The Single Most Important Choice for Organizational Leaders

Of the plethora of challenges that an organization faces each day there is one single question that is by far the most important of any question. The answer to this question determines every decision an organizational leader makes as well as determines the future success or failure of the organization or its leaders. The question is straight forward; what do we value?

The values of an organization are important because they represent the core set of beliefs that guide organizational leadership in developing programs, managing talent, and growing leaders. Whereas a mission provides the roadmap, values provide the underlying ethical behaviors that drive the mission. It is an imperative; therefore, that an organization embraces a shared belief system that permeates through the entire enterprise. Values are constants for an organization and do not typically change but serve as a foundation for how decisions are made and business challenges are met.

Several years I had an opportunity to talk to a CEO of a large health care organization about a particular core value of the company; treat every employee with dignity and respect. He shared with me that sometimes this value cost the organization by way of a small percentage of employees remaining on the payroll longer than may be acceptable in other companies. He strongly believed, however, that people should be afforded every opportunity to become productive employees and that the benefit far outweighed the cost of these few employees. He valued humanity in the workplace and in return he garnered loyalty and respect from employees. In contrast a large health care organization I worked with could not name their company's values. The company flounders in conflicting policies and procedures, disharmony between senior executives, as well as an ill-defined culture. I believe at the heart of this company's struggle is a lack of clearly defined values.

Blanchard and O’Connor (1997) In Managing By Values assert a company that truly manages by values, has only one boss-the companies’ values. If values were a box on a company organizational chart they would reside at the top of the chart. Organizational and individual goals, therefore, should be aligned with the values of the organization.

So how does a company actually manage by values? Collaboration by core leadership to name and define the organization’s values is the first step. The next step is publicizing the values in all communications and holding the mission and values as a litmus test for all projects, programs, initiatives and talent management activities.

As the organization determines its priorities, identifies projects, writes policies and procedures the question becomes is this project, process, policy or procedure representative of our values? Which value is supported and how is the value supported? In the selection, assessment and succession planning processes, the question is does this employee or potential employee's values align with the values of the company?