Values-based management, what is it and how can it be implemented?

The search for meaning in work as well as the evolution of organisational modes are leading more and more companies to turn to new management modes that focus on people. Corporate culture, human values and well-being at work are becoming increasingly important. Value-based management, although little known, is a managerial philosophy that is particularly well adapted to current organisational issues.  

What is value-based management?

Value-based management is a business management method that emerged at the end of the 1980s. It aims to apply management through the prism of corporate values. Values are the sum of our beliefs, motivations and expectations, which manifest themselves through our behaviours, habits, decisions and daily actions. This values-based approach to human resources management is opposed to management by rule, according to which the search for performance at all costs ends up obscuring the organisation's underlying values. In short, value-based management aims to place values and organisational culture at the heart of managerial practices.  

Why implement value-based management?

Implementing a value-based management approach within your company is beneficial in many ways. For example, it can:

• Give meaning to work and daily actions.
• Reinforce the commitment, motivation and sense of belonging of teams.
• Strengthen cohesion, team spirit and collaboration.
• Facilitate communication, efficiency and productivity.
• Create a common vision that engages and mobilises.
• Build employee loyalty and reduce turnover.
• Enable the company to stand out in the competitive landscape.
• Improve conflict resolution.
• Boost performance.
• Clarify objectives.
• Project a brand image that is authentic, transparent and aligned with the company's culture.

 

How can you implement value-based management?

The implementation of value-based management can take many forms depending on the company's organisational model and its corporate culture. However, a number of fundamental steps need to be taken to do so:

• Clearly define the company's values

This is a prerequisite: the values must be clear to everyone, and strong enough to mobilise all employees. These can be exogenous values (projected to the outside world) and endogenous values (internal). For example:

• Excellence
• Benevolence
• Innovation
• Trust
• Adaptability
• Responsiveness
• Listening
• Exemplarity
• Proximity
• Sharing
• Open-mindedness
• Humility
• Collective intelligence

Managers, executives and employees will have to conduct a deep reflection to define (or clarify) the human, moral and ethical values, as well as the company's raison d'être and its long-term vision. It is also important to question the company's societal and environmental commitments and the implementation of a CSR (Corporate Social Responsibility) approach, ISO standards, etc.

• Communicate and share the company's values

Values should not remain merely a list or a speech to promote brand image. It is important to communicate regularly about the company's values, whether through meetings, informal exchanges, individual interviews, training, company events or digital tools such as an internal newsletter.

• Integrate values into daily management practices 

Managers should integrate and convey these fundamental principles through their daily professional practices: management style; communication style; organisational style; way of leading teams, soliciting the opinion of others, giving responsibility, involving employees, supporting and encouraging teams, integrating employees in the decision-making process, etc. It is also essential to remain exemplary and to embody the company’s values through your own behaviour, interactions, the way you react to stress or express yourself, etc. These small daily actions are all opportunities to promote the company’s values.