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Volume 4.6 Table Of Contents
- Actions speak louder than value statements
- Trend Watch: Worker confidence in core values statements declining
- Digging Deeper: Find your organization’s real values
- Ask the Expert:
Actions speak louder than value statements
These days, it’s rare to find a company – even a “gang of one” - that doesn’t have a values statement. At their best, these documents accelerate decision making by clarifying guiding principles and standards. They also provide a framework for relating to internal and external stakeholders.
Unfortunately, there’s an increasing disconnect in companies between their stated values and what happens on a daily basis (see “Trend Watch” below). Left unaddressed, this problem leads to confusion, unnecessary conflict, cynicism, and distrust that can grind progress to a halt. How, then, do you gain greater consistency between stated values and those that actually exist?
There are three keys to making your stated values jump off the page and turn into action:
- Clearly define each value : Sometimes problems stem from people having different definitions for the same words and phrases. For instance, try this test with a colleague: does “innovation” mean incremental improvements, breakthrough thinking, or both? One CEO handled this dilemma by working with his executive team to write explicit definitions for each stated value. While this caused some eyeball rolling in the ranks, everyone was able to clearly describe their company’s values.
- Agree upon the “value of the value”: Problems also occur when people don’t agree with or don’t care about a stated value. In order to promote consistent decision-making and interactions, top-level leadership needs to agree on why each value is important. Is it important to company history? Does it reflect a competitive reality? Remember, as your organization grows, values need to be revisited to reflect changes that have occurred over the years.
- Communicate values in a variety of ways: While meetings, training sessions and postings are helpful for getting the word out, the real communication about values occurs every day under a variety of circumstances. Linking stated values with elements of your culture such as policies, procedures, practices, and behaviors (see “Digging Deeper” below) helps people learn how to apply them.
Bottom line: The existence of a values statement alone does not guarantee that it will guide decisions and actions on a daily basis. Bringing documents to life is an on-going process – not an event.
Trend Watch: Worker confidence in core values statements declining
According to Watson Wyatt’s WorkUSA® 2006/2007 survey of 12,205 full-time U.S. workers across all job levels and major industries, only 55 percent of employees believe that their senior management behaves consistently with the company’s core values (down from 57 percent in 2004). How can you reverse this trend?
When we’re under pressure to hit performance targets, it’s not always easy to pick up on reality other than our own. That’s why periodic assessment can be beneficial. A few questions to ask include:
- How am I modeling stated values? A good way to test this out is to look at decisions you’ve made and actions you’ve taken over the course of a day, a week, and a month. Can you link these decisions and behaviors to a stated value? If not, why not?
- How do others perceive my decisions and actions? This is where interviews, focus groups, and surveys come in. Although at times it may seem like people are “wrong” (as one CEO said to me), remember that even mistaken perceptions trigger real action. Once this CEO was willing to look more objectively at the situation, he and his executive team were able to take control and continue to accelerate progress.
- What can I do to improve any gaps? Assuming that you believe in the stated values, what do you need to start doing and what do you need to stop doing in order to be more consistent in words, decisions, and actions? How will you prioritize next steps?
Bottom line: The more that employees, customers, investors, suppliers, alliance partners, and other stakeholders perceive that you are living your stated values, the more likely they are to take these values seriously and trust what you say.
Digging Deeper: Find your organization’s real values
In addition to uncovering stakeholder perceptions, you can discover what your organization truly values by linking stated values with various policies, procedures, practices, behaviors, customs, and other elements of your organization’s culture.
To begin discovering your organization’s real values include, explore the following three areas:
- Written policies, practices, and procedures : Do these guidelines actually support stated values? How closely and consistently do employees at all levels follow them? Are exceptions frequent? How are decisions made? Look for trends to determine what is valued.
- Incentives and rewards: What message does your compensation system send about the value of executives and employees? Do incentive programs favor teamwork or individual performance? What type of performance earns promotions?
- Customs: Do employees routinely work beyond official hours or on weekends? What types of celebrations do you hold, and why? Is it customary to avoid conflict between individuals and groups or to embrace it?
Bottom line:If you observe discrepancies in any area, resist rushing to a solution. Often times, there are multiple reasons for the gaps.
Call Pam Harper today or contact us for a complimentary meeting to discuss making your value statements jump off the wall and turn into action.
Q: Our executive team disagrees about definitions on several of our values. What do you suggest to settle the conflict?
A: First of all, don’t rush to settle a conflict. This increases the risk of getting “lip service” agreement that gets little or support on a daily basis. Instead, find out the reasons behind each person’s position on the issue. Getting beyond positions can help you come up with new solutions. For example, if your group is disagreeing about how to define “quality,” it may come out that the conflict is based upon habit of thought rather than on looking at the current needs of your customers. This insight might then result in a new definition that everyone can live with.
It takes patience and persistence to uncover the root of a conflict. If you are truly gridlocked, an outside consultant can help you break out of the jam by helping your group move away from positions, gain new perspectives, and make decisions that they’re willing to act upon. In either case, taking the time to thoroughly consider different viewpoints and work through the process of gaining consensus about the “value of each value” will pay dividends when it comes to applying them on a daily basis.