Clearly how well an organisation operates effects their financial performance, it is easy to link operational excellence to profits but it is harder to link values and especially those of the leadership team.
It is interesting in this article to read some figures around how much damage and indeed positive effects senior leadership values can have on organisational performance.
I mean we often hear in the news about some of the bigger CEO blunders and how they have sometimes sent some companies spiralling and also we see the success of businesses like Virgin - built on one the values of one man.
This article mentions 'integrity', a popular word when devising company values. In fact it is a Collingwood value but doing what we do, we take our values very seriously and genuinely put them at core of how we work and who we are.
Integrity is defined as the quality of being honest and having strong moral principles, so what we are talking about is trust. If you think about that it's very hard for a company to succeed for the long term if they are not trusted.
So actually leadership values aren't a 'nice to have' they are a necessity, a 'hygiene factor' and hygiene factors are the things that maybe don't promote growth or operational excellence but without them it will never happen long term.
personal integrity of the top management team plays an important role in the valuation and business operations of the firm