Values are your Compass, not your Map
A civilization is built on what is required of people, not on that which is provided for them. – Antoine de Saint-Exupéry
Shared values are more than just corporate rhetoric; they serve to align both our actions and our intentions, helping us achieve our goals on our own terms. Research across disciplines indicates that companies and teams with strong, aligned values experience higher employee satisfaction, stronger customer loyalty, and superior financial performance.
Understanding and committing to shared values isn’t merely a moral exercise (though if it were, that would be sufficient reason to pursue it) – it’s also a strategic imperative. As founders define, articulate, and encode these values into their organisations, they’re equipping their team with tools and methods to navigate their environment.
What do we mean by “Values”?
Values serve as the compass that orients behaviour within a company, shaping decisions and interactions on every level. Unlike a map, which prescribes a fixed route approximated in the past and seen from a great height, a compass provides a reliable sense of direction where you are right now, orienting you in real-time amidst the changing environment.
To use that compass effectively, you must do more than merely list your values:
Clarify the priority of values relative to each other, to help your team navigate situations where values conflict—which is when understanding your values matters the most.
Describe the behaviour your values are expected to inspire in operational scenarios (what I like to call “key moments”), to ensure that everyone understands the practical implications, the where and how, of applying these values in your business.
After all, it is through actions rather than assertions that we truly express our values.
Sacrifices and Tradeoffs
One of the most common mistakes (in my humble opinion) made in describing the core values of an organisation is to attest to the values without context. In the real world, one rarely encounters a meaningful situation in which they must choose between a value and its absence. Not between honesty and dishonesty, but between honesty and trust, for example, or honesty and profitability. The meaningful decisions are when you must choose between values that you hold to be important. I remember being at an ESG conference where a speaker was saying that it wasn’t necessary to sacrifice profitability to do the right thing. My question was: but what if it is, though? What is a value you aren’t prepared to sacrifice for, other than a slogan?
To illustrate the importance and impact of prioritisation, consider the case of Progressa, a company specialising in personal loans, particularly for those looking to rebuild their credit. Among its core values, Progressa holds two of interest to this discussion: revenue growth and enhancing customer well-being. These values sometimes conflict, especially in the loan industry where profitability can often come at the expense of customer interests. Unlike many competitors who prioritise revenue by targeting fixed-income groups like disability pensioners, Progressa chooses to prioritise customer well-being. While this policy can reinforce long-term loyalty and trust among customers and employees alike, there is no question that it causes the company to turn down otherwise-profitable business. For Progressa, though, this tradeoff is at the very heart of the company’s values and identity.
Values, Behaviour, and Business Outcomes
What I’m trying to encourage is to shift your thinking from abstract values without clear action plans, towards an approach where values are directly linked to specific behaviours in key moments and the outputs they obtain. Building a values-driven organisation is to ensure your core values are reflected in what is consistently practised and observed in daily operations. Bridge the gap by describing specific behaviours and the measurable business results they’re expected to produce. This involves several important elements:
Operationalise: By defining values in terms of the behaviours they necessitate, you set clear expectations and will achieve more consistent results. Integrate values by linking them to observable, measurable behaviours and outputs. Ground the theoretical discussion in practical, observable, experience within the organisation. The more current, the better.
Track Performance: Each value now has corresponding behaviours and outputs that can be measured. Instrument your processes to ensure you have the data to evaluate, to ensure these values genuinely permeate the organisation’s practices. Integrate into your KPIs.
Prioritisation Means Sacrifice: Your team will inevitably face decisions where multiple values conflict. Examples from real-world situations, and maintaining an active and open discussion of these trade offs will help them make informed decisions about what they should be prepared to sacrifice. Celebrating these sacrifices as the successful application of core values will go a long way to building trust.
Document Continually: Hypotheticals can be helpful, but the most useful guidance comes from current, real-world examples. Document your key moments, expected behaviours and measured outcomes, and keep this document up to date as your business evolves. Remember this is a compass, not a map.
Start Now: Value-driven performance management can start at any level and gradually expand, allowing for incremental change that aligns with strategic business goals.
Involving the entire team in this process creates an opportunity to enhance engagement while focusing the discussion of organisational performance on what matters most, as opposed to what’s easiest to measure.
Building The Ship
Embedding values into your organisation isn’t a one-time task but a continuous journey of alignment, action, and evaluation. By operationalizing these values through specific behaviours and consistently measuring their impact, you enhance organisational performance and foster a culture of integrity and accountability. Let this values-driven approach be your guide, not just in achieving immediate goals but in setting the foundation for long-term, sustainable success. I invite you to join the conversation on this vital topic.
Reach out to me via email or connect with me on LinkedIn to share your thoughts and experiences on how you’ve operationalized your values. Engage with us in the comments, on LinkedIn, and through our upcoming Podcast. Let’s explore together the powerful impact that a values-driven approach can have on our businesses and our communities.
I look fowarding to hearing from you!
References
A study detailed in “Organizational Culture and Business Performance” by Yasas L. Pathiranage, published by the Journal of Business Research in 2023, found that organisations with high alignment between stated values and operational practices see a 20% higher customer satisfaction rate and a 15% increase in employee retention compared to organisations with low alignment.
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