Christopher C.

Cowan and Natasha Todorovic

Chris Cowan is the co-founder of National Values Center, Inc., (NVC) and is a partner in NVC Consulting
(www.spiraldynamics.com). He is co-author of Spiral Dynamics: Mastering Values, Leadership and Change
(Blackwell Publishers, 1996). Natasha Todorovic is a partner with NVC Consulting.

Abstract Strategies often go awry because organizational leaders traditional values, and family values. We are talking
are not fully aware of the values held by its members. No matter how about the soft side ± a people factor, not a financial
brilliant the analysis that underlies a strategy, it is the people ± from consideration. And this factor is getting increasing
the board room to the factory floor ± who must understand and prominence on investor relations pages on corporate
implement the strategy. That only happens when the strategy fits Web sites for good reason.
their values. Values matter. Ethical decisions and actions are based
Values matter. We base ethical decisions and actions
on values. The authors present a psychological theory that describes
three levels of values: surface values, hidden values, and deep
on values. In Results Based Leadership, Ulrich, Zenger,
values, and explain how these values affect an organization's and Smallwood propose that choices between short- and
leaders and followers as they pursue their mission. long-term results are best made by ``leaders with an
articulated set of values. . . Leaders who understand their
Keywords Organizational culture, Strategy, Implementation, company's and their personal values build lasting
Motivation, Core beliefs, Values results. . . Lacking clear values, rudderless leaders
constantly shift from goal to goal''[1].

``T
Surface values float on top of the stream
he best laid strategies o'mice and men oft There are three layers in the values stream. (See Exhibit 1.)
go awry . . .'' because organizational The first layer, surface values, are openly stated, moral
leaders didn't do a values audit first. No positions and behavioral rules. They are based in
matter how brilliant the economic and market analyses religion, law, and common sense. Stated overtly or not,
that underlie a strategy, it's the people ± from the board they set standards for how people and corporations
room to the factory floor ± who must understand and conduct themselves. Values are keys to character. They
implement the strategy. That only happens when the separate right from wrong and stack priorities. Like
strategy fits their values. leaves floating on top of a river, we can see and touch
When we say ``values,'' we are not talking about them.
economic worth, monetary return to shareholders, or Strategy sometimes scans surface values in mission
investment bankers' smiling faces. Instead, think in and vision statements. ``This we believe . . .'' shows up in
terms of corporate values, shared values, core values, reward schemes, ethics codes, office layouts, and social

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 Exhibit 1 Ð Three levels of values

patterns. People build relationships, quit jobs, and fight

wars over them. Surface values express what matters, Principles of spiral dynamics
but there are more layers to be uncovered in values ^ People, groups, societies, and organizations find value in different
analysis. things because they think in different ways. They think in different
ways because their human composition ± physical neurology and
Hidden values ± currents in the stream
life experiences ± are different. The same core principles of value
If surface values are like leaves floating on a stream, the systems apply to individuals, corporations, and societies.
next layer, hidden values, are the core currents that carry ^ Different groups of people inhabit different bio-psycho-social-
them bobbing past. A good sense for hidden values sniffs spiritual spaces along the spiral. Their thinking fits the world as it
out the reasoning beneath surface values and exposes is from that perspective. They need forms of organizing and
why long-standing beliefs, attitudes, and traditions exist managing that fit their thinking as it is today, and as it will be
tomorrow.
in organizations. In The Individualized Corporation, ^ Those responsible for strategy, whether for internal development,
Ghoshal and Bartlett refer to this as ``the smell of the external M&A, or other analysis, should look at values in both
place''[2]. Hidden values waft through an operation ± be economic and people terms. Many strategy initiatives fail because
it total commitment to quality, supporting life-long they concentrate on objective data and leave out the ``soft side'' of
learning, or protection of beloved incompetents. culture and values. Incorporating the human factors is the key to
Hidden values are easy to miss. NaõÈve, cost-cutting successful implementation.
^ Today's problems are yesterday's solutions; today's answers only
efforts run roughshod over hidden values, and veterans
lead to tomorrow's questions. Successful organizations are in
of the acquisition game know that many deals fail to danger of failing if they continue to manage people in the ways
realize their promise due to difficulties in melding that made them successful in the first place. New strategy
values. In Built to Last Collins and Porras say: ``Core suggests change. Viable strategy must account for all six
values are the organization's essential and enduring conditions for change.
tenets ± a small set of timeless guiding principles that ^ Many people in organizations today expect and need to be
managed quite differently from the ways their own managers
require no external justification; they have intrinsic value prefer to be led. Strategy has to create a model for both/and
and importance to those inside the organization''[3]. rather than either/or thinking. The shift of logic from or to and is
Values have momentum like flywheels ± hard to stop and profound.
difficult to turn. Powerful as hidden values are, ^ Strategies often fail because the designers look into their
something deeper shapes them. ``strategic mirrors'' and assume the organization understands and
wants what they do, and that its people are ready and truly willing
Spiral dynamics: the bedrock of deep values to do as the strategy requires.
Hidden values flow from deep values. Spiral dynamics is ^ The question is not ``how do you lead people?'' but how do you
the study of the emergence and patterns of deep values relate what needs to be done into their natural motivational flows?
that mold strategists' worldviews, form corporate If you can flesh out the answers within the question, ``How should
who manage whom to do what, and when?'' you're on the road to
mindsets, structure leader/follower relationships, including the values component in strategy.
establish decision structures, and define reality[4]. (See ^ Value systems move like a joy stick and glide from looking inward
sidebar, ``Principles of spiral dynamics.'') Understanding to focusing outward, and from attention to the individual to
deep values provides a scaffold to stand on while thinking as a collective.

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analyzing why people think as they do and how they are Relief agencies deal with elements of deep valuesBeige for
likely to think next. refugees, and quasi-Stone Age bands remain in isolated
Credit for the original research behind spiral places on earth. Healthcare and daycare for people in
dynamics goes to the late Dr Clare W. Graves, who this zone are growing concerns for aging societies.
invested his career in a quest for the nature of change in
human systems. The seeds Graves planted are growing PURPLE ± sacrifice self to the wishes of the elders
fast now that people are asking the questions this and the ways of the ancestors to placate the spirits
framework addresses. In a 1966 Harvard Business Review Deep valuesPurple introduces animistic thinking, which
article he wrote: tries to find cause for effects in a world that is often
According to this point of view, the psychology of the mature mysterious and sometimes scary. Many assume that
human organism is an unfolding of emergent process marked by the
purple is the domain of children and anthropology,
progressive subordination of older behavioral systems to newer,
higher order behavior systems. The mature human being tends although family photos and sentimental artifacts on
normally to change his psychology as the conditions of his existence desktops are part of it. Rich purple bonds foster
change. Each successive stage or level is a state of equilibrium teamwork and trust contributing a sense of belonging,
through which people pass on the way to other states of but nepotism and tight-knit groups can prevent needed
equilibrium. When a person is in one of the states of equilibrium, he
has a psychology which is particular to that state. His acts, feelings,
changes. This zone is invisible to many strategists since
motivations, ethics and values, thoughts, and preference for family-like attachments, spirituality, and rituals fall
management all are appropriate to that state. If he were in another under strategic radar. It can make or break
state, he would act, feel, think, judge, and be motivated in a implementation.
different manner[5]. After purple, a strong sense of self arises as
The ``states'' Graves described are bio-psycho-social me-oriented red turns on. The focus begins shifting
systems that include neurology and physiology, cognitive toward control of the world outside. As red intensifies
processes and experiences, even a spiritual component. and reciprocal tribal bonds and obligations loosen, one
They are deep values containers; surface values and can expect rough-and-ready acting out that displays
hidden values are the contents. Deep values are alive, so fearlessness.
spiral dynamics blends the notion of a growing spiral of
thinking with dynamic forces of change. Living with the RED ± express self impulsively and without guilt
problems of human existence activates built-in mind/ lest one suffer unbearable shame
brain systems to produce a series of evolving deep The deep valuesRed band is egocentric. Everything
values. revolves around the now powerful self whose world is
There are eight zones along the spiral thus far. (See tough and dog-eat-dog, and where might makes right.
Exhibit 2.) They are designated as: beige, purple, red, For children, red surges in the ``terrible two's'' ± ``me
blue, orange, green, yellow, and turquoise. Each is against the world; I don't have to obey anyone; nobody
flanked by an ``entering'' phase, which carries some of puts me down.'' Sometimes passive, often raucous;
the previous thinking forward, and an ``exiting'' phase, attention and dominance are central. Red's ``just do it''
which recognizes the problems of existence coming next. attitude is unconcerned with consequences or the future.
Deep-values systems almost never appear alone ± most Corporate reshuffling and right-sizing can turn up
of us have several of them ebbing and flowing red. Defensive walls rise, tempers get short, and
situationally. They brighten and dim as external paranoia increases when survival is at stake ± life
circumstances and internal states change. Each conditions change; so does thinking. Red exercises
represents its own reality no better or worse than exploitive power. Leadership must be firm but fair ± no
another, only more or less appropriate to the threats, just promises. Include immediate, tangible
circumstances. Deep values emerge up the spiral and rewards and strong controls since boundaries will be
shift in focus from ``me'' to ``we'' and ``inner'' to ``outer.'' tested. The leader is the boss, no questions asked, but
The first three deep-values systems ± beige, purple, one who gives and gets respect.
and red ± are generally overlooked in strategy and fall At exiting, RED/blue, ego remains strong as doubt
into blind spots of corporate executives. (In reading the creeps in with the first glimpse of something mightier
following descriptions, keep in mind that capitalized than self-mortality and eternity. A higher purpose is
words refer to the dominant worldview; words in lower waking up. In the red/BLUE entering zone there can be
case indicate support and back-up value systems.) self-righteous zeal to impose the one true way.
Charismatic leaders and revolutionary heroes are
BEIGE ± express self instinctively and celebrated.
automatically for biological survival
Deep valuesBeige was cutting edge thinking in the Stone
Age and now exists mostly in infancy and infirmity.

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 Exhibit 2 Ð Zones in the dynamic spiral
World view Key objectives How to accomplish goals Mising statement Approach to working
Beige Just staying alive Respond as instincts and To survive as a phyical being Instinctive, automatic, and
senses direct to meet biological reflective
needs
Beige/Purple ± Awakening of a sense of dependent self in a mysterious and frightening world
Purple Finding safety/kinship/harmony/ Follow ancestral ways and To find safety and bring honor Ritual ways where all share in
reciprocity elders, listen to spirit world, to family and ancestors and follow elders, chief,
form safe tribes customs
Purple/Red ± Awakening of an egocentric self determined to break the shackles of the family or tribe and become independent
Red Raw individualism/exerting Exploit others, feel no guilt, be To get power and respect, Hands-on, tough work
dominance/power/survival courageous, avoid shame, live have a good time, be heroic controlled by firm, respected
in the moment boss
Red/Purple ± Awakening of purposeful self with guilt in search of a meaningful existence and reasons why we live and die
Blue Meaning in life and death/ Seek absolute truth, obey To find purpose and ultimate Linear processing, by-the-book
stability/order/deserve reward rightful higher authority, keep security by living righteously with errors punished, dutiful
things in order
Blue/Orange ± Awakening of an independence-seeking self who challenges higher authority and tests possibilities
Orange Autonomy/success/best Strive to win, make things To make things better by Competing to gain advantage
options/material gain/novelty/ better now, risk as needed, setting goals and mastering and come out in control, on top
change network, explore options life's game
Orange/Green ± Awakening of a sociocentric self who strives for belonging and acceptance to discover inner harmony
Green Affilliation/peace of mind/ Sacrifice for mutual gain, share, To find peace in a sharing Cooperative in joint ventures
balance/sense of community cooperate to build consensus, community by becoming useful where all contribute and share
teamwork
Green/Yellow ± Awakening of an inquiring, interdependent self who no longer needs approval yet can collaborate
Yellow Knowledge/freedom to be free/ Learn diverse things, follow To be free to explore important Independent focus on complex
discovery of what life is about personal principles, be flexible, things and interconnections systems and functional flow
non-competitive states
Yellow/Turquoise ± Awakening of an experiential self who seeks ways of being that use knolwedge to restore natural harmony and balance
Turquoise Viability for all beings in a Explore consciousness, be To become one with all things Unify and integrate diverse
complex, sustainable world holistic, exercise global and thus a responsible being knowledge and ways of being
responsibility and interests

BLUE ± sacrifice self now to the one true way and place. The hidden values derive from certainty, often
obey rightful authority so as to deserve reward producing rigid ``true believer'' ideas.
later Rightful authority designs the strategy upstairs,
The next quest is for meaning and purpose in life to find formalizes procedures, eliminates randomness, and
peace of mind. Thinking focuses outside to find truth increases structure. Leaders persuade the ``truth-
and authority. It is absolutistic and linear, producing holders'' of the particular surface values and enforce
categories for people and a dogmatic belief in rules and policies by the book. Competence and know-how take a
procedures. Whereas guilt was minimal with red, it back seat to rank and position. Strategy often means
surges in deep valuesBlue. Stability comes from systematically refining and polishing the rules thereby
obedience to proper higher authority. Many people in fine-tuning the status quo. Duty and commitment are
government and traditional corporations are still here, watchwords; innovation and risk are not.
devoted to the one right way, living to do what's right Exiting BLUE/orange brings a smattering of self-
and avoid punishment. Blue aspires to order. Change, if interest and questioning of authority. The individual's
it comes, produces stress and requires a step-by-step own right-thinking mind begins to take over, often
plan down the chain of command. Here, strategic spouting maxims and slogans to defend the new
planning takes on a doctrinaire, almost religious tone. expressive stance. Strategic planning really takes off
Surface values tend to be polar ± friend or enemy, true here, since it helps organizations move out of blue by
or false, right or wrong, moral or immoral. Blue separates anticipating the future and adjusting variables for best
doers from thinkers, designers from implementers, and (not singularly right) results. As orange brightens, the
strategy from operations, since everyone has a proper rules become open to interpretation.

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ORANGE ± express self calculatedly to achieve GREEN ± sacrifice self now, to obtain now, for self
what self desires, but so as not to arouse the ire of and others
others People drop out of the competitive rat race in deep
This one is familiar. In the deep valuesOrange zone, there valuesGreen as consumptive notions that bigger is better
are many ways to do something; however, the best way is fade. Thinking is now relativistic, context-sensitive,
found through experimentation and analysis. What is situational, and intuitive. Inner peace, a balanced life,
measured gets done; crunch the numbers. Thinking is equality, and contributing to the common good are
multiplistic with alternatives rather than linear and important. This is not just recycling, sustainability, or
absolute. The externalized desire for purpose turns chic enviro-green marketing; those are surface values
inward, driving needs for achievement, autonomy, and that can arise from several places. At deep valuesGreen,
independence. Productivity is rewarded by progression one really begins to sense unity among people, their
up the economic food chain. Competition motivates the work, their spirits, and their world. Shared responsibility
market. Winners rise; losers are roadkill. Clever action, and collective guilt emerge.
skillful entrepreneurism, and calculated risks lead to Strategy design and implementation embrace people
personal fulfillment. Seize opportunities and create throughout the organization who might be affected by
excellence. changes and who care to
Fascination with change and contribute. Humans are not just
constant improvement gives rise resources; they are the company.
to many competing schools in Effective strategy builds
strategy and the flavor-of-the-
month syndrome in
``Strategists and leaders are consensus and support while
communicating the ``story'' of
organizational development.
Mastery of the physical world
affected by the colored lenses of why it's important and good for
everyone involved.
and its mechanisms drive
research. Applications of
their own deep values glasses. . . . Strategists must look at green
more closely, because this deep
principles and tried-and-true
expertise direct management.
To serve strategy, all layers of values system is growing rapidly
in today's workforce. Socially
Leaders for the free-market,
orange world must model
values must be tracked across responsible organizations are
becoming more attractive to
success and sharpen their
cutting edges. They must exude
employee groups, companies, investors and potential
employees. Analysis concentrates
confidence and offer rewards
followers seek. The game's the
industries, governments, and on the impact change has on
people. The strategy industry has
thing.
For some people,
societies ± not just the surface barely acknowledged egalitarian
thinking. Recognizing it forces
competitiveness and drive lead
to loneliness. For others,
marketing data and hidden cultural human factors into the equation
of even traditional organizations,
success gives surplus energy
and time. Often, ORANGE/
attitudes. helping them line up for the next
wave. It is absolutely essential to
green awakens to ask, ``Is that include green thinking in a fully
all there is?'' This first blush functioning strategy, yet most
produces lip service to models still do not.
collaborative teamwork largely Green has its downside, which
to enhance the bottom line. Gradually, the need for self- includes costs of group-think, opposition to
improvement to gain advantage becomes self-discovery individualism, and difficulty balancing efficiency,
to gain a sense of belonging and harmony with others. effectiveness, and results with time, money, and energy
Strategy begins to explore cultures and learning more consumed. Green leadership is like herding cats.
than ratios and market share. At the entry to green, Because the group is so strong and hates hierarchy,
members of the orange/GREEN circle serve each other, leaders cannot stand above or apart. Australians refer to
learn together, and share their collective vision. Results the ``tall poppy syndrome'' ± anyone who is too
might be measured in dollars and cents, or perhaps by successful or too self-assured is first to be cut down.
how many hungry children are fed. The green team, with all its learning and sharing, can
be a loving trap as the price of collectivism becomes
apparent at green/yellow. The focus starts to turn inward
again. Suddenly there is not enough variability; right-
speak is stifling; for some, the sense of belonging is at the

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cost of individuality. The transition into green/yellow
Characteristics of yellow organizations
holds onto sensitivity to human factors, but the group is
not an end` in itself. The spotlight refocuses from either/ ^ Less formal and structured, more pluralistic and active with
or to both/and as results and people form parts of a more multiple interlinks to produce synergy through diversity.
integrative whole. ^ Business, play, social events, and family are all combined
interactively in a whole-brain experience of being, not having or
even doing.
YELLOW ± express self as self desires, but never at ^ Out of boxes, silos, categories, and ranks and into fields, flow-
the expense of others or the earth states, knowledge contours, and cybernetic loops.
Deep valuesYellow, for the first time, begins to connect ^ More connections among materials, information, products,
into a single package the internal and external forces that suppliers, value-adders, and customers, so the organization is a
transition zone within a network rather than a stair step in the
impact individuals and organizations. The whole spiral production sequence.
begins to show up all at once, although ``I'' still comes ^ Intelligences within the human/technological interface with
first in this express-self zone. feedback and feed-forward, continual systemic adaptation.
Yellow thinking is characterized by freedom from fear ^ A meshing of systems within systems, flows within flows, all
and compulsiveness, which results in a sense of existential consciously shaped to fit naturally within the holistic milieu.
freedom and an ecological view that tolerates both ^ More independent thinking with appreciation of time and
structure and randomness. Personal principles take intangibles over material benefits of competitiveness.
precedence over rules. The individual/organization tries ^ Greater flexibility to connect to multiple groups and situations in a
``Plug-in, Plug-out'' sequence of events.
to find appropriate ways of being, taking no more than it ^ More variety of life and working styles with pieces of many
gives, ensuring balance and a sustained system. Business, different job functions spread in many geographic areas.
social events, family, and play combine in the whole-brain ^ From flextime to any time; formal work place to my place; having
experience of being, not having or doing. Dee Hock, a regular job to working independently.
former head of Visa, has coined the term ``chaordic'' to ^ Less loyalty to organization or working group, more to the function
represent the mixture of chaos and order inherent in this and profession as related to the individual's life.
worldview and the organizing principles it represents. ^ Open to many jobs and careers, not focused on a single track.
Traditional leaders often throw up their hands. ^ More emphasis on social causes and issues at both local and
Employees working through this yellow range have little global levels as principles take precedence over rules.
^ Multidimensional interests and expectation of opportunity to
loyalty to the organization or work group, only the work.
exercise mind, spirit, and body simultaneously.
They do not respond to threats, coercive power,
competition, illogical rules, authoritarianism, or the usual
incentives. They do not tolerate fools for long. Authority Understanding deep valuesYellow is essential to strategy
matters only if it is accompanied by competence. Status and leadership in building next-generation business. It is
symbols do not impress. Form follows function. The becoming the routine way of thinking for this generation
motivations and career goals of employees at this level of workers, not the next generation. In some places,
often do not make sense to their managers. green is already fading as the greater complexity and
Effective leadership creates an organization that trusts explanatory power of yellow thinking takes over.
its members to be responsible, involved and curious. It The world of strategy and leadership is changing
provides resources, information, and materials but not because deep values are on the move. While new systems
much oversight, since driving performance does not turn on, there is also return to orange and blue, even red
work for deep valuesYellow. Gaining knowledge from and purple, because they are appropriate in some places.
many sources, not just learning information, is part and Progressive strategic thinking includes green and builds
parcel of the experience of living. Change is easier yellow into the deep corporate mindset, not just glib
because management is not fixed and the structure shifts surface values statements.
as conditions change. Strategy is a process of constant The spiral does not end with yellow by any means.
adaptation and adjustment. The characteristics of the The emergent process is open-ended. After deep
yellow organizations are shown in the accompanying valuesYellow, the spiral turns back around to the cool, we-
sidebar. oriented colors. The eighth system, turquoise, is the
Mintzberg, Ahlstrand and Lampel suggest this second whole-spiral way of thinking. The exit from
thinking in Strategy Safari[6]. Just substitute ``and'' for yellow arises with awareness that the individual can and
``or'' in the following excerpt: should contribute to this interconnected living system
Accordingly, the process of strategy making can be one of with the necessary theme, ``Sacrifice so that all life, not
conceptual designing or (and) formal planning, systematic
just my life, can continue.'' This is far beyond ``the
analyzing or (and) leadership visioning, cooperative learning or
(and) competitive politicking, focusing on individual cognition, greater good'' justification so common in orange or the
collective socialization, or (and) simple response to the forces of the benefits to ``our extended community'' in green. How
environment; but each must be found at its own time and in its own strategy will work in turquoise, and how organizations
context.

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Values implicit in Mintzberg's strategy schools
Spriral dynamics
Strategy school Surface values Hidden values deep values
Design CEO designs the strategy CEO is the architect of best strategy, structure follows
Separate design from implementation strategy
One best way to make a strategy Action flows from reason BLUE
Thinking detached from acting Assumption of universality ORANGE
Environment can be understood and is predictable,
therefore strategy made today will work tomorrow

Planning Formal procedures, training, analysis Count on tried and true experience, predictable patterns
Missionary zeal (THE WAY) and analysis BLUE
Heavy financial analysis and control tools Strategy is a structured, formal process orange
Preexisting categories, directives and checklists Assemble parts as per blueprint
Positioning (strategic A best, generic strategy formulated at the top Strategy is deductive and deliberate
management) Strategy ``boutiques'' and strategic management Market structure drives strategy
Proactive in tone (Orange) but mostly Formal chain of command; orders are executed without Movement from
deterministic (BLUE) in action question BLUE/Orange to
Thinking detached from acting Types of strategies matched to conditions, therefore study blue/ORANGE
Portfolio of positions of established strategies is important
Entrepreneurial Based on personality of a brilliant leader One gifted, intuitive, visionary leader ± everyone else is a
Promotion of a single-minded vision follower
``Where is the opportunity? How do I capitalize Vision, organization, strategy, and people are malleable
on it? How do I gain control over resources I Leader is driven by powerful need for achievement and ORANGE
need? independence
Opportunity and growth driven
Cognitive Strategy is a perspective Organizations are comprehensible
Continuous testing, experimenting, learning, Cognition creates the world; many realities exist at once;
unlearning perception is adjustable ORANGE
Map strategies' mental structures Strategy is an interpretation of the world, a concept that green
Work on understanding how competitors think can be mapped
Strategy is a mental process
Learning Take risks, question ideas, break rules There are many potential strategists in organizations
Knowledge, the key to success, is accumulated because strategy is complex, knowledge bases are diffuse,
by a learning organization and deliberate control is difficult
Learning is not possible without acting Strategy depends on learning; learning depends on ORANGE
Core competencies ± multiple people and capabilities; therefore develop organizational capability to
perspectives contribute to strategy and acquire, create, accumulate, and exploit knowledge
knowledge creation
Political (power) Process of influence shaped by power, ploys, Strategy is shaped by power and politics to manage
positioning, politics and negotiation diverse interests
Exchanges, relationships, diverse interest groups, Gamesmanship ± competing goals of individuals and
coalitions, competitors coalitions ensure that strategy will be distorted, therefore ORANGE
Maneuvering, networks and alliances to favor maneuver as needed to stay on top and attain scarce (hard ball)
self-interests resources and power
Acquire and protect holdings
Cultural Focused on human capital resources ± Strategy is a perspective rooted in collective intensions,
capabilities in culture shared understandings/worldviews/beliefs
Strategy is the management of collective Culture is the life force of the company acting as a blue/ORANGE/
cognition ± dominant logic, shared values perceptual filter that establishes peoples' choices and green
Perpetulate ideology and shared meaning direction
Environment Strategy is a process of continuous adaptation The environment sets the agenda the organization is
to the environment passive and reacts ± natural selection
Leadership reads the environment and ensures The environment imperative rules BLUE
proper adaptation by the organization Organizations have no real strategic choice, only to react ORANGE
The niche is always competitive
Configuration Read the context variables before acting Sustain stability and adapt to change
Select strategy for its appropriateness to times, Many viable solutions exist together
place, problems, circumstances Strategies connect together; integration rather than ORANGE
Evaluate complex interconnections particles green
Strategy can be matched to a time and situation yellow
Strategy follows structure, context, and behavior; order and
chaos exist

Notes: Adapted from Strategy Safari by Mintzberg, Ahlstrand and Lampel, 1998
ALL CAPITALS = Dominant Worldview; small letters denote support or back-up value(s) system

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 Exhibit 3 Ð Call center case study

will contribute in this zone are still being sorted out and serve strategy, all layers of values must be tracked across
are the subject for later work. For now, just getting the employee groups, companies, industries, governments,
green and yellow into strategic thinking is a big step. and societies ± not just the surface marketing data and
hidden cultural attitudes. (See case study in Exhibit 3.)
Conclusion
The very nature of human nature is changing rapidly
Strategy development is still concentrated mostly in the
and the deep values are the bedrock of future
orange and blue zones. (See sidebar, ``Values implicit in
conceptions of what life is about.
Mintzberg's strategy schools.'') Green and yellow are far
Organizations that want to prepare for their futures in
from mainstream. To help today's organizations reach
a full-spiral world should engage in ongoing values
tomorrow, strategists will need to recognize these
audits to scan for significant shifts and changes, then
coming shifts in deep values. Dr Graves gave the reason
respond as they occur. Never before have there been as
when he wrote:
many value systems active and prominent. Never before
Thus, an adult lives in a potentially open system of needs, values,
and aspirations, but he often settles into what approximates a have both the risks and opportunities been as great.
closed system. When he is at any one level, he has only the Meeting that future requires fluency with all values levels
behavioral degrees of freedom afforded him at that level. Therefore, and with all deep value systems. S&L
he can respond positively only to managerial principles appropriate
to that level, and he must respond negatively to principles of References
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conditions arise and he moves in the direction of another level he Leadership, Harvard Business School Press, Boston, MA, 1999.
lives by another set of psychological principles, and he will react
2. Ghoshal, S. and Bartlett, C., The Individualized Corporation,
negatively to the way he was previously managed[5].
Harper Business, New York, NY, 1997.
In this conception, employees, strategies, and 3. Collins, J.C. and Porras, J.I., Built to Last, Harper Collins, New
organizations are ``not something to be managed by a York, NY, 1994.
general set of managerial principles.'' Instead they 4. Beck, D.E. and Cowan, C.C., Spiral Dynamics: Mastering Values,
should be led, and soon, by principles appropriate to the Leadership and Change, Blackwell Publishers, Oxford, 1996.
deep values already present and emerging, and that 5. Graves, C.W., ``Deterioration of work standards'', Harvard
means more green and yellow. Business Review, September-October 1966, pp. 117-28, 120.
Strategists and leaders are affected by the colored 6. Mintzberg, H., Ahlstrand, B. and Lampel, J., Strategy Safari,
lenses of their own deep values glasses ± we all are. They Simon and Schuster, New York, NY, 1998.
see what they can see, based on their own filters. To

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