Upstanding

CHAPTER 5Top Down, Bottom Up

“We're all under the same sky and walk the same earth; we're alive together during the same moment.”

—Maxine Hong Kingston

Authentic company values come from an ongoing dialogue, constant vigilance, and recognition of exemplary behavior.

So, where does a company's character—and ultimately, its values and culture—come from? Do these things reflect the fundamental beliefs and actions of a CEO, or do they bubble up from front-line employees, collectively becoming the organization's culture and way of doing things? Or are they a combination of both—meeting somewhere in the middle?

In my experience, it's the CEO who initially lays down the various aspects of a company's character and the values that guide decision-making, hiring, firing, and other business considerations. These then evolve over time—sometimes with the arrival of a new CEO, or with input from employees throughout the organization, or smaller groups such as the executive team or a select cross-functional team. But even as a company's culture and core values evolve, the CEO often still exerts tremendous influence over them, in some cases, long after they have left the organization.

A.G. Lafley, former Chairman, President, and CEO of Procter & Gamble (P&G), agrees with this assessment. He tells the story about when he met with management guru Peter Drucker and a group of CEOs and management scholars who met to answer this question: What is the work of the CEO? During the course of this ...