What makes for a high-performance organization? It typically comes down to company culture, and one that is driven by clear organizational values.
Organizational values set the stage for culture. In a values-driven culture, people not only have a clear understanding of the core values, but these values serve as the foundation for decision-making, behavior, and interactions among employees, leaders, and stakeholders. In this kind of culture, the organization’s values are not merely statements on a wall but are instead deeply embedded into the fabric of daily operations, guiding everything from strategic initiatives to individual actions. People understand what the values look like in practice, and can describe observable behaviors that demonstrate the values in action.
Organizations with values-driven cultures are not only better equipped to navigate challenges but also excel in fostering innovation, attracting top talent, and enhancing overall performance. In fact, research shows that when employees are aligned with organizational values, they are more engaged and more likely to serve as brand ambassadors for the organization.
The problem? According to Gallup, only 27% of employees strongly believe in their organization’s values. And according to Brené Brown Education and Research Group, only 10% of organizations have operationalized their values into teachable and observable behaviors that are used to train their employees and hold people accountable. Such misalignment on values can create the opposite of a high-performing culture, leading to disengagement, and high turnover.
How can you go about creating a values-driven culture?
Define Clear Core Values
We can’t practice values that we can’t define. So first, get clear on what your core values are and what they look like in practice. These values serve as guiding principles that shape behavior, decisions, and interactions within the organization. Be intentional about this process by gathering input from employees across different levels and departments, so that the values truly do speak to the people who make up your organization. By establishing clear values, employees have a framework for understanding what is important to the organization and how they should align their actions accordingly.
For example: An executive team took an existing list of company values and tied clear, observable behaviors to the values so that people understand what it means to live these values day-to-day. It took vague values like “collaboration” and transformed it into:
Collaboration:
– I actively listen to other team members’ perspectives and concerns.
– I am open and curious about finding solutions to problems.
– I share resources and information openly with colleagues.
– I give credit to other contributors.
Lead by Example
Leadership plays a critical role in setting the tone for the organizational culture. Leaders should embody the core values and demonstrate them in their words, actions, and decisions. Have leaders incorporate the core values into their day-to-day work and organization-wide communication. When employees see that leaders are living the values, they are more likely to internalize them and follow suit. Consistency between leadership behavior and organizational values builds trust, credibility, and commitment among employees.
Communicate Values Consistently
Effective communication is key to embedding values into the organizational culture. Communicate your core values consistently and frequently through various channels, such as company meetings, internal newsletters, and employee training sessions. Reinforcing the importance of values and their relevance to the organization’s mission and goals helps employees understand and embrace them.
For example: A CEO consistently incorporated stories that effectively showcased company values into their messaging at organization-wide meetings, sales reviews, and email and intranet updates.
Integrate Values into Processes and Practices
Embedding values into every aspect of the organization’s operations is essential for creating a values-driven culture. Consider how you can integrate values into hiring processes, performance management systems, decision-making frameworks, and reward structures. By aligning policies, procedures, and practices with the organization’s values, you can ensure that employees are motivated and empowered to uphold them in their daily work.
For example: An organization developed an onboarding program that taught new hires the company values through skills-based training. This training not only taught employees what the values were but helped them develop skills that set them up to immediately put the values into practice. People knew they were expected to “fight to win” and also understood key skills to build resilience in their everyday work to do so.
Empower and Engage Employees
Create opportunities for employees to contribute their ideas, voice their concerns, and participate in decision-making processes. Providing avenues for professional development, autonomy, and recognition reinforces your organization’s commitment to the values and fosters a sense of ownership and accountability among employees.
While taking the time to define and implement your organizational values in this way takes time and effort, the impact is clear. Creating a values-driven culture will certainly help your organization cultivate a positive work environment, drive performance, and achieve long-term success.
Katherine Nobles is a Senior Consultant at Paradox Consulting Partners, a management consulting company and Certified B Corporation that aligns talent strategy with business strategy to create high-performing, great places for all to work. She has nearly 15 years of experience in career, leadership, and organizational development. She has her BA from Virginia Tech and MEd from William & Mary. Follow her at linkedin.com/in/katherinenobles.
