Closing the Value Gap

By Florence Stone

The old axiom, “Do what I say, not what I do” appears to reflect the attitude of some of today’s executives toward issues of honesty and truth. When we consider values related to business operations, there are gaps as well. This sends mixed messages to employees.

Actually, many value-driven organizations have problems on both a corporate and department level.

Corporate Level:

• The organization creates the value statements in a flurry of activity but falls short in demonstrating its commitment to them. One example: An organization that has a corporate objective “to increase employee growth and advancement” cuts its training budget and discontinues its policy of reimbursing tuition for employees to generate increased net earnings--and not only during tough times.


• The corporate value statements are so broad that employees have no idea how they translate into behaviors or practices or impact their current jobs. Consequently, the values don’t help employees with their day-to-day work. A case in point: A company has set as a value “We will be creative.” That could mean development of new products, process improvements, or—in light of recent events—the approach to book-keeping.


• Companies forget that values grow out of another “v” word—vision—and consequently should reflect the corporation’s mission. For this reason, as some gurus argue, ethics and integrity don’t belong in a corporate list of “values” or goals. They should reflect a state of mind of all who work within an organization. Values might better include statements about collaboration and cooperation, intelligent risk taking and creativity, recognition and reward for performance excellence, shared responsibility for corporate profitability, outstanding customer service and commitment to total quality.

Department Level:

• Managers fail to practice what the corporation preaches. Too many managers see their role solely as communicating corporate values to their employees. They forget they should role model these values.


• Managers don’t translate values into behaviors as part of performance management and recognize their employees’ efforts in practicing these behaviors.
  

How can organizations make better use of values? Here are some guidelines for executives and managers:

• Values should be considered, like goals, the mileposts critical to achievement of the corporate mission or strategy.


• Managers should evaluate their operations in light of values and identify weaknesses that would hinder the group’s ability to meet the needs of the organization as a whole and its external or internal customers.


• On a departmental level, managers should tie values to specific behavior or performance—their own and that of their employees. Both need to relate values to their responsibilities and how their work can influence the achievement of values.


• Employees need to know why the values are important. Employees won’t practice strategy-related values if they don’t know why they are critical to their company’s competitive advantage.


• There need to be positive consequences for employees who pursue the values. Those employees who practice the behaviors that demonstrate support of corporate values need acknowledgement. If possible, promotions, raises and bonuses should be tied to the practice of corporate values.


• Those who fail to practice the values set—executives, managers and employees like--should not be rewarded. All the effort in communicating the values will mean little if in real terms they have little influence on how the organization behaves. After all, behavior doesn’t change if employees don’t see a benefit—a payoff.


• Managers should role model the values their organization has set. Employees won’t support the values you promulgate if they don’t see you doing so. If you aren’t walking the talk, then it isn’t likely that your employees will support the values.

Florence Stone is editor of MWorld, AMA’s quarterly management journal, and author of 15 books. If you would like to read more articles like this, and are a member of AMA, click here. If you aren’t a member but would like to become one and have access to over 1100 articles on management in our Member-Only Web site, click here.

For more information on value-driven organizations, check out AMA’s popular new seminar “The Voice of Leadership” and other leadership and management courses. AMA’s 2002 Corporate Values Survey may also be of interest..