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We first need to define a value. According to several American dictionaries, a value may have quantitative worth that is measurable. In the corporate world, values are many times defined as “intrinsic,” integral elements tied to the success or failure of operations. A value can be interpreted and defined by these questions:
• What is the worth of our product?
• What are the attributes of our product that make it worthy?
• What meaning do customers attach to the service we provide?
• What's the image our company projects to our important audiences?
• How do employees perceive the importance of our work?
• How do employees feel about this organization?
• What benefits do our products and services provide to our customers?
• What is our purpose, and what values do we need to thrive?
• What is our ROI?
The Aspen Institute, in conjunction with Booz Allen Hamilton, surveyed several hundred global companies in 2005 and found that, indeed, there is a link between financial success and focus on corporate values. According to a synopsis of the study results, “companies that routinely identify values as a top agenda issue, and public companies that report superior financial results, also report greater success in linking values to operations in areas that foster growth, such as initiative and innovativeness.” In fact, while most corporate executives do not see a direct link to growth, those that do include language that aligns values with performance in their values statements, including innovativeness, initiative, adaptability, honesty/openness, drive to succeed, commitment to customers and commitment to employees. An alignment of strategy to business operations is needed to be successful, with a link to corporate values as the springboard from which all efforts originate in spirit and actual accomplishment.
Classic Examples
Corporate examples that have proven the test of time are in many cases some of the great American brands we readily identify with, and for good reason. The products and services are well-defined, and differentiated from their competitors. Many times these product or service values stem from innovation, from uniqueness invented, and an inherent pride instilled and re-instilled from one generation to the next of employees who become caretakers of the brand and provide the respect needed to do so.
What do you think of when you hear the following names of companies or organizations?
• The United Way
• Disney
• FedEx
• Starbucks
• State Farm
• Wegmans
• Johnson & Johnson
• Hallmark
• Nike
• Mack Trucks
Many times the corporate tagline comes to mind such as “When it absolutely, positively has to be there” or “When you care enough to send the very best” or “Just do it.” You can hear the line, and identify the company, because of the connection of the values that you identify with the product or service. “Built like a Mack Truck” provides a clear visual image of strength (and for employees, solidarity) when the phrase is put forth.
These corporate and product identities have values that employees strongly relate to. They are legendary, and have contributed to society to fill a real or perceived need. Strong, positive values make the corporate culture a better place, and curiously, the corporate culture contributes daily to the expansion or deterioration of the values that define a company. So the actions of the CEO and managers and administrative assistants and warehouse employees really do matter and when compounded, do provide a unique corporate culture where values flourish…or where they can decline.
Critical Components of Values in Practice
What are the components of strong positive values?
Another Booz Allen Hamilton/Aspen Institute survey on corporate behavior, conducted in 2004 with 365 companies from 30 countries, found these fundamental findings:
• Ethical behavior is part of a company's license to operate.
• Most companies believe values influence two important strategic areas—relationships and reputations—but do not see the direct link to growth.
• Most companies are not measuring their “ROV” [return on values].
• But financial leaders are approaching values more comprehensively.
• Values practices vary significantly by region.
• And the CEO's tone really matters.
Ways to Instill Values for Employee Support
The reinforcement of values takes place every day in organizations in the following ways:
• CEO support and leadership
• Corporate values statement
• Performance appraisals
• Internal communications
• Training
• Rewards and recognition
• Incentive compensation
• Recruiting and hiring people with the right skills working toward well-developed job descriptions.
But the most important part of defining values is the marketplace, where an organization's service or product is evaluated by customers and in need of continuous support and improvement from the employee team providing it. Consistency of putting values into practice is the watchword for success.
How to Define Values
If your employees are unclear of your charter, your raison d'etre, then you must work daily at introducing them to a “purpose-driven” environment. Values cannot be instilled without an understanding of the organization's reason for existence, but they must be introduced in the context of what each and every employee's important role is for survival and growth. Values touch employees and employees contribute to the values on the job; this two-way scenario is both motivational and rewarding, when genuinely approached in a manner where perceived need and actual progress intersect.
According to the Booz Allen Hamilton survey, values included in corporate value statements are as follows, in order of importance:
• Ethical behavior/integrity
• Commitment to customers
• Commitment to employees
• Teamwork and trust
• Commitment to shareholders
• Honesty/openness
• Accountability
• Social responsibility/Corporate citizenship
• Innovativeness/entrepreneurship
• Drive to succeed
• Environmental responsibility
• Initiative
• Commitment to diversity
• Adaptability
This is the closest definition, based on this research, that reveals the highly dependent and cyclical nature of quite literally putting values into practice:
We define values simply: as a corporation's institutional standards of behavior. Generally, companies follow the same “values cycle”: They articulate a set of corporate values and attempt to embed them in management practices, which they hope will reinforce behaviors that benefit the company identified communities inside and outside the firm, and which in turn strengthen the institution's values.
Additional Reading
You may find more information, and related topics, by visiting www.strategy-business.com or www.aspeninst.org .
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