Like Walton, your stated corporate philosophy must ultimately be a genuine reflection of the values and beliefs you hold in your own gut. The values must be so much a part of you—of your own core spirit—that you instinctively respond to situations in a way consistent with your stated philosophy. You shouldn’t have to think about it. Likewise, when actions are taken by others that go against those values, it should eat at you on a gut level.

Much of the material in this chapter is based on extensive research at Stanford and the article “Organizational Vision and Visionary Organizations” (California Management Review, Fall 1991). We need not go into all of the theoretical underpinnings and background research of the framework here. The essence of it is that a good vision consists of:

1. CORE VALUES AND BELIEFS

1. PURPOSE

1. MISSION

As described earlier, one of the primary functions of corporate vision is to add meaning, to be a source of motivation for extraordinary human effort. A clear and compelling vision is essential to people seeing the importance of their work. If you haven’t yet read Chapter 4 on vision, read it. If you haven’t set a vision, do so.

Also, remember that one of the components of a good vision is a set of core values and beliefs, a set of guiding principles and precepts. This underlying set of core values plays an essential role in guiding people’s daily behavior and standards. In fact, there is a direct link between values and tactical execution. For example, if one of your core values is “treat customers like human beings” and if it is well inculcated through your organization (as it is at L.L.Bean), people are going to treat customers like human beings.

As a leader, you are the embodiment of that company. What that means is this: Your values—your sense of integrity and decency and honesty, the way you comport yourself in the world—are a stand-in for the values of the company. You can be the head of a seven-person organization or a quarter-million- person organization, and the same truth holds: what people think of you is what they’ll think of your company.

Vision is an important role. Heart and soul matter. Often that is embodied in the founder, but many other people may also embody what the company stands for, its mission and spirit. They don’t show up on a balance sheet, income statement, or org chart, but they are very valuable.