Is there a need for Organisational Values

For serendipitous reasons, most of my conversations in the last few weeks have often led back to organisational values. In the changing VUCA (Volatile, Uncertain, Complex, and Ambiguous) business world, where profit margins, efficiencies, and technology advancement dominate the discourse, one frequently overlooked yet profoundly impactful aspect of organisational success lies in its values. Imagine a company where a set of shared beliefs and principles guides every decision, every action, and every interaction.  

But what exactly are organisational values, and why do they matter? Organisational values encompass the fundamental beliefs and principles guiding an organisation's behaviour, decisions, and stakeholder interactions. They serve as the moral compass, shaping the company's culture and identity. From the boardroom to the shop floor, these values dictate how employees engage with one another, how customers perceive the brand, and how the organisation navigates challenges and opportunities. 

In recent weeks, I have pondered the significance of organisational values, even though I have written about values in a previous blog post. Can organisations truly embody virtues? Why should we ascribe a few personal virtues to an organisation of people with different needs and stakes? Are these values merely aspirational, or do they hold tangible weight in a business's day-to-day operations? Perhaps the answers lie in understanding the profound impact of values on organisational dynamics and performance. 

The essence of organisational values is not merely about crafting a list of lofty ideals; it's about fostering a culture where these values are deeply ingrained in every facet of the organisation. However, the journey towards embracing organisational values is not without its challenges. Conflicting stakeholder interests, divergent perspectives, and the ever-evolving business landscape can create hurdles along the way. Yet, it is precisely in navigating these challenges that organisations showcase their resilience and commitment to their values and, in most times, why values are needed. 

Leadership plays a pivotal role in championing organisational values. From setting the tone at the top to embedding values into the organisation's fabric, leaders serve as stewards of the company's ethos. Leaders can cultivate a values-driven culture that permeates every level of the organisation by leading by example, fostering open communication, and holding themselves and others accountable. 

But why should organisations ascribe personal virtues to themselves? The answer lies in the profound impact that values have on organisational performance. Research has shown that organisations with strong values-driven cultures experience higher employee satisfaction, greater productivity, and enhanced financial performance. By aligning their actions with their values, organisations can create a sense of purpose and belonging that resonates with employees, customers, and stakeholders. 

Most will agree that it is essential to co-create values; the question is how we ensure we have the right mix of values to meet the needs of all stakeholders. I read a paper that inspired how an organisation might want to approach this. The paper explored the espoused organisational values stated by top management and often found on corporate websites. The authors then mapped those values to categories identified by organisational values research.   

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Ref: Bourne et al. (2017). P142

​For values to be effective and enduring, it needs to promote a sense of community, nurture competence, character, and interpersonal relationships. It also has be inward and outward facing, whilst being ethical and tasked focused. The right mix of values can propel an organisation towards its goals while simultaneously meeting the diverse needs of its stakeholders. 
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We read real-world examples of companies that have successfully embraced their values and reaped the rewards; we read of Patagonia, Google, Cosco, Ikea, and Timpson's. Etc. Rather than state how these companies live their values, I used Microsoft Copilot to generate an image of what Patagonia values could look like as an example, and the image below was produced. I find this inspirational. I wonder if we input the keywords that drive some of today's business decisions into Copilot and what image it would generate.  
 
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Phrases used in generating the image.  
Community building: Environmental stewardship, social responsibility, grassroots environmental groups, repair and reuse. 

• Competence: High quality, technical expertise, innovation, sustainable materials. 
• Character: Transparency, accountability, integrity. 
• Interpersonal relationships: Collaborative work culture, employee well-being, trust. 
• Ethical: Sustainability, transparency, social responsibility. 
• Task-focused: High-quality, innovative products, successful business. 

Comprehensive approach: This approach is internally and externally focused and addresses the needs of stakeholders (environment, community, employees, customers). 

In conclusion, organisational values are not merely words on a page; they are the guiding principles that shape the identity and success of a company. By embracing personal virtues, fostering a culture of integrity and accountability, and aligning their actions with their values, organisations can chart a course towards sustainable growth and enduring success. So, is there a need? Unequivocally, yes. 
 
Reference 
Bourne, H., Jenkins, M., & Parry, E. (2017). Mapping Espoused Organizational Values. Journal of Business Ethics, 1–16. https://doi.org/10.1007/s10551-017-3734-9 

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