Printing out your organization’s core values is easy, but truly living up to these values involves more than just displaying them. Values are guiding principles that shape behaviors, influence decisions, and define your company’s identity.
If you struggle to connect your stated values with your everyday practices – you are not alone. In this blog, we’ll explore what values are, their impact on your company, and practical steps to live up to them. We’ll also offer guidance on using values to tackle common challenges and provide clear direction for your organization.
Understanding Company Values
Values are guiding principles that help us determine what is good, bad, or necessary.(1) Think of values as our ideal goals, and the beliefs/actions are paths to achieve our goals. As an organization follows these paths, its members shape the culture through collective behaviors, norms, and practices.
For instance, if a company values safety, it will establish strict safety protocols, discuss them regularly, and enforce them consistently. If inclusivity is a core value, the company will invest time, money, and resources to ensure its services and products are accessible to as many people as possible. Similarly, a company that values sustainability will strive to reduce its environmental footprint using sustainable materials and ethical manufacturing processes.(2)
The Impact of Company Values
Do you find yourself grappling with employee disengagement, inconsistent decision-making, or a culture that feels adrift? Strong company values are powerful tools to address problems such as employee disengagement, inconsistent decision-making, or a culture that feels adrift. Here’s how:
- Clarity and Direction: Values offer clear guidelines for decision-making and behavior, helping employees understand what is expected and what the organization stands for. When we feel stuck, reflecting on our values can provide a helpful pause, allowing us to find solutions through the lens of our values.
- Consistency and Stability: Core values offer a stable foundation, ensuring consistency in actions and decisions even during times of change or uncertainty. This stability builds trust and confidence among employees, stakeholders, and customers.
- Motivation and Engagement: When employees’ personal values align with organizational values, they are more likely to feel passionate about their work and committed to the company. According to a report by Gallup, employees who strongly agree with the statement “I feel connected to my organization’s culture” are 3.7 times as likely to be engaged at work.(3)
- Attract Talent: A strong values-driven culture attracts and retains talent, as individuals are drawn to organizations that reflect their own beliefs and principles.
- Alignment and Synergy: When employees share the same values, teamwork improves, making collaboration smoother and more effective. A decade-long survey by McKinsey of over 5,000 executives found that great teamwork relies on alignment in direction, with teams sharing beliefs about company goals and their roles in achieving them.(4)
- Improved Decision-Making: Values serve as a touchstone for evaluating options and making decisions, ensuring that choices align with the organization’s core beliefs. This leads to more ethical, responsible, and long-term-oriented decisions.
- Reputation and Brand Image: A robust set of values enhances the organization’s reputation and brand image. Customers, partners, and the public are more likely to trust and support organizations that demonstrate integrity and commitment to their values.
- Resilience and Adaptability: Organizations with solid values are better equipped to navigate challenges and adapt to changes. Values provide a compass that helps maintain focus and purpose, even in the face of adversity.
Shaping Company Values: Where to Start
If you’ve established values for your organization, but they’re not having the desired impact, it might be time to look for signs that something is off.
Keep an eye out for issues like high turnover, frequent negative feedback from employees, or a gap between what leadership thinks and what employees experience. Consider conducting surveys or simply talking to employees about the values to see if they’re being communicated and embraced as intended. If your team isn’t clear on the values, it’s a clear sign there might be a misalignment.
Below are some questions to get you thinking. Choose the ones that best suit your organizational context:
- What are your company values? How clearly do you understand the organization’s vision and values?
- To what extent do you believe the organization’s values are reflected in its daily operations?
- What makes you proud to work at this company?
- What role do company values play in hiring and performance reviews?
- How would you describe “organizational politics” at the company?
- What are some of the ways the company celebrates success?
- How do you, as a manager—or, if more appropriate, how does your manager support and motivate your team?
- How effective are leaders in communicating the organization’s goals and objectives?
Once you’ve gathered the feedback, take time to analyze it and pinpoint any behaviors that might need adjustment. Begin with small, actionable steps to tackle the identified issues. For instance, creating open channels for ongoing feedback after the survey can be a straightforward yet powerful move. By making gradual and consistent efforts to align actions with values, you’ll see meaningful improvements over time.
If you need help, consider talking to an organizational advisor.
If you’re leading a young organization defining its values, start by examining your own standards and actions and be aware of their significant impact on your organization. To avoid self-focus, seek coaching and advising to ensure your values align with the entire organization’s best interests. Gathering objective data and consciously assessing your leadership approach will help minimize personal biases. Check out our former blog about leadership identity.
Once your organization’s values are clear, involve top leadership, stakeholders, and employees in discussions. Ensure these values align with everyone, from executives to front-line staff, to build a strong sense of belonging and shared purpose.
In Summary
As you move forward, remember that making values a living part of your organization requires continuous reflection and adjustment. If you’re ready to align your company’s actions with its values and need guidance along the way, don’t hesitate to reach out to our team.
Alicia Hofer is passionate about designing creative and data-driven solutions for the workplace. Meet Alicia.
Diya Wu-Sallah is a Marketing Specialist and Product Designer pursuing solutions that are intuitive, research-driven, helpful, and likable.
References
- https://hbr.org/2022/11/what-does-your-company-really-stand-for
- https://firstup.io/blog/communicating-company-core-values/
- https://www.gallup.com/workplace/327371/how-to-build-better-company-culture.aspx
- https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Organization/Our%20Insights/High-performing%20teams%20A%20timeless%20leadership%20topic/High-performing-teams-A-timeless-leadership-topic.pdf
