An Organization's Values Start with Its Leaders

Do you know what your company’s values are? Are they consistently being honored? Here is a test: Randomly ask five people in your organization, “What’s important about being a [company name] employee?” See if you get consistent answers.

The word ”values” tends to be a loaded word and means different things to different people. Values do not hang on walls or reside in impressive looking PowerPoint slides; rather, they are the company’s identity and are manifested through a set of guiding principles that are shared and felt by its people. Just as ”strategy” is attained through consistent actions toward a vision, ”values” are realized only by consistent day-to-day actions, interactions, and decision-making.

Why is it so important to codify your values?

Although most leaders would say corporate values are important to them, only a few make it a priority to deliberately define and defend them. The truth is, even if values are not actively addressed, they are organically formed by the habits and decisions of the people in the organization. They are results of behaviors that are rewarded, tolerated, and penalized every day. Without active reinforcement, however, these decisions can be ad hoc, dependent upon individuals, and a major cause of confusion and friction in an organization. They evoke counter-productive political behaviors, strategic maneuvering, and the promotion of individualism versus the effort of the team.

Value statements and operating principles are important as they guide people to behave and to make decisions that are aligned to an organization’s vision. They are the soft tissue that holds together the skeleton of the company, and the matter that provides flexibility, fluidity, and resilience in times of movement and change. They are universal and remain consistently true — even if the company changes its strategic direction. They are the X factors that differentiate an organization from its competitors (ex. Southwest, Zappo’s, etc.). They are the reason why people want to work for an organization. They are the identity, source of pride, and invincible force that unites people. They are an organization’s soul.

Strong and consistent values can not only rally troops in times of uncertainty but also reduce the tight control that management often feels it needs in order to ensure consistency. They are critical ingredients for empowering employees to take leadership without paternalistic oversight. An organization’s values guide it to deliver consistent experiences and to help its employees march in alignment.

Lastly, but most importantly, a company’s values define its brand. They are reinforced through the way products and services are delivered and marketed as well as reflected internally by the type of people hired and the way resources are allocated.

Leaders: It starts with you!

An organization’s values begin with the leader. A leader’s personal values are transmitted to operating mechanics and role modeled by the people across the organization.

“Becoming a leader is synonymous with becoming yourself. It is precisely that simple, and it is also that difficult. First and foremost, find out what it is you are about, and be that” — Warren Bennis. This is one of my favorite quotes on leadership. It conveys the importance of how a leader honors his or her values as this has a significant impact in how he or she leads an organization.

Here are some simple questions to ponder: