Pattern: Value Hierarchy
When an organization’s values are clearly stated and prioritized, as well as fully internalized across the company, people have the basis for making day-to-day decisions without needing to seek consent or permission/approval
The company’s cloud native transformation has just begun, and there is a lot of uncertainty. People are still learning about the tech, and the organizational structureis evolving. Teams are becoming independent, and there are many moving pieces.
In This Context
Without a clear understanding of the company values and the priorities, people have no easy way to connect their daily work to the company strategy. In such a situation, different teams may make conflicting decisions or waste a lot of effort on low-priority tasks.
- Gaining consensus from all stakeholders is time-consuming.
- In traditional organizations managers make all the decisions.
- The market is changing frequently, with new competitors appearing unexpectedly.
- Cloud native technology is constantly and rapidly evolving.
Therefore
Create an ordered list of clearly stated values to simplify decision making and guide behavior in an uncertain environment.
- Identify the company’s values: what is important to us?
- Formulate these simply and clearly.
- Rank these values in order of importance.
- Incorporate this value hierarchy into the company’s culture and identity by broadcasting it across the organization.
Consequently
Teams and individuals in an organization are able to make decisions with confidence.
- Organizational principles and priorities are clear and commonly understood by all.
- People can easily make informed choices that reflect both the company’s values and best interest.
- In a constantly changing environment, there is a stable and constant point of orientation.
- Too-frequent changes to the value hierarchy can cause confusion and chaos.
