Do values based Businesses win the race?

When we speak of the value of a business, people are often drawn to the balance sheet or income statement. But this bottom line does not always reflect the true health of a business. We also need to look at the Values within a business to fully understand the inner workings of the systems.

Every business has a number of value systems that when combined deliver a joint view to the customer and the rest of the world.

Perceived Values: These are the values derived by the marketing department that paint the brand with all the right colours – The well word-smithed copy and clever images that show only the good side of any business. All awards and achievements are highlighted and to anyone on the outside looking in will be impressed.

Owner’s Values: The value system of the owner, CEO and directors has a huge role to play in how the business operates. The system is only as good as the people who steer it. Far too often we get to hear instructions similar to this, “Do as I say, don’t do as I do”. This often used by crooked directors who are misusing money and people for their own gain, but will clamp down on any underling who does the same. Big corporate and Government are well known for this, but we get to see it at all levels of business.

Staff Values: the values that the staff operates by. This is partially as a result of training, communication and a big chunk of self realised values. Having a good team building events and open door policies help, but the staff will always create a secondary set of values that they live by, often which mimics the directors. They learn how to ‘crook’ the system and duck and dive around the perceived values and not get caught.

Running a business is not easy; we are pulled in many directions for short term gain and underhanded deals on a daily basis. But a wholesome business remains firm and focused and true to their vision, mission and values. It may seem slow and painful, but this is one case where slow and steady wins the race.

We encourage businesses to define their values, regularly communicate these with all staff and suppliers and even customers, and then there is no doubt where they stand and make it harder to be pulled off track.