The Value of Business Values

Driving Culture and Accountability

I recently led a workshop on business values, during which a deep conversation sparked about the importance and value of values in the workplace. Business values are the foundation of an organisation's culture; they shape employees' behaviours and contribute to the company's overall success. However, simply having these values in place isn't enough—how they are upheld and modelled by leaders determines their ultimate impact.

When discussing values, we should distinguish between espoused values and enacted values. Espoused values are those an organisation publicly states—printed in handbooks, featured on websites or declared by individuals. There are also enacted values; these are the values that are reflected in the behaviours of employees and leaders alike. When there is alignment between the two, a company's culture is strong, authentic, and cohesive. But when there's a gap between espoused and enacted values, the organisation's integrity crumbles, which results in disengaged employees and a lack of trust.

The Gap That Can Erode Trust

For example, a company may claim that compassion is a core value. However, if leaders routinely fail to show empathy toward their team or neglect to address situations where employees are mistreated, the espoused value of compassion is not being enacted. This then creates a disconnect between what the organisation says it values and the behaviours that are tolerated. Over time, this inconsistency can erode trust, disengage employees, and lead to a negative work environment.

Employees are not silly; they quickly notice when there's a gap between what leadership promotes and what they practice. As a result, they may become disillusioned with the company's mission and values, leading to lower morale, higher turnover, and diminished productivity. Organisational psychologist Adam Grant says, "Culture is about how people behave when the CEO isn't in the room." For me, this emphasises the importance of leaders consistently embodying the company's values and holding everyone to the same standards.

Why Business Values Matter

Business values are not just aspirational; they should be the guiding principles for how employees interact, make decisions, and contribute to the organisation's overall goals. Clearly defined values provide a sense of direction and consistency, particularly in times of uncertainty. Clearly, articulated values help employees navigate workplace dynamics and guide their decision-making. For leaders, values offer a framework for leading with integrity and ensuring the business remains aligned with its mission.

However, the true power of business values lies in their execution. It's not enough for a company to simply articulate its values in a nicely laminated poster on the wall; they must be consistently modelled and upheld at every level of the organisation. When leaders fail to live by their organisational values or allow behaviours that contradict them, they undermine the very foundation of the company's culture.

Behaviours Drive Culture

Values without clearly defined and articulated behaviours are ambiguous and hard to enforce. It’s essential to connect each value with specific actions. For example, if a company claims authenticity is a core value, the expected behaviours might include open communication, transparency in decision-making, and a willingness to admit mistakes. These behaviours provide a concrete guide for how authenticity should be demonstrated in everyday interactions within the workplace.

However, the company's culture will inevitably suffer if no one is held accountable for failing to exhibit these behaviours. Employees who observe disrespectful behaviour tolerated by their leaders may become disengaged, leading to decreased morale and productivity. Moreover, the credibility of the company's values will be diminished as it becomes clear that they are merely espoused and not enacted.

Being Held Accountable

Values without accountability are meaningless. Leaders must ensure that all employees, from the leadership team to entry-level staff, are held accountable for upholding the organisation's values. Holding people accountable for their actions creates a culture of trust, integrity, and mutual respect. Without accountability, an organisation risks fostering an environment where employees feel disillusioned, unmotivated, and unclear about what is expected.

When employees see leaders failing to enforce values or turning a blind eye to behaviour that contradicts them, it signals that the values aren't truly important. This lack of accountability erodes the very fabric of the company's culture and makes it difficult to maintain engagement and high performance.

Three Ways Leaders Can Uphold Values and Drive Culture

As a leader, your role is pivotal in ensuring that the company's values are espoused and enacted in every aspect of the business. Below are three strategies to ensure values are truly embedded in your organisation:

1. Lead by Example

As a leader, you’ll set the tone for the entire organisation. If you want your team to live by the company's values, you must consistently demonstrate those values in your behaviour. Whether it's transparency, accountability, or respect, modelling the behaviours you expect from others reinforces the importance of the company's values. As Brené Brown says, "Who we are is how we lead." Leaders who show up and live by their values inspire others to do the same.

2. Establish Clear Consequences

Upholding values requires accountability. If certain behaviours conflict with the company's core values, there must be clear consequences. This doesn't mean creating a punitive culture, but it does mean addressing issues when they arise. By setting clear expectations and holding individuals accountable for their actions, you reinforce the integrity of the company's values.

?3. Incorporate Values into Performance Management

To ensure values are lived and not just discussed, tie them directly to your performance evaluations and employee development. Incorporating values into your performance management creates a structure for regular feedback and reinforces the importance of aligning behaviour with organisational principles.

?Conclusion

Business values are more than just words on paper—they are your organisation's DNA. However, values can only drive culture if you consistently enact and uphold them. When there's a gap between espoused and enacted values, employee trust is eroded, and culture deteriorates. As a leader, you play a crucial role in bridging this gap by modelling values, holding others accountable, and ensuring that behaviours align with the organisation's core principles. Doing so creates a culture of integrity, trust, and high performance that drives the business forward.