I've been thinking a lot lately about organizational values, and how they can drive an organization towards success or failure. Today I'm going to talk about some of my experiences in working with leaders and value systems in business.
I was at a recent luncheon where another consultant talked about an organization that had a new president come in and put in place a new set of values. He wrote out the new values and put them on a plaque in every office and told the staff "these are your new values." What happened? He watched his company go through an incredible turnover of staff, lowered productivity, and drops in morale. This fallout has lasted for years.
I am familiar with another organization that has suffered this same problem. In the midst of a turnaround, a new executive team came on board. The CEO established new values, placed them on the wall, and integrated them into performance standards. What happened? Almost continuous turnover, failed change initiatives, and some serious morale and productivity issues.
I mention these stories because they weigh heavily on me. They bother me because I suspect that at the core of all of these problems is a very simple error: leaders who believe that they can institute new values as as if they were simply ordering a new brand of coffee for the break room. Heck, many leaders have been brought up to believe that the establishment of values is a key leadership responsibility! This belief stems from the idea that values are leader-driven, and that people can change what they value if they are told to do so. I think this belief is incorrect, and that much of the pain these two organizations experienced comes from it.
Bringing in a new set of top-down values is so damaging because it is akin to telling other human beings that what they value most in the world no longer matters, and that you have replaced those inner values with something different. People naturally balk at this hubris.
Values are more than a list of words on a wall. They are more than a set of strategic initiatives. Values are a compass! When an organization is going through the long muddy path in search of whatever they are in search of, the values provide direction on both tactics and behavior. When faced with the complexity of our business environments, it is our values that can best point the way. When the espoused values differ from the true values of an organization, resistance and conflict can break out. Imagine a CEO asking an organization of orthodox Jews to eat pork because it is good for business. This example may seem silly, but it is how these clashes can feel to the members of an organization.
When espoused and real values conflict the results are damning. Productivity will slow as resistance emerges. Turnover will spike as people realize that what they value is no longer accepted. Changes will halt or evaporate as people move forward on the basis of being forced to, rather than wanting to.
So how can organizations prevent these mistakes? It begins with leaders realizing that values are part of the pre-existing landscape of the organization you work for. Your job is not to quash them, but to uncover them and help them become true organizational strengths. All values have a bright side and a shadow side. The value of Loyalty may reduce turnover at the same time it increases stubbornness. The point isn't to quash loyalty if that is what your organization values. The idea is that once you know that loyalty is a value, look for ways to bring out the best in that value and use it's advantages mercilessly.
Leadership is hard. So often we feel like we are forging an unbroken path. Values are like a secret bonus. They already exist! They are ready for your use! So next time, instead of writing clever wall plaques about values, take the time to uncover the wonderful things your organization values right now. then take those values out, polish them, and let them really shine.
One time, years ago, I was working with a CEO who was in the process of designing his company's values. He showed me the list and asked me what I thought. I gave him a minor suggestion, which he adopted, but I regret now that I didn't know enough at the time to advise him to take another approach. Next time I'm asked a similar question, I resolve to do better.
Do you?
There are a number of good approaches that can help uncover your organization's values while simultaneously strengthening them. To learn about mission/vision/values consulting feel free to drop me an email.
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