Over the last few posts, I introduced my Ebook 12 Steps to Business Transformation and I defined Vision and Mission, the first 2 steps of the 12 transformational steps. This week we are going to talk about Values.
Defining the Values for your business is step 3 in my new Ebook “12 Steps to Business Transformation.”
Values describe the behaviors that will get you from where you are now to achieving your Mission and ultimately attaining the Vision.
Where Vision defines WHY your organization exists and Mission defines WHAT the organization does, Values are the driving behaviors that govern HOW the organization drives toward successful outcomes.
Values are the foundation of any organization.
12 Steps to Business Transformation
12 Steps to Business Transformation is founded on a simple business model and describes the 12 steps required to implement and execute on the model. The whole model is summarized in the Thinking Business Blueprint shown below. And, as mentioned above, the third step in the Blueprint is to define your Values.
I have written about what Values are, who is responsible for them, how you define them, how you communicate them, how you model them and their importance in the following articles:
- Clarity on Organizational Values
- What Does Your Organization Value
- Alignment on Organizational Values
Go ahead and spend some time and review these articles so that you clearly understand all aspects of organizational Values.
Business Results Prove Foundational Values Effectiveness
Businesses that have well defined, communicated and modeled Values have many striking advantages over those that don’t! If the Values of the organization are loosely defined, broken or non-existent, business results will be inconsistent, unreliable, and unstable and will perform worse than their competitors
For those that may challenge this, a study done by Novarete shows that businesses that have well defined and communicated values have many striking benefits, four of which are summarized below;
- Companies that established and lived by their Values realized the following financial benefits in the defined study period versus those that did not:
- Revenue increased 682% vs. 166%
- Stock price increased 901% vs. 74%
- Net income increased 756% vs. 1%
- Companies that have established core Values and live by them have experienced the following employee feedback versus those that did not :
- Am proud to work here: 80% vs. 62%
- Would recommend as a good place to work: 73% vs. 50%
- Am more satisfied here than anywhere else: 69% vs. 49%
- Employee volunteer turnover inside Values based companies is in the single digits compared with those companies in the study who were not Values based and experienced on average 16% voluntary turnover.
- “In comparing the performance of eight companies with superior results against the performance of companies similar in size and industry sector, the most visible differentiating characteristics of the top performers were their values. Values were their top priority, even before stock price.” O’Reilly C., & Pfeffer J. (2000). Hidden power. Boston: Harvard Business School Press.
From this, it seems clear that having well defined and communicated Values that are always modeled and form the very fabric of your organization can lead to significant business results. Get started today and define your organizational Values, model them in every situation and communicate them clearly to your organization.
Download the 12 Steps to Business Transformation Ebook for free. Spend some time this week reading it and then complete step three by defining the Values for your business and begin communicating this throughout your organization.
“A visionary company almost religiously preserves its core ideology, changing it seldom, if ever. Core values in a visionary company form a rock-solid foundation and do not drift with the trends and fashions of the day.” Jim Collins and Jerry Porras
Leave a comment below on what your organization has chosen for it’s Values.
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