Don't Be Enron: Understanding the Power of Core Values
Don’t be Enron.
At the time of Enron’s collapse, they espoused their core values of:
Respect: We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness and arrogance don't belong here.
Integrity: We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, then we won't do it.
Communication: We have an obligation to communicate. Here, we take the time to talk with one another…and to listen. We believe that information is meant to move and that information moves people.
Excellence: We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be.
(Read the full values statement here.)
It seems like Enron leaders and employees did everything but live their values. They certainly did not live up to the values of Respect, Integrity, Communication, or Excellence.
Values are important to employees. More and more, employees want to work somewhere that provides a meaningful experience. When interviewing with a company, a prospective employee will do their research to learn the core values of an organization and they will dig to make sure that their values and the company’s values align with each other.
What are your company’s values? If you have them set, how do you communicate them to employees? If you don’t have them set, it may be time to create Values that your company and employees can live. Some things to consider when thinking about Company Values:
Make them your Guiding Principles. Not just a poster on the wall, but infuse them in every part of your company.
What impact do they have on company culture?
Are your values aligned with your company’s mission and goals?
Are your employees living the company values? Studies have shown that employees who identify with Core Values are more productive and morale is higher.
Do your Company Values guide decision making?
Organizations with strong values not only increase employee retention, but increase customer loyalty. Customers want to buy products and services from Companies that have strong core values because they see it in the employees’ work and service. Think about the last time you bought something and think about why you bought it. I bought a car from a company because my values aligned with theirs and I walked out of the dealership that didn’t have strong values.
I read a lot about companies that don’t treat their employees well and so I won’t spend money there. On the flip side, one large company recently changed their treatment of employees and now I shop there, whereas I didn’t in the past.
A company’s core values should be threaded through every piece of the employee experience. From recruiting to onboarding to training and development, all the way into what benefits your company offers. Core Values should be communicated to employees and employees should be held accountable for upholding those values. Sometimes employees may falter in demonstrating Core Values.
Leaders are accountable for living the Core Values. If they aren’t, leaders lose credibility and will lose their ability to influence employees and the business.
What are your core values? And what do they say about you?
Don’t be an Enron. Live your values and you will see employee morale and customer loyalty increase.
