Each September the RBL Institute (full disclosure: as an RBL partner, I am a director of the Institute) hosts the chief HR officers of member companies in a two-day retreat hosted by RBL Group founder and University of Michigan Professor Dave Ulrich. This year, we were joined by 20 senior HR executives from well-known and respected global companies such as Intel, The Gap, Accenture and PNB Paribas. Whenever you bring insightful, worldly, HR executives together, the conversation is bound to be enlightening. And, one of the more interesting exchanges was values: how organizations ensure that employees at every level, in every function, and around the world know and live the values.
Here are a number of ideas from the discussion:
1. Articulate the values. It may seem simplistic, but the consistent advice of Institute members is for companies to be explicit about values. Some companies are well known for doing so, for example Johnson & Johnson's "credo" or Goldman Sach's "business principles." But, our HR executives make the essential point: don't leave it to chance. Make sure your company's values are well articulated.
2. Values are a contract. Too many companies see their values statement as a PR effort tied to the appearance of good governance practices. If so, say our members, it will fail. A statement of values is a contract with stakeholders. How do you want to be known by your employees, your customers and investors, and the communities in which you operate?
3. Values sometimes guide, and sometimes dictate. A good statement of values provides guidance to organization members when the right answer or behavior is ambiguous. But, a clear values statement is equally a hammer and a compass. By defining the boundaries of conduct, a good statement of values also dictates what is fundamentally acceptable and unacceptable.
4. The CEO must own values. Bear Stearns and Lehman Brothers are extreme examples of executives who flout the stated values. But, more typical is the subtle hypocrisy of company executives who just don't walk the talk (for example, calling for inclusion and diversity but accepting an all white male board of directors). A good executive is a visible model of values. And without executive modeling, forget about employee commitment.
5. No compromise. One of the areas of absolute unanimity by our members was the need for a company to stick to its values through thick and thin. No compromise is tough, but according to our HR executive colleagues, essential. This is where the rubber meets the road.
6. Find creative and practical ways to help people know how to apply the values. For example, P&G runs workshops that challenge employees to apply the values to tough situations, such as demonstrating "care for employees" at the same time as the organization is reducing the number of employees or divesting a division.
7. Communicate, communicate. In a recent post I described how the CEO of Zurich Financial used YouTube and a road show to keep employees informed. Don't assume an annual CEO letter, speech or town hall meeting will do the trick. Keep the values up front and center through a variety of communications media. As the Caterpillar in "Alice in Wonderland" said, "What I say three times is true."
8. Honor the values heroes. One of the consistent messages from the executives at the conference was the need to put a face on values. The military does that through medals and commendations. How has your organization celebrated your values heroes?
How does your organization make sure your employees know, believe in, and live the values? Let me know.
Jon Younger is a Partner of The RBL Group, a firm providing consulting and executive education in strategic HR and leadership. Jon leads the Strategic HR practice area and is also a Director of the RBL Institute. He is co-author, with Dave Ulrich and three other principals at The RBL Group, of "HR Competencies" (SHRM, 2007), "HR Transformation" (McGraw-Hill, July 2009) and many articles, and last year logged client work in 35 countries.