Many successful companies that demonstrate healthy growth, sustainability and profitability are aware of the importance of shared values and their direct correlation to improved communication, building stronger relationships, higher performance, and better results. They are often guided by a mindset based on strong values. It drives behavioral norms and leadership competencies, how decisions are made, and how people interact inside and outside the organization.
This so-called value-based leadership provides all employees with a common set of values that fosters cohesion and a willingness to work together. Knowing that a leader or manager(s) share similar beliefs usually promotes employee engagement, performance, and even retention. This, in turn, has a direct positive impact on growth and profitability.
This radically changes the focus of leadership philosophy. Because the focus is no longer on self-centered leaders, but on people who are part of the team and the company. Decisive questions that come into focus are, for example:
- What values does the company stand for or want to stand for in the future?
- Do I identify with these values, do I convey them, and do I exemplify them?
- Where are my strengths and competencies, where are those of the employees?
- What does the team need to give its best?
This approach can also be found in Positive Psychology. The better a person’s emotional state – the more a person can develop – the more fulfilling his relationships are, the better he or she can recognize his or her own strengths and live his or her own meaning more easily. It is not a matter of talking things up and seeing everything in a positive light. A fulfilled life also includes negative emotions and dealing with crises to make changes. However, the focus is not on sweeping up the pieces, but on what constitutes a happy and fulfilled life. It is not for nothing that the saying goes: broken pieces bring happiness.
Basic human needs (values) include physical well-being, security (both materially and professionally), belonging, esteem and self-fulfillment. Companies and managers can convey and fulfill these to their employees through appropriate compensation, integrity, trust, clarity, transparency, recognition, recognition and development of strengths, space for development and promotion of self-efficacy. However, different people and diverse teams cannot be lumped together. Depending on their focus and goals, they need corresponding value frameworks and mindsets.
There is no patent remedy for the introduction of value-based leadership in companies. It is about a mindset that you can only impose on others to a limited extent. Values can only be effective if everyone identifies with them in the long term. Change processes are often lengthy. You will need persuasion, patience, and continuity. And you need to credibly always exemplify the shared values so that your employees recognize that you really mean business. Admittedly: That’s a huge challenge.
Nevertheless, if companies succeed in finding and practicing common values, they benefit in several ways. You can count on greater loyalty, more commitment and personal responsibility on the part of your employees. A positive working environment also leads to less absenteeism, better cooperation, and more sustainable decisions. On this healthy basis, companies can achieve growth, sustainability, and profitability together with their employees and thus ensure the success of the company.
I would be happy to accompany you on this path.