Panagiotis Leontios

Business Values Lead to Profits

In Business on 06/05/2015 at 9:53 am

BVL2PThere’s a lot of talk over the last few years about the importance of purpose and values in business; tying people to a company purpose higher than just the day-to-day job, and having a set of values to they live by every day.  Is it the right thing to do?  I doubt anyone would really disagree with that notion. But is it good for business or just a plaque on the wall?  That’s a more difficult question.

Many people do not really connect with the importance of a company mission, vision, or values.  They just want to figure out how to grow their business.  That is hard enough.

There is a time though when one can see the light and have an epiphany.  Let’s examine the case where at some point we define our company purpose and core values, those behaviors that would never change no matter what else changes in our business.  We start to hear employees talking about these core values in meetings and use them to guide important business decisions.  That’s when we probably realize that a code of ethics means everything to our business.

Here’s how purpose and values have an impact:

They plot your team’s course.

When your employees know that you and the company stand for something special, they connect to a purpose larger than the task at hand.  They all want to row in the same direction -and they know what that direction is.

They define decision-making.

You, your managers, and employees make important decisions every day.  If you all apply the filter of your core values to these decisions, you’ll know you’re on the right path.  Not all decisions are correct, but they are made with the same purpose.

They resolve conflict.

Tell your employees that as long as they live by core values every day, they will be successful at the company.  This common helps eliminate differing mindsets, and breaks down silos.

They lead to increased profitability.

Purpose and values lead to employee loyalty and happiness.  Happy employees lead to customer loyalty.  Customer loyalty drives profit.  And customers will pay more for a company that exhibits a purpose larger than a product.

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