Philosophy, according to the Webster’s Dictionary, is a system of fundamental or motivating principles, the basis of action or belief. Management personnel may wonder how this relates to the world of business. They'd be surprised to know that having a sound business philosophy is the cornerstone of a successful business. The process of developing and understanding a business philosophy can help build a cohesive and productive organization that's well equipped to handle whatever challenges it may face.
What is a Business Philosophy?
A business philosophy is a set of beliefs and principles that a company strives to work toward. This is often referred to as a mission statement or company vision. It's essentially the company’s operational blueprint. The business philosophy explains the company's overall goals and its purpose. The philosophy also outlines the values that are important to the company. As a business entity, a company's philosophy is a reflection of the values of its leaders. Some business philosophies are very well known, such as Google's, which lists such attributes as, “It’s best to do one thing really, really, well," and, "You can make money without doing evil.” Once a company creates a business philosophy it must articulate the philosophy to its employees.
The Importance of a Business Philosophy
Taking a trip to a new city without a map or GPS can be very frustrating. You won't know how to get there or how long it will take you. The same analogy can be used for companies that lack a clear philosophy. If the employees don't know the company's ultimate goals or its values, they can feel lost in their day-to-day work lives. By extension they may not give the best customer service or work in the most effective manner. By establishing a mission statement and articulating a company’s vision, a business can avoid these issues.
Composing a Business Philosophy
A good business philosophy successfully outlines a company’s values, beliefs and guiding principles. Creating a philosophy takes time and diligence on the part of business leaders. In composing the philosophy, leaders should ask themselves, “What is the nature of my business?” “Who is my customer?” “What values are important to me?” and “What is my overall vision for the company?” The answers to these questions will form the basis of a sound business philosophy.
Communicating the Business Philosophy
Once a company creates a business philosophy it must communicate the message to its employees. There are several ways of achieving this goal. Many companies introduce employees to the business philosophy during the new hire orientation process. Some businesses display the company’s mission statement on websites, logos, posters and other office products as a way to continually remind employees of the company’s vision. Another way is to meet individually with work groups within the organization to make sure the departmental goals are in line with the company’s overall goals. Whichever avenue a company chooses, it's important to effectively communicate the philosophy to the employees.
- The Practice of Leadership: The Importance of a Clear Leadership Philosophy
- Successful Manager's Handbook; Personnel Decisions International; Copyright 2000; pgs 214-215
- Goggle: Our Philosophy
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