Focusing on values instead of profit margins has a variety of potential benefits, including increased performance levels, improved service, reduced employee variability, and long-term sustainability. Establishing a values-driven culture is also a powerful point of action in developing a positive social impact on the community as well as leaving a legacy for future generations.
There are three major benefits to a values-driven culture:
- When a company shares the right corporate values with its stakeholders, the company can deliver better results. A values-driven culture doesn’t include just employees and management; it includes everyone from shareholders to current and potential employees and society as a whole. Individuals want to buy into companies that have (1) strong corporate values that align with their personal beliefs, and (2) a forward thinking attitude that shows dedication to community service and the environment. Companies that have strong leadership and focus on all stakeholders can see an increase in company growth, the creation of new jobs, and a significant rise in stock prices.
- When a company employs the right culture, they attract and retain the right kind of people. A values-based company that provides significant attention to its employees will typically outperform its competition. When creating a values-based culture, it is important to remember the needs of your employees, not just physical and emotional but also mental. A company that supports creativity and offers opportunities for self-growth and education will often see a higher yield in productivity. Values-based cultures are founded in the ideals of support, creativity, and the realization that shared values attract and retain talented employees.
- When a company is focused on all of its shareholders and emphasizing leadership development with a values-driven culture, they statistically see significant growth in several major areas. Companies that were attentive to all stakeholders and leadership development grew four times faster, created jobs seven times faster, and had stock prices that grew twelve times faster in comparison to companies that lacked these initiatives, according to a recent study of the “100 Best Companies to Work for in America.” The study also showed that the average annual stakeholder return over a ten year period was 23% and only 14% for companies on the Russell 3000 Index. The positive benefits of focusing on all shareholders are undeniable in a values-driven culture.
Cultural change happens from the top down. Management and employees must take the time to assess the desired core values of the company. Then, a new values and mission statement must be developed and agreed upon as the foundation of the new values-driven culture. A company should utilize coaching, action plans, and alignment and cohesion plans to drive the best values-driven results from the top down.
When considering transforming a company’s culture to a values-driven culture, companies should seek the consultation of an expert. An expert in corporate culture will help develop a new values-driven culture with their tools, know-how, and resources to measure and align new corporate values while allowing a company to remain focused on its core competencies.
For more information download our “Adopting a Values-Driven Culture” white paper here, which goes into further detail about why a values-driven organization is the most successful and sustainable business model.
About the Author
Kyle Krug has 20 years of professional experience in marketing & strategy, technology & information management, business development, and operational support positions in B2C and B2B services industries. Kyle Krug leads Marketing & Communications for LEGACY Supply Chain Services, with past roles as the Director of Client Solutions for Griffin Global Logistics, and Marketing Manager/Data Analyst in the Hotel Casino industry.