Power of Values in Business


The word value is often used to describe something rather vague and nebulous, a grandiose idea or ideal, a corporate ethic or philosophy. But when we use the word, we mean something very different-something very real, very concrete and very powerful. Values possess power, a phenomenal power-the power to energize a company for rapid growth in revenues and profits-and this is a power, which is fully available and accessible to every company. Like opportunities in the external environment, the only essential conditions are: you must be aware of their enormous potentials and you must really want to tap them.

Companies direct their energies by focusing on the achievement of corporate goals. The goal may be to achieve a quantitative target for units produced and sold or dollars of revenue and profit. The goal may also be to improve the quality of performance-to do work better, faster, more efficiently, more safely, more systematically, with improved communication or coordination, in a manner more pleasing to customers or more satisfying to employees, etc. These qualitative goals are what we mean by corporate values.


Robert Cavalco discovered the power of values after he took over as CEO of Bang & Olufsen of America. BOA is the U.S. subsidiary of a $360 million Danish electronics manufacturer, known throughout the world for its technically sophisticated and superbly designed audio and video home entertainment systems. Bang & Olufsen is the Mercedes and BMW of hi-fi.

When Cavalco joined BOA, he found the company facing fierce competition from ld

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