(Solution Download) 1 Caterpillar went to a great deal of effort to

1. Caterpillar went to a great deal of effort to clarify its organizational values, and get employees from 120 facilities in 23 countries on the same page. Why did they do this?
2. How can Caterpillar?s corporate culture, which springs from the organization?s internal environment, impact the external environment?
3. What are the most essential core values that should be integrated into your organization?s corporate culture? Why?

Not satisfied with merely watching the external environment shift and change at ever-increasing speed, Caterpillar?s top management saw the need for both stability and flexibility within their internal environment. Despite their industry-leading position, management was not content to sit back and wait for the next big externally driven change to hit, so they began to explore the company?s internal dynamics.
In January 2003, Caterpillar launched a key six Sigma project, which found compelling evidence that having Enterprise Values, and putting them into practice, would make for a better performing company. They determined that the values outlined in their existing Code of Conduct fit the bill nicely, but management realized that simply having an official Code of Conduct would not ensure its universal buy-in throughout the organization.


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