Culture Alignment - Chapter Lead

The best places to work lead with shared values rather than rules and policies. That’s because when rules are the guiding force rather than an organisation’s values, trust isn’t at the core of the employer-employee relationship.

Defining your core values

Every business started for a reason, usually to serve a particular customer need in the market and as a result has a product or service that it stands behind. The reason for your business – the Why – should be the starting block for building your team culture. By clearly defining the why and the core values it represents, employees are able to resonate and align with the organisation’s mission.

As a leader within your business, it is important that you embody the desired culture through your actions and behaviour. Setting the tone should be done by example

Value driven

Values-driven leadership is one of the most powerful determinants of organisational health and performance. When leaders act in alignment with clearly defined values — demonstrating integrity, authenticity, and ethical consistency — they create the conditions in which people genuinely want to work and contribute.

A study by the Center for Creative Leadership found that leaders who exhibit values-based behaviours, such as honesty and integrity, are more likely to be viewed as effective by their employees, leading to increased engagement, loyalty, and a more positive workplace culture. A great article on common leadership challenges can be found here

Financial sense

The commercial case is equally compelling. According to the MIT Sloan Managment review, values-driven organisations generate higher earnings, are more customer-focused and productive, and have higher levels of employee engagement, higher retention rates, and lower sick days — with employees more willing to bring their creativity and discretionary energy to their work.

The importance of values-driven leadership is well evidenced in the Australian context. The Australian Leadership Index (ALI), the largest ever ongoing research study of leadership in Australia conducted by Swinburne University of Technology, found that public perceptions of leadership are primarily shaped by three factors: integrity, contribution, and competence — all of which are central to a values-driven approach.
The report can be found here.
The ALI consistently found that unethical conduct and irresponsible leadership understandably erode public trust and damage organisations’ health from the inside.

Ultimately, an organisation’s culture is a direct reflection of the values and beliefs of its leaders — meaning that if you want to change the culture, the transformation must begin with the leaders themselves. Values-driven leadership is not a soft ideal; it is a strategic imperative. However, once information about your culture is collected, the most important thing is to share that feedback and act on it appropriately—no lip service that is easily seen by staff. Fostering open and transparent communication will ensure that your teams continue to provide honest feedback, and it sets an expectation that all employees are responsible for driving the workplace culture.