Benefits Of A Values-based Organization


Benefits of a Values-based Organization

Omar Hosari | - 03/28/2017
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Executive Insight

Benefits of a Values-based Organization: Common purpose and common values are critical to ensuring progressive and innovative business models. All organizations experience change and require flexibility from their employees, but this is made more manageable when the individual’s and organization’s values are aligned: this is the definition of a values-based organization.

Often, people fear professional change and can be overwhelmed because they aren’t sure of how to adapt to new procedures. The beauty of modelling values-based leadership is that it empowers all staff members to cope better with uncertainty because by following the organization’s guiding principles much of this fear can be alleviated. For example, if certain organizational values are present and refined within employees, it provides a roadmap to achieving the common long-term vision of the organization. Market research shows that companies with a culture based on shared values consistently outperform other companies by significant margins. So, here are some other major benefits of a values-based organization:

It’s good for productivity

The values-based organizational culture raises team morale and fulfilment. Because employees feel more in tune with the organization, they become more enthusiastic about their work and prouder of their input into the business’ success. Therefore, they are more productive and creative in their thinking. The ultimate result is the most important goal of any organization: increased customer satisfaction.

It makes for great working relationships

Common purpose and shared values encourage open dialogue. And this, in turn, leads to better internal communication and understanding. Ultimately, this means more harmony and information-sharing between groups and departments, making for more effective working relations.

It empowers employees

Values-based leadership sets an example within organizations. As employees become more motivated in their work their confidence grows and they inevitably become more flexible in their attitudes and more responsive to handle strategic change and market challenges.  This determination also leads them to be more creative and innovative when finding solutions for challenges.

It grows customer satisfaction

Higher employee satisfaction invariably leads to greater customer satisfaction. It is the vital difference between dealing with a person who is simply going through the motions of their role, and dealing with someone who is on a personal mission to design solutions that tick every box and alleviate every concern. This can only have a positive effect on customer satisfaction.

It impresses partners 

A values-based culture also lends itself to better performance management and increased effectiveness in the management system- something that will be noticeable to external partners. The result is an increased level of trust for the organization and its capabilities, and greater industry standing and respect.

Value-based organizations thrive because they foster a common purpose among all employees. Sharing values provides guiding principles that everyone can use when performing their functions; vital for personal accountability, better decision-making, and a great team spirit.