Leaders shape their business culture through values-based decisions. Business culture is the beliefs, thoughts, values, emotions and the resulting behaviors of the people in that business. Leaders’ decisions and choices produce consequences, and those consequences are the results the business delivers. Let’s look at the values-based decisions and trade-offs that shaped the successes and failures of well-known businesses:

1. Patagonia, an outdoor clothing business, embraces environmental activism and sustainability as its core values. These are fully integrated into operations, supply chain and customer experience. Patagonia has a loyal customer base and remains profitable. By contrast, Enron the energy giant, declared “integrity, communication, respect, and excellence,” as its values while leadership engaged in massive accounting fraud. The stark contrast between their espoused values and actual practices led to bankruptcy and one of the biggest corporate scandals in history. The tradeoffs were short-term thinking versus long-term sustainability and stock price versus the common good.
2. Salesforce identifies “trust” as its core value and believes that its success is linked to their internal and external customers’ success. Salesforce is ranked as the best place to work. By contrast, Wells Fargo put stock prices first and set impossible sales targets. The result was a large number of ‘false accounts’ created to meet those aggressive sales targets. The tradeoffs were end-of-year bonuses for managers versus success of their customers and deception versus trust.
3. An innovator in online shoe sales, Zappos’s “Deliver “WOW” through customer service” and the staff empowerment required, led to its profitable acquisition by Amazon. By contrast, the legacy car manufacturer, Volkswagen, lost credibility by hiding the results of its diesel emissions tests. It continues to struggle with profitability. The tradeoffs were short-term sales versus long-term profitability and manipulation versus transparency and innovation.

In summary, tradeoffs involve time and money: short term versus long term, immediate gratification versus long term sustainable rewards, greed versus growth and personal gain versus benefit to the business.

Values weave the tapestry of our business culture and that is on display for all to see: what we do and say, as well as the choices we make. Business brochures, slogans on walls and screens are irrelevant, if they are not translated into the decisions and choices we make. For example: Who are our suppliers? What do they represent? How do we treat our customers externally and internally? Who and what is rewarded and applauded in our organization? These are the things that define our business culture and our values are inextricably embedded into that culture. You can deepen trust in your choices by answering these Values Alignment Audits:

A – Business Values Alignment Audit: How do you spend time and money?

1. Are your values clearly linked to the purpose of your business?
2. Can you state that in one clear sentence?
3. Have you articulated the connection between your values and your purpose in behavioural terms?
4. Is there a consensus on what the values mean and how they are lived in day-to-day operations?
5. Does everyone know that these values are the moral compass of your business?
6. Are those values reflected in the accountability and reward system in your business?
7. Are those values reflected in your budget allocations?
8. How do you and your staff invest most of your time and effort?
9. Are problems solved with a short- or long-term perspective?
10. Does the way you spend money reflect your values?

B – Leadership Values Alignment Audit: Are you taking personal responsibility for your business decisions?

These three irrefutable indicators that you may be going off course, come with powerful antidotes to help you regain equilibrium and stay focused on your purpose:

1) You took a U-turn and got back into your Comfort Zone instead of making that difficult decision.

(Antidote: How can I make this work? (Is competence or confidence lacking? Fix it).

2) You compromised your values to please someone other than yourself.

(Antidote: Remind yourself of the airline safety guidelines – “Put on your oxygen mask first. You can’ t help anyone if you are suffocating.” Compassion for yourself is foundational).

3) You allowed your fear to extinguish your self-confidence and described that as being ‘realistic’.

(Antidote: If you are not taking any risks, you have stopped dreaming and innovating. Revisit your purpose and rekindle your courage).

As leaders, the deeper our self-awareness, the greater our ability to protect our business interests through values-based decisions. When our decisions are fully aligned with our values and the purpose of our business, we sleep well and are able to realize our full potential as leaders.