All Talk, No Action: Why Company Values Have Lost Their True Value
Building a strong workplace culture requires more than just empty words
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Leaders often think having a set of values is enough to create a positive organizational culture. However, the reality is that, in most organizations, values don't have much value. It's a paradoxical situation that goes against conventional wisdom.
On the surface, it seems logical for a company to strive to align its actions and behaviors with a set of core values. However, the disconnect between declared values and actual behaviors often backfires. All talk and no action undermines trust and employee morale. Sometimes, it may be better not to have any values at all.
In this article, I will explore why simply having a set of values is insufficient and outline the problems that arise when organizations' values don't match their actions. I’ll discuss the different types of company values and how to ensure yours are not empty words.
Your culture is a system – values are just one element
Although workplace culture is widely viewed as important, it is still poorly understood, especially regarding measurement and management. Most organizations find these tasks challenging. According to a study by Deloitte, only 28% of executives believe they understand their culture well, while only 19% believe they have the “right culture.”
Culture is a complex and multifaceted system expressed through various beliefs, emotions, and behaviors. Building a strong culture requires more than having a set of values. Specifically, it includes purpose, feedback, decision-making, norms and rules, and other elements captured in the Culture Design Canvas.
Culture is how people behave when no one is looking.
Your real company culture is the gap between what leaders say and what they do. The behavior that is tolerated, not your words, determines the real culture.
Understanding and managing culture requires careful attention to what is explicitly (and implicitly) rewarded and punished within the organization.
Core values are a set of beliefs and principles that define an organization's culture and guide its behavior. They provide a foundation for decision-making, help establish norms, and shape an organization's identity.
In his seminal book The Tipping Point, Malcolm Gladwell explored how seemingly-minor changes can significantly impact social behavior. When it comes to organizational culture, the same principle applies. The simple act of declaring a set of core values is important but not enough.
In fact, throughout my career as a workplace culture consultant, I have found that most companies struggle to live up to their stated values.
This leads to a culture that is all talk and no action.
The Problem with Company Values
Core values should not merely be a list of words on a website or a plaque in the office lobby. Instead, they should reflect the actions and behaviors of the organization.
Almost one-third of employees in the UK feel their organization’s vision or values have too much corporate jargon, and 49% can’t recite their organization’s values. In the US, over 30% of employees believe business leaders don’t behave in ways consistent with the company’s stated values.
Take Boeing as an example. Integrity, trust, and safety, among others, are some of the aerospace company’s core values. However, an analysis of recent safety incidents unearthed the real behavior. Boeing’s company culture is anything but safe. Employees neither trust each other nor respect its safety approach – engineers are even called “clowns.”
A lack of consistency between words and actions is also common when crafting company values.
Despite adopting the mantra “Don’t Be Evil” as part of its company code of conduct, it appears Google is guilty of being evil now and again. Three former employees sued the company for wrongfully terminating their contracts. They spoke out about Google’s pursuit of controversial projects with the US government, including customer surveillance.
Creating a list of values is easy, but connecting these values to actual behaviors is a different story.
Research indicates that stated values often don’t have a significant impact and can even have a negative effect. An MIT Sloan study found no correlation between a company’s expressed values and how employees felt they lived up to them.
For example, promoting diversity but not supporting it with action can do more harm than good. Statements such as “We don’t discriminate” create an impression that the organization has achieved equity and fairness when, in fact, it hasn’t.
On the other hand, behavioral cues provide concrete guidance on translating values into actions. Leaders must clarify why they matter. According to the same study by MIT, less than one-quarter of companies connect values with behaviors, and a significant majority fail to link beliefs with business success.
You can’t call your culture “transparent” if people fear speaking truth to power. You can’t say you have a “collaborative” workplace if you regularly promote selfish employees. You can’t pronounce your culture “innovative” if breakthrough ideas are often killed before they see the light of day.
It is worth noting that what employees think leaders punish and reward is what truly matters. Emmett Shear, CEO of Twitch, tweeted: “Your culture is determined by what people perceive to be the behaviors you reward and punish. Note: Not what you actually reward and punish and also not what you say you reward and punish.”
Some organizations mistakenly believe that having a set of core values will automatically create a positive culture. However, values alone are not enough. Leaders must bring those values to life by consistently modeling them through their behavior.
Basecamp made a strong statement in the spring of 2020 when it stood up against employee surveillance. Third-party developers were using its API to develop software that recorded and monitored remote workers’ activities.
Basecamp’s revised policy stated:
“We’re about remote work within an environment of trust, not spying on your employees. It’s recently come to our attention that some third-party integrations go beyond traditional time-tracking functionality to surveillance. We’re not okay with that, and we’re codifying that stance in this policy update.”
Basecamp chose to do the right thing over revenue, in line with its stated value of “Be fair and do the right thing.”
The Different Types of Values – And Why the Difference Matters
Research shows that employees are more likely to trust their leaders when they perceive a strong alignment between values and behaviors. Understanding the different types of values will make it easier for you to do so.
Patrick Lencioni, the author of The Advantage, identified four types of company values: Core, Aspirational, Permission-to-Play, and Accidental.
Core Values
Core values are the principles that guide your company’s behavior. They cannot be compromised. Not only are they deeply ingrained in the organization, but they also make your culture unique. Core values capture shared beliefs – what’s expected of people in your company. If purpose provides the why for your company, core values provide the how.
Airbnb CEO Chesky said it best: “Integrity, honesty – those aren’t core values. Those are values that everyone should have. But there have to be like three, five, six things that are unique to you.”
One of GitLab’s core values is (radical) transparency; it helps improve relationships, operations, and the business. As Jessica Reeder, former senior all-remote campaign manager at Gitlab, told me: “How we manage conflict is embedded in a nonjudgmental culture. Our values are idealistic, yet rooted in concrete outcomes. Disagreement is okay; not getting along is welcomed. But you must address conflict constructively.”
Everything at GitLab is public by default, including conflict. Employees are encouraged to be direct and transparent with each other. “We try to channel our inner Ben Horowitz by being both straightforward and kind.” Feedback is always about the work and not personal. That doesn’t mean it is an easy conversation, but addressing issues is better than letting them fester.
Aspirational Values
Aspirational values are those the company needs but currently lacks. Aspirational values can be deceiving. The fact that you add them to your list doesn’t mean that you actually live them. They require turning words into action.
Taken too far, aspirational values can be harmful, especially if there’s a lack of context or role modeling. For example, “be brutally honest” can promote disrespect or a lack of compassion for our colleagues.
The problem with aspirational values is that companies often adopt them merely for show, without being able to deliver on their promises. They embrace values to look good rather than do good.
So, why do organizations insist on including these bare minimums as values?
Usually, to get out of trouble.
Netflix added the “Inclusion” value to its culture map after experiencing backlash. Similarly, when Uber refreshed its values, it included “Do the right thing. Period” to neutralize an incredibly toxic culture.
The issue with aspirational values is that leaders can become infatuated with their own words. They may relish creating a self-serving purpose statement but struggle to distinguish their aspirations from reality.
Permission-to-Play Values
Permission-to-play values are the minimum expected behavior of any employee, regardless of their job. They don’t differ from one company to another. “Collaboration,” “integrity,” or “diversity,” to name a few, are not core values; they’re the bare minimum of acceptable behavior.
An analysis by MIT compared the values across organizations, finding a large number and wide variety. However, the most common values were all permission-to-play. Integrity was the most common, listed by 65% of all companies, followed by collaboration (53%), customer focus (48%), and respect (35%).
The notion of permission-to-play values emphasizes the importance of setting basic standards of behavior that every employee should follow. These values are essential for creating a positive culture and building employee trust.
However, it's important to note that permission-to-play values alone are not enough to create a strong organizational culture. While they may set the foundation for acceptable behavior, they do not capture the company's unique identity. Companies must go beyond permission-to-play values and develop unique core values.
Accidental Values
Accidental values happen organically and grow over time. Sometimes they are company values taken to an extreme (such as when “work hard” becomes “work to the point of exhaustion”). Other times, they reflect employees’ interests and aspirations. Sometimes they elevate the culture, but usually they don’t.
At Forma, a flexible employee benefits service app, caring for others and supporting each other is a priority for all. Forma employees are expected to ask for help and advice when needed. If they’re going through a hard time, they just let others know and take a break. “We’ve got you” is one of their four values (Disclaimer: I helped them revise and update their values).
This value was originally organic – the result of how people behave. By uncovering what inflated their culture, we identified this “accidental” value and recommended the client codify it as part of the revisited culture.
It’s Time to Refresh Your Company’s Values
Your values are not your culture, but they can play a vital role. Having the right values matters more than adopting aspirational ones. Here are some actionable steps to refresh your company's core values.
Connect personal values with company values
Connecting personal values with company values is an essential step in creating a strong organizational culture. When personal values align with the company's values, leaders are less prone to fall into the “all talk, no action” trap.
Employees who feel that their personal values align with the company's values are more likely to feel engaged and motivated at work.
At Fearless Culture, we facilitate workshops to encourage our clients’ employees to reflect on their personal values and how they relate to the company's values. Identifying areas where personal values overlap with the company's values creates a sense of purpose and meaning, increasing their commitment.
Shorten the number of values by eliminating unnecessary ones
One of the common mistakes that companies make when creating a list of values is having too many of them. Research has shown that people cannot simultaneously focus on more than three to four values. Too many values can make it difficult for employees to remember and apply them.
Revisit your list of values and eliminate any that are unnecessary or don't add value to the organization. Which values are irrelevant, unrealistic, or don’t truly matter?
Avoid “permission-to-play values,” eliminate aspirational ones, and focus on those who genuinely differentiate your culture from others. A shorter list of values will simplify your message and make your culture more tangible and unique.
Clarify your core values' real meaning
Values are often abstract concepts and employees may have different interpretations of them. Words mean many things to different people. Therefore, companies need to clarify what their values mean in practical terms. This can be done by providing concrete examples of how the values translate into actions and behaviors.
For example, if one of your values is “transparency,” what does it mean to your organization? For some companies, transparency is about sharing everything – mistakes included - in the open. For others, it could mean making vital information accessible or that leaders don’t hide critical information from employees.
Write core values in your company voice
When writing values, it is vital to use language consistent with the company's brand and tone of voice. For example, Slack uses emojis to represent each of its core values. Using emojis can help create a stronger connection with people, as they are pervasive in Slack.
One of Airbnb’s core values is “Be a cereal entrepreneur.” It encourages employees to reinvent travel as it should be, not to simply make incremental improvements. Note: the word “cereal” replaces “serial” as a reference to a sale of election-themed cereal boxes which the founders used to raise cash for their start-up.
Write core values in verb form
Values should be written in the present tense and as verbs. This creates actionable statements that employees can follow in their daily work.
For example, Patagonia's core values include: “Build the best product,” “Cause no unnecessary harm,” and “Use business to protect nature.” This sets clear expectations for employees to bring those values to life.
Involve people in the process
Employees should be involved in the process of revisiting and refreshing values. Successful organizations co-design their cultures with their employees, as I explain in my book Remote Not Distant. This involvement helps to ensure that the values are relevant to the company's culture and mission.
You don’t need to get buy-in for your values by involving employees in the process. However, employees will be more likely to embrace the values if they feel they have a say in creating them.
There are different approaches: democratic, inspirational, or collaborative.
Democratic is when people vote to select the company values – not a fan of this option because it lowers the bar. Inspirational is inviting people to provide what inflates or deflates the culture and using findings as inspiration to uncover “territories” for designing the new values.
Lastly, collaborative is when people contribute with ongoing feedback. For example, at GitLab, anyone can edit the company values. You’re encouraged to make suggestions even if you don’t work there. Give it a try: Contact GitLab’s CEO, Sid Sijbrandij, on Twitter with any suggestions.
Revisit your core values from time to time
Values should be designed for the long run, but that doesn’t mean they should never change. Values should be revisited and refreshed periodically to remain relevant and meaningful.
Software provider GoTo has revisited its core values through the remote work lens. For example, “Be Real” now also means it’s okay if your Internet connection freezes or your dog or child unexpectedly joins a Zoom meeting. Being real means you are not expected to always look professional – overly polished or perfect – but human.
In conclusion, revisiting and refreshing company values is essential for creating a strong organizational culture. By following these steps, your company can develop values that genuinely represent its culture and identity.
A strong company culture requires action, not empty words. Values are only valuable if they’re relevant, meaningful, and tied to organizational behavior. Revisiting and refreshing them is the best way to ensure that they remain so.
If you’re wondering how I can help your team, book a free call with me to discuss your specific challenge.
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