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"Simply stated, Values-Based Leadership is choosing to lead your life based on the core values you hold dear. "



    

Leadership Development Network

VALUES-BASED LEADERSHIP BOOKLET


Section I - Introduction to Values-Based Leadership

What is effective leadership?

Before we begin to discuss values and Values-Based Leadership, it's necessary to first define effective leadership.  Effective leadership is, "Inspiring Others To Do Their Best."  All our words and actions should be uplifting, inspiring, motivating behavior.  Behavior that is discouraging, de-motivating, uninspiring to the people we lead would be ineffective leadership.  Effective leaders review their behavior constantly to ensure they are behaving as effectively as their abilities allow.

You might believe that getting results is the only important thing.  However, how we get results is equally, if not more important.  Ineffective leadership behavior may produce results in the short-term, but most of us are here for the long-term.  Therefore, we must also focus on how we get results.  Values-Based Leadership is how we achieve long-term, sustainable results.  Values-Based Leadership ensures effective leadership; leadership that inspires others to do their best.

What is Values-Based Leadership?

Simply stated, Values-Based Leadership is choosing to lead your life based on the core values you hold dear.  We advocate three core values:  Integrity FirstExcellence in All We Do,  and Treat People With Dignity and Respect.  These core values serve as the code of conduct that guides our lives.

When you buy into Values-Based Leadership, you accept there are true and accurate core values that are foundational to your role as both a leader and a human being.  These core values exceed mere representations of good and bad, differing points of view, and subjective calls on wrong and right.  They are absolutes, and they are key to effective leadership!

Values-Based Leadership is based on what we believe to be right.  In short, it is an overarching way of looking at the world and choosing a principled way of behaving.

What are the characteristics of Values-Based Leadership?

The point in being a Values-Based leader is to create a way of living and behaving that adds great value to your life, work, family, and social experiences.

Values-Based leaders reflect the following:

  • A strong desire to do right, to do their best, and to treat others as they would like to be treated.
  • An acceptance and ownership of their values.  In other words, the values are not imposed, but rather, are selected.  Values-Based leaders have critically examined these values and made a conscious decision to live by them.
  • A desire for positive outcomes.  The values guide leaders in a way of living that feels good (and right) after the fact.
  • The understanding that the values are realistic and are based on consequences.  Therefore, Values-Based leaders expect good consequences if they embrace and live these values; they expect bad consequences if they reject them and don't follow them.
  • An acknowledgement that these values enhance and don't restrict their lives.  They help leaders be their best.
Many today have moved away from a life of traditional values and towards a life of self-selected, non-traditional values.  These self-selected values tend to be picked based on an individual's self-interest.  For example, two commonly held desires-not values-in today's world are personal peace and affluence.

Values-Based leaders set themselves apart in today's world by realizing there are overarching core values that must guide our lives.  They embrace and live those core values, and serve as beacons for others to follow.

The purpose in talking about Values-Based Leadership

When someone in a position of authority or trust behaves in a way that inspires our confidence and demonstrates integrity and honor, that gets our attention.  If the person makes the tough but correct ethical call, we're impressed.

Conversely, when someone in a position of authority and trust blows the call we're deflated, de-motivated, or maybe even depressed.  Many of us have come to expect to be disappointed by the values we see in co-workers, supervisors, our employer, politicians, or even friends and family.  Commonly, we're also disappointed with our own behavior.

Demonstrating integrity, excellence, and a commitment to others are examples of Values-Based behaviors, and are a result of being a Values-Based leader.  A Values-Based leader recognizes the need for self-examination, self-awareness, discipline, and a commitment to live consistently with a virtuous and largely selfless moral code.

Why Values-Based Leadership will be important to you

Values-Based Leadership is not only a noble way of behaving, but it also reflects what the world truly needs and wants.  For example, in a polling of what senior managers want in a leader and in a follower, honesty is consistently the most desired trait.  The first core value of LDN, "Integrity first," directly correlates to honesty (See Section III).

Transformational leaders, those individuals who get things done and who make our lives better, appeal to the values of their followers.  These values serve as the basis of forming meaningful ideas and goals.  Without these values, meaningful accomplishments will only occur randomly.

The motto "Be, Know, Do" serves as a relevant starting point for examining Values-Based Leadership.  "Be" refers to foundational traits of integrity, excellence, and treating others with human dignity.  With this foundation of "being", you are allowed to focus on "knowing" what to do in any circumstance and on "doing" the right thing.

Section II - Exploring Values-Based Leadership

Our understanding of human motivation is ever maturing, but fundamentally, most people will choose to behave in a way that seems most likely to meet their perceived needs.

As such, it shouldn't be news that experts estimate 70 percent of human behavior is Needs-Based and about 30 percent is Values-Based.  You and everyone you meet is trying to get their needs met.

So what about your behavior?  Well, your behavior is a series of choices you make to try to meet your needs in the best way possible.  And what is best?  Sometimes, "best" is the most desirable and least painful way possible, and really depends on the individual.  An individual's intelligence, experiences, intuition, and current physical and emotional state, impact what is perceived as "best" at any given time.  Values-Based Leaders are often a minority because they commonly place the needs of others above their own needs.

In today's world where so many live a Needs-Based life it is important to understand what motivates this conventional view:

  • Physical needs - even the poorest in America have almost all their basic physical needs met.  However, these are still the most fundamental needs because when they are not met little else matters.  For example, food and shelter are physical needs.
  • Emotional needs - to love and be loved, and to have companionship.  To be respected and to respect others.  To have intimacy as well as sympathy, empathy, and compassion.
  • Intellectual needs - a quest for stimulation and challenges, and to understand the things around you.
  • Social needs - having interaction with others...or time alone.  Having useful employment.  Identifying with and making positive contributions to others and being part of a group.
  • Spiritual, moral, and ethical needs - to have meaning in your life; an understanding of how you fit into the universe.
While living a Values-Based life won't eliminate the natural instinct to satisfy these needs, it will add a needed context and framework for our own conduct.

Section III - LDN's Core Values

At this point, you can see that Values-Based Leadership is only as strong as the core values the leader holds dear.  Core values are much more than minimum standards.  They remind leaders of what it takes to get the job done.  Living up to these standards is not always the easiest thing to do, but the core values should help inspire leaders to do their very best at all times. 

Core values are traits all leaders should strive to exemplify.  Leaders must learn and understand them both individually and collectively, as well as live by them and promote them throughout their organization.

Below are the three LDN core values, and some of the positive attributes that result from a life based on these values:

 
Integrity First

Integrity is the first value because it is fundamentally inherent in so many other character traits we hold dear.  Integrity is the bedrock of any leader's character because it describes one's ability to adhere to the highest set of standards and values.  Essentially it is the "moral compass" that allows us to do what is right even when no one is looking.  Once you lose your integrity it's hard to earn back, but as long as you maintain it, nobody can take it from you.  Everything we do starts with integrity.

Trust.  We earn the trust of our co-workers, our customers, our leaders, and our followers through a pattern of unquestioned integrity.  When we lose our integrity, the trust we built is lost.

Courage.  A leader of integrity possesses moral courage and does what is right even when the personal cost is high.  Doing the right thing is sometimes harder, but is always worth the effort.

Honesty.  Honesty must be our hallmark.  Our word must be our bond.  At every level, strict personal honesty must be a characteristic of every employee and leader.  Honest people don't pencil-whip reports, don't cover up safety violations, and don't falsify documents.  The bottom line is leaders of an honest organization do not lie, even in the face of negative consequences.

Responsibility.  Leaders of integrity acknowledge their responsibilities as much during failure as they do during success.  True character is displayed when times get tough as well as during times of glory.

Accountability.  No leader of integrity tries to shift blame to others or take credit for the work of others.  Integrity equates to accepting the consequences of our actions, no matter how extreme they may be.

Justice.  A leader of integrity practices justice.  Those who do similar things must get similar rewards or similar corrective actions.

Feedback.  Integrity encourages the free flow of information within the organization.  Feedback from all directions is possible and encouraged in an environment where integrity has built an atmosphere of trust.

Respect.  To have integrity is to respect everyone as human beings, to respect the rules that govern our activities, and to respect the systems that make up our organization.  Respect also includes self-respect.  A leader of integrity does not behave in ways that would bring discredit upon them or the organization to which they belong.

Humility.  A leader of integrity grasps the importance of their responsibilities, but also realizes they are only one part of a larger system.  Valuing the importance of the rest of the team happens with integrity.

Group Integrity.  Leaders possessing strong group integrity conduct themselves in a forthright and candid manner.  They use their abilities in a group environment to influence and build support and commitment from others by giving and receiving information effectively and efficiently.

 
Excellence In All We Do

Excellence in all we do guides Values-Based leaders toward a path of sustained superior performance.  Such performance includes the quest for continuous improvement and innovation that will propel our organization toward future successes.  Excellence must permeate our culture and every aspect of our endeavors.

Product and Service Excellence.  Values-Based leaders focus on providing products that fully respond to their customer wants along with anticipating customer needs.

Operations and Resources Excellence.  Excellence in all we do also demands that leaders aggressively implement policies and procedures to ensure the best possible management of their organization's crucial resources.  Values-Based leaders must concentrate not only on how they handle their business internal to their organization, but also how they treat the world around them as they conduct their operations.  It involves a commitment to maximizing the total team effort, and a quest for continuous improvement.

Personal Excellence.  Values-Based leaders seek out avenues for personal growth.  Opportunities for self-improvement include actively participating in training programs, continually refreshing their educational backgrounds, and seeking feedback on their performance.  Values-Based leaders also encourage the personal growth of their employees.

Human Resources Excellence.  Human resources excellence means that leaders recruit, train, promote, and retain those who will do the best job for their organization.  They must attract and develop employees that are dedicated to making their organization the best possible.

Safety Excellence.  Safety is a two-way street.  Not only do Values-Based leaders demand that their employees work in a safe manner, but they also ensure that they provide them with a safe working environment.

Sense of Urgency and Initiative.  Values-Based leaders display a sense of professional enthusiasm to work that goes beyond money or status, and a propensity to pursue goals with energy and persistence.  Values-Based leaders initiate actions and make decisions in a timely manner, avoiding the excessive delays associated with over analyzing a situation.

 
Treat People with Dignity and Respect

Commonly known as "The Golden Rule", this last core value summarizes how Values-Based leaders choose to treat every person with whom they come into contact.  It's such a basic concept, and yet it's one that is easily forgotten in today's competitive world.  When leaders fail to follow this simple rule, the possibility for effective teamwork is greatly hampered because we damage the personal relationships that teamwork depends upon.  Here are examples of where this core value is a necessity:

Respect for Others.  Values-Based leaders act in appreciation of the fundamental worth of all people as human beings.

Control of Emotions.  Values-Based leaders expect all members of their organization to refrain from displaying inappropriate emotions in such a way that would bring discredit upon themselves and/or their organization.  Such outbursts erode the personal relationships leaders depend upon, and never help to resolve problems.

Acceptance of Diversity.  In today's business environment, diversity in the workplace is a given.  This diversity extends beyond race, ethnic background, religion, etc., but also includes diversity in ideas, perspectives, and opinions.  Values-Based leaders not only accept diversity as a given, but also build off its strengths.

Self-Control.  Simply accepting diversity is not enough.  Values-Based leaders also ensure they refrain from improper behaviors that cause hurt, anger, and frustration in others.  Inappropriate jokes, sexual advances, and racial or religious intolerance are simply unacceptable and undermine strong workplaces.

Feedback.  Values-Based leaders ensure that all of their employees are provided with the proper feedback they deserve and need to achieve personal excellence.  Rarely do people improve in the absence of feedback.  All employees deserve honest feedback and most will be deeply appreciative of it.

Section IV - Why These Values?

Since there may be debate on why these values were chosen, or why some other values were excluded, let's take a few minutes to explain the selection of these values.  There are five primary reasons supporting these core values.

The first and most obvious reason for these values is that they allow organizations to realize their organizational values.  Organizational values are an organization's shared qualitative beliefs chosen to guide behavior, and makes up part of its' strategic characterization.  While the organizational values guide behavior, an organization's core values guide each employee's individual behaviors.  In essence, a organization's core values are the fundamental building blocks for it's organizational values.  In turn, organizational values allow it to achieve its mission.

Let's see how the following six examples of organizational values build upon the core values:
  1. Controlling costs will be critical in almost all activities.
  2. Price differentiation is possible because we add significant value for the customer.
  3. People make the difference: developing and empowering them leads to superior performance.
  4. Facts matter more than opinions; information is not to be used for personal power, but as a resource for all.
  5. A leader's word is their bond: those who tell the truth and take responsibility for their actions will be fairly evaluated; we will reward success and learn from our mistakes.
  6. Compensation must be tied to performance measures.
Although the three core values permeate each of the above organizational values, let's highlight a few of the more obvious examples.  First, integrity is easily seen in the description of the leader's word being their bond (example #5).  Honesty and trust are two of the fundamental traits that come with integrity, and allow a leader to gain a reputation as a person of their word.  Also, fair compensation as described in example #6 is tied directly to the concept of justice.  Leaders having integrity practice justice by ensuring similar things are rewarded (or, if appropriate, punished) similarly.

Excellence in all we do is also demonstrated in these examples of organizational values.  Low cost can be obtained through excellence in numerous aspects of an organization.  Operations, safety, and resources excellence all directly relate to lowering of costs.  Also, through human resources excellence an organization can ensure the proper employees are in the proper jobs, increasing organizational effectiveness and efficiency, which also lowers costs.

Treating people with dignity and respect is also crucial to the success of an organization's organizational values.  For example, by recognizing the importance of people and treating them as they should be treated, an organization can realize the superior performance described in the third example of organizational values.  Also, an organization demonstrates dignity and respect for people when it maintains open communications and encourages the flow of information as described in the fourth value above.

The second reason for the selection of these values is that they set the price of admission into the organization.  Leaders cannot afford to allow individuals without these values to gain entry into or remain within their organization and erode the strength that these values provide.  Core values make the organization what it is; without them, it cannot have long-term success.  These values guide the organization's thoughts and behaviors in the most difficult situations.

The third reason for recognizing these core values is that they point out the common ground within an organization.  With the incredible diversity of today's work force and necessity for an efficient and effective work environment, core values are the common bond for all employees.  An organization's core values serve as the compass that guides the behavior of every member, and the leadership of the organization must lead by example.

The fourth reason for these choices is that they help leaders get a fix on the ethical climate of their organization.  How successful are organizations in trying to live by their core values?  Unfortunately the answer to this question is not always what the organization wants.  We are all familiar with stories where these values were not followed, and the downfall those organizations experienced as a logical consequence.  What caused these events to take place?  Did evil people acting on impulse cause them?  Probably not.  More than likely, the leaders involved knew the difference between right and wrong, however they still chose wrong, probably because they thought they could get away with it.  What's also likely is that these events grew out of a climate of ethical erosion.  As time goes by, unethical actions become easier and easier until one morning those leaders find the lines between right and wrong too blurred to discern.  Misleading others became second nature.  Giving less than their best effort seemed reasonable.  Behaving offensively became OK.  In such a climate of ethical erosion, the leaders did not realize how far they had strayed from their core values.

The fifth and final reason for recognizing these core values is that they serve as beacons to guide leaders back to the path of professional conduct.  The core values allow leaders to transform a climate of erosion into a climate of ethical commitment.  Straying from the core values is common, but remaining astray is irresponsible.  These values are a leader's lighthouse providing proper direction to the organization and its members.  Without them, a leader risks being lost in the sea of relativism, or tossed violently against the rocks of misconduct.

Section V - The Way Ahead

Integrity First, Excellence in All We Do, and Treat People With Dignity and Respect are the core values advocated by LDN, and form the backbone of Values-Based Leadership.  When faced with tough leadership decisions, these core values are the tools that help leaders be most effective.  They provide leaders with direction and guidance and help simplify difficult situations.  When faced with leadership challenges, simply ask yourself, "By adhering to the core values, what would my behavior be"?  The immediate consequences might not be attractive, but the long-term rewards of maintaining your integrity, always doing your best, and treating others with dignity and respect will far exceed your expectations.

Everything leaders do must start with these core values.  They are the fundamental building blocks for every organization's values, mission, and vision.  If you're not living a values-based life, the time to start is right now.  Your success and reputation as a leader, and as a person, depends on it.




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