We’ve been talking about how company values can be observed in the actions, behaviors and decisions that occur in the workplace. These discernible behaviors shape the social and psychological environment of an organization and define the norm for expected behaviors in the future. In other words, they are the ingredients of company culture and as such, have a far reaching impact.
In the workplace, culture impacts the quality of work and the level of dedication employees give to the company. It influences the accepted standard for how staff interact with each other including body language, tone of voice and their ability to work together. It also effects company morale, the rate of employee turnover and how decisions get made.
In addition, company culture influences how outsiders, like customers and partners, experience the company. It can strengthen or sabotage customer loyalty. It can bolster or destroy a company’s reputation and impact how it stands up against competition.
Determining what your values are is an important first step in shaping the organization’s culture. Many company founders rightfully dedicate time to finding just the right word to identify what values should take precedence. Once the values are identified, this lights the path forward and becomes the company’s North Star, providing the guiding principles for how the work will get done.
The values are then revealed to employees and stylishly displayed on the company website. And voila! Company culture is created.
Well, not so fast.
While identifying company values is a first and necessary step, it’s what happens afterwards that truly impacts company culture.
The next step is to translate those values into actual behaviors. This is how values go from being abstract and aspirational to being a practical handbook that outlines the expectations of employees at all levels of the company. It’s only when values are operationalized that they can have meaningful influence and shape the culture of the company.
When this step doesn’t happen, when the company doesn’t practice what it preaches, it squanders a golden opportunity to have a values-driven culture. And it pays the price in various ways:
Mistrust between workers and leadership grows
Credibility of leadership is undermined
Employees become cynical
Low morale pervades the company
Employee turnover increases
Productivity declines
Customer trust erodes
The company’s reputation suffers
All of this impacts the long-term sustainability of the company.
Conversely, a values-driven culture – one where the company consistently lives their values through actions and behaviors - has numerous positive ripple effects:
Trust between employees and leadership is enhanced, fostering a positive work environment.
Employees feel a sense of pride and belonging leading to higher levels of engagement, job satisfaction, and productivity.
Collaboration and teamwork are enhanced as employees unite around common goals.
It becomes easier to attract and retain top talent.
Customer relationships are enhanced and customer loyalty strengthens, leading to repeat business and increased revenue.
Crises are effectively managed by uniting the organization and using a clear framework for decision-making.
Overall, when a company truly embodies its values, it creates a virtuous cycle of trust, engagement, and loyalty that drives long-term success.
But how, exactly, do you create a values-driven culture? Next week we will talk about concrete ways to operationalize your company’s values and so that they become integrated into your culture.
Photo by Cas Holmes on Unsplash
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