Whether we know them or not, each person has a set of values they use to make key decisions. The same is true for organizations. Most organizations of a certain size have gone through the process of defining their values framework. When this is done properly people tell great stories about the organization. One example of this that has been popularly cited is Tony Hsieh’s work as CEO of Zappos.

Sadly, there are organizations that create values that are not used as a framework for making decisions, but are instead used to adorn hallways and the backs of security badges.

According to a study by Modern Survey conducted in March of this year, 24% of the people we polled were unable to answer “Yes” to the question:

Does your company/organization have a clear set of Values that most employees know about and understand?

Knowing and understanding values provides a firm set of guidelines for making decisions. If a situation does not align with our organizational values, then we avoid it. If it is in alignment, then we continue to consider it. The absence of organizational values means you don’t have the luxury of this filtering process.

The other question about values that is often raised is how they influence commitment to an organization, not just decisions.

Take a seat, because the results are startling.

In our March study, we found that people who said their organizational values are known and understood are 17 times more likely to be fully engaged than those people who said "no" to that question. Furthermore, those people who said their values are not known and understood are nearly four times more likely to be disengaged than those who answered the values question "yes."

Because nearly all organizations that we surveyed have values, the key seems to be in the part of the question “know about and understand." Simply having values isn’t enough. They need to be communicated to employees…often. Leaders need to live by them…always.

As professional speaker and Passion on Purpose blogger Ryan Estis puts it,

When shared, understood, reinforced and ultimately embraced, values can prove to be the catalyst that drives a real competitive advantage for the business. Employees that align and share this belief system will be more engaged, productive and loyal to the organization and its customers.

It’s clear to me from the data we collected that values matter. I just had no idea they mattered to this much.

For more info on our study, please go to http://www.modernsurvey.com/news/1106 or give me a call – (612) 399-3837.