Why Are Organizational Values Important?

by Chandler Barr May 12,2016
Engagedly
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The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

Zappos, the online shoe and clothing store, is known for its organizational values. Take a look at their organizational values and you’ll know exactly why the company is so famous. Zappos has let it’s organizational values drive it’s organization and as a result, it is also an extremely successful company.

But not every company is like Zappos and many do not even know what the term ‘organizational values’ mean, let alone why they are important.

To explain briefly: organizational values are values that an organization holds dear. They shape an organization’s vision and beliefs. Some organizations have their values visibly shown everywhere while some organizations have unwritten values that are known to employees all the same.

Organization values are important because:

  • They help employees work towards a purpose – Engaged employees more often than not have values that are aligned to their organization’s values. These values give employees a purpose to work towards and help them achieve goals in a manner that not only benefits them but also the organization.
  • They help organizations set standards – Organization values set standards that organizations and employees can aspire to. When organizations fall behind in terms of profit or quality, or employees fall behind in terms of work or goals, they know that they are not living up to their organizational values.
  • Good organization values can attract the right customer – Customers tend to choose organizations based on the values they embody and how they identify with them. Good organization values will attract exactly the kind of customers an organization might envision having. And living up to those organizational values will ensure that customers remain loyal despite the appearance of new products on the market.
  • They attract the right employees Good organization values are a great way of weeding employees who will fit in and employees who don’t. Because the ones who fit probably share the same values and therefore are more invested in seeing an organization succeed.

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Author
Chandler Barr
VP of Sales

Chandler Barr is the VP of Sales at Engagedly and is focused on driving a culture of progress over perfection in a no-fault environment where employees are secure and encouraged to think creatively to solve problems. Chandler is a seasoned leader that has scaled sales teams for SaaS startups and multibillion-dollar publicly traded tech companies, as well as, led Marines to accomplish the mission during hardships overseas.

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