This is What Happens When You Have Values-Based Leadership
The secret is out. Building a values-based culture is a strategic advantage for a company. Yes, excellent company culture matters, and it can be measured.
How do I know?
Here are some findings from a 10-year study by Queen’s University Centre for Business Venturing. Companies with engaged, values-based cultures had:
- A 65% greater share-price increase
- 15% greater employee productivity
- 30% greater customer satisfaction levels
This is just one study demonstrating the tie between values-based leadership and winning financial performance.
Here is what happens when a company defines, articulates, and lives its values.
83% of executives and 84% of employees rank having engaged and motivated employees as the top factor that substantially contributes to a company’s success.
Deloitte, GX Core Beliefs and Culture
The Benefits of Values-Based Leadership
With a values-based leadership team, you will see the following:
Smart HIring Decisions: Leaders agree on the desired behaviors, values, and skills to thrive in their company. Hiring managers look beyond technical fit alone to determine who brings motivation and integrity.
Best Practices Drive Process: Often, there are fewer rules. Let’s say one of your company values is, “Do the right thing.” You don’t need to sort through hundreds of rules with this value as a guide. Individuals use judgment and sensible guidelines to improve decision-making.
New Ideas Embraced: You won’t hear, “but we’ve always done it this way.” Instead, we consider innovative ideas. Exceptional ideas are adopted.
Stakeholders Matter: It’s not just profit or shareholders who win. Stakeholders include investors, employees, customers, suppliers, and the community.
Learning versus Blaming: You will find less blaming when values guide the culture. Instead, you see opportunities to learn from mistakes. As a result, the focus is on how to do better next time.
Transparent Communication: Not everything discussed at the executive level requires secrecy. Transparency fosters trust. Whenever feasible, values-based leaders share essential information to help teams make better decisions.
Productive, Engaged Employees: What happens when employees feel valued by management? Discretionary effort increases. In turn, this increases customer satisfaction and overall profitability.
If It Were Easy, Everyone Would Do It
Yes, I know. Defining and living a set of company values takes serious work. Cultivating a positive, productive company culture is not a “once and done” effort. Admittedly, it isn’t easy. That’s why so many companies overlook this secret to company profitability.
Think of it this way.
- Values are our compass, the guideposts to everyday decision-making.
- Actions are the measuring stick to help us stay the course. Do your actions align with your stated values?
- Business outcomes are the product of those decisions and actions. (Think improved employee turnover, customer retention, and profitability)
Do you want these measures to add up favorably? Revisit or define the values that guide your team or business. Get team feedback and input. That way, everyone is invested in the outcomes.
Getting Started: Personal Values, then Company Values
You could start by defining (or refining) your personal values first. By beginning with your own values, you are better prepared to determine what matters at work. What do you stand for? What do you stand against?
Next, work on defining team or business values. What type of culture do you want to foster? Think about team-building activities to reinforce these values.
Your vision of company culture should be driven by values first. Once you have refined your values, you can build your business objectives, goals, and individual measures of success.
If it’s been a while since you reviewed your personal values, here is some help.
For a free assessment of your personal values, please email me at email@example.com, Subject Line: Personal Values
Please let me know what you discover!