Organisational values are the guiding principles that shape a company’s culture, decision-making, and interactions with employees, customers, and stakeholders. They define who you are as an organisation and set the tone for how business is conducted. But defining values is only the first step. To truly benefit from them, organisations must ensure everyone understands, adopts, and embodies these values in their day-to-day work.
In this blog post, we’ll explore how organisational values are defined, why they’re critical to fostering a positive culture, and how to ensure they resonate throughout the organisation.
What Are Organisational Values?
Organisational values are a set of beliefs and principles that serve as the foundation for a company’s identity and culture. They guide behaviour, influence decision-making, and reflect what the organisation stands for.
Examples of Common Organisational Values:
- Integrity
- Innovation
- Collaboration
- Customer-centricity
- Diversity and Inclusion
- Sustainability
These values should be authentic and unique, reflecting the organisation’s mission and vision while resonating with employees and stakeholders.
How Are Organisational Values Defined?
Defining values requires reflection, collaboration, and a clear understanding of the organisation’s goals and purpose.
1. Start with Leadership
Leaders must articulate the organisation’s vision, mission, and priorities. Values should align with long-term objectives and reflect the organisation’s unique identity.
2. Involve Employees
Engaging employees in the process ensures the values reflect the reality of the workplace and resonate with the people who live them daily. Use surveys, workshops, or focus groups to gather input.
3. Identify Core Principles
Narrow down a list of principles that genuinely represent the organisation’s beliefs. Avoid generic values that lack substance or specificity.
4. Make Them Actionable
Values should translate into behaviours. For example, if “collaboration” is a core value, it could mean encouraging cross-departmental projects or rewarding team successes.
5. Communicate Clearly
Once defined, values must be communicated clearly across the organisation, ensuring everyone understands their significance and how they apply.
Why Organisational Values Are Important for Culture
1. They Define the Company’s Identity
Values act as a compass, guiding how the organisation operates and interacts with the world. They shape the brand and influence perceptions among employees, customers, and stakeholders.
2. They Drive Decision-Making
Clear values help employees and leaders make consistent decisions that align with the organisation’s mission. They provide a framework for addressing challenges and seizing opportunities.
3. They Foster a Positive Culture
Values create a sense of shared purpose, fostering trust, collaboration, and engagement. A strong values-driven culture attracts and retains top talent who align with the company’s principles.
4. They Promote Accountability
Values set expectations for behaviour, ensuring accountability across all levels of the organisation. They create a standard against which actions can be measured.
5. They Build Resilience
In times of uncertainty or change, values serve as an anchor, helping the organisation maintain focus and integrity.
Why It’s Crucial for Everyone to Understand and Adopt Values
1. Alignment Across the Organization
When everyone understands and adopts the values, it creates alignment across teams, ensuring consistent behaviour and decision-making.
2. Strengthened Employee Engagement
Employees who connect with their organisation’s values are more likely to feel motivated, engaged, and committed to their work.
3. Improved Customer Experience
Values that are authentically lived by employees create a positive customer experience. For example, if “customer-centricity” is a core value, it should be evident in every interaction.
4. Prevention of Toxic Culture
Misaligned or ignored values can lead to inconsistent behaviour and toxic work environments. Clear, widely adopted values help prevent this by reinforcing positive behaviours.
5. A Unified Sense of Purpose
When values are embraced by everyone, they create a sense of unity and shared purpose, driving the organisation toward common goals.
How to Ensure Values Are Lived and Adopted
1. Lead by Example
Leadership must model the values consistently. Employees look to leaders to set the tone and demonstrate how values are lived in practice.
2. Embed Values into Operations
Integrate values into every aspect of the organisation, from hiring and onboarding to performance reviews and recognition programs.
- Example: If “innovation” is a value, reward employees for creative problem-solving and foster a culture of experimentation.
3. Communicate Regularly
Reinforce values through regular communication. Share stories of employees embodying the values and highlight how they drive success.
4. Provide Training and Support
Offer workshops, training sessions, or mentorship programs to help employees understand and apply the values in their work.
5. Hold Everyone Accountable
Ensure values are upheld by all employees, from entry-level staff to executives. Address behaviours that contradict the organisation’s principles.
6. Revisit and Refine
Organisational values should evolve as the company grows and the business landscape changes. Periodically review and update them to ensure they remain relevant.
Conclusion: The Heart of an Organization
Organisational values are more than just words—they’re the heart of a company’s culture and the foundation for its success. When clearly defined, authentically communicated, and fully embraced, they foster alignment, engagement, and resilience.
By investing in defining and living your values, you create an organisation that not only achieves its goals but also stands out as a place where employees, customers, and stakeholders are proud to belong.
Is your organisation ready to define or revitalise its values? Let’s connect to create a values-driven culture that inspires and thrives.
