Research suggests that corporate executives can spend 40% of their time making decisions and that inefficient decision-making costs Fortune 500 companies $250 million in annual wages per year.[i]  Personal values play a significant role in effective corporate decision-making as they shape a leader's beliefs, priorities, and principles. When leaders align their decisions with their values, it fosters authenticity, builds trust with stakeholders, and creates a positive organizational culture. The benefits go beyond the bottom line. Here's how personal values influence corporate decision-making and how leaders can demonstrate consistency to motivate others:

1. Decision Alignment with Values: Personal values act as a compass for leaders when making critical decisions. They guide leaders to consider not only the financial bottom line but also the ethical, social, and environmental implications of their choices. When values align with decision-making, leaders are more likely to make choices that resonate with the organization's purpose and mission.

2. Authentic Leadership: Demonstrating consistency with personal values allows leaders to be more authentic. Authentic leaders inspire trust and respect from their team members and colleagues. Employees feel more connected to their leaders when they perceive them as genuine and committed to shared values.

3. Communication and Transparency: Leaders who consistently uphold their values tend to communicate openly and honestly with their team. This transparent communication helps employees understand the rationale behind decisions, even if they are challenging, leading to better buy-in and support.

4. Leading by Example: When leaders live their values, they set an example for others to follow. Team members are more likely to adopt and exhibit similar values, fostering a cohesive and purpose-driven work environment.

5. Motivating Others to Take Action: Leaders who are consistent with their values can motivate others by demonstrating passion and dedication to the organization's mission. Employees are more inspired to act when they see their leader's commitment and sense of purpose.

Impact of Inconsistent Leadership on Engagement:

When leaders are not consistent with their values, it can have detrimental effects on employee engagement and organizational culture, as demonstrated by Alex’s story.

In a tech startup, Alex was the CEO known for advocating work-life balance and valuing employee well-being. This emphasis on a healthy work environment attracted top talent and fostered a positive company culture. Employees admired Alex for being approachable, empathetic, and understanding of their personal needs.

However, a major client approached the company with a lucrative project that required extensive overtime and tight deadlines. Despite knowing the toll it would take on the team, Alex decided to accept the project, prioritizing short-term financial gains over the well-being of employees.

As the project progressed, employees felt overwhelmed and stressed due to the increased workload and extended working hours. They were disheartened to see that Alex's decision seemed inconsistent with the values of work-life balance and employee well-being that had initially attracted them to the company.

The impact on the business and employees was significant:

1. Employee Burnout and Disengagement: The relentless workload led to employee burnout, causing productivity to decline. The team's morale plummeted as they felt undervalued and overworked.

2. High Turnover: Talented employees, once committed to the company's mission, started looking for new opportunities elsewhere. The inconsistency between Alex's values and actions eroded their trust in leadership.

3. Negative Organizational Culture: The once-positive company culture became toxic, marked by distrust and disillusionment. Employees questioned the authenticity of the company's values, leading to decreased teamwork and collaboration.

4. Reputation Damage: Word spread about the harsh work conditions, tarnishing the company's reputation. Potential clients and new talent were hesitant to engage with the organization, impacting growth opportunities.

5. Lost Client Relationships: The decision to prioritize the new project over employee well-being resulted in strained relationships with existing clients who valued the company's work-life balance approach.

To address the consequences of the decision, Alex realized the need to reconcile the inconsistency between personal values and business decisions. The company eventually shifted its focus back to fostering a healthy work environment, but the damage caused by the initial decision took time to repair.

At one of my previous jobs as the Head of Tax, the company was in constant transformation. They espoused work/life balance, but the reality was the transformation work was like a second job on top of the day to day work my team had to complete. Like Alex’s employees, my team was burnt out and not trusting of the messaging from leadership. It took a lot of coaching and difficult conversations to help them stay engaged and productive.

These examples illustrate how inconsistent leadership decisions can have severe repercussions on both the business and the employees. Leaders must ensure that their actions align with their stated values to maintain trust, engagement, and a positive organizational culture.

In summary, personal values profoundly influence corporate decision-making and play a crucial role in inspiring and motivating others. Leaders who demonstrate consistency with their values foster authenticity, trust, and commitment among employees. On the other hand, inconsistent leadership can lead to decreased engagement and a negative impact on the organization's culture.

What are your personal values and how do they impact your decision making?

[i] https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-decision-making#/, McKinsey & Company, March 13, 2023