roles are considered the most important in any society.
Embracing this perspective on responsibility may require an investment of time. Accordingly, I will not be providing you with any immediate responses. Please do not view this question as a definitive answer. Consider the question in different situations and you may find that the answers are not as straightforward as you expected. I will now present a couple more quotes that will help to illustrate this concept.
“Responsibility is the recognition of exclusive authorship.”
Jean Paul Sartre
“If you don’t do what you can’t do, it’s not a problem. But if you don’t do what you can do, your life is a disaster.”
Sadhguru
The primary indicator that you are interpreting this concept correctly is the sensation of lightness that arises when the topic of responsibility is introduced. It is the capacity to engage with the world in a transparent and authentic manner, pursuing one’s aspirations with integrity. Taking responsibility is relatively straightforward. The concept of responsibility is closely intertwined with the notion of one’s own mission and the mission of the organization, so I have devoted particular attention to it.
High-tech structure
The term “high-tech” is now synonymous with “information technology.” However, the most significant advances have been made in the technology that enables people to collaborate in organizations and interact with each other. It is not only a matter of efficiency; it also creates new evolutionary stages in the development of the organization and the whole society.
To illustrate this point, we can consider one of the key elements of the military power of Alexander the Great’s army: the Macedonian phalanx. It was a pioneering organizational structure that made a substantial impact on the advancement of civilization. A phalanx was a formation of infantry in which each soldier was equipped with a long spear (saris) and carried a round shield. The formation was organized in rows, with each row positioned a spear’s length apart from the previous one. This configuration enabled the formation of a continuous wall of spears, which proved difficult to penetrate. The Macedonian phalanx was renowned for its maneuverability, allowing its warriors to swiftly change direction and turn in the optimal direction with precision. Additionally, the long spears afforded the Macedonian phalanx a distinct advantage in long-range attacks.
It is evident that this method of organizing warriors proved to be a more effective strategy than deploying a similar number of warriors without specialized tactics. The results of Alexander the Great’s military campaigns and the scale of his empire are well documented.
To provide a more comprehensive example, I will present the theory of social development, “Spiral Dynamics,” created by American scientist Chris Kaufman. This theory posits that each subsequent societal structure is based on the previous one, reflecting a more complex and developed system of values and worldview.
For the purposes of this discussion, we will exclude the description of early human societies based on survival and the simplest needs, such as food, shelter, and protection. Similarly, we will not consider social structures based on religious and magical beliefs, where social ties are based on bloodlines and traditions.
It is possible to make a more accurate comparison between societies where power and social ties are based on force and individual might. The next level is societies based on laws, rules, and moral values, where power and meaning in life derive from fulfilling obligations and serving higher purposes.
The former can include, for example, criminal communities built on the authority of one person, whereas the latter include the state or the army. It is evident that these forces cannot be compared. In essence, the advent of the military and the clergy enabled the formation of more expansive entities, namely, states.
Business incubators
I would like to propose that we conduct a more comprehensive analysis of the ways in which people can organize themselves into communities and the outcomes they can achieve. Let us examine ecosystems that have been demonstrating unique results for many years, thanks to the creation of special conditions for interaction between people. These are business incubators. Business incubators have been developed in a number of countries for a number of years, with varying degrees of success. However, the most striking example of such an ecosystem is Silicon Valley, which is home to numerous high-tech companies.
The capital of the Valley is sometimes unofficially referred to as the city of San Jose. The San Francisco Bay Area has historically been the primary hub for the development and research of US Navy structures. One of the pivotal moments in the Valley’s development was the establishment of the Stanford Industrial Park. Following the conclusion of World War II, the number of students enrolled at Stanford University experienced a significant increase, creating a need for additional financial resources. The university owned a sizeable plot of land that was not permitted to be sold in accordance with the wishes of the university’s founder, L. Stanford. In this situation, the dean of the engineering faculty, Professor F. Terman, proposed leasing the land on a long-term basis for use as an office park. This resulted in the educational institution receiving land rent income, while companies were able to take advantage of leasing instruments. The introduction of restrictions on such leases for hightech companies addressed the second major issue for the university: Stanford graduates were able to secure employment in close proximity to their alma mater. The issue of finding highly qualified specialists was also addressed. Terman encouraged his students to establish businesses in close proximity to the university.
Many countries are attempting to emulate the success of
Silicon Valley, but it is a challenging endeavor. Typically, the focus is on the outward appearance, with the primary objective being to create an environment conducive to attracting funding. However, this is merely a superficial perspective. In my view, the Silicon Valley model is subjected to a particularly thorough qualitative analysis in the book Rainforest by V. Hwang and G. Horowitt. The authors examine the reasons behind the success and failure of attempts to build innovation systems, investigate the underlying causes, and attempt to develop models that will recreate the conditions for successful implementation of business projects in the field of innovation. The title “Rainforest,” which literally translates as “tropical forest,” serves as a vivid metaphor.
The core concept of the metaphor is that in order to foster the emergence of innovators and the growth of innovations, it is not necessary to create a traditional garden environment. Instead, the goal should be to create a tropical forest ecosystem, where diverse species of plants and ideas can flourish together, creating a rich and dynamic environment. In this ecosystem, everything is naturally balanced. It takes significant ability and effort to gain access to the sun, and there is no room for imitation.
There have been numerous attempts to create a system similar to Silicon Valley, but none have yet reached the same level of success as the original. It is not possible to create a functioning rainforest by simply planting more trees. A rainforest is a human ecosystem where creativity, business acumen, scientific discovery, investment capital, and other elements converge to foster promising ideas that can become thriving and sustainable enterprises.
It should be noted that trust is a fundamental element of the tropical forest ecosystem. The rainforest is best sustained when people are driven by motivations that transcend simple quid pro quo exchanges. This type of behavior entails the capacity of individuals to transcend their immediate personal interests and direct their attention toward the prospect of attaining long-term collective gain.
The tropical forest ecosystem is characterised by a unique culture that encompasses diversity of talents, trust that transcends social barriers, forward-looking motivation that rises above shortterm rationality, and social norms that give individuals the freedom to choose partners for cooperation. This is the distinguishing factor between Silicon Valley and other innovation clusters: the presence of a unique culture, unwritten rules, and a specific set of values that guide relationships between individuals. While planting trees is relatively straightforward, recreating a culture that fosters prosperity is a significantly more challenging endeavor.
This book’s central premise is that when an idea is at the core of an organization, it becomes more than just a collection of people. It becomes a unified entity, capable of harnessing unparalleled energy and achieving remarkable results.
An idea serves as a social glue, providing longevity and dynamism. It ensures a constant flow of new ideas, aspirations, and achievements within the organization. A well-formulated idea can be the key to an organization’s effectiveness, longevity, and ability to adapt and evolve in the face of change.
Invulnerability and antifragility
Organizations that are founded on a clearly defined concept often demonstrate greater adaptability and a willingness to change than those that rely solely on unchanging processes and regulations. An idea typically implies not only a specific direction but also the flexibility to achieve goals in a variety of ways. This elevates it to a state of invulnerability and antifragility.
An ideologically prepared organization is invulnerable to change because it can self-organize and adapt to a changing environment. It can respond rapidly to changes in external conditions and identify effective solutions to problems. This is made possible by the fact that the idea that forms the basis of the organization is at the heart of its activities and provides guidance for all participants. All members of the team are aware of their roles and how their contributions will help achieve the common goal.
An organization that is ideologically prepared is able to not only survive but also to flourish in challenging environments. When an organization has a clearly defined vision, it can leverage any changes in the environment to its advantage. It views these challenges as opportunities for growth and development, rather than as threats.
An organization’s foundation of ideas also enables it to attract the most qualified employees and partners. The idea can serve as a source of inspiration and motivation for the organization’s employees. If employees align with the values and objectives that underpin the organization, they will work not only for remuneration but also to achieve shared goals. When individuals are aligned with a common objective and perceive their actions as meaningful contributions to a shared purpose, they exhibit heightened motivation and effectiveness.
Consequently, a well-formulated idea can provide an organization with the resilience and agility to survive and thrive in a challenging environment, as well as the capacity to adapt swiftly to and capitalize on changes in the external environment.
How to set up in your organization
Any existing business is a functioning model that has demonstrated its viability and is already integrated into the surrounding ecosystem. It is therefore advisable to conduct a detailed analysis of the existing mechanisms before implementing any minor alterations, ensuring that they are aligned with the prevailing environmental conditions. It is not advisable to implement changes simply for the sake of it. However, adapting to new environmental conditions is a different matter. It is also important to consider what changes may be required. It may be possible to enhance the efficiency of a specific division or branch, thus allowing the existing model to reach its full potential without necessitating a complete evolutionary shift. It is appropriate to consider evolutionary changes when existing systems are unable to fulfill their functions under anticipated changes.
God informed people that there are three days remaining before the commencement of the World Flood. In a sermon, an Orthodox priest stated:
Let’s make the most of the last three days and finish our vodka so that it doesn’t go to waste. A Muslim imam in a mosque:
— Let’s consume the forbidden pork, if it is to be wasted anyway. Rabbi at a synagogue:
Good morning, ladies and gentlemen. We have three days remaining to learn to live underwater.
To enable entrepreneurs to gain insight into the nature of their company and understand the principles that underpin its foundation, I propose utilising the Pyramid of Logical Levels model developed by R. Dilts. The model provides a description of the structure of an individual’s personality and is also applicable to an organization.
To illustrate the core concept of the model, I will present a compelling example. Following birth, an individual gradually becomes aware of their surroundings. The infant’s initial awareness is of the existence of a specific object in the surrounding environment. He becomes aware of the existence of objects and people in his immediate vicinity. He begins to familiarize himself with everything that responds to the question: “Who? What?” The foundation of the pyramid is established, representing the “Environment” level.
Subsequently, the child comes to understand that he can interact with his surroundings, moving about, taking possession of objects, and communicating with others. Consequently, he incorporates an additional level, designated as “Behavior,” which addresses the question: “What is the appropriate course of action?”
Subsequently, the child begins to understand that their actions have a quality. For instance, he is unable to simply run at the same speed as his friend from the yard. This is how the child becomes familiar with the “Ability” level, which addresses the question: “How?”
As the child gains knowledge and experience, their actions will increasingly reflect qualitative characteristics. The level of value that the child forms will answer the question: “What are my key priorities?” “If I want to be the fastest runner at school, I will sign up for the running section,” our mentee decides. Upon enrollment in the program and subsequent participation in qualitative training and competition, he will gain the confidence and skills to become a champion.
This is the level of “personal uniqueness,” which describes one’s identity and essence. The final level, which touches the deepest essence, is the “Mission” level.
At some point, an individual may begin to reflect on the following questions: “What is my purpose in being here?” “Why am I doing this?” For what objective? This level has a significant influence on individuals, motivating them to pursue their chosen path despite challenges and obstacles.
The upper logical levels exert a greater influence on the lower ones than the lower ones on the upper ones. If a child is convinced of their abilities and is driven to prove themselves, and if maintaining their status as a champion is important to them, then it is likely that their choice of leisure activities will be focused on training and development. The personal characteristics of a champion influence the environment that our mentee will select. Similarly, the lower logical levels, such as the surrounding environment, should exert a sustained influence on the individual, with the minimum necessary intensity, to facilitate changes at the top of the pyramid. While there are some exceptions, I am operating under the assumption that the “average temperature of the hospital” is the appropriate benchmark. Modifying beliefs at the lower level is a complex process that begins with a change in environment, behavior, and abilities. This is why it is challenging for individuals to alter their lifestyles, and the environment can act as a significant impediment to change.
In examining the business environment, it is evident that companies structured at a high logical level, at the “head level,” are more likely to succeed in the long term. They are able to swiftly alter their approach to align with their objectives and adapt to evolving circumstances. However, changes initiated by top management at the level of business processes and organizational structure are unlikely to be sustained and may not yield the desired results. Accordingly, this book will present the narrative logic from the top logical level, beginning with the mission statement.
Mission
The first step towards a qualitative leap in business development is to define the company’s primary objective. It is important to remember that all existing business structures, including international corporations, once started from scratch and emerged due to the existence of an unmet market need. To be more precise, there was a demand from customers for work to be done. And this concept was identified by entrepreneurs. In essence, a functioning business is a necessary component for the successful operation of a larger system, such as human civilization. In light of this, the criteria for a business’s survival and further development hinge on its ability to accurately reproduce this function. The effectiveness with which they fulfill this function determines their survival and growth.
A company’s mission statement succinctly outlines the organization’s goals, significance, and values. It forms the foundation for strategic planning and provides direction for all company operations.
A formulated mission offers a number of key advantages. It provides a clear and concise articulation of the company’s tactical goals and objectives, which in turn facilitates more informed decision-making and enhanced coordination between different departments and employees. A company’s mission statement can also be an effective tool for attracting and retaining loyal customers who align with the organization’s values and beliefs.
Furthermore, a mission can reinforce a company’s public image and enhance its appeal to potential investors by illustrating that the company has a well-defined understanding of its role and position in the market.
For business owners, a mission statement can be an effective tool for establishing a unified direction and common goal for all employees. It can assist the company owner in forming a unified team that is aligned with a common goal. Furthermore, a mission statement can assist in the formulation of long-term plans and strategies for the company’s growth and brand development.
Additionally, the mission provides the owner with a sense of purpose. If the goals are truly impressive and energizing, the owner will be actively involved in the company’s activities on the longrange planning horizon, which will undoubtedly have a positive impact on their job satisfaction. A life with clear goals and objectives is more fulfilling than one without.
Having a sense of purpose is an important factor in achieving a sense of meaning and fulfillment in life. It not only contributes to better health and longevity, but also provides a sense of optimism in challenging times.
Steve Jobs
A recent study by sociologists has revealed that individuals engaged in the roles of collectors, conductors, and selectors tend to have longer lifespans compared to those in other positions. This is attributed to the fact that these roles do not have definitive final results. Mr. Gergiev has no intention of assembling the ideal orchestra or performing all the planned repertoire. Ten years ago, your grandfather planted an apple tree and has now harvested a particularly high-quality apple. However, the following year saw the planting of another apple tree, with the anticipated harvest date set for September. This process will continue indefinitely.
Individuals who fail to pursue new challenges tend to lose interest and motivation over time. When an individual’s actions fail to align with their aspirations, the unconscious mind may initiate a shutdown of the body. It is not perceived as beneficial to deviate from the path towards personal fulfillment. Similarly, the opposite is also true. Those who pursue their goals, cultivate their talents, and pursue growth and achievement will possess the fortitude to persevere even in their later years. The primary motivating factor will be desire. It is not possible for a person to live without desires; it is contrary to their nature. She provided us with the capacity to experience emotions and the necessity to pursue desired outcomes. It is the ability to attain these goals that contributes to our overall happiness. Desires drive results. All achievements in the world have been made possible by people with dreams. Happiness can be achieved in a variety of ways, including material and spiritual pursuits. Consequently, the company’s mission is closely aligned with the founder and owner’s personal brand.
In order to establish a company’s overarching objective, it is essential to ascertain the fundamental purpose or underlying concept that drives the organization. What market demand does it address? The solution can be found through the following approaches:
The irrational approach is an entrepreneurial gut feeling based on an individual’s personality, global experience, and interpretation of the current situation. Individuals with extensive experience in business often possess an acute understanding of market dynamics. Their ideas, vision, and solutions may not be immediately apparent to others but are often highly effective.
Judgments. Judgment-based decisions are informed by knowledge, meaningful past experience, and sound judgment. This approach is applicable to operational management when the situation is not significantly different from what was experienced yesterday. While there are changes, they are minor, and it is possible to make predictions for the future based on past experience. It is important to note, however, that this approach will be effective only when the global environment is stable and there are no unexpected changes. Once stability is no longer a given, it becomes challenging to gain a comprehensive understanding of the situation.
Rationalism. The concept of rationalism is fundamental to our approach. In line with this approach, I suggest that we begin by assuming that the user (potential consumer, client) has a task (job) that needs to be completed and that the user will seek out the most suitable product to help them achieve this. To illustrate, consider the following straightforward and straightforward “jobs”: spending time in line, preparing a nutritious breakfast, and sharing experiences from a trip.
This concept was first articulated by Harvard Business School professor K. Christensen and is known as “Jobs To Be Done.” It is not possible to create products for the future based solely on the demands and expectations of users of current products. In 2007, Nokia and Blackberry were highly regarded by consumers. Business metrics and statistics indicated that the company was performing well, with audience and sales growth. However, any data represents only a portion of the total picture. Let us consider the statistics that Apple was likely examining when they made the decision to remove the keyboard buttons from their smartphones. It is probable that they were not even considering that particular data set.
The objective of any product development project is to create a solution that addresses the specific needs of the user and enables them to achieve their desired outcome. The objective is to enable users to accomplish their tasks more efficiently and to enhance their overall experience. The consumer’s decision to continue using the product is contingent upon its efficacy in addressing their needs.
The product’s intrinsic value is neutral; it gains value when it is used to achieve a specific objective. If you were to attempt to answer the question, “Which do you prefer, Instagram* or YouTube?,” it is likely, as with most people, that you would find it challenging to provide a definitive answer. (*Instagram activities are prohibited in Russia) However, rephrasing the question to “When would you prefer one over another, and vice versa?” may yield more insightful responses. Instagram* would be the optimal choice for passing the time on the subway or in line to order at a café, while YouTube would be best for showing your friends a video at a party. (*Instagram activities are prohibited in Russia) The product itself remains constant, but the context in which it is used may change.
In the event of an urgent bill payment, the most efficient solution is online banking.
To provide entertainment for guests at an event, a YouTube video may be a suitable solution.
To pass the time on public transportation: Instagram* is the optimal choice. (*Instagram activities are prohibited in Russia)
The second step is to elevate the concept to a higher level of logical abstraction and articulate the fundamental idea. For instance, a particular project to manufacture distinctive covers for mobile phones should be conceptualised as a core idea.
The company’s mission purpose is to produce accessories for personal gadgets that will accentuate the distinctiveness and individuality of the owner. The mission of such a company may be defined as follows:
“We create a reflection of the owner’s individuality through personalised gadgets.”
This wording will enable the company to be flexible and not be constrained by the current range of phone covers. It will allow the company to promote any product that highlights the individuality of the gadget owner. This will significantly enhance the business’s resilience. For instance, in the event that a new phone model is released and the case is no longer compatible, the company will not be at a loss and will devise an alternative means of showcasing the individuality of the gadget owner. This could take the form of semiprecious stones on a pendant, for instance.
A well-developed and clearly defined mission statement provides the answer to the question of how a company contributes to the larger system and what value it offers to society. A review of existing large international companies reveals a common quality: they are all structured at high logical levels with a strong focus on quality. Every business is built on a core idea.
Red Bull: Giving wings to people and ideas.
Coca Cola: Refresh the world. Make a difference.
IKEA: To create a better everyday life for the many people
However, when formulating a mission statement, it is important to consider the level of organizational structure development in accordance with Spiral Dynamics. In companies with formal hierarchies, mission statements may be perceived as a mere formal action. It is unlikely that employees will recall the company’s mission statement; they will instead refer to the instructions or website for this information. This is because companies view the business environment as inherently risky, and the only way to ensure their survival is to seize any opportunity to gain customers, profits, and market share from competitors. In the heat of battle, it is unlikely that anyone will be thinking about a longterm goal. Consequently, the company will act in this manner regardless of external circumstances. In light of the above, it can be argued that the formulation of a mission statement for such organisations represents a key step in the process of qualitative growth, restructuring and evolution, enabling them to reach a new level of development and organisational structure.
In highly developed organizational structures, which spiral dynamics categorizes as turquoise, yellow, or green, a mission statement is a fundamental element. It serves as the foundation for the entire structure. The company’s purpose determines the unique corporate culture, code of conduct, and worldview that it develops.
Organizational archetype
Once the mission has been defined, we proceed to establish the archetype of the company. In a conventional business context, this is the selection of an avatar in the game. This will enable you to gain insight into your capabilities and identify the tools you utilise in your role. It is a deliberate decision regarding the role that will enable you to perform your function in the market in the most efficient manner possible. Additionally, it determines the model of interaction with the elements of the ecosystem, including competition, predation, parasitism, commensalism, and mutualism. This is a metaphorical response to the question of whether your avatar requires claws, fangs, or fast feet.
In the business world, the answer to this question will clearly define the principles that a company will adhere to, the brand and its positioning, and the type of corporate culture that will be necessary to fulfill its function. In the context of phone cases, this is an example of pure commensalism. The company will enhance the value proposition for electronics manufacturers, with the major players in the industry unlikely to perceive any impact on their business.
It is important to remember that any business is a reflection of its founder’s personality, values, and rules. When selecting an avatar, it can be helpful to consider the theory of archetypes developed by the Swiss psychologist and psychiatrist Carl Gustav Jung. In his writings, Jung outlined the concept of archetypes, which he defined as innate, universal images located in the depths of the unconscious. He identified 12 archetypes, which are fundamental and universal images present in diverse cultural contexts. External stimuli, such as images and patterns of behavior, activate these programs in the subconscious, prompting a reaction and the completion of necessary elements, emotions, meanings, and plots.
12 ARCHETYPES:
The Innocent
The archetype of purity and innocence strives to create a world without violence and conflict. The innocent can be represented in a variety of ways, including as a child, an orphan, a simple-minded hero, or the soul of the company.
Helpful, wholesome, pure, honest, forgiving, trustworthy, happy, optimistic, and enjoys simple pleasures.
Desire: To experience a state of bliss, to be happy, renewal.
Goal: To achieve happiness.
Fear: Of doing something wrong or improper, of being punished.
Strategy: To do the right thing.
Weakness: Boring due to naive innocence.
Talent: Faith and optimism.
Known as: Utopian, idealist, traditionalist, naive, saint, romantic, dreamer.
The Regular Guy/Girl
This individual exemplifies the archetype of a simple and ordinary person who strives for a familiar and stable life. The ordinary person can be represented in a variety of roles, including employee, neighbor, colleague, or family member.
The individual is unassuming, straightforward, and predictable. They are dependable, practical, and adhere to traditional values.
Desire: connection with others, to be accepted.
Purpose: to be part of a community.
Fear: not being accepted, being a white crow, standing out, being too flashy, exile.
Strategy: develop ordinary virtues, be “your own”, down-to-earth.
Weakness: losing oneself in the desire to blend in with others.
He is known as “his own guy,” a realist, a hard worker, a good neighbor, and a people’s man.
Любовник (The Lover)
This is the epitome of love, passion, and emotion. An individual who exemplifies this archetype is receptive to romantic relationships and sensual experiences.
Seeks to provide the highest level of love and affection to another individual. The individual in question may be typified as a romantic, a tempter, or a dreamer.
Seeks to establish a relationship based on mutual respect and understanding. Demonstrates sensitivity, passion, and sexual desire. Values pleasure and is attentive to emotional needs.
Desire: Intimacy, sensual pleasure, surrounding yourself with what you love and what brings pleasure.
Purpose: To be in a relationship with the people, work, and things you love.
Fear: Loneliness, being unwanted.
Strategy: Becoming more attractive physically and emotionally.
Weakness: Wanting to “please” everyone at the risk of losing yourself.
Talent: Passion, gratitude, loyalty.
His other titles include partner, friend, sensual, enthusiast, hedonist, and lover.
The Trickster
The archetype of the trickster and joker is one who seeks to challenge established rules and expectations. The charmer can be represented by a comedian, jester, provocateur, or knave.
The Joker, Clown, and Playful, Cheerful types take things lightly, create fun and chaos, are impulsive and spontaneous, and live for one moment.
Desire: To embrace a philosophy of living one day at a time and fully enjoying life. To contribute to making the world a brighter place.
Goal: To have a positive impact on the world and experience joy in doing so.
Fear: To be bored or boring.
Strategy: Playing, jokes, and being funny.
Weakness: Frivolity and wasting time.
Talent: Joy and a keen sense of humor.
Also known as jester, joker, clown, sketch artist, comedian, humorist.
The Magician
The inspirer archetype is defined by a drive to create new and unique solutions. He demonstrates creative abilities and the capacity to translate his intuition into tangible outcomes. The magician may be represented in various roles, including artist, musician, writer, illusionist, or shaman.
Healer, divine, intuitive, catalyst for change, charisma and charm.
Desire: To understand how the world or universe works, to make dreams come true, and to create “magic moments.” Goal: To make dreams come true.
Fear: Unintended negative consequences.
Strategy: Create a vision and live it.
Weakness: The potential to become manipulative.
Talent: The ability to find winning solutions for everyone.
Known as Visionary, Inventor, Charismatic Leader, Shaman, Healer, Catalyst for Change.
The Outlaw/Rebel
The archetype symbolizes independence, freedom, and a desire to challenge the status quo and rebel against the system.
The archetype is rebellious, shocking, punchy, destructive, powerful, influential, revolutionary, and liberating.
It desires revenge, revolution, and the destruction of what doesn’t work.
Its purpose is to destroy what doesn’t work.
It fears powerlessness, futility, and triviality.
A potential vulnerability is the inclination towards criminal activities.
Talents: Rampage and radical Freedom
Known as: rebel, outlaw, revolutionary, iconoclast.
The Hero
The archetype of the high-performing individual who strives to achieve outstanding results and demonstrate exemplary qualities.
He is willing to take calculated risks and fight for his beliefs. The hero may be represented as a champion of truth, a leader, a competitor, an athlete, or an explorer.
The individual in question is a warrior, competitive, aggressive, and driven to win. They are principled, idealistic, and unwilling to accept anything less than the best. They strive to improve the world and are proud, brave, and courageous.
Their primary objective is to prove their worth through bravery and resilience in challenging situations.
They aim to become masters of their craft, with the goal of improving the world. Known as: warrior, savior, soldier, superhero, dragon slayer, champion.
The Seeker
This archetype represents the pursuit of adventure, freedom, and self-determination. An individual who exemplifies this archetype is driven to identify their role in the world and pursue self-discovery. He may feel dissatisfied with the status quo and seek new opportunities.
The explorer, risk-taker, and independent thinker values freedom and seeks opportunities to discover oneself, explore the world, realize one’s potential, and live life to the fullest.
Also known as: wanderer, adventurer, individualist, traveler, pilgrim.
The Sage
The archetype of wisdom and knowledge, who strives for a deep understanding of the world and its laws. The sage can be represented as a scientist, philosopher, mentor, teacher, researcher.
Thinker, philosopher, thoughtful, expert, counselor, teacher, self-assured, self-controlled, independent.
Desire: to discover Truth, to use knowledge and intellect to understand the world, to be an expert.
Goal: to understand the world through analysis and intellect.
Fear: being deceived, ignorance.
Strategy: search for knowledge, self-reflection, learning through thought process.
Weakness: can study details forever and not act on them.
Talent: wisdom, intelligence.
Known as expert, scientist, detective, counselor, philosopher, academic, researcher, mentor.
The Ruler
The archetype represents power, control, leadership, and the desire to control the situation. Manager, organizer, skilled, valid, efficient, productive, confident, responsible, role model.
Desire: control, create a thriving, successful family, company, community.
Goal: to create a thriving, successful society.
Fear: chaos, being overthrown.
Strategy: power.
Weakness: authoritarian, inability to delegate.
Творец (The Creator)
This archetype represents creativity, the desire for innovation, and the desire to express oneself through the creative process. People who express this archetype are often artists, writers, musicians, etc.
Innovator, dreamer, artistic, experimental, risk taker, ambitious.
Desire: to create something of value and durability.
Goal: to realize a vision.
Fear: mediocrity, mediocrity in vision or embodiment, being “average,” lacking vision.
Strategy: develop talent and skills.
Weakness: perfectionism, bad decisions.
Talent: creativity and imagination.
Known as artist, inventor, innovator, author, dreamer.
The Caregiver
The archetype represents care, compassion, protection, maternal love, and a desire to help.
The individual in question is altruistic, selfless, and driven by a sense of care and compassion for others. They are empathetic, ready to help, and demonstrate generosity and noble qualities.
Desire: To protect and help others.
Purpose: To help others.
Fear: Selfishness, ingratitude.
Strategy: Altruism.
Weakness: Sacrifice.
Talent: Empathy and generosity.
Known as saint, altruist, mother, helper, nanny, parent.
To structure an organization according to archetypes, it is essential to first gain an understanding of the prevailing owner archetype. I am convinced that Jung’s 12 archetypes provide a comprehensive description of the various roles and their characteristics, offering a description for every company. However, should a different description of the avatar emerge during the course of work, it is vital to ensure that it is as comprehensive and coherent as possible, and that it is interpreted in a consistent manner by all team members.
Gaining an understanding of the archetype of an organization will greatly facilitate all subsequent steps in its development. It allows a better understanding of its internal structure and the realization of its potential, as well as the optimization of the available talents of employees.
For instance, if a company exhibits the Warrior archetype, it may indicate a preference for high performance and a robust competitive orientation. In such a company, there may be employees who are willing to take any action to achieve success, but there may be communication and teamwork issues. A company with the “Sage” archetype may indicate a high degree of intelligence and analytical ability among its employees. However, there may be a lack of clear focus and a desire to achieve specific results.
Gaining insight into a company’s archetype enables a deeper comprehension of its internal processes. Based on the archetype, the corporate culture can be shaped to align with the desired goals. For instance, a company with the archetype of the “Lover” may prioritize customer satisfaction and fostering an appealing work environment. It is important to note, however, that such a company may encounter challenges if there is a discrepancy between customer interests and the company’s objectives.
Additionally, the archetype has a direct impact on the visual content. Furthermore, the design of the company logo may also be subject to alteration as a consequence of this work. Even if you lack in-depth design expertise, you will still be able to articulate the task with clarity and establish criteria for the desired outcome. The visual representation for Ruler will be markedly distinct from that of Rebel. Furthermore, designers will have very clear criteria by which to guide their creative development. This topic will be discussed in more detail later in the presentation, with reference to the PSYCHEA model. This innovative technology will revolutionize the way you think about customer typing technologies.
The archetype of an organization is a precise and practical management tool. It relies on common unconscious patterns, making it uncomplicated and accessible. However, it is also a highly sophisticated and effective approach. Should you so desire, you may avail yourself of this mechanism and manage it competently.
Corporate values
It is essential to recognize that humans have an inherent need for values that serve as a foundation for their actions and emotions.
E. Fromm
The next step is to establish the company’s values and principles, which should be aligned with the main goal (mission) and the company’s archetype. This is the aspect of the company’s operations that the company is unwilling to compromise on. This is of the utmost importance. A system of corporate values enables a company to bring together employees and divisions from different backgrounds into a unified entity.
It is advisable to select values not only in alignment with the chosen archetype, but also reflective of the personality of the founder. As a result, the formulated principles serve as a comprehensive operational tool. It serves as a benchmark and a standard for decision-making, providing the foundation for the team’s guidance in its work. The company’s values and principles form the foundation of its corporate culture, and partners and employees are selected based on their alignment with these values.
It is crucial to provide a clear and detailed explanation of the meaning of each value and principle when describing them. It is essential to convey the specific implications and nuances associated with these concepts. There is no definitive answer to this question, as the interpretation of values varies significantly from one individual to another. Two contrasting examples illustrate this point. The concept of “professionalism” is interpreted differently by a financier and a farmer. There is no definitive answer. The key is to define the parameters of the discussion in advance. It may be beneficial to engage the services of a psychologist to assist in the formulation of values. This professional would be able to pose the appropriate questions and facilitate the discussion. However, it is important to note that the psychologist should not impose their own views on the client, but rather provide guidance to facilitate the client’s own realization and formulation of their values. The formulations should be dynamic and responsive to your input.
When developing and describing values and principles, it is essential to consider the time, place of business, and cultural context. A company’s culture plays a significant role in determining an employee’s effectiveness, the paths they take to achieve their goals, and their likelihood of success.
Culture is an intangible yet effective force that can be likened to an
Alka-Seltzer pill dissolved in a glass of water. While it may not be visible, it has a tangible impact.
M. Enzensberger
Upon completion of the project, it is recommended that three to five core values be retained. This is the final recommendation. By
limiting the number of values, it is possible to avoid conflict between them and ensure that employees can remember and emphasise them.
The mission and values statement at my 360 FLAT, a luxury real estate company, is as follows:
The company’s mission is to help our clients realize their dream of owning a home by the sea.
The company’s values are as follows:
Integrity: We complete our tasks in a satisfactory manner, in accordance with the highest standards of professional conduct, and with the intention of taking pride in our work and setting an example for our colleagues in the market.
Proactivity: we proactively seek out and seize opportunities to take reasonable initiative and anticipate developments.
Competence: it is important for us to have a high level of knowledge, experience, and training in order to qualify as market leaders.
The following are a few examples of how company values can be used as a tangible instrument for the management of an organization:
1. The process of making decisions. Company values can inform decision-making processes related to business strategy, operational procedures, and resource allocation. For instance, if one of the company’s core values is “innovation,” this can inform the selection of new products or the development of new technologies.
2. The regulation of employee behavior. Company values can be used to establish behavioral standards for employees. For instance, if one of the company’s core values is “ethics,” this can serve as the foundation for establishing guidelines for communication with customers and partners.
3. Enhancing customer loyalty is a key objective. Company values can assist in fostering customer loyalty by demonstrating to customers that the organization offers more than just a product or service. For instance, if one of the company’s core values is “quality,” this can serve as a guarantee that customers are receiving a superior product or service.
4. Brand reinforcement. Company values can reinforce a company’s brand by emphasizing its distinctive qualities and differentiating it from competitors. For instance, if one of the company values is “individuality,” this can help create an image of a company that is evolving and growing through innovation and unique approaches.
5. The objective is to attract and retain talent. Company values can be an effective tool for attracting talented employees who align with the company’s mission and are motivated to contribute to its success. By aligning its values with those of its employees, a company can enhance job satisfaction and foster greater employee loyalty. For instance, a company may prioritize professional development, which may result in the promotion of employees who are actively engaged in pursuing professional growth.
6. Identifying and recruiting individuals who align with the company’s culture and values. Hiring employees who align with the company’s values: When a company is hiring new employees, it can use its values as a filter to identify individuals who align with its core principles and can contribute effectively to its culture. This approach can facilitate the creation of a unified cultural context, enabling all employees to gain a deeper understanding of and commitment to the company’s values.
These are just a few examples. In fact, the toolkit is virtually unlimited, depending on your creativity and flexibility, and can be used to meet the challenges that arise.
Meanings and communication
Before we proceed to the practical aspects, I would like to take a moment to discuss some fundamental concepts in greater detail. I will present a few examples of functions that are commonly performed by concepts that are both popular and sometimes misinterpreted. PR, branding, and marketing. Furthermore, they are inextricably linked to the company’s mission and values, and they logically follow from them. This will enable business owners to define precise requirements and criteria for evaluating the work of creative professionals, including designers, marketers, and advertising specialists, based on a clear understanding of their roles and functions.
Branding is about removing any ambiguity from the message. A brand is a means of communicating the essence of a company’s product offering. Branding facilitates the organization and systematization of information about a company in the minds of consumers, thereby eliminating unnecessary and contradictory messages.
In today’s world, people are exposed to a vast amount of information daily from a multitude of sources, including advertising, social media, and television. Often, this information is contradictory and confusing, making it challenging for consumers to make informed choices and decisions. Branding is a strategy for building a company’s image that helps eliminate so-called “semantic noise,” or semantic distortions and unnecessary messages that can cause confusion in the minds of consumers.
Effective branding is a powerful tool for differentiating a company in the marketplace, establishing a distinctive identity, and fostering consumer trust. Furthermore, it can enhance comprehension of customer requirements and facilitate a company’s ability to adapt to evolving market circumstances, ultimately resulting in augmented sales and revenue generation.
PR (public relations) is a re-personalized propaganda, which has remained consistent in its approaches and methods since its inception. The only difference is the packaging, which has evolved to align with the norms of peacetime. This is not my own assertion, but rather that of one of the founding fathers of public relations, Edward Bernays. “If you can use propaganda for war, you can use it for peace,” he concluded, noting that the Nazis during World War II had loaded his fine word “propaganda” with bad connotations. He suggested that it would be better to now use the term “public relations.”
Please find below an example to illustrate the power of the public relations tool when understood and deployed correctly. In the late 1920s, Bernays, inspired by Sigmund Freud’s theory of the role of the unconscious in intergroup relations, successfully positioned cigarettes as a symbol of female emancipation, suggesting that their level of emancipation depended directly on whether they smoked or not. Despite the adamant refusal of American women to smoke, Bernays’ secretary was photographed with a Lucky Strike cigarette in her teeth. This led to a New York Times headline stating that girls puffing on cigarettes were demonstrating their own emancipation. Lucky Strike cigarettes were manufactured by American Tobacco.
The advertising campaign, entitled “Torches of Freedom,” The campaign proved to be one of the most successful in advertising history, resulting in a notable increase in sales of Lucky Strike cigarettes. The central concept of the campaign was to link smoking with the sensation of liberty, as evidenced by its tagline, “Torches of Freedom.” Bernays devised a number of strategies to disseminate this message to consumers, including organizing parades in which female models attired in green outfits with torches marched through the streets and distributed cigarettes. Furthermore, Bernays employed the use of “expert interviews” to convey the impression that the scientific community endorsed the notion that smoking was not only safe but also beneficial to one’s health. This strategy proved highly effective, despite the fact that it was untrue and resulted in a prolonged increase in the number of smokers in the United States.
It is essential to develop a comprehensive understanding of the meanings involved and to establish a logical framework before undertaking such initiatives. Attempting to imitate the strategies of competitors is unlikely to yield the desired results.
Marketing is the process of eliminating mechanical noise. Marketing is the process of communication between a company and its target audience with the goal of creating a mutually beneficial relationship and removing barriers to sales. Consequently, marketing must guarantee minimal transmission loss in a linguistic environment.
Marketing forms part of the communication strategy, encompassing relationships with consumers, corporate clients, partners, and the industry as a whole. However, marketing does not encompass all areas where reputation management is required. I am referring to broader target audiences, including investors, shareholders, staff, local communities, public organizations, and authorities.
It is therefore evident that a company’s communication strategy is a distinct and challenging undertaking that necessitates the input of specialists with the requisite level of knowledge, experience, and expertise. These specialists may be internal employees, external consultants, or agencies. They can assist in defining the goals and objectives of the communication strategy, selecting the most effective communication channels, developing a content strategy, and prescribing an overall plan for implementing the strategy. Branding, marketing, and PR are merely components of a comprehensive communication strategy. A fragmented approach to branding, PR, or marketing tasks, without alignment with the company’s mission and values, will not yield effective results.
To successfully engage with your target audience, it is essential to be aligned with their perspective, understand their language, and comprehend their needs. The challenge then becomes how to reach them and communicate about a product or service in a way that resonates, what language to use to talk about unique features and benefits, and how to identify key values and consumption motives. We will address the specific technology in more detail at a later stage. For the time being, however, it is important to distinguish between two key audiences: external and internal.
Internal and external communications
External communication is a vital tool for a company to connect with customers, partners, investors, and the public. It enables the company to expand its customer base, increase sales, and enhance its reputation. External communication can also be used to maintain effective communication with partners and investors, ensuring their continued support for financial investments and business development. Furthermore, external communication can facilitate the establishment of trusted relationships with the public, which can be instrumental in attracting talented employees, partners, and customers.
Internal communication facilitates the implementation of consistent policies and procedures within the company, thereby ensuring optimal operational efficiency. It facilitates the establishment of transparent goals and objectives, the delegation of responsibilities, and the observation of task performance.
Furthermore, internal communication facilitates effective interaction between employees, enhances motivation, maintains a unified corporate culture, and strengthens teamwork. It is a key instrument for managing corporate culture.
It is worth noting that if you did not play an active role in shaping the corporate culture and it evolved organically, the benefits of this culture may accrue to someone else. It is therefore unsurprising that corporate culture can often impede work and act as an obstacle to achieving company goals, rather than facilitating them.
Corporate culture can be used to redefine the company’s objective, “Get people to do what you want them to do,” into a more effective construct. “Create an environment where people are motivated to fulfill the company’s objectives.”
The implementation of salary increases, additional privileges, and insignia does not constitute an effective motivational strategy for staff. Rather, individuals are driven by an intrinsic motivation to complete challenging tasks. In this case, the manager’s objective is not to motivate people to perform a specific task, but rather to provide them with the opportunity to achieve a goal of their own choosing. Such an opportunity is inherently motivating.
(In the context of Herzberg’s two-factor theory,)
A well-designed, articulated, and actively nurtured corporate culture will help to identify and select individuals whose personal philosophies align with the company’s values and mission. It is crucial to implement a selection system that can accurately identify individuals who are not aligned with the company’s principles at the outset, along with a comprehensive job description. If there is a discrepancy in values, it will be challenging to establish common ground and achieve effective collaboration.
Roy Disney, Walt Disney’s brother and business partner, stated: “It is simple to make decisions when you are aware of what is beneficial and what is not.” If you and your employees share similar values, you will be able to work together effectively and make wellinformed decisions. Coca-Cola previously utilized a concept known as the “Coke man,” which served as a gauge for evaluating an individual’s alignment with the company’s principles and corporate values. The “Coke man” concept is an effective method for identifying individuals who align with or oppose the company’s values. It would be optimal for companies to establish a corporate culture that selects individuals based on the principle of “Are you a Coke man or not?”
What do people want?
Prior to communicating a message to the external audience, it is essential to identify the intended recipient. When fishing, it is advisable to use worms as bait, as this is a preferred method for catching fish. It would be illogical to take your preferred culinary dish. That is only a viable approach if your objective is, in fact, to catch fish.
In my role as a consultant with the ANG Intelligence Bureau, I occasionally receive requests for training in sales techniques. These requests often come from individuals who are familiar with my background in neuro-linguistic programming (NLP) and assume that I can teach their sales teams to be more effective. I typically inquire whether the individual with whom I am speaking prefers to be the recipient of a sales pitch. Communication is a complex process with far-reaching implications. It is also important to remember this.
It is crucial to gain insight into your target audience in order to effectively tailor your communication. What is the best way to ascertain what people want? What factors influence their decisionmaking process? By what criteria should we be guided? Consequently, it is in a company’s best interest to gain as much insight as possible about its target audience in order to stay one step ahead of the competition and offer products and services that align perfectly with their needs and expectations.
I am pleased to report that one of our long-standing international partners is exceeding expectations in a way that has been both surprising and gratifying to witness. This is not achieved through the traditional use of focus groups and social research. I am sharing this based on my 15 years of experience selling complex products in the luxury segment. The aforementioned company has been developing innovative new approaches for over two decades, consistently generating fresh ideas in service, and delighting its customers. However, these efforts are guided by the company’s core principles, creativity, and the vision of its key service providers.
I would like to provide you with a comparable example from the field of business practice. Steve Jobs was renowned for his conviction that customers cannot ascertain their own needs until they are presented with a solution. He believed that focus groups could yield average results and did not provide a realistic indication of market success. Instead, he preferred to develop products that he himself would use and that solved problems that he himself faced. His approach entailed close collaboration with developers, designers, and engineers, anchored in the company’s core principles, its mission to transform the world, and informed by his personal experience and intuition.
If we do not ask the customer, how can we determine their needs and wants? In the course of my research, I encountered the notion that the fundamental drivers of our aspirations can be traced back to evolutionary processes. We either pursue or avoid certain actions, and frequently, we are unaware of the rationale behind our decisions. However, a more detailed examination of this area reveals a set of patterns that can be used to predict behavior.
Psychea model
In 2015, the Trump campaign employed behavioral psychology technology at its headquarters. Cambridge Analytica, a data analytics and marketing company, was engaged to provide services to the Trump campaign. The company employed data analytics and behavioral psychology techniques to identify voters’ preferences and behaviors, and to create personalized marketing campaigns designed to influence their choices. The results of this work were as follows: Donald Trump was elected President, which was an unexpected outcome for many of those in positions of authority.
I was interested in learning how the Trump team was able to achieve such an outcome, given the limited media coverage they received. In the course of my research, I discovered a distinctive model that can predict the perceptions, reactions, and behaviors of large social groups and individuals. Allow me to introduce the PSYCHEA model.
The PSYCHEA model integrates research from a number of different areas, based on three core models: life strategy theory, communication theory, and common sense ontology.
The theory of life strategies elucidates the manner in which our conduct is molded throughout the course of our lives. The selection of life strategies is influenced by the presence of constraints and trade-offs.
There are two types of constraints: internal and external. Internal constraints pertain to the amount of available energy and the amount of time that can be devoted to a specific task. For instance, one individual may possess the requisite energy to run 20 kilometers, while another may lack this capacity. External constraints are related to the limited quantity of resources in the environment. Constraints influence our decision-making, whether it’s selecting a meal at a restaurant based on financial capacity or calculating the necessary food and water supplies for a hike.
In business, compromise means that when making a decision, individuals evaluate all possible options and choose the most appropriate one, often having to give up other alternatives. In essence, we select the most optimal course of action to enhance our circumstances, subject to defined constraints. In business, compromise is how we act to survive.
The PSYCHEA model provides a framework for understanding the constraints and trade-offs associated with resource volume and availability. In the context of natural resources, water, sunshine, and fertile soil are the primary resources. In a business context, the resources in question are time, knowledge, money, personnel, and property. The availability of a resource is defined as the probability of obtaining it. In the Amazon jungle, water is a readily available resource due to the region’s regular rainfall. Conversely, precipitation does occur in desert regions, albeit infrequently. However, the probability of rainfall in these environments is consistently low. The lower the probability of resource availability, the higher the stress level in the environment, and vice versa.
By employing these two parameters and two types of constraints, the PSYCHEA model accurately translates a model of the world around us into a business context. This universal psychographic model provides a set of clear metrics and rules that allow for an in-depth analysis of the psychological profile of an individual or group, enabling the prediction of their reactions and behavior. The PSYCHEA model identifies four distinct categories of resource states.
1. There is no current or future availability of resources.
The probability of their appearance is extremely low. Consider a desert, an arid region devoid of water and sustenance for hundreds of kilometers, with precipitation occurring only once a year. The climate is characterised by high temperature fluctuations, with daytime temperatures reaching high levels and night-time temperatures dropping significantly. The terrain is harsh and unforgiving. What behaviors might we expect from creatures inhabiting this environment? Will they be able to traverse the desert with ease, or will they undertake lengthy journeys in search of sustenance and water, potentially putting themselves at risk? It is unlikely that this would be the case. It is more probable that they will travel short distances, conserving their strength. They will be able to withstand extended periods without sustenance or hydration by conserving and storing resources.
In a situation where the probability of survival is low, is it advisable to take risks? It is therefore unlikely that they will take risks in a situation where there is very little chance of survival. Their first reaction to something new will always be denial. The specific conditions of such a territory will shape the nervous system, physique, and other physical features of the individual. The challenging circumstances will necessitate adaptations to the established rules of social conduct and cultural norms that facilitate survival. Those who demonstrate the greatest ability to survive and accumulate resources will be the most sought-after partners for the continued survival of the species. Their strategies will become the basis for future practices, forming traditions and norms that will be passed down through generations: “My grandfather operated in this manner, my father did so as well, and I continue this approach today.”
Those who are able to accumulate the greatest quantity of food and water in conditions of severe limitation have the greatest chance of survival and the ability to continue their species. In such a territory, we can already assume a basic strategy: retention, accumulation, and control. In such conditions, the prevailing values are security, tradition, and conservatism. In the PSYCHEA model, this segment is designated as “Traditionalists.”
One notable illustration of this category among plants is the cactus. The cactus is an excellent example of a plant that thrives in conditions of water scarcity, demonstrating an effective strategy for conserving this vital resource. The strategy is straightforward: minimize external attributes, maximize internal energy, and conserve resources. However, if the cactus suddenly has access to a significant amount of a valuable resource such as water, it will begin to rot. It is simply not adapted to abundance.
2. The environment is characterized by a constant state of abundance and diversity.
Resources are readily available and plentiful. Let us consider an area that offers a consistently warm climate, an abundance of vegetation, food sources, and water. The metaphorical jungle is characterised by an abundance of flora and fauna, diverse and comfortable habitats, and a lack of threats. This location offers the ideal setting for a tropical paradise. The issue of survival is resolved, and there is an adequate supply of food and water. Once the fundamental requirements for survival (safety, food, etc.) are met, individuals begin to prioritize social and reproductive needs.
In order to find a suitable partner, it is necessary to demonstrate that one is worthy of being selected. This can be achieved by emphasising one’s status and advantages. In the event that there is no longer a need for differentiation, how might one go about achieving a competitive advantage? In order to differentiate yourself in a market where there is already a high level of competition, it is essential to demonstrate that you have something unique, new, and unusual to offer that sets you apart from your competitors. In such a competitive environment, the key to success is to differentiate yourself from the competition.
In other words, there are two distinct approaches to achieving success: the “ordinary” approach and the “peacock” approach. The abundance of resources and the strategy of demonstration give rise to a vibrant and dynamic environment, characterised by a rich tapestry of colours, striking contrasts, and a diverse array of species and mutations. This is a world where anything is possible and where survival of the fittest is the norm. In such an environment, a certain nervous system will form, which is prone to high arousal and rapid switching. The relentless pursuit of differentiation gives rise to a system of strategies and attitudes, including display, hedonism, novelty, status, and pleasure. In the PSYCHEA model, this segment is designated as the “Hedonists.”
One example of this category would be tropical birds. They are brightly colored and aesthetically pleasing. It is often the case that males display greater brightness than females, which affords them greater opportunity to attract a mate. There is a substantial amount of resources available, with an uninterrupted supply. It is in your best interest to invest as much as possible.
3. While there is a resource available, it is not sufficient.
The resource is limited to “a drop a day.”
There are few resources, but they are consistently accessible. There are limitations to what you can do, but you can still achieve results. Please consider a comparable terrain, such as a steppe or tundra. The flora is diminutive, the fauna is diminutive, and the most common organizational structure is the swarm or group. In order to ensure survival, it is essential to form a unified community. By working together, it is easier to feed oneself, to detect danger, and to endure hard times. The group will support and protect. The orientation to the social environment, including its norms and rules, and the proximity to other participants leads to the formation of the following values: peacefulness, the desire to be no different from others, and the need for love and care.
A lack of both internal and external resources creates an environment in which individuals are highly sensitive and subtly perceptive. High sensitivity allows for timely response to resource emergence or risk identification. In the PSYCHEA model, this segment is designated as the “Idealists.” A case in point is the meerkat, which requires only a modest food supply and a large family unit to survive.
4. To succeed, you must be prepared and search for resources.
A suitable metaphorical example of such a territory is the Siberian taiga, which is a resource-rich area that presents certain challenges to newcomers who are unfamiliar with the local peculiarities. To ensure survival in such conditions, it is essential to possess the requisite knowledge, including the location and method of resource extraction, as well as the distribution strategy. The fundamental strategy for acquiring resources in this territory is to conduct a thorough search. Furthermore, without a structured approach, searching is akin to aimless wandering. This underscores the importance of a systematic framework that encompasses goals, planning, strategy, and knowledge.
The harsh conditions, constant risk, and necessity for long-term efforts to alter the resource base will create prerequisites for a specific type of nervous system and physical characteristics of individuals existing in such a territory. The likelihood of acquiring the resource in question is contingent upon the size of the territory in question and the presence of competitors who may also be able to locate it.
The probability of locating the resource is higher when the search area is larger and there are fewer competitors. A competitive rather than collaborative approach to relationships is formed as a result of intolerance towards neighbours. This leads to the development of values associated with individualism, competition, and ambition. In the PSYCHEA model, this segment is designated as the “Rationalists.”
One illustrative example is the tiger in the taiga. These animals display complex behaviors, live as individuals, and are highly territorial, defending their resources. They engage in competitive behavior with one another for access to larger prey, which represents a valuable resource.
By applying the four world models described above, it is possible to create a profile of the inhabitants of a given environment. In the context of business, we can create a highly detailed portrait of the consumer. Once the survival strategies and basic values are known, the basic personality type can be determined. Based on the identified personality type, it is possible to determine the values, expectations, and needs of the individual. This allows for a tailored response, prediction of reactions and behaviors, and ultimately, more effective communication. This allows us to build highly effective client relationships.
This will enable us to tailor each client’s offer to their specific needs. This is an excellent illustration of effective external communication based on PSYCHEA. It demonstrates how to create a highly effective loyalty program as part of a marketing strategy.
Those with a more traditional outlook tend to prefer a predictable and transparent approach. They value the fulfillment of promises made by the company and are generally not receptive to new, unnecessary information. For this demographic, the primary objective is to reduce expenditure. An effective loyalty program for this demographic is one that offers cost savings. The most effective method for communicating with “traditionalists” is through a familiar, more personal channel, such as an employee at the point of sale.
Hedonists have opposing preferences to those of traditionalists. They seek spontaneity and novelty, and are interested in large-scale offers and significant discounts. Their purchasing decisions are influenced by current emotional state rather than long-term planning, emphasizing the importance of status and experiences. These individuals are not inclined to participate in loyalty programs with low stakes, and they seldom utilize rewards earned from purchases. Internet and instant messaging platforms are suitable communication channels for hedonists. An effective strategy for engaging with this demographic is to make contact in unanticipated locations, during unplanned events, or within the context of their existing social activities. In contrast to traditionalists, hedonists do not view sudden offers as a nuisance; on the contrary, they may be receptive to them.
Idealists may appear similar to hedonists, but they are more cautious and should not be overwhelmed with information. They place a high value on security and belonging to a community. When establishing relationships with them, it is important to be moderately spontaneous. It is important to allow for flexibility in your approach when interacting with idealists. Rather than expecting immediate action, it is more effective to gradually introduce new ideas and allow for adaptation. Idealists tend to view loyalty programs favorably, as a means of accumulating points that can be exchanged for valuable gifts. They require a predictable environment that allows for both novelty and momentum. Idealists place a high value on personalized communication and tend to trust authority figures. It is best to interact with them in person at the point of sale and service, as remote dialogue with them is difficult to establish.
Rationalists value meticulous and reliable work that is tailored to their specific needs. A successful loyalty program for them should demonstrate respect for their values, profession, and goals. In communication with them, it is essential to address personalized decisions and allow them the final decision-making authority in their choices. It is crucial to provide them with the autonomy to select from a curated selection. The creation of loyalty programs for rationalists requires careful work and should be as personalized as possible. The most effective communication channels with this audience are personalized but remote, allowing them to contact you via the method that suits them best.
It is evident that categorizing audiences according to the PSYCHEA model is based on deep subconscious processes that have evolved over time and are deeply ingrained in the subconscious mind, influencing each individual’s personality traits. For instance, when communicating with a Traditionalist, who prioritizes accumulation, control, economy, and simplicity, it is advisable to first discuss these topics and then move on to a new subject. In the case of the hedonist, who prioritizes status, novelty, and pleasure, a focus on numbers may be less impactful. However, there is more to it than that.
This model is closely related to Carl Jung’s theory of archetypes and the concept of psychotypes described by Ernst Kretschmer and Carl Jung, which greatly expands the possibilities of customer typing. For instance, it is possible to ascertain the most appropriate vocabulary to use when communicating with each cluster, as well as the design elements that will resonate with each client.
When communicating with Idealists and Traditionalists, it is advisable to use simple words and sentences, while more complex vocabulary is recommended for Hedonists and Rationalists. Speech should be emotionally colored when communicating with Idealists and Hedonists, while Rationalists and Traditionalists prefer goals and methods of achievement.
For a design that appeals to Hedonists and Rationalists, it is recommended to use complex graphic elements and details.
Conversely, for Traditionalists and Idealists, a concise and simple style of graphic design without additional details is more suitable.
Hedonists and Idealists tend to gravitate towards dynamic and chaotic forms, whereas Traditionalists and Rationalists prefer a more ordered and predictable approach. Idealists tend to gravitate towards light tones, while Hedonists favour pure hues. Rationalists often prefer complex, compound, and polluted colours, whereas Traditionalists typically favour dark colours with minimal emphasis on shades.
Each cluster possesses distinctive characteristics and propensities that can be leveraged in the development of effective marketing strategies. For instance, Idealists are frequently driven by social responsibility and ecological concerns. Therefore, products and services that align with these values, such as environmentally friendly or socially responsible offerings, can be effectively utilized to engage this audience. In contrast, Traditionalists tend to be conservative and gravitate towards established solutions. Therefore, it is advisable to leverage familiar designs, advertising slogans, and other marketing elements to resonate with this audience. As previously stated, hedonists seek pleasure and enjoyment. To attract this audience, it is advisable to use an attractive design and products that promise to improve the quality of life. Rationalists are focused on logic and rational arguments, so it is advisable to use accurate and objective data and facts to demonstrate the real value of your product or service to such people.
In my view, this toolkit represents a significant advance on existing market offerings. A focus on the deep mechanisms of the psyche, shaped by evolution, represents a significant strategic shift.
The PSYCHEA model is comprehensive in its structure and scope. It is therefore advisable to seek the guidance of experts in the field or to undertake dedicated training at PSYCHEA SCHOOL. The objective of this book is to introduce the tool and provide an overview, enabling interested parties to identify the specific technologies that align with their needs.
Strategy
A company’s strategic plan is a vital instrument for achieving long-term objectives. In the absence of a strategy, a company risks becoming mired in an endless cycle of operational activities.
A company’s strategy is primarily designed to define the longterm trajectory of its growth and maintain its competitive edge in the market. It enables the company to make well-informed and balanced decisions, foster positive relationships with customers and partners, and utilize company resources in a more efficient manner. Company strategy facilitates the organization of overall company operations and specific divisional activities, mitigates risks, and enhances transparency in management. Furthermore, it facilitates the coordination of all company employees, ensuring unified direction and a shared understanding of the company’s goals and plans.
The company’s strategy is developed in alignment with its mission, with the objective of accurately defining its role within the ecosystem. The mission is a long-term planning horizon. Historical data demonstrates that truly outstanding results can only be achieved on long-term horizons.
Bernard Arnault, the head of the French holding company
LVMH, which includes more than 70 premium brands — from Christian Dior and Louis Vuitton to Chandon and Dom Perignon — has the following to say: “When we discuss a brand, I always consider what it will be in five or ten years’ time, rather than focusing on its profits in the next six months.” Consider, for instance, Louis Vuitton, the global leader in luxury goods. My focus is not on the immediate financial gain, but on maintaining the brand’s reputation and success over the long term.
Another clear example of a long-term strategy is the oil company BP, previously known as British Petroleum until 2001. In 1997, British Petroleum CEO J. Brown stated that the company had to find a compromise between further development and the need to protect the environment. On initial examination, this may appear to be a highly contentious assertion, particularly in light of the specificities of the oil industry. However, this marked the beginning of a new phase of the company’s development.
At the beginning of the 21st century, BP began to direct its attention toward alternative energy sources and the issue of reducing air emissions. BP launched the “For a Clean City” initiative. A new alternative energy division was established to enhance the company’s capabilities in solar, wind, hydrogen, and gas power generation. In 2000, following a period of mergers and acquisitions, BP announced the launch of a new global brand. The company’s symbol was the Helios logo, which depicted a sun with green, yellow, and white rays, symbolizing energy in various forms. It is important to note that the new trademark is much more than just a logo. According to BP, it is a reflection of the company’s market positioning philosophy. The new logo reflects the unification of several well-known brands, including BP, Amoco, Arco, and Castrol, into a single, unified symbol representing the company as a whole.
The new slogan is “Beyond Petroleum,” which literally translates as “More than Fuel.” The company frequently utilizes this phrase to encapsulate the essence of change and its potential. The meaning that BP ascribes to this phrase is an aspiration to think and act in ways that transcend established traditions and standards, to move beyond the role of an oil company, and to transform the company into something much bigger — an energy company. BP is now an organization that encompasses all forms of energy.
The aforementioned examples illustrate that companies with a long-range planning horizon possess an understanding of their position within the ecosystem. This enables them to adapt to changing environments, continue to develop regardless of the tactical situation, and adopt new technologies. This is analogous to the natural process of development, which entails structural changes in organizations, adaptation to external conditions, and modifications to products, markets, and industries in line with evolving technologies, cultural norms, and societal values.
A strategy is a plan of action designed to achieve long-term goals in alignment with a defined vision, documented and communicated across the organization. It is a plan to ensure the optimal realization of the function for the larger system. The fundamental concept of strategic development is to identify future needs, believe in the feasibility of these projections, persuade others of their validity, create a plan to transition from the envisioned future to the current reality, and then revisit the initial steps.
As part of my role at ANG Intelligence Bureau, I prepare an extended version of the strategy, which we refer to as the White Paper. It serves as the foundation for the company, its formalized DNA. The “White Book” is a strategic corporate document that outlines the company’s fundamental concepts, mission, and guiding principles. It also details the overarching strategy for developing these concepts, the organizational structure, the principles of business process management, and the job descriptions.
A company’s strategy should be adaptable and responsive to changes in the company’s external and internal environment. The creation of a strategy is an ongoing, dynamic process that requires constant adjustments. Furthermore, the absence of a strategy can result in unstructured and unpredictable growth for the company.
An effective strategy helps to avoid missteps and oversights related to short-term objectives, while enabling the company to flourish and evolve over time. It enables the identification of the company’s strengths and weaknesses, as well as potential threats and opportunities in the external environment.
It is important to note that not all strategies are guaranteed to be successful. Even a well-designed strategy does not necessarily ensure positive outcomes. It is crucial to recognize that strategy is a paradoxical concept. What is currently a strength may become a weakness tomorrow, and a threat may become an opportunity.
The final strategy must be carefully crafted to assist the company in achieving its long-term goals and objectives. It should be based on the company’s distinctive characteristics and competitive advantages.
Modeling the organizational structure
Please advise on the most appropriate structure to choose. To enhance business effectiveness, it is advisable to consider the founder’s personality and habits when making decisions.
There are four decisionmaking styles: authoritarian, where the leader makes a single decision; authoritarian after discussion, where the leader listens to the opinion of the team but makes the decision on their
own; democratic, where the decision is made by the majority; and consensus, where all participants reach complete agreement.
There are a number of different types of organizational structures that companies can adopt in order to achieve their goals. The following are examples of such structures:
1. Hierarchical Structure: This is the most common type of organizational structure, in which the entire company is organized into hierarchical levels, starting from the management team and ending with the basic employees. Each level is accountable for specific functions and makes decisions, which are then communicated to the next level.
2. In a matrix structure, the company is organized by projects rather than by departments or functions. Employees may be assigned to one or more projects at a time, working in a cross-functional team that includes representatives from different departments.
3. In a functional structure, the company is organized by functional areas such as marketing, finance, production, and so on. Each area is accountable for its respective functions, while all departments collaborate to attain the company’s overarching objectives.
4. The company is structured according to business processes. This approach entails a redefinition of functions and departments in alignment with the specific requirements of the process. The process structure enables the company to respond rapidly to changes and manage business processes in an efficient manner.
5. In a structure by product, the company is organized by products or services. Each product group has its own structure and operates independently of other groups, allowing the company to respond rapidly to market changes and develop new products.
It should be noted that these types of organizational structures can be combined and modified to meet the specific needs of a particular company, taking into account its mission, values, and archetype.
Business processes
In my experience of consulting, I have found that entrepreneurs typically identify the initial priority task as the prescription and establishment of business processes. It is evident that business processes represent only the final stage of a larger, more complex process.
In my experience, 99% of clients who complete the full cycle of White Paper mentoring with me indicate that they no longer require my assistance after reaching the final stages, namely organizational structure and business processes. They assert that their creativity and the optimal configuration of these processes is so evident that it is not worthwhile to invest further time and resources on the matter. This is an illustrative example of how higher logical levels exert influence over lower ones. If the upper levels of the organization are well-managed, the lower levels will naturally fall into place. Nevertheless, I will provide some recommendations for describing business processes.
Business processes are a series of coordinated activities and tasks that are carried out within a business to achieve defined business objectives. They outline the sequence of activities and interrelationships that are necessary to create a product or service and ensure the effective functioning of a company. Automation using information systems can improve efficiency and reduce the cost of performing these processes.
Modeling business processes is a creative process, but the resulting scheme should be simple, clear, convenient, and readable. It is important to recognise that no business process can ever be perfect and 100% aligned with reality. There is always room for simplification and assumption, and even the strictest regulations are subject to human interpretation. It is of the utmost importance to indicate the moment of responsibility transfer when describing business processes.
Valuable end product
Furthermore, in order to establish effective business processes, it is essential to define the valuable end product (VEP) for each position. VEP represents the result of the collective efforts of individual employees and entire departments. It can be a product or service that is delivered to a person or group for whom it is useful and can be exchanged for something of value. It is essential that the product is complete. A product is not considered complete if it requires additional work to be completed by another party. The term “value” is defined as the degree of importance of the product, which can, but not always, be expressed in monetary terms. By defining the expected output of an activity, managers and employees can align expectations and ensure that the position’s responsibilities are clearly defined and compensated accordingly. Furthermore, the definition of the DPC facilitates the accurate and transparent formulation of job descriptions.
For instance, the VPE for a marketer is not the expenditure on advertising, but the delivery of a successful campaign that generates a high level of customer engagement. A sales manager’s key performance indicator (KPI) is the number of contracts signed and paid for, while a sales manager’s VEP is ensuring that revenue exceeds expenses. The accountant’s VEP is to protect the organization’s assets. This is achieved through the accurate maintenance of financial documents and is reflected in the reporting system. A director’s VEP is a company that is experiencing growth and prosperity, generates income for shareholders, and which produces a product or service that is valuable to customers.
Metrics
To effectively oversee the operations of the company’s various departments, it is essential to establish performance management metrics for each division and position. From experience, any activity of an organization, from production output to service levels, can be measured and evaluated using specific metrics. The use of statistics is an effective method for ensuring the growth of a valuable end product. Graphs of the level of metrics provide managers with a clear visual representation of the situation, allowing for more effective monitoring and decision-making.
There are numerous metrics that can be employed to monitor and evaluate the performance of departments and employees within a company. This is an area that requires the input of company management. I have provided a sample list to illustrate the key areas.
1. Financial metrics are used to assess the financial performance of a company. These include measures such as profit, turnover, profitability, revenue, average check, average revenue per customer, cost of sales, and so on.
2. Production metrics evaluate the efficiency and output of the production department, including factors such as quantity produced, scrap rate, defects per unit, production speed, and total productivity of machinery and equipment.
3. Sales metrics provide insight into the performance of the sales department, including key indicators such as the number of sales, conversion rate, average order value, call waiting time, number of rejections, number of sales per customer, and customer base size.
4. Customer satisfaction metrics gauge customer satisfaction levels, including NPS (Net Promoter Score), CSAT (Customer Satisfaction Score), the number of complaints and feedbacks, and the percentage of repeat purchases.
5. Marketing performance metrics provide insight into the effectiveness of marketing campaigns, including key indicators such as the number of new customers, inquiries, conversions to sales, and return on investment (ROI).
6. Employee performance metrics provide insight into the performance of employees, including the number of tasks completed, the number of errors, task completion time, the number of overdue tasks, the percentage of time spent on administrative tasks, and other relevant data.
7. Social responsibility metrics demonstrate the company’s commitment to social responsibility. They encompass the number of contributions to charity, the number of green projects, the number of employees trained and developed internally, and other such activities.
Job descriptions
By basing the job description on a valuable end product and a system of metrics, it is possible to transform this document into a management tool. It is essential to understand that a job description is created for a position within the organizational structure, not for a specific employee.
The primary objective of a job description is to align the work of a specialist with the company’s strategic goals. Job duties should be outlined in a concise manner, not in the form of an extensive document, but in one sheets of typewritten text. It is essential to include all activities that the specialist is required to perform, including interactions with other departments. It is also important to include a subordination clause at the enterprise level to avoid any potential claims from employees regarding the order. It is also necessary to specify the working hours and the possibility of involvement in case of force majeure. Additionally, the document should reflect any compensation for work on weekends and holidays. It is important to note that the job description should specify not only the duties of the position, but also the respective responsibilities of the parties involved in fulfilling those duties. The job description should be drafted in a formal business style and signed by the relevant parties in two copies. One copy should be retained by the employee, and the other should be filed with the HR department of the company.
A job description should not be viewed as a mere formal document that must be created to fulfill employment procedures. This document outlines the goals and objectives of the employee’s position, as well as their responsibilities for achieving these tasks.
A job description establishes a standard of work that aligns with the company’s overall goals and plans. It enables the identification of the key competencies that an employee in the position must possess and provides a means of monitoring work performance. This allows for the performance of the employee to be evaluated and areas for improvement to be identified.
Furthermore, a job description serves as a tool for regulating labor relations. It clearly defines the obligations and rights of both the employee and the employer, and helps to avoid any potential conflicts related to non-compliance with the rules and regulations set out in the instruction.
A job description serves to formalize the tasks and responsibilities of an employee, while also facilitating more effective management of the organization. It provides a framework for improved coordination and planning of work.
Conclusion
The process of developing a business concept and bringing it to fruition is a lengthy and labor-intensive undertaking that necessitates not only ingenuity but also meticulous organization. However, maintaining consistent alignment with the company’s mission and values throughout the process can lead to notable outcomes at the end.
A company’s mission statement outlines the purpose of the company and its social value. It should be motivating and understandable to all stakeholders. To ensure that the mission is not merely words on paper, it must be operationalized through the setting of specific goals and the assurance that all employees understand how their work contributes to these goals.
A company’s ideology directly affects the selection of HR strategies and methods, as well as the design of processes and procedures. For instance, a commitment to employee professional development can inform the design of training programs and the setting of performance goals and objectives. In essence, ideology provides a unifying compass for the company and its employees, enabling them to work in a coordinated manner and enhance the quality of their work.
My objective is to demonstrate that company ideology is not merely a transient concept, but rather a tangible management instrument. It is a concept that merits your investment of time and attention. The final white paper will enable you to establish optimal conditions for the company to actualize its potential, achieve its objectives, and attain its goals.
As evidenced by market trends, one potential outcome of implementing the ideology is the owner’s exit from the operational phase. The key point is that when the scale of vision changes, it becomes evident that there are two distinct roles: that of managing the company and that of owning it. This necessitates the acquisition of different competencies and skills.
Furthermore, defining the business’s higher purpose leads to defining the owner’s personal higher purpose. This allows the owner to pursue a higher goal, avoid burnout, and align their actions with their true aspirations. Furthermore, this type of business is more readily transferable due to its intrinsic value.
Best wishes!
