Resources

Values versus Guiding Principles

By Michael Wilkinson, CMF
Managing Director, Leadership Strategies, Inc.

 

Webster defines a value as “a principle, standard, or quality considered worthwhile or desirable.”  In organizations, values can play an important role in defining an organization’s character and its culture.  Values also can provide the basic foundation on which an organization is built. 

When organizations define their values, it is not unusual to hear statements similar to the following:

  • We focus on the customer.
  • Respect for the individual.
  • Integrity is non-negotiable.
  • Our people are our most critical resource.

While values such as these are important, we at Leadership Strategies believe organizations can gain greater benefit when they transform their values into guiding principles.  Guiding principles both define the value and provide a sample of the types of actions the organization believes support that value.

We recommend using the following format for guiding principles: “We believe…(value).  Therefore we will … (behaviors).”  A sample follows.

Sample Guiding Principle

We believe our people are our most critical resource.  Therefore, we will:

  • Recruit people who have the necessary skills and whose work history reflect a belief in our values and guiding principles;
  • Maintain a strong orientation and mentoring program to ensure that every new recruit is indoctrinated into our culture;
  • Maintain incentive programs that reward high team and individual performance; and
  • Invest in training and feedback strategies that ensure the ongoing development of our people.

The word “therefore” connects the belief with action.  It is often easy to say what we believe.  The format “we believe…Therefore we will” forces the organization to specifically state the actions that reflect the belief.

In summary, guiding principles operationalize an organization’s values and help ensure that everyone has a common understanding of the behaviors that reflect those values.