

Built on Values
Chapter Summaries
What's Here for You
Are you tired of culture initiatives that fizzle out, leaving your organization feeling more disconnected than ever? "Built on Values" by Ann Rhoades and Nancy Shepherdson offers a powerful antidote. This book isn't about quick fixes or top-down mandates; it's about forging a high-performing culture that is an intentional, deliberate creation, an inevitability born from the consistent embodiment of core values. You'll discover that a thriving culture isn't a happy accident, but a strategic design, shaped by leaders who understand its profound impact on your organization's destiny. Forget the notion that culture is merely a byproduct; this book reveals it as an active force that dictates success. You'll learn how to move beyond imposed changes and craft a 'values blueprint' that truly resonates from within. Prepare to understand the critical difference between simply hiring 'performers' and cultivating 'A Players' – individuals who genuinely align with your deepest principles. You'll be inspired to create a workplace where employees don't just show up, but are genuinely engaged, proud, and eager to impress, fostering an environment of care and continuous improvement. Discover the art of not just attracting, but crucially, retaining top talent by aligning rewards and recognition with your desired culture. This book demystifies how true culture transformation radiates from the top, challenging leaders to embody values, not just decree them. You'll gain practical strategies for relentlessly reinforcing your values, ensuring they become the very fabric of your organization, fostering fierce commitment. Ultimately, "Built on Values" empowers you to embrace culture as a perpetual journey, not a destination, equipping you with the insights and tools to build an enduring, high-performing organization that consistently astonishes its people and its customers. This is an intellectual and emotionally resonant guide for leaders ready to build something truly meaningful and sustainable.
IS A VALUES-BASED CULTURE WORTH THE EFFORT?
The author Ann Rhoades, through her extensive work, reveals that a high-performing culture isn't an accident; it's a deliberate creation, an inevitability forged by leaders who embody desired values and establish reinforcing systems. This isn't about forcing change through sheer will, but about designing an environment where cooperation and commitment flourish almost unconsciously. Rhoades is convinced, and research supports, that positive, people-centered values directly correlate with higher performance, citing Southwest Airlines' consistent profitability as a prime example, and studies by Rosabeth Moss Kanter and the American Management Association that link vanguard companies and positive cultures to agility and enhanced performance. Yet, many leaders relegate culture to a low priority, a dangerous oversight. Joel Peterson, chairman of JetBlue, cautions that a survival-driven culture, while effective short-term, eventually burns out top talent, because the best employees, the 'A Players,' always have options. So, the central question arises: does your company need a culture change? Rhoades identifies red flags: high turnover, unhappy customers, and 'A Players' eager to leave. Even seemingly successful companies can be missing a crucial opportunity if employees don't grasp or embody core values, leaving them vulnerable to competitors who do. One client, for instance, was blindsided by a fragmenting culture because his employees, out of pity, shielded him from bad news, highlighting a need for transparency and humility. Companies like JetBlue demonstrate that values, such as 'caring,' can override short-term financial gains, like baggage fees, preserving customer loyalty. The author posits that most companies can improve by tying employee behaviors to their values, or may require a radical overhaul. She warns against a 'skindeep attitude' toward values, pointing to Bernie Madoff and Enron as cautionary tales of cultures driven by greed and power, not genuine principles. Rhoades advocates for culture by design, not by chance, emphasizing that the right values are unique to each company, shaped by its competitive landscape and offerings. The process begins with an honest assessment of the current state – understanding employee and customer perceptions – leading to the formation of a Values Committee. This committee, ideally including frontline staff, then retreats to draft a 'Values Blueprint,' which must be discussed and integrated into the organization's very DNA, influencing everything from hiring to executive behavior. Hiring, in particular, is a critical juncture; Rhoades stresses that talent alone isn't enough; cultural fit is paramount. She illustrates this with the example of David Neeleman, who founded JetBlue after his innovative spirit clashed with Southwest's established culture. Companies like Zappos.com even offer new hires money to quit if they don't feel they're a fit, a bold move to ensure alignment. When managers lack clarity on values and desired behaviors, hiring defaults to personal preference, a gamble that often leads to misfires, as seen in the author's own early career hiring mistake. Values-based interviews, focusing on behavioral storytelling, are key; for example, asking candidates to share instances where they upheld integrity at personal risk. Loma Linda University Medical Center serves as a case study, transforming patient satisfaction from 42% to 86% by meticulously defining values like teamwork, wholeness, integrity, compassion, and excellence (TWICE). They didn't just post values; they embedded them into job descriptions, created interview guides, and implemented the SOAR model—Select, Orient, Appraise, Recognize—to ensure values-based behavior was consistently chosen, reinforced, and rewarded. This included values-based hiring seminars, selection teams, and a 'Living Our Values Day' for new hires, culminating in personal commitment cards. Appraisals, weighted heavily on living values, and recognition, beyond mere monetary rewards, solidified the shift. Ultimately, leaders are the architects of culture. Their actions, whether a CEO taking a pay cut like JetBlue's Dave Barger or Howard Schultz visiting Starbucks stores, send powerful messages. The shift from 'my company' to 'our company' hinges on leaders demonstrating servant leadership, eschewing ostentation for connection. This creates a 'circle of excellence' where inspiring values, tied to behaviors and reinforced by hiring and rewards, self-perpetuate high performance, turning employees into leaders responsible for living those values, fostering a truly thriving organization.
“SO HOW’S THAT WORKING FOR YOU?”
Ann Rhoades and Nancy Shepherdson, in their chapter 'SO HOW’S THAT WORKING FOR YOU?', illuminate a critical truth for any organization: culture isn't just a byproduct; it's an active force that shapes destiny, whether acknowledged or not. They reveal that many leaders mistakenly believe their company values are set in stone, or perhaps irrelevant, failing to recognize that an unexamined culture, like a restless tide, will inevitably pull in customers or push them away, and attract top talent or send them fleeing. The authors present the stark reality that business problems, often attributed to strategy or market forces, are frequently rooted in a misaligned or undefined culture, a notion many executives initially dismiss. However, a deep dive into employee satisfaction, customer feedback, and turnover data often forces a reconsideration. Culture, they explain, develops organically, and if formal values don't resonate with lived experience, they become mere decoration. Employees, especially the 'A Players,' instinctively understand the unwritten rules, navigating the environment to survive or thrive, often recognizing the company's true values better than its leadership. The chapter emphasizes that change isn't about starting from scratch, except in brand-new ventures, but about shaping an existing culture into a more effective driver of success. Joel Peterson, chairman of JetBlue, underscores this by noting that a 'sick culture' emerges when what people focus on doesn't align with stated values. This is powerfully illustrated by JetBlue's own journey; initially, a small team consciously crafted a simple, memorable set of values centered on 'bringing humanity back to air travel,' choosing fewer than seven core tenets to ensure they would be internalized, not just displayed. The authors argue that truly effective values are simple, foundational, and lead to automatic, consistent behavior aligned with the company’s ethos, much like Southwest Airlines' renowned service, which Herb Kelleher describes as 'what people do when no one is looking.' This isn't about magic, but a thousand small, consistent actions that form the 'glue' holding an organization together, as described by Jackie and Kevin Freiburg. The narrative then pivots to the essential, often uncomfortable, task of measuring the 'is state' of the current culture, acknowledging the emotional resistance leaders face when confronted with data that contradicts their perceptions. Rhoades and Shepherdson advocate for a multi-pronged, objective assessment, utilizing existing data, anonymous surveys, one-on-one interviews, and focus groups, stressing the importance of transparency from the outset to build trust. They detail a structured approach, beginning with a clear communication of the assessment's purpose, forming a diverse assessment team, gathering existing data, crafting targeted anonymous surveys, and conducting in-depth interviews and focus groups, always ensuring psychological safety for participants to speak candidly. The process is likened to retooling a plant, but with people and systems as the machinery. The chapter culminates in the crucial step of publishing findings, both good and bad, to establish a baseline and foster buy-in for the subsequent change process, reminding us that leaders don't dictate culture, but create the fertile ground for it to grow, driving behaviors that ultimately define the organizational soul. The Starbucks example of choosing to remain non-smoking in Japan, despite initial financial concerns, powerfully illustrates how living by core values, even when counterintuitive, can lead to unexpected success and a stronger competitive advantage.
CRAFT YOUR VALUES BLUEPRINT
Ann Rhoades and Nancy Shepherdson, in their chapter 'CRAFT YOUR VALUES BLUEPRINT,' illuminate a fundamental truth often overlooked in the quest for a thriving company culture: imposed change from the top or HR is a recipe for failure. The authors reveal that true culture transformation hinges on achieving company-wide agreement on core values and their associated behaviors, forming an unshakeable foundation. They illustrate this with the compelling story of a JetBlue pilot who, embodying the value of 'passion' and the behavior of 'championing team spirit,' refused individual accolades after a perilous belly landing, insisting the team be recognized. This profound act, which outsiders saw as a personal triumph, was simply the expected behavior within a culture deeply rooted in shared values, demonstrating how agreed-upon values can inspire astonishing conduct. The chapter argues that a 'Values Blueprint' – a concise, one-page document outlining inspiring values and specific, observable behaviors – is not merely a promise but a powerful decision-making tool, far more potent than vague corporate platitudes. Rhoades and Shepherdson emphasize that this blueprint must be simple enough to be internalized by every employee, yet comprehensive enough to guide decisions across all levels, transforming abstract ideals into actionable daily practices. They caution against the temptation of vague values, asserting that a well-assessed current culture allows for the creation of a workable blueprint, often in as little as two days, by forming a dedicated 'Values Team.' This team, comprised of 'A Players' from all organizational levels, including the front lines, is tasked with defining and refining these core values and their behavioral manifestations through a 'Values Workout' session. The process, though requiring intense focus, is designed to be efficient, avoiding the protracted debates that can derail such initiatives. The authors stress that the credibility of the Values Team is paramount, as is the active involvement of senior leadership, whose commitment is vital to prevent cynicism. They recount the transformation at ACCION New MexicoArizona Colorado, which shifted from rewarding loan quantity to quality by redefining its values and behaviors, and the extensive global effort at Juniper Networks to align its culture with its vision. Ultimately, the chapter advocates for a systematic, inclusive approach to values clarification, moving from an 'is' state to a 'wow' state, ensuring that these values are not just stated but lived, becoming the very DNA of the organization through a phased implementation plan, thereby creating a higher-performing, more spirited culture.
FILL YOUR COMPANY WITH A PLAYERS
The author, Ann Rhoades, along with Nancy Shepherdson, unveils a profound truth for building enduring organizations: the critical importance of filling your company exclusively with 'A Players.' This isn't about chasing star performers or high-flyers, but about identifying individuals who genuinely embody and live the company's core values every single day. These are the people who, like Lenny Spivey, a sixtyeight-year-old former firefighter at JetBlue who once held a fearful passenger's hand for an entire flight, go above and beyond, demonstrating a deep commitment that transcends job descriptions. Rhoades argues that the pervasive mistake businesses make is hiring based on immediate availability—filling open positions with 'C Players' simply because warm bodies are needed. This practice, she explains, erodes the organizational fabric and diminishes overall performance, leading to a cycle of mediocrity. The core tension lies in the temptation to hire quickly versus the long-term imperative of hiring right. A Players, Rhoades reveals, are not always packaged as expected; they are the dedicated, committed individuals who add genuine value and align with what the company stands for. To cultivate such a team, a fundamental shift in hiring philosophy is required, moving from a reactive approach to a strategic, values-based one. This means being willing to pass on 'C Players,' even if it means delaying an opening or operating understaffed, a difficult but necessary discipline. The narrative highlights the success of companies like Southwest Airlines, which drastically reduced training fallout and improved safety records by implementing a behavioral hiring model strictly aligned with their values. The author emphasizes that this isn't merely an HR function but a strategic business responsibility, demanding commitment from top leadership. One powerful method introduced is behavior-based interviewing, where past actions are used as the most reliable predictor of future behavior. Instead of asking hypothetical 'what if' questions, interviewers are guided to elicit specific stories that demonstrate the candidate's alignment with core values, much like asking a candidate to describe a time they handled a difficult customer, revealing their approach to care and problem-solving. The process involves creating a Values Hiring Team, meticulously determining key attributes through interviews with existing A Players, and developing a structured Interview Guide. Peer interviewing, where top employees interview candidates for roles they understand intimately, emerges as a cornerstone, fostering accountability and ensuring that those who truly live the values are the ones selecting future colleagues. This approach, though initially demanding, ultimately leads to a more engaged workforce, higher customer satisfaction—akin to the positive extreme of an exceptional experience that customers talk about—and substantial financial rewards through reduced turnover and increased productivity. The resolution lies in embracing this rigorous, values-driven process, transforming the hiring landscape from a matter of luck to one of deliberate, strategic selection, ensuring the company is not just filled with competent individuals, but with 'A Players' who are its true champions.
LET YOUR EMPLOYEES IMPRESS YOU
The authors, Ann Rhoades and Nancy Shepherdson, reveal a compelling truth in 'Let Your Employees Impress You': most employees yearn for a high-spirit culture, one where care, engagement, pride, and continuous improvement are not just buzzwords but the very fabric of the workplace. Yet, this aspiration remains dormant unless employees see a clear connection between their efforts and organizational success. The key, they explain, lies in implementing a Value-Centered Metrics System, a departure from simply tracking results to actively measuring and rewarding the behaviors that embody the company's values. This system, when simplified and made transparent, empowers everyone from the front line to the executive suite to understand their role in the company's health, much like a driver intuitively monitors their car's speedometer and fuel gauge. Consider the Doubletree Hotels' catering team, who, after understanding the cost of wasted silverware, transformed a problem into a visual lesson, demonstrating a profound engagement born from clear financial insight. Similarly, Southwest Airlines pilots, apprised of rising fuel costs and tasked with saving fuel without compromising safety, responded with subtle behavioral shifts that yielded millions in savings. This dedication stems from integrating values into the organizational heartbeat, fostering an understanding of business health and embedding values into daily operations. Rhoades and Shepherdson emphasize that traditional metrics often fall flat with employees, their eyes glazing over complex spreadsheets; instead, they advocate for 'dashboard metrics'—a concise set of 2-3 numbers directly related to work, simple to grasp, with clear goals and responsive to employee effort. These metrics must be carefully chosen, sensitive to effort, and easily understood at a glance, ensuring employees focus on delivering quality products and services, not just chasing numbers. The chapter outlines actionable steps, beginning with creating an 'Organization Dashboard' that distills strategic drivers into a few key metrics, presenting minimum, target, and stretch goals. This dashboard, ideally fitting on a single PowerPoint slide, provides a 'clear line of sight' for employees to understand how their jobs impact the organization, fostering transparency and shared goals, as exemplified by JetBlue's approach to quantifying values like caring through Net Promoter Scores. Complementing this are 'team metrics and scorecards,' which break down organizational goals into daily, weekly, or monthly progress reports, developed collaboratively with frontline employees to ensure buy-in and relevance. The narrative then pivots to the crucial aspect of tracking errors honestly, not to penalize, but to foster improvement, as seen in Chrysler's Product Quality Initiative where rewards are tied to problem identification and solution implementation, not just error reduction. Furthermore, the authors champion the use of 'games' to reinforce desired behaviors, citing Doubletree's 'Wheel of Fortune' as an example where non-monetary, celebratory rewards motivate engagement and team spirit, reinforcing that competition should be fun, visible, and focused on achievable goals within a limited timeframe. Crucially, they stress the importance of giving employees 'authority' alongside responsibility, enabling frontline staff to resolve customer issues promptly, as Promus Hotels did by empowering front desk personnel to offer complimentary stays, a move that ultimately generated significant future revenue. Finally, the process of 'onboarding the values' from day one, with leaders personally sharing stories and explaining the metrics, is presented as the cornerstone of building a values-rich culture, ensuring new hires understand how their individual contributions drive organizational success. This evidence-based approach, moving beyond gut feelings to data-driven decisions, empowers employees, builds trust, and ultimately leads to astonishing performance.
REWARD CULTURE CHANGE
Ann Rhoades and Nancy Shepherdson, in their chapter 'REWARD CULTURE CHANGE' from 'Built on Values,' illuminate a profound truth: attracting top talent is merely the prelude to cultivating a thriving, high-performing culture; the real challenge lies in retaining that talent. They reveal that engagement, deeply rooted in feeling valued and aligned with an organization's core principles, is the bedrock of employee loyalty, far outweighing minor salary increases. The authors challenge the conventional view of rewards as a mere cost center, urging leaders to see them as a strategic competitive advantage, a powerful differentiator in the war for 'A Players.' A central tension arises from the disconnect between what organizations spend on benefits and what employees truly value; for instance, JetBlue discovered significant overspending on health benefits for remote agents already covered by spouses, while younger employees prioritized catastrophic coverage. This highlights the critical insight that aligning performance evaluation and total rewards with espoused values is not just beneficial, but essential. When values are incorporated into performance reviews and compensation, the organization signals their genuine importance. Rhoades and Shepherdson emphasize that an employee not recognized for values-based behavior will eventually cease to believe in those values, potentially spreading disappointment like a subtle poison. They advocate for a robust, multi-rater peer review system as the gold standard for assessing values alignment, noting how it enhances fairness and transparency, much like disparate voices in an orchestra harmonizing to create a beautiful symphony. This process, they explain, allows for the nuanced evaluation of behaviors that truly embody the company's ethos, moving beyond mere tenure or technical skill. Furthermore, the authors stress that total rewards—compensation, benefits, and recognition—must be a bright beam of light illuminating the culture from top to bottom. They propose mapping current rewards against the Values Blueprint to identify gaps and develop new reward systems that reinforce desired behaviors, like innovation and risk-taking. Listening to employee opinions, particularly from top performers, is paramount, as their insights can reveal what truly motivates them, often uncovering desires for non-monetary rewards or flexible options that are more cost-effective yet highly impactful. The narrative builds towards the resolution that pay, promotion, and termination decisions must be unequivocally tied to values. A stellar performer who undermines integrity, for example, must be addressed, as their actions can erode the very foundation of the organization. Variable pay, applied broadly, and recognition, even a simple handwritten note, become powerful tools for reinforcing desired behaviors and creating a sense of shared purpose. Ultimately, Rhoades and Shepherdson present a compelling case for a creative, flexible approach to benefits, one that acknowledges individual needs and reflects core values, thereby building profound loyalty and a sustainable competitive advantage rooted in people.
ASTONISH YOUR EMPLOYEES
Ann Rhoades and Nancy Shepherdson, in 'Built on Values,' reveal that true culture change, the kind that astonishes employees and fuels high performance, doesn't trickle down—it must radiate from the very top. The authors explain that leaders cannot simply decree values into existence or cherry-pick successful practices from admired companies; genuine transformation begins with leaders embodying the values themselves, becoming living blueprints for the desired behaviors. This isn't about mere demonstration, but about deeply integrated action. For instance, if 'caring' is a value, leaders must genuinely care for their people, understanding that employees who feel cared for are far more likely to extend that care to customers. The narrative unfolds like a documentary, showcasing how leaders like Herb Kelleher at Southwest Airlines, famously donning an Elvis jumpsuit or attending baby showers in curlers, made 'fun' a palpable part of the work culture, or how JetBlue's CEOs, David Neeleman and Dave Barger, personally called every passenger after a near-disaster, demonstrating 'caring,' 'safety,' and 'passion' not just in words but in profound action. This personal commitment extends to creating tangible support systems, such as JetBlue's Crewmember Crisis Fund, seeded by executive salaries, reinforcing the value of caring at a profound human level. The core insight here is that employees are keenly observant; they watch every move in the C-suite, and leader actions, especially during challenging times, speak volumes louder than any pronouncement. This leads to the crucial principle of *visibility and availability*: leaders must be accessible, dedicating significant time—like Dave Barger's legendary 50% of his workday—to connect with employees on the ground, listening in 'pocket sessions' and understanding that genuine interaction, not just conference calls, builds trust and unearths invaluable insights, such as JetBlue's direct flight to Las Vegas idea originating from frontline staff. The authors stress that making feedback easy is paramount, advocating for systems that acknowledge ideas within seven days and provide clear responses, fostering a sense of value and partnership. Storytelling emerges as a powerful tool; leaders must share personal anecdotes of living the values, weaving them into the company's folklore, turning abstract principles into relatable narratives. This means leaders must hold themselves accountable, mapping every contemplated action against the company's values, and setting aside ego, as Peter Drucker famously noted that effective leaders think 'we,' not 'I.' The smallest actions, too, carry immense weight—from executives taking pay cuts first during tough times to having a sense of fun about oneself, demonstrating humility and approachability. This constant, conscious effort to 'live the values you want people to emulate' is what builds a strong, resilient culture. Finally, the chapter emphasizes celebrating success, not just with grand gestures but through consistent, personalized recognition, like JetBlue's CEO touring with an award trophy or sending handwritten notes home, reinforcing that efforts are seen and valued. The ultimate resolution lies in understanding that leadership is not about inherent authority, but about consistent, humble action, servant leadership, and a deep commitment to reinforcing values through every interaction, ensuring that even the most valuable employees, the 'A Players,' feel seen, heard, and indispensable, thereby preventing their departure and cultivating a culture of passion and loyalty.
REINFORCE YOUR VALUES CULTURE
The authors, Ann Rhoades and Nancy Shepherdson, reveal that building a robust values culture is not a passive byproduct but an active, intentional endeavor, resting heavily on the relentless, excessive communication of those values. They explain that true integration, the kind that fosters fierce customer loyalty and boosts the bottom line, transcends mere words on paper. It requires a comprehensive communication plan, as vital as the values blueprint itself, developed by a dedicated Values Team in concert with corporate communications and marketing professionals. This communication must flow in all directions—top-down, bottom-up, and even 'backwards'—employing creative methods to embed values into the very fabric of the organization, transforming them from abstract ideals into lived reality. The narrative highlights a crucial insight: companies with the most comprehensive communication efforts see significantly higher returns, a testament to the power of consistent, multi-channel messaging, especially in times of change and with diverse, dispersed audiences. This approach shifts the paradigm of corporate communication from mere information transmittal to creating a desire to exceed customer expectations, a process that is as strong from the bottom up as it is from the top down. Executives, while initiating ideas, must empower employees and frontline supervisors to select or create communication methods that resonate locally, fostering an environment where giving customers the benefit of the doubt, even when a gift certificate looks 'a little funny,' becomes second nature. This is the essence of a high-touch culture, one that breathes with more buzz internally and externally than one might initially deem necessary. The authors emphasize that once you believe you are communicating enough, it's time to triple your effort, for people forget, habits resurface, and new employees join, requiring constant reinforcement, particularly with mid-level supervisors who can become an organizational Achilles' heel. To avoid rampant rumors and silo building, leaders must ensure transparency and actively feed opinion leaders with better information, making values a regular part of every meeting, celebrating 'values stars' swiftly and visibly, and ensuring that communications, whether internal or external, are vetted for adherence to the brand. This strategic communication plan, interwoven with a values rebranding effort, must be carefully calibrated to the organization's personality, whether through a gradual rollout or a 'big bang' approach, always remembering that the values are the brand, and consistency in language and presentation is paramount. The authors also stress the importance of giving frontline employees the authority to act on values, empowering them to rectify situations and provide exceptional service, thereby reinforcing the company's commitment. This often involves providing a budget for small gestures of apology or appreciation, tracked meticulously to ensure accountability while fostering a culture of trust, a critical 'trust imperative' in today's market. Ultimately, the journey from awareness to integration requires a constant, almost obsessive, focus on communication, listening, observing, and asking—repeatedly—what customers and employees truly need, ensuring that the organization not only communicates what it's about but truly embodies it, creating a sustainable competitive edge.
CONTINUOUS DISCIPLINE
The authors, Ann Rhoades and Nancy Shepherdson, illuminate a crucial truth in 'Built on Values': cultivating a thriving organizational culture is not a destination, but a perpetual journey. Companies like JetBlue and Southwest, they explain, haven't achieved enduring success by accident; they've embraced 'continuous discipline' as the bedrock of their values-driven approach. This isn't about reaching a perfect state, but about maintaining vigilant oversight, regularly revisiting progress, and fostering an intentional plan for ongoing improvement, because as they reveal, culture maintenance is as vital as culture creation. The minute an organization becomes complacent, blinded by past successes, it risks overlooking systemic flaws. Rhoades and Shepherdson emphasize that people perform what is expected and inspected, underscoring the need to deliberately reward behaviors aligned with core values, especially for 'A Players' who require evolving challenges to remain engaged. Consider JetBlue's annual pursuit of the J.D. Powers customer service award, not just to win, but to continuously improve their score, demonstrating how 'good is no longer good enough.' During economic downturns, these companies didn't just cut costs; they innovated, like P.F. Chang's offering a lower-cost prix fixe menu, a testament to values-informed strategy that prioritizes customer experience over simple price hikes. The chapter acknowledges the initial difficulty of embedding values, often met with skepticism, but stresses leadership's role in establishing this as a 'new way of life.' Significant cultural shifts, they note, typically unfold over six months or more, and celebrating incremental successes becomes a powerful tool for sustained commitment. Integrating values into hiring, performance reviews, and reward systems, starting with customer-facing roles, creates a powerful, self-reinforcing cycle. This consistent application helps weed out those resistant to the new culture and clarifies the path forward. The authors delve into the practicalities of identifying and addressing 'blockages' – for instance, if turnover rates aren't falling, it signals a need to inspect the interviewing process for adherence to values-based hiring. They highlight that even seasoned managers may fall back into old habits, necessitating ongoing training and reinforcement, and that defining specific attributes for each role, rather than a generic approach, leads to better hires. Loma Linda University Medical Center serves as an example of deep integration, with a dedicated Mission and Culture department, though even they recognized the multi-year timeline for full implementation. The core recommendation is an annual review of the Values Blueprint, involving checklists, gap analysis, and setting both incremental and stretch goals, integrated into the budget cycle to ensure necessary resources. This review must be objective, confronting reality head-on, and identifying achievements to celebrate. Rhoades and Shepherdson then lay out six critical action steps: evaluating the penetration of values into people processes, ensuring operational metrics support values, reviewing performance expectations and rewards, examining C-suite execution, aligning with third-party vendors, and actively seeking both objective and subjective feedback from customers and employees. They propose that the Values Blueprint itself is a living document, subject to revision as reality evolves. Finally, the chapter pivots to strategic leadership development and succession planning, arguing that nurturing leaders steeped in the organization's values is paramount for long-term cultural vitality. This involves opening development programs to all potential 'A Players,' regardless of their current role, and embedding values at the 'cellular level' of all training. Effective communication, decision-making based on values, and a willingness to show vulnerability are crucial leadership attributes. The authors conclude by painting a picture of a truly values-driven organization: one where decision-making is simplified, the best people are attracted and retained, customers are delighted, and work itself becomes profoundly satisfying, transforming the daily experience into a narrative where everyone can be a hero in their own story, actively challenging the status quo.
Conclusion
“Built on Values” by Ann Rhoades and Nancy Shepherdson powerfully underscores that a high-performing organizational culture is not a happy accident but a meticulously designed ecosystem. The core takeaway is that clearly defined and consistently lived values are not merely aspirational ideals but a potent competitive advantage, directly influencing employee commitment, customer loyalty, and ultimately, profitability. The authors emphasize a profound shift from simply stating values to actively embedding them into the very DNA of an organization, particularly through strategic hiring and performance management systems. The emotional lessons resonate deeply: the book highlights the human desire for purpose and belonging in the workplace. When leaders genuinely model servant leadership, demonstrate personal sacrifice, and create an environment where employees feel heard and valued, a powerful sense of pride and engagement flourishes. Conversely, imposing values or failing to address the 'is state' of the current culture breeds cynicism and undermines any attempt at genuine transformation. The emotional intelligence required from leaders lies in their willingness to be vulnerable, transparent, and accountable, fostering trust rather than demanding compliance. Practically, the book offers a robust framework for cultivating this values-driven environment. The concept of a 'Values Blueprint,' developed collaboratively through a 'Values Workout,' serves as a critical decision-making tool, translating abstract principles into observable, assessable behaviors. The emphasis on hiring 'A Players'—individuals who embody values alongside talent—is presented as the most critical strategic responsibility, transforming hiring from a gamble into a repeatable system for long-term strength. Furthermore, the book champions the power of continuous reinforcement through excessive, multidirectional communication, gamification, non-monetary rewards, and empowering frontline employees. Metrics are vital, but they must be simple, accessible, and directly linked to work and values. Ultimately, 'Built on Values' provides a compelling roadmap, illustrating that sustained success is achieved through the continuous, disciplined maintenance of a culture where values are not just spoken, but lived and breathed by every member of the organization.
Key Takeaways
A high-performing culture is intentionally designed through leader modeling and reinforcing systems, not by accident or willpower.
Clearly defined and lived values are a competitive advantage, directly impacting employee commitment, customer loyalty, and overall organizational performance.
Organizational success hinges on aligning employee behaviors with core values, necessitating a shift from merely stating values to embedding them in every process, especially hiring and performance management.
Leadership actions, particularly those demonstrating servant leadership and personal sacrifice, profoundly shape employee perception and organizational culture.
Hiring for cultural fit, alongside talent, is crucial; values-based interviewing techniques are essential to identify candidates who will thrive and contribute to the desired culture.
A 'circle of excellence' is created when inspiring values are consistently linked to observable behaviors, rewarded through appraisal and recognition systems, leading to self-sustaining high performance.
An organization's true culture and values develop organically and actively influence business outcomes, regardless of whether they are formally defined or acknowledged by leadership.
Formal values are ignored if they don't align with the existing, lived culture; employees instinctively understand and operate by the unwritten rules, making the 'is state' assessment crucial before any change.
Effective organizational values are simple, memorable (ideally 5-7), and serve as a consistent guide for decision-making, leading to behaviors that align almost automatically with the company's ethos.
Measuring the current culture ('is state') requires objective, multi-source data (surveys, interviews, existing data) and must overcome leaders' natural tendency to resist uncomfortable truths.
Transparency and clear communication about the purpose and process of culture assessment are vital for building trust and gaining employee buy-in for potential changes.
Leaders' role in culture change is to create an environment where desired values can flourish, rather than dictating values, as authentic culture emerges from consistent behaviors driven by deeply held principles.
Company culture transformation fails when values are imposed; genuine change arises from company-wide agreement on core values and their associated behaviors, creating a resilient organizational foundation.
A concise, clearly defined 'Values Blueprint' that links inspiring values to specific, observable behaviors serves as a critical decision-making tool for all employees, guiding actions and fostering accountability.
The creation of a 'Values Blueprint' is best achieved through an inclusive 'Values Workout' involving a credible 'Values Team' composed of 'A Players' from all organizational levels, ensuring relevance and buy-in.
Effective values are not vague or generic; they are specific, observable, assessable, trainable, and hireable behaviors that directly guide daily operations and strategic decisions.
Senior leadership commitment and active participation are non-negotiable for the successful implementation of new values, as their actions—or inactions—can either breed cynicism or inspire genuine adoption.
A phased, well-communicated implementation plan is essential to embed the Values Blueprint into the organization's DNA, ensuring that values permeate hiring, performance management, and daily operations.
Hiring 'A Players,' defined by their consistent embodiment of company values rather than mere skill, is the most critical strategic responsibility for organizational success, directly impacting performance and customer experience.
The pervasive practice of hiring 'C Players' to fill immediate needs creates long-term organizational weakness and must be consciously resisted, even at the cost of delayed staffing.
Behavior-based interviewing, which elicits specific past actions demonstrating alignment with core values, is a more effective predictor of future performance than traditional, unstructured interviews.
Implementing a values-based hiring system requires top-down commitment and a strategic shift from an HR function to a core business imperative, involving peer interviewers to ensure authenticity.
By systematically identifying and hiring individuals who mirror the company's values, organizations can cultivate a culture of excellence, leading to reduced turnover, enhanced customer loyalty, and significant financial benefits.
The process of hiring A Players is a deliberate, repeatable system that transforms hiring from a gamble into a strategic advantage, ensuring long-term organizational strength and sustainability.
Employees are intrinsically motivated to contribute to a high-spirit culture, but this motivation is unlocked only when their efforts are directly linked to tangible organizational success through clear, value-based metrics.
The effectiveness of metrics hinges on their simplicity and accessibility; 'dashboard metrics' that are directly related to work, easy to understand, and sensitive to employee effort are far more impactful than complex spreadsheets.
Fostering a culture of continuous improvement requires transparently tracking errors and rewarding honest reporting and problem-solving, rather than solely focusing on minimizing reported errors, to drive genuine solutions.
Gamification and non-monetary rewards can significantly boost employee engagement and reinforce desired behaviors by making progress fun, visible, and celebratory, thereby aligning individual actions with team and organizational goals.
Empowering frontline employees with decision-making authority, particularly in customer service, not only enhances customer satisfaction but also builds trust and fosters a sense of ownership, leading to long-term business benefits.
Onboarding is a critical opportunity to instill values and explain metrics, leveraging leaders' personal stories and clear explanations to ensure new hires understand their role in driving organizational success from day one.
Shifting from gut-feeling decisions to evidence-based decision-making, guided by accessible metrics, democratizes understanding of business performance and strengthens organizational accountability and trust.
Employee retention hinges on genuine engagement and alignment with organizational values, not just compensation, necessitating a personalized rewards strategy.
Organizations must actively audit and re-align their total rewards systems (compensation, benefits, recognition) to ensure they reinforce desired values-based behaviors, not just performance outcomes.
Implementing multi-rater peer reviews is crucial for objective assessment of values alignment, enhancing fairness and providing actionable feedback that drives development.
Flexible and creative benefits, tailored to individual needs and core values, can be a powerful, cost-effective tool for building deep employee loyalty and a competitive advantage.
Pay, promotion, and termination decisions must be unequivocally tied to demonstrated values to signal their true importance and maintain cultural integrity.
Leaders must personally embody organizational values through consistent actions, not just words, to inspire genuine culture change from the top down.
Visible and consistent personal engagement with employees, dedicating significant time to listening and understanding their realities, is critical for building trust and uncovering innovation.
Establishing accessible systems for employee feedback, coupled with timely and transparent responses, demonstrates respect and makes employees feel vital to the organization's success.
Storytelling is a powerful leadership tool for embedding values into company folklore, making abstract principles relatable and reinforcing desired behaviors through personal narratives.
Leaders must model humility and fairness by holding themselves accountable to the same values and standards as all employees, especially during difficult times, to foster authenticity and prevent cynicism.
Celebrating successes, both large and small, through personalized recognition and consistent communication, reinforces the impact of employees' efforts and strengthens the connection to company values.
Excessive and multidirectional communication of organizational values is the bedrock of a strong culture, driving customer loyalty and financial success far beyond passive messaging.
A comprehensive values communication plan, developed collaboratively and integrated into all aspects of the business, is as critical as the values themselves for successful culture change.
Empowering frontline employees with the authority to act on values, even in rectifying errors or offering special service, is essential for demonstrating genuine commitment and fostering trust.
Values rebranding is a continuous process that requires consistent language and presentation across all internal and external communications, solidifying the organization's identity.
Anticipating and actively managing resistance through employee involvement, creative storytelling, and regular reinforcement is key to embedding values and preventing their misuse.
Listening to both customers and employees, and acting upon their feedback, is a critical component of effective values communication, demonstrating genuine care and driving continuous improvement.
The 'trust imperative' in customer relationships is built on transparency and the ability to communicate values effectively, especially during times of crisis or service breakdowns.
Organizational culture requires continuous, disciplined maintenance rather than a one-time implementation to remain vibrant and effective over time.
People perform what is expected and inspected, necessitating deliberate reward systems that reinforce desired values-based behaviors, especially for high performers.
Identifying and addressing 'blockages' in values integration, such as flawed interviewing processes or management backsliding, is critical for sustained cultural integrity.
An annual, objective review of the Values Blueprint, including people processes, operational metrics, performance systems, and leadership execution, is essential for continuous improvement.
Strategic leadership development and succession planning, deeply embedding organizational values in emerging leaders, are vital for ensuring long-term cultural vitality.
A values-driven organization fosters a more fulfilling work environment, simplifies decision-making, attracts and retains talent, and delights customers, leading to sustainable success.
Action Plan
Identify and clearly articulate the core values that align with your company's mission and competitive landscape.
Assess the current state of your organizational culture by gathering feedback from employees at all levels.
Develop a 'Values Blueprint' that translates core values into specific, observable behaviors.
Integrate values into the hiring process by designing interview questions that assess behavioral alignment and cultural fit.
Train managers on values-based leadership and selection techniques.
Implement performance appraisal systems that weigh living the values as heavily as achieving job-specific goals.
Establish recognition programs that acknowledge and reward employees for demonstrating desired values and behaviors.
Leaders must consistently model the espoused values through their own actions and communication.
Communicate transparently to all employees that a journey to refine company values and improve the workplace is beginning, explaining the necessity with examples.
Form a diverse assessment team comprising individuals from all organizational levels to design and oversee the culture assessment process.
Gather and analyze existing employee and customer satisfaction surveys, as well as exit interview data, to identify recurring themes and initial value gaps.
Create and administer a concise, anonymous survey (max 25 questions) designed to assess how well stated values are currently lived and identify barriers to their implementation.
Conduct targeted one-on-one interviews and focus groups, ensuring psychological safety, to delve deeper into themes identified by surveys and uncover 'why' issues.
Systematically analyze all collected data, looking for key words, trends, and themes, and compile these findings into a SWOT analysis.
Publish the assessment findings, both positive and negative, to demonstrate transparency and establish a baseline for future culture change initiatives.
Initiate a senior management discussion to assess current values, ensuring they can be translated into concrete behaviors.
Form a diverse 'Values Team' comprising 'A Players' from all organizational levels, ensuring peer respect and broad representation.
Conduct an intensive, offsite 'Values Workout' session to define 5-7 core values and their specific, observable, and measurable associated behaviors.
Publish a draft of the Values Blueprint to the broader organization for feedback, fostering buy-in and identifying potential gaps.
Finalize and professionally publish the Values Blueprint, making it easily accessible and understandable to all employees.
Develop and execute a comprehensive communication and implementation plan, led by senior executives, to integrate the values into daily operations, hiring, and performance management.
Implement a phased rollout strategy for the Values Blueprint, allowing departments to learn from each other and ensuring thorough integration over a defined timeline.
Define and clearly articulate your company's core values and the specific behaviors associated with them.
Establish a Values Hiring Team to identify the key attributes of critical positions within your organization.
Develop structured, behavior-based interview guides that prompt candidates to share specific past experiences related to your company's values.
Implement a peer interviewing process where existing A Players interview candidates for roles they understand intimately.
Train all interviewers rigorously on behavior-based evaluation techniques, focusing on objective assessment rather than gut feelings.
Communicate the new values-based hiring process widely throughout the organization, emphasizing its strategic importance and benefits.
Be prepared to pass on candidates who do not align with your values, even if it means delaying filling a position, to ensure long-term organizational health.
Identify 2-3 core values and translate them into simple, measurable behaviors that can be tracked.
Develop an 'Organization Dashboard' with a limited set of 2-3 key metrics that are easily understandable and directly influenced by employee actions.
Collaborate with frontline employees to create 'team scorecards' that break down organizational goals into manageable, time-sensitive targets.
Implement a system for honest error tracking that rewards problem identification and solution implementation, rather than just error reduction.
Design and launch short-term, fun 'games' with non-monetary rewards to reinforce desired behaviors and celebrate achievements.
Empower frontline employees with greater decision-making authority in customer-facing situations to resolve issues promptly.
Revamp onboarding processes to include personal stories from leadership, clear explanations of values, and how metrics connect to individual roles.
Encourage leaders to prioritize evidence-based decision-making, using accessible metrics to guide choices rather than relying solely on intuition.
Conduct a thorough audit of your current total rewards programs, mapping them against your organization's Values Blueprint to identify and address behavioral gaps.
Integrate a multi-rater peer review system into performance evaluations, ensuring peers are selected based on observable interactions rather than personal relationships.
Gather direct feedback from your 'A Players' and a diverse cross-section of employees to understand their perceived value of current benefits and their desires for new ones.
Review and revise compensation, promotion, and termination policies to explicitly include demonstrated values as a key criterion alongside performance metrics.
Develop and implement values-based recognition programs, ranging from simple acknowledgments to formal awards, to reinforce desired behaviors.
Explore and implement creative, flexible benefit options that cater to individual employee needs and reinforce the value placed on people, as outlined in the Values Blueprint.
Communicate the true value of total rewards through clear, accessible statements that include compensation, variable pay, and all benefits, potentially translated for diverse workforces.
Identify and consistently model your organization's core values through personal actions in all interactions.
Schedule regular, dedicated time for informal 'rounds' or 'pocket sessions' to connect directly with employees at all levels.
Establish a simple, responsive system for employees to submit ideas and ensure timely follow-up and transparent communication on their disposition.
Actively collect and share personal stories of leaders and employees living the company's values to reinforce culture.
Hold yourself and other leaders accountable to the same behavioral standards expected of all employees, ensuring fairness and consistency.
Implement consistent, personalized recognition for employees who demonstrate value-aligned behaviors, even when observed remotely.
Prioritize retaining 'A Players' by actively engaging with employees considering resignation to understand and address their concerns.
Develop a comprehensive Values Communication Plan that outlines methods, timelines, budgets, and responsibilities.
Create a set of clear, concise key messages that link core values to the organization's mission, vision, and practical processes.
Secure explicit commitment from senior leadership and the board to champion and embody the stated values.
Cascade values communication throughout all operational levels, ensuring leaders model desired behaviors and integrate values into policies.
Actively involve employees in communication planning and implementation, encouraging them to share their stories and become 'values ambassadors'.
Integrate values into regular meeting agendas, celebrating employees who exemplify them through both informal and formal recognition.
Leverage marketing and PR efforts to consistently communicate values externally and internally, ensuring they are reflected in all brand touchpoints and crisis response plans.
Empower frontline employees with the authority and resources to address customer issues and provide exceptional service, fostering a culture of trust and proactive problem-solving.
Implement systematic methods for soliciting feedback from both customers and employees, and demonstrate that this feedback is heard and acted upon.
Establish an annual review process for your organization's Values Blueprint, involving a gap analysis and setting clear goals for continuous improvement.
Implement or refine behavior-based interviewing techniques to ensure new hires align with core organizational values.
Regularly inspect and reinforce performance expectations, appraisals, and reward systems to ensure they directly support and recognize values-based behaviors.
Conduct an annual review of C-suite executives' commitment and execution of core values, potentially linking compensation to values-based performance.
Evaluate relationships with contractors, consultants, and third-party vendors to ensure their values align with your organization's.
Develop a formalized system for gathering ongoing feedback from both customers and employees regarding values implementation and identifying areas for improvement.
Invest in strategic leadership development programs that explicitly focus on embedding and teaching organizational values to aspiring leaders.
Designate and mentor successors for key leadership roles, ensuring they are deeply immersed in and committed to the organization's values.