Every company has its own culture, whether it defines and documents it or not. Let’s not forget that the company and its brand are the result of the people who make it up. Culture shapes principles that govern the way people in that organization behave and act in their day-to-day relationships, both inside and outside the organization.

Values are the foundation of culture, guide decision-making, and define what the company stands for. They influence the identity and image that the company emits through its brand and through people. Values are at the very heart of human decision-making. When we work in an organization whose culture aligns with our personal values, we feel comforted. We are able to put all our efforts into the work. Not only do we bring our energy and enthusiasm, but also our commitment to the common good and the success of the organization. This is something that really allows you to unleash the true essence of the company and drive business results.

The value cycle of securities impacts business outcomes:

  1. Values and Behaviors Drive Culture
  2. Culture Drives Employee Satisfaction
  3. Employee Compliance Drives Customer Satisfaction
  4. Customer Satisfaction Drives Shareholder Value

Values” refers to principles, ideals, or beliefs that are sufficiently ingrained in the organization and that people share or adhere to when making decisions. Let’s keep in mind that individuals express their values through their personal behaviors and organizations express their values through their cultural behaviors. So the trilogy of values, culture and behaviors is fundamental for any company.

Stocks should not be selected simply because they sound good or because they are specific to the sector in which we do business. Most corporate brand values are based on similar ideas, helping very little to build differential value propositions. Let’s not forget that the (intangible) values together with the (tangible) benefits are the pillars that make up the positioning and a differential promise.

In the midst of changing environments, it is wise to ensure that values are not idealistic rather than realistic, which would mean that they would not be effective in directing employee behavior. Even more so in periods of change or crisis. To lead a values-based culture, you have to think that making a list of concepts will only be the first step. Then, you will have to invest time in considering the situations in which the values may be far from reality and proceed to make each of the necessary adjustments. It is especially important to review them after mergers or acquisitions, which question the status quo and require double effort to optimize integration.

In any case, there is a strong link between financial performance and the alignment of an organization’s cultural values with employees’ personal values. In other words, who you are and what you stand for is just as important, if not more so, than the quality of the products and services you offer.

In family-owned companies or with leaders with strong personalities, the values that make up the culture are a reflection of themselves or even of the leaders of the past. However, there are many organizations that operate with predetermined cultures such as “it was always this way”. Significantly, the culture that leaders create depends to a large extent on their own behavior and their relationships with their employees and environment. Culture is generated from deep within the organization to the outside.

When there is a mismatch between the values that generate the culture of the organization and the personal values of employees, the result is poor performance, which can lead to low levels of staff engagement and poor quality of products and services. All of these factors will have a significant impact on the organization’s financial performance or ability to deliver high-quality services.

Conversely, when the organization’s values are aligned with the values and aspirations of employees, the result is high performance that generates a high level of staff engagement and the pursuit of excellence.

Brand values and company values are two sides of the same coin. The strongest external brands are always the ones with the strongest internal cultures. So, ultimately, whether we’re talking about high performance, brand differentiation, or talent retention, an organization’s success is directly related to the degree of alignment that exists between the values of leaders and the aspirational values of employees.

To create a great company culture you need to build on purpose and values, where employees are aligned not only on what they have to do, but also on why and how they have to do it. When you integrate your values into all work processes, such as how you hire, reward, inspire, and promote employees, you naturally create a work environment in which your team can thrive. Do you already have your brand culture roadmap?

 

Carlos Puig Falcó
CEO of Branward