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What is Values-Based Leadership?

Leadership is not limited just to singular measure of effectiveness - it is a multidimensional phenomenon. Values-based leadership is different from other modes in that it includes all the three factors:

1. Effectiveness - measuring the achievement of the objectives

2. Morality - measuring how change affects concerned parties, and

3. Time - measuring the desirability of any goal over the long term

Values-based leadership is not simply about style, how-to, following some recipe, or even mastering "the vision thing". Instead, it is about ideas and values. It is about understanding the different and conflicting needs of followers, energizing followers to pursue a goal than they had thought possible. "In practical business terms, it is about creating conditions under which all followers can perform independently and effectively toward a single objective."¹

Why Values-Based Leadership?

Values-based leadership is a must in modern flat organizations characterized by transparency and easy availability of information.² As Steve Jobs, the co-founder of Apple Computer, put it, "The only thing that works is management by values. Find people who are competent and really bright, but more importantly, people who care exactly about the same things you care about."

Why  the Focus on Values?

A vibrant, living set of values provides the basis for forming and regenerating community. Values "can provide a context that facilitates and enables local, independent action. In today's fast pace, effective self-management and opportunism create a competitive advantage."⁵

Leader's Ideas

Leadership is not about style, but about ideas. While there can be effective management absent ideas, there could be no true leadership. "Ultimately, it is ideas that motivate followers, and concepts powerful enough to energize people are typically broad, transcendent, even "philosophical" in nature".¹

Leader's Beliefs and Attitudes

The primary determinant of a leader's success or failure is not a lack of know-how or style. "Instead, the key variables are the leader's beliefs and attitudes".¹

Building Trust

Building relationships requires the building of trust. Trust is the expectancy of people that they can rely on your word. It is built through integrity and consistency in relationships.

"Trust elevates levels of commitment and sustains effort and performance without the need for management controls and close monitoring."³...More

Case in Point: General Electric (GE)

Nowhere GE shared values take on importance greater importance than on a small, wallet-size card that GE employees now carry with them. GE's values are so important to the company, that Jack Welch had them inscribed and distributed to all GE employees, at every level of the company. But before the cards were furnished to the staff, GE had come to consensus on which core values it wanted to cultivate in its employees. Many hours were spent at GE's Leadership Institute and elsewhere deciding on exactly what those values should be. "It became a badge of honor not only to carry the card but also to uphold the values."⁴ As Jack Welch notes: "There isn't a human being in GE that wouldn't have the Values Guide with them. In their wallet, in their purse. It means everything and we live it. And we remove people who don't have those values, even when they post great results."...More

Case in Point: Hewlett-Packard (HP)

Originally put in writing in 1989 by David Packard, HP values are the centerpiece of the Hewlett-Packard Way. "Hewlett-Packard's stated values are not uniquely different from most major companies. What makes the H-P Way unique, though, is the seriousness with which values are treated as a management tool. They are not spread by sloganeering, but serve as criteria for daily decision-making and advancement. Brought to life as well as Hewlett-Packard does the H-P Way, values based management lifts everyone above trivial concerns to focus on those that are truly important."⁵...More

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