The Role of Values in Shaping Workplace Culture

(Read time: 5-7 minutes)

Imagine getting on a bus where the destination excites you, but the ride itself is a complete shambles. The driver doesn’t communicate, passengers are constantly arguing, and the seats are uncomfortable. Would you stay on the bus? This scenario is much like the experience employees face when there’s a disconnect between a company’s stated values and the day-to-day reality.

Values act as the moral compass and cultural foundation of any workplace. They define how decisions are made, how people are treated, and what behaviours are rewarded or discouraged. When employees experience alignment between personal and organisational values, they feel engaged, motivated, and loyal. But what happens when there’s a mismatch?

What Are Values, and Why Do They Matter?

At their core, values are the deeply ingrained principles that guide behaviour and decision-making. In the workplace, they serve as a blueprint for culture, fostering trust, collaboration, and a sense of shared purpose. Patrick Lencioni, a respected leadership expert, highlights that authentic values are not always easy or comfortable—they require commitment, often involve difficult choices, and hold individuals accountable to a higher standard.

When employees feel that the organisation’s values are more than just wall decorations or website slogans, they are more likely to stay and thrive. Conversely, when there’s a gap between stated and experienced values, cognitive dissonance arises. This leads to employee disengagement, eroded trust, and high turnover—a costly predicament for any business.

The Cost of Value Mismatches

1. Erosion of Trust:?Employees quickly spot insincerity. If a company claims to value “integrity” but turns a blind eye to unethical practices to meet targets, trust erodes.
2. Decreased Engagement:?Employees become disengaged when their lived experiences don’t align with what the company promises.
3. High Staff Turnover:?Disillusioned employees often leave, seeking alignment elsewhere. This creates additional recruitment and training costs.
4. Reputational Damage:?A reputation of misaligned values not only deters talent but can also alienate customers.

The case of?Enron?exemplifies the dangers of this misalignment. The company proudly proclaimed its core values of "Communication, Respect, Integrity, and Excellence." Yet, its internal practices completely contradicted these principles. Rather than fostering trust and ethical behaviour, Enron’s culture rewarded risk-taking and unethical decision-making to achieve short-term financial gains. This glaring mismatch between stated values and actual behaviour not only led to employee cynicism but also contributed to the company’s eventual collapse.

The key takeaway from Enron's case is that?values without authenticity are not just ineffective—they are destructive. Hollow value statements create a culture of hypocrisy, alienating employees and damaging the organisation’s credibility. For values to drive positive outcomes, they must be reflected in the everyday actions and decisions of leaders and employees alike.

The Role of Authentic Leadership in Realising Values

Leaders who show up authentically play a pivotal role in transforming values into reality. When leaders consistently demonstrate the values they advocate—through their actions, decisions, and interactions—they set the tone for the entire organisation. Authentic leadership fosters trust, inspires teams, and creates an environment where employees feel aligned with and invested in the company’s mission. By embodying the values they champion, leaders not only reinforce a healthy workplace culture but also pave the way for long-term organisational success.

What Can Leaders Do to Close the Gap?

1. Live the Values Daily:?Leadership authenticity is non-negotiable. Employees watch what you do more than what you say.Reflection:?Are your actions consistent with the values you espouse?
2. Embed Values in Systems:?From recruitment to performance reviews, values should inform all processes.Example: Screening candidates not just for skills but for cultural fit ensures alignment from the start. This also clarifies the standards and expectations during the hiring process.
3. Communicate Clearly and Often:?Use storytelling to illustrate how the organisation lives its values.
4. Create Safe Spaces for Feedback:?Employees must feel safe calling out misalignments without fear of repercussions. This requires building psychological safety.
5. Hold People Accountable:?Values without accountability are meaningless. Establish clear consequences for behaviour that undermines the culture.
6. Expand Self-Awareness and Identify Blind Spots: Leaders must continually work on understanding their own behaviours and how they align with the organisation’s values.
7. Model Growth and Learning: Demonstrate that aligning with values is an ongoing journey. Acknowledge mistakes openly, share what you’ve learned, and show how you’re taking steps to improve.

By actively expanding self-awareness and addressing blind spots, leaders set a powerful example. They show their teams that growth and accountability start at the top, reinforcing a culture where values are lived and respected by all.

Reflection Questions for Leaders

• Are your organisation’s values reflected in everyday decisions?
• Do employees feel safe and empowered to speak up about value misalignments?
• What steps are you taking to ensure alignment between your personal leadership values and your organisational culture?
• When was the last time you celebrated an employee for exemplifying a core value?

In Closing

Values aren’t just words; they are commitments. They guide us through tough decisions, help us attract the right people, and create the kind of workplace where employees want to stay for the journey.

Simon Sinek said,?“People don’t buy what you do; they buy why you do it.”?This rings true not just for customers but also for the teams we lead. When we align our actions with our values, we create workplaces where people not only perform but also belong.

What steps will you take today to ensure your organisation’s values aren’t just aspirations or a beautifully crafted statement on the office wall, but authentic reflections of your culture?

Call to Action

P.S. Ready to align your leadership with your organisation’s values and foster a thriving workplace culture?

I offer a?FREE 45-minute Leadership Alignment Strategy Session?to help leaders like you take the next step in creating high-performing, value-driven teams and achieving a healthy work-life balance.

During this session, we’ll uncover opportunities to strengthen your leadership, identify gaps in your workplace culture, and craft actionable strategies for the next 90 days.

Spots are limited, so don’t wait—check availability and book your session today using the link below. Let’s work together to transform your leadership and organisation from the inside out.

???Book?Your?Free?Coffee Chat Strategy?Session?Here???

?? Free Strategy Session ??

Further Reading

• Lencioni, Patrick M.?Make Your Values Mean Something.?Harvard Business Review, July 2002.?
• Satell, Greg, and Windschitl, Cathy.?High-Performing Teams Start with a Culture of Shared Values.?Harvard Business Review, May 2021.?

These resources delve deeper into how values can shape high-performing teams and why aligning organisational values with day-to-day practices is crucial for long-term success.