Page 126 - MS Year in Review 2020

We can term this approach to be one where a company makes “assertions of

values.” Specifically, this means that a company states what it wants its value
to be.

Although on the surface, this approach seems to be reasonable, even a cursory
examination indicates a few problems:

1) The stated values of Netflix are not all "value statements." The first,

“Values are what we value” is a definition of value, not a value
statement per se. Some statements are values of a sort (i.e. “High
performance" and "Freedom and responsibility,” and some are practices

(i.e., pay top of market). Stated differently, these purposed value
statements are “apples and oranges.” They are all related to values IN
SOMEWAY but comprise different kinds of constructs. Stated differently,

there is problem with construct validity even on a face validity basis.

2) There is no verifiable empirical support to show that there are the
“real” values of Netflix or that they are drivers of behavior or the
organization’s success. There are two kinds of values: stated

values and real values. Stated values are what the company thing it
values are or ought to be. Real values are what actually drives behavior in
an organization.

The Core Problem with Ad Hoc or Apriori Culture Statements

The problems identified above are not unique to IBM and Netflix. Although on the
surface the approach to “assertions of values” illustrated by Netflix seems to be a

reasonable approach, there are two significant problems with this “method” of
deriving a set of core values. First, how do we know that these asserted values are
meaningful or relevant to performance and organizational success? Stated

differently, the core problem is that ad hoc values are lacking in support
by empirical (predicative) validity. Second, how do we know that these asserted
values are what the key core values ought to be?

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