What is the Connection Between Values and Performance?

Everything starts with values, and by values we include ethics and virtues. We are convinced that consciously articulated values are profoundly required for at least two (for starters here) vital components of high performance organizations.

As we and our colleagues have worked with organizations, including ministries, their attitude and approach to risk and risk management (or not) are fundamentally values-based. Are they willing to confront the truth? How do they avoid denial, the deadly disease of organizational failure? Do they let the truth in? How rigorous are they willing to be in protecting against serious risks? What is their sense of accountability? What is their attitude toward excellence? Is it part of the culture? Or is the culture one of “adequacy?” (Which is a true experience of mine!) Are they willing to act - to execute as needed?

The second is an issue raised by Jon Katzenbach and Zia Khan in their article in the summer issue of Booz&Co.’s magazine, Strategy+Business. Katzenbach argues for the wise integration of good results measures and the soft side of organizational leadership - culture. The article points out that good measures energize and align. “In business the informal organization is most successfully mobilized when there is a sharp focus on performance ..people want to know how their informal collaboration will lead to improvement in results.” I might add that people also want to know how they and their team and their organization are doing toward larger ends. This is, in fact, an important personal motivator.

Katzenbach observes that one of the keys to driving change (in the organization he using as an example) “was the focus on metrics that matter and motivate. To that end, (the leader) needed to make the organization more values driven…” the company then set about intentionally creating and articulating its values. I have to admit this is the first time I’ve seen an academic link values to good results metrics. But I agree. We fail to recognize the fundamental beginning point that values constitute - even for such a “hard science” as performance metrics.