Most people assume that values are an either/or issue: Good people have them and bad people don’t. Yet recent brain research shows that all people probably have blind spots. For example, research on “bounded ethicality” shows that otherwise good people routinely contradict their own values in ways they may not realize at the time. Through small, unconscious, often rushed decisions, people may do or say something that doesn’t fit who they mean to be — and then move on so quickly they aren’t even aware of it.

How can leaders apply the concept of bounded ethicality to help them truly live their values and shape their company’s culture for the better? I would start with three priorities.

1. Adopt a growth mind-set to living your personal and corporate values. We should define a good person as someone who continuously grows and improves. This ensures their identities are not threatened by minor lapses.

2. Shift how you respond to contradictions in others. We should recognize that even well-intended people often contradict their values without realizing it, so we can view an incongruence as a chance to engage. In these situations, try to find out whether the other person is interested in receiving feedback and learning.

3. Shape your company’s systems and shared habits to activate the best in people. Many leaders act on company values in interpersonal workplace interactions but fail to apply them in designing systems, work processes, and shared habits. In these instances, small “nudges” to align systems with values can have a multiplier effect on company culture.

In this post on strategy+business, Why Living Your Values Takes Work, I go into more depth on the science behind this process and how leaders can take constructive action.

At a minimum, the research suggests that living your values, and shaping a “values-in-action” company culture requires ongoing work, including discovery of what is currently working, where there are gaps, and credible steps to integrate values into action more fully. The good news is a values-in-action culture is a massive differentiator in attracting and engaging employees, attracting and retaining customers, and even responding to crises. If I can be of help on that journey, please do let me know. 

All the best,
Elizabeth Doty

Leaders who listen and engage in open dialogue with their employees gain enormous advantages. Yet, in practice, leaders sometimes hesitate to invite such dialogue, because they fear their employees’ opinions will be off-base. Rather than face a confrontation, these managers sidestep important conversations altogether.

Avoiding difficult conversations may seem easier in the short term. But over the long haul, leaders cannot achieve alignment, empowerment, or accountability without actively engaging their employees.

What leaders need, then, is a way to spark the give and take that leads to breakthrough ideas without compromising quality or outcomes.

Surprisingly, the practice of “yes, and” from the world of improv theater provides a very strong model. Kat Koppett, who leads improv-based training programs for multinational companies and has authored a book on business improv called Training to Imagine, explains, “‘Yes, and’ is a fundamental orientation toward noticing and accepting what is here in this situation, and building from there.” 

To learn more, take a look at this post on strategy + business, Using Improv to Transform How You Lead, 

And, if Leadership Momentum can be helpful in mobilizing breakthrough thinking on your team, please drop me a line!

All the best,

Elizabeth Doty

In today’s high-speed organizations, it is easy to find ourselves in situations that subtly (or not so subtly) conflict with our values — even in companies we admire. Are we really treating our employees with respect? Are we telling the whole truth to our customers? Have we “massaged” the numbers in ways that are misleading to investors?

Over the years, I have spoken with dozens of people about their experiences trying to live their values amidst the realities of organizational life. They have shared stories about compromises they later regretted, and strategies that helped them stay true to their principles and influence their organizations for the better. 

In this older post on strategy+business, Personal Ethics in the Corporate World, I summarize some findings from interviews just prior to the financial crisis of 2008. Perhaps some of the lessons will be relevant to you today. For example, one of the major surprises was that everyone needs to be aware of compromise situations, even in companies that feel like the “good guys.” (That’s how they stay the good guys!)

See what you think! And, if you would like to discuss how to apply these ideas further in your organization, please drop me a note.

All the best,

Elizabeth Doty

Most successful leaders have little difficulty saying no to a losing deal, to a project that’s wasting money, or to a request that doesn’t align with their priorities. But these same leaders can find it very uncomfortable to speak up when their concerns are less cut-and-dried or when their organization is hell-bent on pursuing a plan.

As difficult as it can be, saying no is often the key to effective leadership. Without the ability to push back when needed, you run the risk of “commitment drift” or the erosion of promises, without anyone really stopping to think about the consequences.

In this post on strategy+business, Five Moments When Saying No Is Your Best Strategy, I share several common scenarios that should raise red flags for leaders, along with some examples that highlight how saying “no” has helped business leaders advance the company’s values and long-term success.

Let me know what you think!

All the best,

Elizabeth Doty

To shape a positive culture, many leaders focus on articulating their organization’s mission and values — the why and the how they hope will inspire their teams to deliver. Unfortunately, almost every company has a values statement, and posted values show no significant correlation with business outcomes.

However, research shows that companies that live their values in practice achieve higher productivity, higher profitability, and an increased ability to attract talent compared to those that do not.

So, how do we get from “values on the wall” to “values in action”? In this post on Strategy + Business, Want to Change Corporate Culture? Focus on Actions, I provide four lessons that can help as you integrate values into action.

Tell me what you think!

All the best,

Elizabeth Doty