Values not only shape a company's identity – they influence how decisions are made, how people are managed, and how success is measured.
However, many companies remain at the symbolic level: values are formulated but are hardly noticeable in everyday life. A set of values only becomes truly effective when it is translated into the “hard” structures of a company. A modern management system does just that: it links values to concrete decisions, incentive systems, and leadership actions. In the following overview, we use three key dimensions to illustrate how organizations can systematically embed their culture—and why a genuine focus on values is a strategic success factor.
Consistent alignment of the management system with corporate values: Or: The litmus test for values.
Are values taken into account in promotions? Are they incorporated into target agreements and bonuses? Are managers selected and developed based on whether they exemplify the culture? This is the litmus test. These “hard” structural factors reveal how serious organizations really are about implementing their values. If there is a discussion of structures and processes in relation to corporate values, then that is a sign!
Dimension 1: Permanently embedding corporate values in management and HR processes is a further step in translating and embedding values in the company.
Performance management based on values: How values change performance appraisal
Traditional performance appraisals are being developed into value-based feedback. In addition to professional goals (what was achieved), consideration is given to how these results were achieved in line with the values. For example, Microsoft evaluates its employees not only according to business goals, but also according to its Leadership Principles (including respect and integrity). This kind of coupling has tangible advantages: According to Gallup, employees who feel that the company acts in accordance with their values are 3.7 times more engaged. Value-based reviews show that the company takes behaviors such as teamwork and innovation seriously, which increases motivation and loyalty. At the same time, it ensures fairness: values become clear expectations for everyone. (Data backs this up: value-oriented companies report higher morale and lower turnover.) In practice, this means, for example, that feedback meetings have explicit sections: lives company value X / demonstrates behavior Y. This makes culture measurable.
Leadership guidelines and personnel decisions: values as a compass for leaders
Leadership systems are particularly effective when they are exemplified and enforced from the top down. Many companies therefore formulate binding leadership principles. These principles are an integral part of all decisions: “Leaders raise the bar with every hire and promotion” – i.e., values such as excellence, customer focus, and ownership are criteria for promotion. New hires are specifically selected based on whether they fit into the value grid. IKEA has similar guidelines (“Togetherness, Care for people & planet,” etc.) that are reflected in management decisions. Such value-based leadership systems create clarity: every manager knows which behaviors are rewarded and which are not tolerated. The result is greater consistency—from daily decisions to strategy, the values are the North Star.
Dimension 2: Feedback and reward systems: Values as the basis for recognition
360° feedback with a focus on values: What colleagues appreciate about how I implement the company values through my attitude and behavior
A 360° feedback, for example, becomes even more meaningful when peers and employees provide explicit feedback on value-related topics (e.g., “Do we live our value of openness through transparent communication?”). Such mechanisms make values a topic of conversation and part of development discussions.
Value-based bonuses and awards: Incentives for value-compliant behavior
Internal awards or bonus systems based on values are also common—e.g., an annual Integrity Award for particularly ethical behavior, or team bonuses that reward not only sales but also customer satisfaction (value: customer focus). It is important that these are anchored at the top. Only if top management also acts in accordance with the values will the system have “value” in the eyes of the workforce.
Dimension 3: Leadership by example: credibility through value-based behavior from the top
Managers should act as role models – making decisions in line with the values, communicating them openly, and also accepting uncomfortable consequences (e.g., in the event of violations of the Code of Values). This is the only way to create a credible corporate culture in which the small daily decisions made by employees – whether consciously or unconsciously – are aligned with the common guidelines.
Example: Salesforce – values-based leadership through transparency and role modeling
Salesforce demonstrates how consistently managers can exemplify values in their everyday work:
Salesforce shows how managers can exemplify values in their everyday work: Using the V2MOM framework (Vision, Values, Methods, Obstacles, Measures), managers publicly formulate their goals and must explain how these are aligned with corporate values such as trust, equality, and customer success. This transparency creates credibility and shows employees that values are not abstract concepts, but provide guidance on a daily basis. Source:
- Salesforce Blog: How to Create Alignment Within Your Company
Values must be tangible – in the system and in everyday life
True value orientation goes far beyond mission statements or declarations of intent. Only the integration of values into structures such as performance management, leadership guidelines, and incentive systems creates commitment and credibility.
Those who make values measurable and elevate them to criteria for success and recognition actively shape corporate culture.
Once values have been formulated and an approach to implementing them has been adopted, are they set in stone? Of course not.
Social change, from new generations to new standards of fairness and sustainability, challenges companies to continually refine and adapt their values. But modern methods, from digital tools to nudging, help ensure that values don't just hang on the wall, but are felt in everyday life.
Conclusion
Corporate values are no longer a “soft” issue – they are a strategic success factor.
Those who consistently align their words and actions and authentically place values at the center of their business will gain what organizations need today: trust, commitment, and agility.
Findings:
The corporate values of Asana and 15 other companies on one website. A great collection for inspiration: https://asana.com/de/resources/company-values-examples
