Ralph Waldo Emerson once said, “What you do speaks so loudly that I cannot hear what you say.” This is true for individuals as well as companies. It speaks directly to the danger in defining organizational values and then failing to align your actions with the values. If the behavior and actions of the leaders of the company do not align with the stated values, all the goodwill that defining core values created is negated. When the walk does not equal the talk, the result is a culture of hypocrisy, distrust, disengagement and lower productivity. You would have been better off not proclaiming the lofty values in the first place.
Companies that are values-driven (those that live by their higher-level values) have more engaged workers, higher productivity, increased creativity and greater longevity than companies that are not concerned with values. Who does not want to proclaim that honesty, respect, integrity, excellence and customer service, for example, are the core values of their company? Put them on your website, make posters to hang in the cafeteria, even print the core values on mouse pads and provide them to all your employees.
That should do it, and then you can forget about corporate values, right?
No, you can not forget about corporate values. Not even for one day. It is when the chips are down – such as in a recession – that all eyes are on the leadership of the company to see if their behavior upholds the core values.
How can you, as a leader, walk the talk of your organizational values? Here are five ways to ensure that your core values are not only espoused, but embedded in the culture of your organization.
1. Define behaviors that exemplify each core value
If actions speak louder than words, why not proactively identify the actions that will enliven each core value? Some companies do this by identifying specific behaviors and actions that correspond to each value. For example, actions that uphold a core value of customer service might be:
- Choose specific individual actions or department decisions that positively impact the customer
- Respond quickly to customer’s needs
- Partner with other departments in the company to create customer-centric processes and services
Some organizations ask each department to define the behaviors and actions that exemplify each of the core values. Once created, they are presented to upper management or a cross-functional Culture Committee for approval and buy-in. This way, all the organizational functions have proactively defined the behaviors necessary to live in alignment with the stated values. It is like rehearsing a scene from a play – you have practiced your lines and your gestures ahead of time so you are ready to perform when the curtain rises. In this case, the performance is daily organizational life.
2. Hire for values
In many instances that I have observed, a newly hired or newly promoted manager fails not because of incompetence but because of a personal misalignment with prevailing company values. Losing a highly-compensated worker is expensive to the company and is obviously hard on the employee. At all levels of the company, it is important to hire with an eye towards values alignment. Jim Collins, in his book entitled Good to Great, calls this “getting the right people on the bus.”
To assess values alignment of job applicants, choose the core values and their defined behaviors that correspond most closely with the position’s requirements. Then devise behaviorally-based interview questions that explore the candidate’s past actions regarding that value. Rate each candidate on those criteria. For example, if one of your core values is Customer Service and a pre-defined behavior for that value is to choose actions that positively impact the customer, ask candidates to share a story about a time that they chose an action or made a decision that impacted a customer. Listen intently to the stories the candidates tell you – did their actions positively impact the customer? Did they have a hard time thinking of a story? Listen to their past experiences to learn what their personal core values might be. Try to envision them operating effectively in your environment.
Before offering a candidate a job, review the core values of the organization and ask them to think about whether they can uphold them or not. The more you talk about your values, the more alive they become. Talking about values with a potential new hire is not too early – in fact, it may make the candidate more eager to accept your job.
3. Tell stories to bring values to life
Leaders of an organization should be storytellers. Stories are a powerful way to communicate cultural norms. To tell a compelling story, leaders should be continually on the look-out for examples of their people doing something right and acting in alignment with the corporate values. Then, tell those stories whenever possible – in the company newsletter, in meetings, in informal conversation.
At a recent all-hands meeting, I observed an executive tell a story about great customer service (a corporate value) provided by an individual within the department. The technician was escorted to a major metropolitan airport by the state police – to fix a problem with the company’s software installed at the airport. Then the executive awarded the technician a prize. The technician exemplified the behaviors associated with great customer service, and the story is now enshrined in the collective memory of that group. The group clearly understands the behaviors that this executive expects and rewards within the group. They also understand how each individual can uphold the corporate values.
4. Model correct decision-making behavior using values as litmus test for action:
The leader casts a long shadow. That means that leaders have a disproportional influence on the behaviors of the group, setting the pace for the entire group. Effective leaders will consciously make decisions according to the corporate values, even when times are tough. Nothing will demoralize a workforce faster than decisions that are contrary to the espoused values of the corporation. Case in point: In the ninth week of the quarter, the CEO sees that sales are lagging for the quarter. Will the CEO exhort the sales force to “Do whatever it takes to get the sale!” or will she return to corporate values and encourage the sales force to see the big picture and sell according to the values of the company? When the chips are down, it is the leader’s actions that will make or break the corporate culture.
5. Evaluate and reward employees according to corporate values
Do both your performance evaluation system and compensation structure align with the values of your organization? If they do not, you cannot expect to lead a values-driven organization. For example, if you say that you value work/life balance, but your professional service consultant s bonus payment kicks in only after they bill an unreasonable number of days per month, you are motivating behavior that is out of alignment with your stated values. Instruct your HR people to create compensation structures that motivate values-driven behavior. Give them a copy of the values statements and the defined behaviors and request updated compensation programs.
In addition, make sure that your performance evaluation process enhances values-driven behavior. Include the core values on the performance evaluation form and have each manager rate their employees on their ability to perform accordingly.
Many companies use 360o feedback instruments to help their executives improve their performance. These assessments seek input from the executives’ direct reports, peers and boss (hence the 360o title). Instead of using boilerplate feedback questions, customize the questionnaires to include values-based questions that determine how closely the leaders’ actions track with corporate values. In all our executive coaching programs, Brio Leadership uses an interview-based 360o feedback instrument that can be customized to reflect corporate values. These interviews produce highly actionable data that leaders can use to improve their performance.
Walk the talk – make sure your corporate values are embedded in the culture of your organization. The result will be evident in the engagement, loyalty and productivity or your workforce.
Brio Leadership offers a Cultural Values Assessment that measures the operational and desired values in the organization. This assessment illustrates both the strengths and weaknesses of your organization and can be a catalyst for positive change. For more information, contact us at 817-577-7030.