Organizational Values Versus “Rules”

Once upon a time in the hierarchical world of business, decisions were made top-down with supervisors dictating procedures and behavioral standards.

In today’s flatter and more nimble business environment, employees have more autonomy and are empowered (and expected) to make more far-reaching decisions. Accordingly, impactful Leadership Training Programs ensure that clear and agreed-upon corporate values provide the guidelines for those decisions. Done right, lengthy lists of rules and procedures are replaced by clearly stated organizational values.

As Deal and Kennedy wrote in their book Corporate Cultures, “If employees know what their company stands for, if they know what standards they are to uphold, then they are much more likely to make decisions that will support those standards.”

Sears’ CEO Arthur Martinez followed this advice when he led the company toward a deep change in values. Tomes of corporate rules and procedures were replaced by a simple statement of “Freedoms and Obligations” to guide employees. Every individual was charged to do what he or she felt was right. The shift from rules to values brought Sears a new spirit and increased profitability.

Are your values empowering employees to make the important choices toward success?