Developing and Growing Organizational Character

The first step in developing and growing a definitive and identifiable organizational character is the establishment and adherence to a set of core values. The core values should come from stakeholders inside and outside the organization. This is especially true for public sector organizations. In privately owned companies, the argument can be made that the owner of the company should be the author of the core values, since it is his company. It goes without saying that public sector organizations are different in that there is not just one owner but many. Even in a private company a wise business owner should give considerable attention to the thoughts and ideas of his stakeholders when deciding upon company core values. He would also be wise to consider them “owners” too, and make them feel an intricate part of the organization.


The days of employee inclusion is here and the days of autocratic management are gone. Organizations today are competing for qualified employees from a much smaller talent pool. There are many more available choices for employees today than in the past, the current recession excepted of course. With the vast amount of information available to potential employees today, they can pick and choose between competing organizations for their services. They vote with their feet. Although salary and benefits are very important to people, it is becoming more important to them to be identified with organizations that mirror their personal core values. It is therefore very important to consider employee input when considering core value identification, whether in the public or private sector. Employees, more than ever, want to feel they are a part of something larger and grander than just having a job.


The internal stakeholders are easily identified, but considerable effort should be made to identify the external stakeholders. A general rule of thumb is that anyone who is directly influenced or affected by the decisions and actions of the organization should be considered stakeholders. Similarly those outside the organization who influence the organization itself are also considered stakeholders.


When considering core values organizational leaders and members of the organization should give quality time to answer the following questions. These questions are not intended to be an all inclusive list for a survey, but should serve as a guide and should be the central theme behind a survey regarding the identity of core values of an organization.


• Who are we as an organization?
• How do we want to be known as an organization?
• What do we really believe as an organization?
• What do we want to stand for as an organization?
• How do we want to conduct ourselves?
• What standards do we want to be measured and judged by?


A rephrasing of these questions would make them appropriate for seeking the thoughts and ideas of external stakeholders regarding core values that they expect from our organization. Once all stakeholders are surveyed the leadership can begin to put together organizational core values that will precisely identify the type of organization the stakeholders want and expect.


Organizations should be careful to select only the core values that they can be loyal to and comply with regardless of circumstances. If core values are not internalized and committed to by the vast majority of members then they will not serve the purpose for which they were developed; to give boundaries to how business is conducted and to develop an organizational character or reputation everyone can be proud of.


Core values must be lived constantly by everyone within the organization. The constant and steady adherence to core values gives the organization and its leadership predictability. Over time the constant behavior in complete alignment with the core values becomes who they are; it becomes their organizational and leadership character. As the organization lives the core values daily under all situations, but especially difficult times, the values will be a benchmark for others to judge all future behavior and decisions. It is of utmost importance that the leadership team lives by the core values everyday and in every circumstance. There cannot be exceptions, they must set the example. Leaders cannot lead if they do not walk their talk. A leader cannot lead by directing the behaviors of his team in a manner that is inconsistent with his own behavior. Leadership behaviors must be aligned with organizational core values. Leading by example is one of the bedrock principles of effective and character based leadership. Development of core values will be dead upon arrival without the leaders adhering to them. Doing what is right even when the cost is more than we want to pay is one of the best definitions of integrity. The story below is about Gandhi. It is an excellent example of character based authentic leadership and about maintaining a perfect alignment between core values and leadership behaviors. Enjoy!


Years ago in India, a mother and her diabetic child travelled an exhausting 12 hours by train to see Gandhi. The mother wanted Gandhi to tell her son to stop eating sugar since he seem addicted to it and it was detrimental to his health being diabetic. After arriving and standing in line in the hot sun for several hours they finally got to see Gandhi. After the mother explained to Gandhi the purpose for the trip, Gandhi told them to go home and come back in six weeks. At the conclusion of the six week period the mother and child made the same difficult trip to see Gandhi again. As before, they had to stand in line a considerably long time under a blistering sun before finally getting to talk with Gandhi. The mother reminded Gandhi of the previous trip and his instructions, and they have now returned for his help. Gandhi, giving his full attention to the boy, shouted, “STOP EATING SUGAR!” The mother being quite complex told Gandhi that he could have said that on the first visit and saved them from having to make the second difficult trip. Gandhi replied, “No Madam, I could not, because six weeks ago I too craved sugar.”

Organizations, their leaders, and subordinates must know what they believe in and stand for. They must live it daily by their behaviors. Their decisions must be based upon organizational core values. They must lead authentically and without duplicity of character. It just will not work any other way. Only when we live and lead by our core values will we develop the individual and organizational character we desire to have, want to be known by and one which we can be proud of.


One final thought on this subject. Once an organization establishes it core values and the vast majority of employees buy into them a culture of moral and ethical character will begin to develop and grow. The moral culture will become so strong and ingrained that it will pressure those who cannot or will not adhere out of the organization. It will also serve as a moral magnet to draw into the organization those who admire its ethical qualities and those who would be proud to be associated with others who live, believe and think the same way. All of this takes time and effort, but it is only sure way to ensure ethical predictability by everyone within an organization.


Crisis of Character – Building Corporate Reputation in the Age of Skepticism, (2009) by Peter Firestein was used as a primary source for this article.


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