I recently had the pleasure of working with a wonderful organisation to help them refresh their company values and behaviours. Their existing values were created over five years ago using a top-down approach. Meaning - a small group of leaders created the value statements without wider consultation and then published them to the organisation, which is not an uncommon approach in small to medium businesses or in an organisation’s early years of existence.
However, despite efforts to promote and embed these values, there was not a lot of traction or buy-in. Why you ask? The employees had not been a part of creating the values and didn’t feel sufficient ownership or alignment to them. The values were quite internally focused, not particularly tangible in their definitions and apparently also unmemorable (because only a few employees could name them).
The great news is, the CEO saw the need to refresh the values to better represent the organisation’s vision and mission and invited the entire company to participate in creating the values of the future. The team interacted with energy and engagement and collectively defined the new values and behaviours. While the embedding process is still to come and I’m confident that the employee commitment will be strong.
Why is it important to have clear values that align with your vision?
Your company values are the unique characteristics that can’t be copied by your competitor. It’s what sets you part from the other players in the market. It creates a culture of unity and team cohesion and attracts those who resonate with these principles. When done well, the values and behaviours express what your organisation stands for, how you will treat customers, stakeholders and employees and provide the guardrails for dealing with challenging and ethical issues.
According to a 2024 Leadership IQ study, organizations with well-defined company values see 115% more employee engagement than those without clear values. However, only 24% of organizations have detailed what specific behaviors are necessary to live their company values and a only 33% of people believe that their direct manager holds people accountable to the company values.
“The only thing we have is one another. The only competitive advantage we have is the culture and values of the company. Anyone can open up a coffee store. We have no technology, we have no patent. All we have is the relationship around the values of the company and what we bring to the customer every day. And we all have to own it."
Howard Schultz, CEO of Starbucks.
Think of company values like the operating manual of your organisation. To achieve the same great outcome, employees need to understand what's expected of them, why it matters and what are the benefits or consequences of not living the values. Values should never to optional.
Here are 6 powerful reasons to have clear company values:
1. Guiding Decision-Making
Values provide the guardrails for employees to make decisions when the no one is looking. This ensures consistency and accountability across the business on how things are done around here.
2. Shaping Company Culture
They help define the environment in which people work, creating a sense of shared purpose and belonging. Individuals who feel a strong alignment to the values will feel a stronger sense of pride and commitment to the organisation.
3. Building Trust with Customers
Clear values promote transparency, which helps build credibility and trust with customers. It tells your customers what you represent, how you are unique and what they can expect.
4. Attracting and Retaining Talent
A strong set of values appeals to employees who share those beliefs, making recruitment and retention easier. Sharing ‘real life’ stories about employees living the values helps others grow in their understanding of how the values transcend into daily interactions and decision making.
5. Enhancing Employee Motivation
When values align with personal beliefs, employees are more engaged and motivated in their work. Misalignment between personal and company values may result in disengagement and reduced effort and productivity.
6. Driving Long-Term Success
Values help ensure that the business stays focused on its goals, promoting sustainable growth and resilience. They are the ‘north star’ of your organisation.
Is it time for you to conduct a Values audit?
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