As part of the IPO filing for Facebook, Mark Zuckerberg laid out a set of company values. They are illuminating, especially when compared to the values of older, more mature firms: the Facebook values serve as a 21st century heads-up for firms focused on technology and Generation Y. They are a pointer for the “new normal.”
I emphasize the notion of “pointer” because although corporate values put the public face on a company, they also reinforce the employee values that they intend to reward. It’s noteworthy that Zuckerberg’s values are readily considered to be, as Michael Wolff of The Guardian wrote, “naïve or other-planetary.” But Wolff is the real naif because ultimately value statements can be exceptionally useful—something that few journalists or companies seem to understand. And that’s no more true in organizations than in the smallest public organization, the family. (Why is it so many older, more experienced journalists and execs often seem to have a difficult time with youthful success?)
Values statements create a rhetorical world, give order and direction to behaviors, and reduce the internal corporate chaos that is inevitable in today’s highly diverse, rapidly changing corporations. Values are cultural fictions, designed to heighten the understanding of “who we are,” foster behavioral sensibilities and impact not only the bottom line, but also define the boundaries of ethical and social responsibility. (Think Fiddler on the Roof’s Tevye and his “traditions.”) Cultural fictions are usually elastic concepts capable of reinterpretation—and that, as anyone who’s seen The Social Network knows, is true of these values. Still, the simple-minded jerk who thinks that there’s talk and then there’s action is out of touch with reality. Language is action. The belief that there is a distinction between talk and action is false. Sure, some talk is a waste of time. But a lot of work is also a waste of time. In short the real business of business is talk and that’s the subtext of Zuckerberg’s statement—in many different ways.
Zuckerberg explained Facebook’s philosophy in terms of five core values.
- Focus on impact. Recognizing the crises of the data explosion, with this value Zuckerberg emphasizes the importance of priority issues. As he emphasizes, a lot of companies and people waste time on issues that may need resolution but fail to resolve the really serious problems.
- Move fast. Clearly the firm worries about the fear of mistakes. Thus, their proverb, “move fast and break things,” and “better done than perfect,” a riff on Voltaire’s popular statement that perfect is the enemy of the good.”
- Be bold. In short, this is what he thinks about risk in a world that is changing so quickly. Again, a proverb: “The riskiest thing is to take no risks.”
- Be open. The strategy of openness is key to their competitive success. It is viewed as an absolute need if the company is to continue to make effective decisions and have the greatest impact.
- Build social value. Zuckerberg ignores the potential regulatory issues of making the world more open and connected. Instead, he goes for social responsibility and its transforming power. It’s amusing to notice that journalists (see the NYTimes or Wall Street Journal, etc.) continually chide him for overstepping the bounds between social value and corporate value. I suspect that he’s been coached to stay out of that black pit. After all, silence goes a long way toward silencing potential detractors.
FYI: Zuckerberg’s statements about social value are an accurate representation of his earlier comments that the public and especially journalists don’t understand that his interests and business are not primarily about money. That’s an exceptionally wise truism, supported by overwhelming research. It finds, for example, that Goldman Sachs executives are more interested in power than money. Indeed, when the rubber hits the road, executives are a lot more interested in their power than in the survival of their company. Plenty of execs deny both those ideas. I usually roll my eyes and suggest they think a bit deeper.
Kissinger is famous for declaring that power is the ultimate aphrodisiac. But Kissinger’s comment refers to people power, the kind of magisterial power that was typical of his generation. In contrast, Generation-Y, reflecting Zuckerberg’s “hacker philosophy,” is strongly oriented to intellectual power. The rewards come from intellectual smarts far more than people power. When the game is tied to intellectual power rather than people power, hierarchies get flattened. That makes collaboration far more possible—and inevitable. Those distinctive generational differences bode well for the continued superiority of US business innovation.
Values, proverbs and organizational behavior
Although Zuckerberg’s letter did not reveal a proverb for every value, my assumption is that they’re floating in the Facebook ether. Proverbs--and company stories--are key to understanding a firm and even predicting a firm’s success or failure. Proverbs do not come into existence quickly, nor by executive fiat, and certainly not by slap-dash thinking. As anyone with a theological or rhetorical understanding recognizes, proverbs are the accumulated wisdom of a people or an organization—in short, pithy form. They are the result of a lot of experience, reflection, and conversations--a lot of talk. They’ve been tried on by employees and managers, revised, rephrased, and finally institutionalized. Proverbs are inevitably created after the fact. In other words, they only surface after conflicted experiences which force an organization to give thought to where it’s been, what it’s learned, how to succeed, and who it is. Proverbs make demands of people. Although I’ve worked all over America, none of our major firms have inculcated their culture with much in the way of proverbs. Thus, Zuckerberg’s proverbs, growing out of his core values, are highly indicative of the actual behavior of his organization.
How do 21st century values differ from the past?
Facebook’s values differ significantly from older, more mature firms. In a comparison with GM, Fidelity Investors and 3M, a cursory study revealed a number of significant value distinctions—and not merely those tied to their specific industries.
All three firms emphasize the importance of integrity, respect and honesty in the workplace and with customers. GM builds its entire values statement around personal integrity, referring to the Global Sullivan Principles created as a means for dealing with apartheid. Amazing that they were adopted as late as 1999. By that time, it was well known that the Sullivan Principles had little impact. They are essentially protective of the firm rather than behaviorally assertive for its employees. They emphasize staying within the law and function, in my mind, as a CYA, public relations instrument. Surprisingly, 3M’s sound little different than GM, emphasizing legal and ethical business conduct. The CEO positions the values as a means of enhancing the firm’s reputation. Fidelity is similar to GM and 3M, however, its values statement begins by stressing long-term relations (they are a financial planning firm, not a brokerage) and a “hunger for innovation.”
These 20th century statements all give advice in such abstract form that it is difficult to take action, yet they are written as though that is not the case. Ultimately, rather than provide insight into how, specifically, to behave, they are written at a level of inference that is not operational. They make possible a lot of defensive routines, fancy footwork and malaise. In short, they are not a tool of governance. I’m not certain what they are, but they ain’t governance.
In profound contrast, Facebook’s values are a basic tool of governance. The level of abstraction is limited, and the proverbs focus on daily behavior. They are lacking in gobbledygook and as straightforward as rhetorically possible. They reinforce specific, concrete behaviors. An employee knows what he/she should doing. And significantly, they open the door to risk, creativity and innovation, something that the last century’s values will not impact.
They are as simple-minded as a parent saying to her high-schooler, “get your homework done, pick up your room, practice your flute, fill the dishwasher or take out the trash, and the rest of the evening is yours--except be in bed by 10:30.” That kind of family governance creates the boundaries for social, academic and career success. Similarly, Facebook’s values, “focus on impact, move fast, take risks,” etc., create specific boundaries for personal success. The parent and the organization that enforces definitive values will inevitably gain far better results than the organization or the parent that says “be good, be nice and don’t get into trouble.” It’s not a stretch to say that the focus of GM, 3M and Fidelity’s values are fundamentally, “don’t get into trouble.” They are a wasted tool.
So, Mr. Wolff, Zuckerberg’s values are other-planetary? Nahhh. They’re a different animal than anything else you’ve ever seen. They won’t protect Facebook from regulatory issues, but unlike old-fashioned value statements of the 20th century, they’re not meant to. They’re brilliant and they obviously get the important jobs done.
Photo from Flickr: Girisimicinin Galaksi Rehben