Putting Values into Action

This month, we focus on the practical side of translating values into everyday expectations.

Our last newsletter talked about how to build organizational culture, and the factors that need to be considered if you want to do it well. In this newsletter, I want to take things a bit further and talk about putting those aspirations into practice, and how to keep momentum going.

I want to start by saying that culture will exist with or without your guidance. It is what we do - and don't do - as leaders that shape our company's culture and, like anything that you want to grow and prosper, you need to pay proper attention to it.

"Why Every Leader Needs to Worry About Toxic Culture" (MIT Sloan Management Review, March 2022) talks about The Toxic Five Culture Attributes:

1. Disrespectful
2. Non-Inclusive
3. Unethical
4. Cutthroat
5. Abusive

When you think about how these attributes show up in the workplace, you can easily see that, without establishing expectations around behavior, things can go awry, and quickly.

It's not rocket science, but it does take effort to get the ball rolling and to keep it moving in the right direction. It also requires action on the part of leaders to nip poor behaviors in the bud when they show up.

Going back to last month's article, I noted the key elements of creating a strong workplace culture, and briefly described each. This time, I want to expand it to include the practical side of these activities.

1. Apply Your Company ValuesOnce values are defined, translate them into expectations around behaviors in the workplace. For example, say one of your values is 'collaboration'. Let's look at what that looks like when it's spelled out in terms of behaviors:??Proactively seek out diverse thoughts and opinions in order to continuously improve our products and services; ??Be reliable and responsible with your work and commitments to yourself and others;??Actively participate in discussions and activities, contribute ideas, and be involved in decision-making processes;??Do not work in a silo and share information freely. While your work is yours, it is critical that the team knows what you're up to. This is just an example, and how you break down a particular value may look quite different. The important part is being specific about what behaviors you expect from your team.
2. Lead by ExampleOnce you've figured out the behaviors that you feel properly represent your values, you need to model them. As someone once told me many, many, years ago, 'A fish rots from the head down'. Don't be that fish. If you aren't invested in holding up your values, your team won't be either. If you see good modeling by employees, recognize it then and there. Encourage your managers to recognize it with their teams as well. Call out anyone who isn't upholding the values of the organization, and don't be afraid to let them go if it comes to it. I've had conversations with managers who have a toxic employee, but they are one of their top performers. By keeping them, you're sending the message that their actions are ultimately acceptable. One bad apple...well, you know the rest.
3. Transparent CommunicationThis should also be noted as transparent and frequent communication. The more you repeat a message, the more its importance is driven home. It's also critical to communicate using different mediums: write about it, create a footer with your values captured on it, put it on your email signature. Talk about it in town halls, and recognize achievements (see below) of individuals related to upholding company values. Communicate why the values are important, and how they help shape the culture of the organization. Let your people know that you're trying to create a great place to work: one where everyone thrives and feels valued (of course, if that's what you're trying to do; I've met leaders who aren't as focused on that as they should be).
4. Involve Employees in Shaping the CultureThis is critically important if you're trying to shift an existing culture because you'll need to manage the change. If you can hold working sessions focused on creating the type of workplace that your employees want to work in, and have them develop the values and the behavioral expectations tied to it, you'll have a much easier time implementing them. Buy-in is everything.
5. Recognition & RewardsWhat gets measured gets done, and what gets recognized and rewarded gets repeated. It's that simple.
6. Performance Integrating your values into a performance program is a way to ensure your people programs are aligned and working together, and not against each other. Often, employees can feel the pressure of having to deliver and focus on getting the work done, without consideration to how they are doing it. Conflicts can also arise if the performance expectations for a role are not aligned with the values of the company.

As an example, let's look at this scenario:

Sales Team in a Tech Company

Background: Imagine a technology company that prides itself on its core values of integrity, customer-first approach, and innovation. The company has established a reputation for providing high-quality products and transparent customer service.

Role: A sales representative in this company is expected to meet ambitious sales targets each quarter. The performance metrics are primarily focused on the number of sales closed and revenue generated.

Conflict: The company's aggressive sales targets begin to conflict with its stated values in the following ways:

1. Pressure to Mislead Customers: To meet sales quotas, some sales representatives might feel pressured to overpromise on product capabilities or understate limitations, compromising the value of integrity.
2. Neglecting Customer Needs: In the rush to close deals, sales representatives might prioritize potential high-value customers while neglecting the needs and concerns of smaller clients, contradicting the customer-first approach.
3. Short-term Focus Over Innovation: The intense focus on immediate sales results could lead to less emphasis on understanding customer feedback, which is crucial for innovation. Sales representatives might push existing products without considering how new innovations could better meet customer needs.

Result: This conflict can lead to several negative outcomes:

• Customer Dissatisfaction: Customers who feel misled or undervalued may lose trust in the company, leading to a damaged reputation and potential loss of future business.
• Employee Moral Dilemma: Sales representatives might struggle with the ethical implications of their actions, leading to decreased job satisfaction and potentially high turnover.
• Long-term Brand Damage: While short-term sales might increase, the long-term impact on the brand's reputation for integrity and customer focus could be detrimental.

Resolution: To resolve this conflict, the organization could:

• Reevaluate its sales targets to ensure they align with company values.
• Implement training programs that emphasize ethical sales practices.
• Establish metrics that reward not just sales numbers but also customer satisfaction and retention.
• Encourage feedback from sales representatives about the practical implications of sales targets on their day-to-day activities and customer relationships.

In this example, the misalignment between the role's performance expectations and the organization's values highlights the importance of ensuring that business strategies and targets are consistent with the core principles of the company.

In Conclusion

Weaving your values throughout the organization by communicating and modeling expectations, rewarding and recognizing those who uphold the values, and creating a performance plan that includes those behaviors as part of an overall evaluation will help you set the path towards a positive and engaged workforce. Next month I'll delve more deeply into the specifics of performance plans, and what they can look like when you include competencies tied to organizational values.