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Clarifying Core Values For Effective Leadership

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How Core Values Shape Authentic Leadership and Drive Lasting Success

Introduction

Most senior executives have an intuitive sense of their core values—but have you actually taken the time to define, commit to, and apply them in your personal and professional life? Taking this step does more than clarify what you’re willing to fight for or take a stand for in the workplace; it fosters inner peace and a deep pride in your actions. Understanding and embodying core values is fundamental for those in leadership, shaping decisions, relationships, and even the culture you help cultivate.

Why Core Values Matter for Senior Executives

Leadership isn’t solely about technical skills, particularly at senior levels, where decision-making impacts the entire organization. Executives are hired not just for what they know but for who they are, and core values play a pivotal role in shaping your style and influence as a leader.

Consider a senior leader with a reputation for being autocratic, even a bully. He believed effective leadership meant dictating rather than fostering open dialogue and collaboration—a style that isolated him from his team and alienated his peers. When his manager asked me to coach him, she was seriously considering firing him. As part of our work, we explored his core values, one of which was “meaningful relationships.” He soon realized his autocratic style was the opposite of cultivating meaningful connections. Six months after committing to live by his values—including fostering genuine relationships—his reputation transformed. Not only was he retained, but he was also promoted to a larger role.

By clarifying your values, you can strengthen relationships, improve decision-making, and cultivate respect from your team and peers. Values serve as a compass, helping you make better personal and professional decisions by providing guidelines for difficult choices. Your values act as filters determining where to direct attention, what is okay to ignore, and what merits conscious consideration.

Evaluating Personal and Organizational Values

For senior executives, it’s less about aligning your core values with the organization’s and more about evaluating where these values overlap. The goal is to assess whether there’s enough shared ground for you to thrive and perform at your best. This overlap supports authentic leadership by enabling you to work in a way that aligns with your core principles. When personal and organizational values share common ground, you can act authentically without compromising your beliefs. Conversely, a significant disconnect can lead to internal conflict, disengagement, and career dissatisfaction.

Workplace values alignment can influence career choices more than you might think. During my time as CFO, one of our top product development leaders decided to leave the organization. In our exit interview, I asked about her reasons for leaving. She said something that surprised me: “John, the main reason I’m leaving is because you and [the CEO] are too wholesome. You don’t go to Burning Man or things like that.” Learning that our “wholesomeness” didn’t resonate with her was eye-opening, underscoring my observation that values are deeply personal. Ultimately, people will self-select out of organizations where they don’t feel “at home”—where their personal values and the organization’s values don’t overlap enough.

Establishing Operating Principles for Core Values

Operating principles are statements that translate core values into observable actions, providing clear guidance on how to live these values daily. A simple technique for developing them is to imagine a journalist observing your day-to-day actions: what behaviors would they note that clearly show you’re living a particular value? Defining these principles in present-tense language helps reshape your brain circuitry and reinforce the behaviors needed to live by these values consistently. For example, instead of saying, “I will be transparent,” an operating principle for transparency might be, “I communicate clearly and directly, balancing honesty with respect.” You might also choose to adopt a cherished quote by an admired figure to reinforce your commitment to each operating principle, such as this one by Gandhi: “Truth never damages a cause that is just.”

Operating principles make values actionable. They serve as a daily reminder, not just for you, but also as a visible example for those around you.

How to Honor Values Without Imposing Them

Leaders walk a fine line in living out their values without imposing them on others. The key is to focus on values with broad relevance to the work environment. More personal values, such as specific religious practices, can be honored privately without expecting acknowledgment from others. By embodying values that overlap with those of the organization, leaders foster an inclusive environment where diverse beliefs coexist harmoniously

Action Steps: Defining and Implementing Core Values in Leadership

  1. Reflect and Define: Begin by answering the following questions as thoughtfully as possible: What is enduringly important to me? What are my highest priorities in life? This reflection will likely produce a list of 20-30 values. Next, organize these values into logical groups to create 5-7 core value themes (e.g., family, discipline, creativity, service), each representing a shared essence. Each theme should contain 2-5 related values, resulting in a focused set of your core values.
  2. Establish Operating Principles: For each core value, create a set of “operating principles” that describe what it looks like to live that value. Imagine a journalist observing you throughout the day—what specific behaviors would they note as evidence of your values? This makes values actionable and helps reinforce the mindset and behaviors needed to live by these values consistently.
  3. Assess Organizational Overlap: Evaluate the overlap between your personal values and the organization’s culture. This isn’t about full alignment but ensuring enough shared ground for you to thrive. If there are significant gaps, consider how you might bridge them or whether adjustments are necessary.
  4. Communicate and Model: Share your values and operating principles with your team, emphasizing how they guide your decisions and actions. Consistently model these values in big decisions and everyday interactions to set an example for others.
  5. Seek Feedback and Adjust: Ask trusted colleagues and mentors for feedback on how well you’re living your values. Periodically reassess and refine your operating principles based on experiences, growth, and insights.

Conclusion: Leadership as a Commitment to Core Values

The advice for senior leaders just starting this journey is simple: take the time. Clarifying and committing to your core values isn’t an overnight task—it’s a journey that requires introspection, courage, and consistency. Remember, leadership is as much about who you are as it is about what you know or do. When your values guide your actions, you inspire those around you and find a deeper sense of peace and pride in your work. Starting this journey may take time, but it’s the foundation of leadership that inspires and endures. Embrace this process and make it a priority. After all, values aren’t just words; they’re the foundation of impactful, enduring leadership.

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