Why Your Company’s Business Compass Fails and How to Fix It

 “Inching up” to reach the top management level is truly a dream come true for any professional. As in my case - and unassumingly for many others - the journey doesn’t end when you arrive. In fact, it begins anew with a long list of actions to demonstrate that you’ve earned your place. Leadership is not just about the title; it’s about creating impact, inspiring teams, and driving meaningful change.

Fortunately for me, as a Senior HR professional, I joined a company that had everything except business strategy & Compass.

I began my journey with an in-depth exploration to understand the business and HR landscape, including the overall strategy and business compass. From my experience, HR teams often encounter numerous inquisitive questions from employees across almost every organization.

“Business Compass in the business world is the reference to ‘Core Values’ & Vision’ of a company.”

Core Values and Vision are not just words on paper; they are the guiding principles that shape decisions, inspire teams, and sustain trust. When values and vision are clear, they become the true north for every individual and every action within the organization.

Taking the lead from my exploratory outcomes and to genuinely contribute to the success of the organization, I requested my MD for his time.

The day finally arrived. With a sense of anticipation, I opened the conversation with my very first question: ‘Sir, what are the values we hold sacred when making decisions in this company?’ For a moment, he froze, his expression a mix of surprise and confusion, as though I had just asked something completely out of place.

I pressed on with my second question: ‘Sir, what about the company’s vision?’ What happened next was unexpected. He paused, searching his mind, but the words didn’t come. Then, almost reluctantly, he turned his chair, glanced at the wall behind him, and read aloud from the ‘Vision Statement’ pinned there.

Today, I look back and smile at how fascinating that moment was. But back then, I was stunned. How could the Managing Director, the very architect of the vision, not be able to recall it?

“Strange, isn’t it?” In my experience, not really.

Almost all companies face this challenge; they struggle to align their business compass with the everyday decisions and behaviors of managers and employees.

Mysteriously, HR is forced to take care of Business Compass, as the custodian of the culture. HR on its part, even I did during my initial days of being the Head, arranges internal quizzes, plans some extempore cross-functional competitions to ‘recall’ or ‘memorize’ Values and Vision by employees & many more such tactical events. The easiest is to paste them all around in ‘Internal World’. Another unwritten rule in companies is ‘No internal Reports’, including the balance sheet, should be shared until each has in bold letters the Values and Vision written on them.

Is it working? With a thumping majority, the answer is a big NO.

The truth is, if Values and Vision are not supported on the ground, it is unlikely to stick long-term. Organizations shall fail to establish in the market. Products, Processes & Marketing can be imitated by anyone & everyone. These may be seen as USPs but only for a limited period. Companies are bound to face survival challenges sooner or later—if not in the near future, then eventually.

As part of my professional responsibilities, I frequently engage with senior executives in discussions regarding organizational alignment. One of the key questions I pose is: “What proportion of your employees are truly aligned with the organization’s core values and vision?” This inquiry is intended to assess the depth of cultural integration and strategic coherence within the workforce. However, in the vast majority of cases, the responses I receive are based on conjecture rather than empirical measurement. Most leaders admit that their answers are approximations, lacking any structured methodology or validated data to substantiate their claims. To date, I have not encountered a single instance where this question was addressed with complete confidence and evidence-based conviction. This observation underscores a critical gap in organizational practice—the absence of reliable mechanisms to evaluate and monitor value and vision alignment among employees, which has significant implications for leadership effectiveness and long-term organizational sustainability.

This state of misalignment in organizations in relation to Business Compass made me look for an answer. It took me more than 15 years to find the answer.

Sequentially, people look for a product/service to be offered to fill in the gaps in the market, followed by having ‘Competent’ people to produce those products or services, whatever the case. These people need to be competent in line with Vision & Strategy for ensuring continuity of the business.

The catch was that almost every organization was putting in efforts to identify ‘Right Person for a Right Place,’ but starting point in itself  was incorrect due to a faulty ‘Competency Framework’.

 

The Competency Wheel Model has effectively eliminated this bottleneck, unlocking smoother processes and driving measurable impact.

The foundation for identifying organizational competencies is encapsulated within the Competency Wheel Model (CW Model). This conceptual framework provides a structured approach to defining and aligning competencies across multiple dimensions of an organization. It not only addresses the Business Compass—comprising fundamental values and strategic vision—but also extends to the articulation of Purpose, expressed through the mission, and the development of Brand identity. Furthermore, the CW Model facilitates the integration of competencies across diverse functional areas, ensuring coherence between organizational philosophy and operational execution. By systematically mapping these elements, the model serves as a comprehensive tool for fostering alignment between organizational intent and capability, thereby enhancing strategic consistency and long-term sustainability.

 

Talent Decision-Making Framework

This framework establishes a structured and integrated approach to managing critical talent-related decisions across the organization. It encompasses key areas such as talent acquisition, internal promotions, succession planning, career development, compensation benchmarking, and cultural alignment. By applying this framework, the organization ensures that all workforce initiatives are consistently aligned with its core values, vision, mission, and functional competencies. This alignment not only strengthens organizational capability but also fosters a culture of excellence, engagement, and accountability. Furthermore, the framework supports long-term business objectives by promoting fairness, transparency, and strategic workforce planning, thereby enabling sustainable growth and competitive advantage in a dynamic business environment.

 

The Competency Wheel Model is a copyrighted concept conceived and developed by Rajesh Tripathi.