In a session entitled “The efficacy of management by values”, the lecturer on Talent Management at EAE’s Madrid Campus highlighted the importance of companies’ cultural transformation and its impact and their final results. Moreover, Antonia Arévalo focused on aspects such as the company’s culture or values as intangible yet decisive features of a successful organization.
Ana Arévalo also mentioned the VUCA environment (Vision, Understanding, Clarity, Agility), the business system that has changed traditional methods in order to transform the management of organizations. Arévalo explained that the new “dogma” of organizations is based on aspects such as Vision, Values and Mental Models. These elements represent a real shift from traditional organizations, which were authoritarian and based on administrating, organizing and controlling. Referring to Peter Senge, she added that “healthy companies will be those that can systemize ways of bringing people together to develop the best possible mental models”.
The challenges of management by values
Introduced to Spain by the professors Salvador García and Simón Dolan, management by values represents a new paradigm in which the most competitive organizations function internally based on an interconnection between the parts that comprise it in order to achieve a shared goal. “True wealth will no longer be material but rather intangible” added Ana Arévalo.
Within the framework of this interconnection between the different agents and players in an organization, the members’ enthusiasm and capacity to learn takes on an essential role. “When teams learn, not only do they generate better results but also their members grow more quickly” explained Arévalo.
Management by values is underpinned by the premise of working with people striking a balance between economic, ethical and emotional variables. This approach has a great number of benefits for the company: it enhances employees’ commitment, motivation and creative initiative and contributes towards making organizations more responsive and attractive to customers.
“To be effective, we have to be more sustainable by embracing new strategies”. This is Professor Arévalo’s message, based on which she justifies the creation a collaborative culture of responsibility in which everybody is aware of the task they have been assigned at all times in order to achieve a common goal.
Lastly, she highlighted the fact that cultural transformation begins with the personal renewal of the leaders, who must base their management on values, optimizing the resources available to them and formulating visions and goals with which to impassion their teams. “Cultural capital has become a critical factor in high performance”, concluded Ana Arévalo.