The Practical Use of Values and Ethics for Sucess

1. The Practical Use Of Values And Ethics
For Personal Success
Presented By
Paul Mlotok, President, The Janaka Group
_______________________________________
The following bullet points found on (pages 1 – 3) represent an
overview and the sequence of the key points and discussion topics
we will be covering during our tele-conference.
• Maintaining our personal values and ethics in business can sometimes be
viewed as interfering with “getting the job done.”
• In fact, it is the very basis of long term success.
• The failure and consequences of ignoring values has been shown in the
string of corporate disasters in recent years. These were mostly due to the
errors, or at least tacit support, of a number of highly placed executives.
• One of the key factors in these events is looking for short term results
without recognizing the long-term implications. What is gained in the
short term is often being borrowed from the long term several times over.
© 2003, The Janaka Group
Five Steps To Values Driven Success 1
A Workshop by Paul Mlotok Ph.D.

2. • My own experience on Wall Street showed me the importance of
maintaining my values as much as possible, sometimes when there were
pressures to do otherwise. This brought me the trust of my clients who
were, ultimately, the basis for my continued success. This reputation also
made me valuable in the job market as I had this asset to bring with me.
• In any given year I may not have maximized my potential income. But,
over the long term, I optimized it by staying at the top of my trade for
fifteen years.
• The same is true for entire companies.
• In Search Of Excellence, by Tom Peters and Robert Waterman – studied
62 very successful companies.
• 8 Basic Principles - including VALUES DRIVEN
“Let us suppose that we were asked for one all-purpose bit of
advice for management, one truth that we were able to distill
from the excellent companies research. We might be tempted to
reply ‘Figure out your value system’.......In fact, we wonder
whether it is possible to be an excellent company without
clarity on values and without having the right sorts of values.”
• Built To Last, by James Collins and Jerry Porras – studied 18 “Visionary
Companies” with a long history of success.
• Nearly all had a clear core statement of values that people
took seriously
• Values frequently found include
• Integrity
• Respect for the individual
• Service to the customer
• Core values generally included or implied making a profit –
but companies whose primary values were making money
did not do nearly as well
© 2003, The Janaka Group
Five Steps To Values Driven Success 2
A Workshop by Paul Mlotok Ph.D.

3. • I am on the Board of a mid-cap company based in Southern California. In
the last few years we have become ever more focused on the character
and integrity of the individuals who are on the executive advancement
track.
• I expect that this is true at countless companies today as they come to
understand the consequences of misbehavior by senior managers. People
with a reputation for being someone you can trust are becoming a sought-
after asset.
• The title to this talk is “The Practical Use Of Values And Ethics…” with
an emphasis on the word “Practical.” I am not advocating walking off a
cliff in the pursuit of perfection.
• That which is clearly illegal or immoral is absolutely out of bounds. But
many of our decisions and choices will be in a grey zone.
• In a few minutes we will do an exercise to define our own Key Values.
Imagine that we have done so and that we now have to deal with an
assortment of business decisions.
• We are each on a continuum in terms of our current actions.
Weak Values <--------------------> Perfect Values
• We are all somewhere on this continuum in terms of our actions
relative to our values. It doesn’t matter where we are. What matters is
that we move towards living our values, over time, while we remain
effective at our jobs.
• The benefits on a personal level will be
o The trust of our colleagues and those we manage
o A sound basis for customer relations
o A good night’s sleep
• The benefits to our company will be
o Increased business
o More productive employees
© 2003, The Janaka Group
Five Steps To Values Driven Success 3
A Workshop by Paul Mlotok Ph.D.

4. The Five Steps To Values Driven Success
1. Define a set of values – this is the foundation that creates the
vision and intention for the approach that we want to follow, and
helps us to clarify what really matters in life.
2. Develop an awareness of when we are making choices that involve
these values – this requires that we increase our consciousness
about what is happening around us in the moment.
3. Observe the choices that we make and how these correspond to our
values – this is a phase of watching and learning about ourselves,
4. Change our choices, over time, to align more closely with our
values – this is when we face the challenge of transforming both
our outer actions and our inner beings, while finding the balance
that allows us to remain effective in our business.
5. Deepen the practices that we have been developing since we first
embarked on the Five Step approach - these practices, including
contemplation, journaling, meditation and many others, support
our commitment to the process of change and accelerate the
assimilation and integration of our learning.
These steps do not necessarily occur in a linear order. We will move back and
forth between them as our understanding develops, each time, seeing more
than we saw before.
© 2003, The Janaka Group
Five Steps To Values Driven Success 4
A Workshop by Paul Mlotok Ph.D.

5. Exercise
Define three Key Values that you would like to use to guide
your decision-making:
1. _____________________________________________________
2. _____________________________________________________
3. _____________________________________________________
• Can you think of something at work right now that is not going well for
you or your company in terms of achieving a goal, or in terms of work
relationships? Choose a situation that you are able to influence. Write
this down as if you were telling a story. Include the problem, the
players, the environment, who said and did what, the ending, how you
thought and felt about it.
• Now select one of the Key Values that you chose above – the first one
that comes to mind or resonates for you in light of this situation.
• View the situation through the lens of that value. How would it
change the situation? Write out a new version of the story.
• Now think of a second value and think about how this would
change the situation. Write the story again.
© 2003, The Janaka Group
Five Steps To Values Driven Success 5
A Workshop by Paul Mlotok Ph.D.

6. The Metrics of Values Driven Success
By Paul Mlotok
The contribution to success of having a set of values that is both clear and well
practiced has been shown in several recent studies. Prominent among these is
the book Built To Last by James Collins and Jerry Porras. The authors studied
eighteen successful and “visionary” companies along with a comparison group.
They found that nearly all of the successful companies had a set of core values
that was clearly defined, long-lived and actively practiced.
There was no single set that seemed to be the “right” core values for
everyone, but some values that recurred frequently were respect, integrity and
service. The authors also found that virtually all of the companies listed
profitability as a core value, but that companies that went for profits first
without also focusing on other values did not do as well. By way of metrics, the
shares of the visionary companies outperformed their group of comparables by
over six times and the general market by more than fifteen times during a
period of six decades.
In the book In Search Of Excellence, by Tom Peters and Robert Waterman, the
authors studied 62 very successful companies such as Johnson & Johnson,
Proctor & Gamble, DuPont and Levi Strauss. They found 8 Basic Principles that
characterized these companies. Number 5 was “Values Driven.” In fact, the
authors concluded;
Let us suppose that we were asked for one all-purpose bit of advice for
management, one truth that we were able to distill from the excellent
companies research. We might be tempted to reply “Figure out your
value system”........... In fact, we wonder whether it is possible to be
an excellent company without clarity on values and without having the
right sorts of values.
Perhaps the most telling Metric is the numerous recent examples of companies
that have acted without a clear set of values and have gone bankrupt or have
even vanished overnight! This goes well beyond measures such as relative
performance and becomes a 100 percent loss statistic. We have seen of late
that this is a real possibility in the corporate world and that seemingly
powerful corporations can be brought down in a moment when their improper
behavior catches up with them. Giants such as Enron and Anderson are gone,
while others such as Global Crossing, WorldCom and even Xerox have faced
damaging investigations into questionable financial practices. An organization
that is based on values, and expects its employees to act accordingly, is clearly
less likely to find itself damaged by such events.
© 2003, The Janaka Group
Five Steps To Values Driven Success 6
A Workshop by Paul Mlotok Ph.D.

7. About Paul Mlotok
With over twenty years of experience in the
business world, Paul Mlotok became the top ranked
oil industry analyst on Wall Street, working for
Salomon Brothers and Morgan Stanley. During this
time, he served as an advisor to the State
Department and to several OPEC oil ministers and
was President of the Oil Analysts Group of New York.
He was regularly quoted in such publications as The
Wall Street Journal, The New York Times, and The
Middle East Economic Survey. He made frequent
appearances on the business programs of CNN and
CNBC, and was a featured guest on Wall Street Week
with Louis Rukeyser.
After leaving Wall Street he was associated with Global Business Network, a
consulting firm that specializes in Scenario Planning. He is currently on the
Board of Directors of Impco Technologies, the world’s largest manufacturer of
fueling systems for natural gas powered vehicles.
For most of his adult life, Paul has been engaged in a study of the world’s
major philosophical and spiritual traditions. For the last twenty-five years he
has been a student of meditation and the spiritual philosophy that underlies it.
The question of how to integrate the values that he has learned with the need
to function effectively in the business world has led him to a deep and
extended exploration of this subject.
Paul holds a B.A. from Cornell University and a Ph.D. in Economics from
Brown University. He now lives with his wife in California and is writing a book
on the benefits of a values-centered approach to work, based upon his own
experiences as well as the application of time-honored philosophical and
spiritual principles.
Paul can be reached at: 323.436.0846 or paulmlotok@thejanakagroup.com
© 2003, The Janaka Group
Five Steps To Values Driven Success 7
A Workshop by Paul Mlotok Ph.D.

8. The Janaka Group helps companies and individuals
achieve long-term success through the practical use
of values in business.
When a company, its managers, and employees all
draw from the same set of values, the benefits are
twofold:
"Your program deeply
exceeded my expectations. Greater Client Satisfaction
The Janaka Group made Increased Employee Commitment
each of the steps of the
program very clear using a The Janaka Group helps you to gain these advantages
minimum of jargon and in your business through the use of the Five Steps to
plenty of good examples we Values Driven Success.
could connect with so the
ideas didn’t end up being At the organizational level, we help you to define
conceptually abstract.” your company’s values and learn how to implement
these values in your everyday activities. This will
“Very few times do generate increased productivity in your workforce,
seminars deliver what they as well as improved relations with your customers.
promise, but this one did.
It’s an incredible program."
~ Ian Mitroff ~
Professor, Marshall School
of Business, USC
"What I sense is that what Our results driven programs provide your
you gave us is what you executives with a systematic process of:
live. That’s so rare that
Defining your company’s values employing these values in a
somebody actually comes in realistic way to increase business and avoid costly errors
and tells you something and
gives you practices that Maintain a calm and clear inner state even in the midst of the
they have really chaos and uncertainty of everyday event
contemplated and that have
Help you take an inventory of your organizations’ current
been part of their life. That values, and discover whether these have been properly
makes it so much more translated to your executives and employees
powerful."
To Learn More About The Janaka Group visit
~ Bob Cooke ~
Sr.Vice President,
www.thejanakagroup.com
UBS/PaineWebber To schedule a complimentary session with
Paul Mlotok call: 323.436.0846
© 2003, The Janaka Group
Five Steps To Values Driven Success 8
A Workshop by Paul Mlotok Ph.D.