Values-based management: what is it and how to implement it?

What is values-based management?

Value-Based Management is a management method that places values and organizational culture at the heart of managerial practices. It draws on shared beliefs, motivations, and expectations to guide behaviors, decisions, and actions on a daily basis.

Appearing at the end of the 1980s, this approach is opposed to rule-based management, which favours performance to the detriment of organisational principles. Values-based management focuses on meaning rather than control, on adherence rather than compliance.

This managerial philosophy is applicable to both operational and strategic management, and is naturally part of an ethical management approach.

Why adopt values-based management?

Implementing this approach provides measurable benefits:

• Giving meaning to daily work and strengthening commitment
• Motivate teams and strengthen the sense of belonging
• Improve cohesion, collaboration, and productivity
• Retain employees and reduce turnover
• Facilitate conflict resolution
• Stand out from the competition with authentic branding
• Projecting a mobilizing common vision

Companies that succeed because of their values

Decathlon has built its success on two pillar values: trust and accountability. Every employee is encouraged to make decisions independently, from the store salesperson to the product manager. This model has made Decathlon one of the favorite companies of the French and a regular in the Great Place to Work ranking.

MAIF embodies mutualism and benevolence in every interaction: with its members and with its employees. Its policy of transparency and listening has earned it the title of favorite company of the French on several occasions and exceptional customer loyalty.

Michelin, with its program to empower factory teams, shows that values-based management also works in industry. Operators manage their own planning, quality and safety, with measurable results in productivity and satisfaction.

How to set up values-based management: 5-step guide

Step 1: Diagnose the existing crop

Before defining values, evaluate those that are already lived on a daily basis — not just those displayed on the walls. What behaviors are rewarded? What attitudes are tolerated? This diagnosis reveals the discrepancy between the declared values and the actual values.

Step 2: Co-construct values with teams

The values imposed by management do not work. They must be co-constructed with employees to generate sincere support. Conduct participatory workshops, internal polls, and open discussions to identify values that resonate collectively.

The values can be outward-oriented (excellence, innovation, customer proximity) or inward-oriented (benevolence, trust, collective intelligence, agility). The main thing is that they are authentic and embodied.

Step 3: Formalize and communicate

Values must not remain theoretical. Regular communication is necessary via meetings, informal exchanges, individual interviews, training, company events and digital tools (internal newsletters, intranet).

Step 4: Integrate values into daily practices

This is the most demanding step. Managers must concretize values through their management style, their mode of communication, the organization of work, the solicitation of opinions and the empowerment of employees. The qualities of a good manager include the ability to embody values on a daily basis.

These small everyday actions — the way to react to stress, to express oneself, to interact — are all opportunities to live the company’s values.

Step 5: Measure and adjust

Set up indicators to evaluate the impact: engagement surveys, turnover rate, employee NPS, results of annual reviews. Adjust the approach according to feedback and changes in the organization.

The interim manager to anchor values in your organization

When values remain a discourse without concrete translation, or when a cultural transformation meets resistance, an interim manager can unblock the situation. With his experience in a variety of environments, he helps diagnose the real culture, structure the approach and support managers in the daily embodiment of values.

Wayden provides you with experienced interim managers capable of supporting this cultural transformation and sustainably improving the performance of your teams.

Need an expert look at your managerial practices?

Contact Wayden

Frequently asked questions

What is values-based management?

Value-Based Management is a management method that places values and organizational culture at the heart of managerial practices. It is opposed to management by the rule by favouring meaning, ethics and commitment rather than control and compliance.

What are the advantages of values-based management?

The main benefits are increased team engagement and motivation, improved cohesion and collaboration, reduced turnover, better conflict resolution, and a more authentic brand image.

How to define your company’s values?

The approach involves five stages: a diagnosis of the existing culture, the co-construction of values with the teams, their clear formalization, their regular communication and their integration into daily management practices.

Which companies are recognized for their values-based management?

In France, Decathlon (trust and empowerment), MAIF (mutualism and benevolence) and Michelin (team empowerment) are regularly cited as references. These companies are among the top ranked in the Great Place to Work rankings.