Setting Values

The employee performance appraisal is an often disliked management task that actually makes performance worse. In Volume 5 of Contractor Success Guide, an article by Wally Hauck explained why traditional performance appraisals are ineffective and often avoided, while also outlining an alternative way of thinking and new process.

According to Hauck, to make a performance appraisal work, one of the biggest challenges for any manager is to begin thinking differently about performance by embracing the Values and System Model of performance. Setting the values behavior is one of the first steps in that transformation.

Research shows that companies seeking to align their operating values and employee behaviors are the most successful, the most fun to work for, and have more loyal customers and loyal employees. Clear values are also the foundation for an effective performance appraisal process.

Regardless of the status of your performance appraisal process, identifying, defining and communicating your organizational values is critical to achieve predictable long-term performance. How can a manager do this and bring the values to life instead of having them just hang on the wall on a poster?

VALUES ARE CRITICAL TO PERFORMANCE AND PROFIT

A value is a fundamental personal belief having intrinsic worth. Values are like a compass. We use a compass when we need direction and feel lost. Values provide guidance during difficult situations and a priority of action to make decisions more quickly.

An organization’s priorities are a reflection of its values. The values reflect the top priorities defined by management and everyday management behavior. The key steps to aligning your team on the values are:

1. Use the three basic values of integrity, respect and customer focus as a starting point
2. Agree on the behaviors needed to demonstrate these three values at your workplace
3. Have an open and honest discussion with employees about what they think might be missing or contradictory about the list of behaviors as compared to their personal values

STEP 1: Three Basic Values of Integrity, Respect and Customer Focus

Dozens of organizations have successfully worked with these three values for the past 12 years. Not one has found the need to expand the list. Why? Because, these three values capture the essence of the important behaviors that people can personally control.

There are dozens of values an organization can decide to embrace. But attempting to embrace too many different values increases the complexity. The correct approach is to clearly define these three basic values first and then provide an opportunity for your people to ask questions, such as “What might be missing?” and “What might be a conflict in their personal lives?” With the proper questioning and listening skills, a leader can begin to help everyone see that these three values can be all-encompassing.

STEP 2: Clear and Specific Definitions of Behavior

Organizations need clear descriptions of values behavior to avoid interpretation, wasted time and wasted resources. Here is an example of values behaviors for each of the three basic values listed in Step 1.

Integrity:

- Communicate openly, honestly and responsibly; say what you mean and mean what you say … and don’t say it mean (tone of voice)
- Make only agreements you intend to keep
- Act upon your agreements to the best of your ability
- Communicate when you can’t keep agreements to those who need to know
- Admit when a mistake is made and look at the system as a team for a solution (no blame, make no excuses, no complaining)

Respect:

- Treat others as we would like to be treated
- Communicate directly, calmly and professionally (the absence of profanity, sarcasm and condescension)
- Listen attentively and congruently without interruption and paraphrase to confirm understanding (stop, look, listen and confirm)
- Acknowledge the value of different perspectives and demonstrate it by our actions

Customer Focus: