Benefits of a well-defined values foundation
Values stem from theories of values-based leadership. They are concise, abstract ideas about desired behaviors employees should demonstrate—guiding ideals and overarching beliefs.
The rationale behind values-based leadership is that today’s world is more unpredictable than what classic management theories explain. Leaders rarely get far by simply commanding employees—especially knowledge workers who may have deeper expertise than their managers.
Values-based leadership is for leaders who want to guide their organizations by “freedom with responsibility”—not total freedom, but within shared frameworks that help everyone fulfill the mission and realize the vision.
Freedom with responsibility is one of the main benefits of a well-defined values foundation. Strict rules and procedures can quickly become obstacles for highly educated staff who need to make quick decisions using their expertise.
With values-based leadership and a clear values foundation, leaders delegate more responsibility—allowing employees to make more decisions themselves. The goal is for values to serve as shared reference points so people can self-manage within clear boundaries set by those values.
Values thus offer an alternative to rule-based organizations by clarifying the behavioral space within which employees can act.