How Company Actions and Leaders Reflect Values – and how to change them!
Values are the guiding principles that shape the culture, vision, and mission of an organization. They influence how decisions are made, how employees behave, and how customers perceive the brand. But how do companies express their values through their actions and leaders? And how can they ensure that their values are aligned with the needs and expectations of their stakeholders?
Increasingly, organisations with poor ethics which reflect low level values are caught out with dire financial consequences. Think Enron, Equifax, Volkswagen and most recently the British Post Office. We are now shifting into an era when the public and employees expect organisations to have people and planet centred values.
One way to understand values in organizations is to use the framework developed by Richard Barrett, a thought leader on values-based leadership and cultural transformation. Barrett identifies seven levels of values that correspond to different stages of human development and consciousness. These are:
Survival: The focus is on the basic needs of the organization, such as financial stability, health, and safety.
Relationship: The focus is on building trust, respect, and loyalty among employees, customers, and partners.
Self-esteem: The focus is on achieving excellence, recognition, and performance in the market.
Transformation: The focus is on learning, innovation, and adaptation to changing conditions.
Internal cohesion: The focus is on creating a shared vision, mission, and identity for the organization.
Making a difference: The focus is on contributing to the common good, social responsibility, and sustainability.
Service: The focus is on transcending self-interest and serving a higher purpose.
Note – most recently the Barrett model has renamed these stages as: Viability, Relationships,Performance,Evolution,Alignment,Colloboration,Contribution (https://www.valuescentre.com/resources#BarrettModel)
According to Barrett, the most successful and sustainable organizations are those that operate from the higher levels of values, while also meeting the needs of the lower levels. These organizations have a positive impact on society and the environment, while also creating value for their shareholders and stakeholders.
Another way to look at values in organizations is to use the model proposed by Frederic Laloux, a researcher and consultant on organizational development. Laloux describes five stages of organizational consciousness, based on the color metaphors of Spiral Dynamics, a theory of human and social evolution. These are:
Red: The organization is driven by power, fear, and domination. The leader is a tyrant who imposes his will and exploits others. The culture is chaotic, violent, and short-term oriented.
Amber: The organization is driven by order, hierarchy, and stability. The leader is a paternalistic authority who enforces rules and roles. The culture is rigid, bureaucratic, and conformist.
Orange: The organization is driven by achievement, competition, and innovation. The leader is a visionary entrepreneur who sets goals and rewards. The culture is meritocratic, pragmatic, and results-oriented.
Green: The organization is driven by collaboration, empowerment, and values. The leader is a servant who facilitates and supports. The culture is democratic, egalitarian, and caring.
Teal: The organization is driven by purpose, wholeness, and self-management. The leader is a catalyst who inspires and trusts. The culture is adaptive, authentic, and evolutionary.
Laloux argues that the most advanced and future-ready organizations are those that operate from the teal stage, while also integrating the best practices of the previous stages. These organizations have a clear and compelling purpose, a high degree of autonomy and accountability, and a holistic approach to human development.
Evidently, many companies in the Red or Orange category pretend to have higher values and engage in practices such as greenwashing.
So, how can companies align their actions and leaders with their values, and move towards the higher levels of consciousness? Here are some suggestions:
Assess your current values and culture: Use tools such as the Barrett Values Centre’s Cultural Transformation Tools or Laloux’s Culture Scan to measure and understand the values and culture of your organization. Identify the gaps and misalignments between your espoused values and your actual behaviors.
Engage your stakeholders: Involve your employees, customers, partners, and other stakeholders in defining and co-creating your values and vision. Solicit feedback, suggestions, and ideas on how to improve your culture and performance. Communicate your values and vision clearly and consistently across all channels and platforms.
Develop your leaders: Provide training, coaching, and mentoring for your leaders to help them embody and exemplify your values. Encourage them to adopt a values-based leadership style, such as servant leadership, authentic leadership, or transformational leadership. Reward them for demonstrating your values and achieving your vision.
Align your systems and processes: Review and revise your systems and processes to ensure that they support and reinforce your values. This includes your strategy, structure, policies, procedures, incentives, and performance indicators. Eliminate or minimize anything that contradicts or undermines your values.
Celebrate and sustain your values: Recognize and appreciate your employees and leaders who live and breathe your values. Share stories and examples of how your values have made a positive difference for your organization and your stakeholders. Monitor and evaluate your progress and impact, and make adjustments as needed.
Values are not just words on a wall or a website. They are the essence of who you are and what you stand for as an organization. By aligning your actions and leaders with your values, you can create a culture of excellence, engagement, and ethics that will set you apart from the competition and ensure your long-term success.
At www.soulwiseleader.com we understand that changing an organisation’s paradigm which significantly includes first reviewing and rewriting values, must proceed major work on leadership and culture development. Whilst we endorse the use of tools such as those mentioned in this article, it is essential that senior leaders actively engage in the review of, and implementation of organization wide values fit for the contemporary world. We include understanding of this in our 12 days Soulwise Leadership Development course.