A values-based culture gives a company a strategic advantage»
The secret is out. Building and sustaining a values-based culture is a strategic advantage for a company. How do I know? According to a 10-year study by Queen’s University Centre for Business Venturing, engaged cultures had a 65% greater shareprice increase. These companies enjoyed 15% greater employee productivity and 30% greater customer satisfaction levels. This study is one among many that demonstrates the tie between values-based companies and winning financial performance. Here is what happens when a company defines, articulates and lives its values.
Hiring decisions are smarter:
Managers and leaders agree on the desired traits, behaviors, values and technical skills to thrive in their company. Hiring managers look beyond technical fit alone to determine who brings motivation, integrity and drive.
Best practices drive the process:
Often, in a values-based company, there are fewer rules. Let’s say one of your company values is, “Do the right thing.” You don’t need to sort through a list of hundreds of rules with this value as a guide. New ideas are embraced: You won’t hear, “but we’ve always done it this way,” in a values-based company. New or innovative ideas will at least be considered and even tested. Exceptional ideas will be adopted.
Stakeholders are viewed as valuable: In a values-based company,
it’s not just profit or shareholders who win. Stakeholders include not only investors, but also employees, customers, suppliers and the community.
Mistakes are handled differently:
You will find less blaming when values guide the culture. Instead, you will see opportunities to learn from mistakes. Questions are raised to identify what went wrong. The focus is on how to do better next time.
Communication is more transparent: Not everything
discussed at the executive level needs to be kept secret. Transparency fosters trust. Whenever feasible, values-based leaders share essential information to help their teams make better daily decisions.
Employees are more productive:
When employees feel their contribution is meaningful and that they matter to their manager, their discretionary effort increases. In turn, this increases customer satisfaction and overall profitability. Yes, I know that defining and living a set of company values takes serious work. Admittedly, it isn’t easy. That’s why so many companies overlook this secret to company sustainability and profitability. Think of it this way. Values are our compass, the guideposts to our everyday decision-making. Actions are the measuring stick or daily gauge to help us stay the course. Outcomes—think employee turnover, customer retention and profitability—are the product of those decisions and actions. If you want these measures to add up favorably, revisit or define the values that govern your team or business. Get team feedback and input. That way, everyone is invested in the outcomes. You could start by defining your personal values first. Next, work on defining team or business values. For a free assessment of your personal values, you can email me at kwinsor@thewinsorgroup.com, Subject Line: Personal Values