Why are values key to business success? Do leaders fully value the importance of having clearly defined business values that are lived and breathed throughout the organization? Sadly, no! Values rarely receive the attention they deserve despite their far-reaching impact. Corporate Values – Neglected Need Few companies devote time and effort to defining, communicating and carrying out their business values, which, in essence, are the foundation on which they operate. One company’s values can be honesty, transparency and integrity, while another can value excellent customer service and innovation. Regardless of values, they are often neglected in favour of final results, especially when times are tough and KPIs are considered the priority. However, values and results must go hand in hand. The two must be the same or the implications could be disastrous. Why do values need to be present in everything we do in the organisation? Values are at the heart of an organisation and must permeate everything it does and every decision it makes. By adopting a values-based approach, what the company stands for is constantly reaffirmed. Values guide the organization. Without this understanding of what is guiding the business, the direction will be lost and could even be lost altogether, affecting the reputation of the organization, its relationships and its results. If an organization defines its values well enough, leaders should be able to use them as a solid reference point through which to make strategic decisions and also empower others to make their own decisions. For example, in leadership meetings, the agenda could be organized according to the company’s values. Company values must also be lived throughout the organization, from hiring to R&D. During the recruitment process, interview questions and tasks should revolve around the company’s values so that people who are culturally compatible are hired rather than brilliant jerks (a term used by Netflix to describe people who have moments of excellence but who, in general, exhibit unacceptable behaviors). When people across the company are recognized for a job well done, it should be made clear to the person who receives the recognition and to the people who witness it how their behavior supports one or more of the company’s values. And in marketing, for example, the identity and image of the company and its brands must be in line with the core values of the company. If each business unit is not driving the organization forward in line with its values, then there will be confusion, frustration and disconnection. Correct identification and definition of values. Mind the Gap! When asked, most company leaders will delight in explaining their company’s values, yet too often workers’ behavior is at odds with these values. There is a gap between rhetoric and reality and there, in this gap, is where problems arise. If values have not been correctly identified and defined and are only considered as a checkbox exercise or an employer branding initiative, then they are useless and ineffective, meaningless. Values must be genuine and rooted so that they truly «unite». Unfortunately, there are many companies that «get it wrong» and sink further and further into the gap. One of the most notorious is Enron, which put profits ahead of ethics, making known its values of communication, respect and integrity and not acting in a manner consistent with those values. The result speaks for itself! More recently, the former construction giant, Carillion, collapsed with liabilities of up to £7 billion after operating with a lack of transparency and integrity. It is also alleged that there was a culture of fear. Reality and rhetoric were clearly in sight, as the company’s values included openness, ‘working as one’ and sustainable profitable growth. It can be challenging to run a business that is constantly in tune with its values. Here are some tips for getting it right: 1. Invest time in educating leaders about why it is so important to live and breathe business values. If it looks like a checkbox exercise, it will fail. 2. Involve the people in the organization in the values to avoid it being a CEO or human resources thing. A leadership team that generates «values» without consulting with the workforce about what is important will receive little acceptance. 3. Spend time explaining and clearly defining your values. This includes breaking down your values into sets of behaviors so that staff understand how they are expected to behave. For example, behaviors associated with «innovation» might include: generating new ideas, investigating, never ridiculing people’s ideas, and allowing failure. 4. Include values in performance management rather than focusing solely on KPIs, ensure that managers recognize and reward staff who demonstrate «right» behaviors. This will prevent the emergence of «brilliant idiots» and help people understand how important they are. 5. Recognize and reward the right values when you see them: don’t wait until the annual performance review as effective recognition must be frequent and timely. 6. Make sure that values are a natural part of your decision-making process and don’t be afraid to say «no» when something is not in line with your company’s values. Organizations that ignore the importance of values underestimate their impact. At a time when «how» businesses do business is as important as the bottom line, it’s time for business leaders to pay the attention they deserve to values and ethics. Author: Robert Ordever, Managing Director of O.C. Tanner Europe. Transparency in branded business values ]]>
Values are the keys to business success
