Talking culture: How values can help drive business performance

The role of core values

Core values aren’t just words on a wall or in a handbook; they are the principles that guide an organisation’s behaviours and decision-making processes.

Values often shape the identity of an organisation both internally in terms of culture, and externally by way of brand identity. A strong set of values that align with both strategy and individual employee values can bring coherence and unity to every level of the organisation. 

But what happens when those values are out of sync? When the values lived and breathed by the leadership don’t match the ethical compass of the workforce? Simply put, you get disharmony, disengagement, and ultimately a toxic culture that drains creativity and stifles performance. High staff turnover, lack of innovation and a general sense of malaise can quickly set in. In such cases, it might be time to hit the reset button and redefine the core values to turn things around.

The current VUCA landscape (Volatile, Uncertain, Complex, Ambiguous) in which businesses must operate, means they must navigate rapid technological advances, shifting customer expectations, and a heightened emphasis on sustainability and inclusivity.

The evolution of values with strategy

In such a fast-moving environment, a company’s organisational strategy is bound to evolve. And when that happens, the core values should evolve too. After all, an organisation’s values need to be in sync with its strategy to keep the company moving forward in the right direction.

So, how best to create or redefine these organisational values? Begin with your strategy – what are you aiming to achieve? Then, think about the values and behaviours that will get you there.

Engaging stakeholders in the process

To help shape your thinking you should engage with a wide selection of voices to gather information. Run workshops, surveys, and collaborative exercises with your team to discover the values that are important to them, and that they believe are important to your customers or service users. You should also talk to your customers and other external stakeholders. Find out exactly what they expect when they interact with your organisation.

Testing and refining values

Having considered all of this and created a set of values (remember KISS – Keep it short and simple), it will be important to retest them with your stakeholders to ensure they resonate, create alignment, buy-in and spark excitement.

Implementing values through leadership

At this point many organisations “declare victory”; the values appear on a plaque above the door, and nothing really changes. But values only make a real impact when they’re woven into the DNA of the organisation. This is where leadership comes in. Real change comes from the top. 

Think about running “values workshops” led by the senior leadership team. In these sessions, groups of employees should tackle real business scenarios and be encouraged to come up with solutions guided by the new values.

It’s crucial that your leadership team sets the example, integrating these values into their day-to-day language and decision-making processes. Imagine the impact when leaders openly discuss how the values have influenced their decisions – this brings the values to life in a tangible way.

Recognising and rewarding value-driven behaviour

Finally, don’t forget to celebrate those who embody your values. Recognising and rewarding employees who live out your values in an employee recognition scheme can be a powerful way to reinforce their importance and keep them front and centre.

Conclusion

The link between an organisation’s culture and its core values cannot be understated. In order to keep employees engaged, maintain strong relationships, and stay competitive organisations need to regularly ask themselves: Are the values still relevant? Are they aligned with our strategy? And most importantly, are they guiding us every single day?

The answer to these questions can make all the difference between a thriving, dynamic organisation and one that’s just going through the motions. So, let’s get the values right – and let them lead the way.