Principles operationalize corporate values so they matter

Abstract

Purpose

The authors show how organizations can best ensure that employees act in accordance with the corporation’s values. The key action is to develop a set of principles that amplify and fully define the values so leaders can communicate them more effectively. Principles that supply operational guidance help employees internalize the corporation’s values.

Design/methodology/approach

The article supports its conceptual approach with a case.

Findings

The case shows how principles helped one organization explicate the it’s values and turn them into a set of positively worded, unambiguous statements that guide employees in their daily work. When employees routinely apply the principles in their work, senior management can confidently delegate decision-making authority to the lowest appropriate level in the organization, having confidence that the outcomes of employee actions will be consistent with the organization’s vision, mission and strategic goals.

Practical implications

By describing the organization’s values in operational terms, the principles, taken together, provide each employee with a clear framework to use when making decisions.

Originality/value

The article shows senior leaders and boards that a key benefit of devolving power and using principles to guide employees’ actions is that it not only improves corporate performance in the short term, it also makes the firm more attractive to talented candidates for employment in the longer term.

Citation

T. Sheehan, N. and E. Isaac, G. (2014), "Principles operationalize corporate values so they matter", Strategy & Leadership, Vol. 42 No. 3, pp. 23-30. https://doi.org/10.1108/SL-03-2014-0021