2 Ways To Know Values Are Real

Lots of companies have stated values. Many politicians reference values to support their viewpoints. Even individuals talk about values to indicate what is (or is not) important to them.

But what exactly are values?

Most people limit their view of values to only equate with ethics – a collection of moral principles related to personal conduct. Values are so much more. They create a focus for what is desirable, what is worth doing, what is worth supporting, arguing for, and/or striving for.

Values determine where to invest time, energy, money and other resources.

In business, if values are truly worth something, then at least one of two things will occur:

• There’s at least one area of budgeted investments that support the values.
• There’s a clear willingness to sacrifice revenue or incur a cost to uphold the values.

If the values are real, then an organization will invest in and protect them.

Investing in Values

Investments can be identified and measured both directly and indirectly.

Direct investments occur when values are used to guide strategic direction, such as:

• A company that claims product safety as a differentiating value invests in new safety features for its products.
• A business that claims simplicity as a differentiating value invests in R&D to make their products and services less complex (or more simple).
• An organization that claims leadership as a differentiating value invests in leadership development.

Indirect investments are those that support the promotion of the stated values but not necessarily drive strategy, such as:

• A company that instructs all new hires on its core values.
• A business that educates employees on acceptable and expected behavior associated with its values.
• An organization that includes values as part of employee performance reviews.

Both types of investments are important and pay real dividends over time.

Protecting the Values

Organizations that truly value their values protect them in one or more of the following ways:

• Willingly turn away a potential project or sale (and the associated revenue) that’s not aligned with the stated values.
• Terminate an existing revenue stream (and often fire the client) when it becomes evident that values are being compromised.
• Reprimand an employee for decisions and behaviors not aligned with the values.
• Don’t hesitate to dismiss someone for a serious violation of the stated values (including the CEO).

While these may appear as simple guidelines, they are actually quite challenging to do. Even for the best leaders, it’s extremely difficult to turn away revenue opportunities. It’s also no easy task to fire a high performing employee (which is often the case, when they value achievement more than any other value).

Rarely are such tough decisions “cut and dried”. The violation of values generally starts small, almost appearing trivial and insignificant. But like many violations, they can quickly grow in both intensity and frequency, making it even more important for leaders to remain vigilant over protecting values.

Bottom line: If values are to be considered more than just platitudes, an organization must be willing to invest in and protect them. They must be treated as real.