Guiding principles serve as a foundation for decision-making and behavior within organizations. They are essential for creating a high-performance workplace that is aligned with its vision and values. This article explores the steps involved in developing guiding principles, drawing insights from various sources such as Make A Dent Leadership, OnStrategy, and the Institute of Organization Development.
Key Facts
- Articulate the Values: Start by identifying the core values that you want your team or organization to operate under. These values should align with the vision and goals of the group. Most organizations identify 6-8 core values that will drive their decision-making.
- Identify Irrational Rules, Policies, & Procedures: Work with your team members to identify any rules, policies, or procedures that have a negative impact on morale or hinder the delivery of products or services. Remove or modify those that are unnecessary or irrational.
- Create Your Value Proposition: Determine the value proposition of your organization by understanding why customers do business with you and what attracts employees to work for you. Collect stories from employees and customers to identify what they appreciate about the organization, its leaders, and the culture.
- Identify Guiding Principles: Based on your value proposition, identify guiding principles that support your values. These principles should describe the experience you want to deliver to customers and employees. Keep the principles consistent with the vision and ensure they emphasize what is important to the business.
- Apply the Principles: Use the guiding principles as a framework for decision-making. Consistently ask yourself if a decision aligns with the principles and values of the organization. Consider the long-term impact on the business and how it may affect the behavior and feelings of your team members.
Remember, guiding principles should be concise and focused. Keep them to less than half a dozen statements that target a specific problem or challenge.
Step 1: Articulate Core Values
The initial step in establishing guiding principles is to articulate the core values that drive the organization. These values should be aligned with the organization’s vision and goals. Typically, organizations identify 6-8 core values that guide their decision-making processes.
Step 2: Identify Irrational Rules and Obstacles
Organizations should work with their team members to identify any rules, policies, or procedures that negatively impact morale or hinder the delivery of products or services. These irrational elements should be removed or modified to create a more efficient and positive work environment.
Step 3: Create a Value Proposition
Understanding the organization’s value proposition is crucial. This involves determining why customers choose to do business with the organization and what attracts employees to work there. Gathering stories from employees and customers can provide valuable insights into what they appreciate about the organization, its leaders, and its culture.
Step 4: Develop Guiding Principles
Based on the value proposition, organizations can identify guiding principles that support their core values. These principles should describe the desired experience for customers and employees. They should be consistent with the vision and emphasize what is essential to the business.
Step 5: Apply the Principles
Guiding principles should be used as a framework for decision-making. Leaders should consistently ask themselves if a decision aligns with the principles and values of the organization. They should also consider the long-term impact on the business and how it may affect the behavior and feelings of team members.
Conclusion
Guiding principles are essential for creating a high-performance workplace that is aligned with its vision and values. By following the steps outlined in this article, organizations can develop guiding principles that support their decision-making processes and drive organizational success.
References
- Make A Dent Leadership. (2023). Four Steps to Creating Guiding Principles in Your Team. Retrieved from https://www.makeadentleadership.com/four-steps-to-creating-principles/
- OnStrategy. (2021). How to Develop Guiding Principles. Retrieved from https://onstrategyhq.com/resources/how-to-develop-guiding-principles/
- Zentis, N. (2018). Key to Developing Guiding Principles. Retrieved from https://instituteod.com/key-developing-guiding-principles/
FAQs
What are guiding principles?
Guiding principles are concise statements that articulate the core values and beliefs of an organization. They provide a framework for decision-making and behavior, ensuring alignment with the organization’s vision and mission.
Why are guiding principles important?
Guiding principles are important because they:
- Create a shared understanding of the organization’s values and priorities.
- Guide decision-making and behavior, ensuring consistency and alignment.
- Foster a positive and productive work culture.
- Attract and retain talented employees who resonate with the organization’s values.
How do you establish guiding principles?
Establishing guiding principles typically involves the following steps:
- Articulate core values.
- Identify irrational rules and obstacles.
- Create a value proposition.
- Develop guiding principles.
- Apply the principles.
What are some examples of guiding principles?
Examples of guiding principles include:
- Customer-centricity: We put the customer at the heart of everything we do.
- Innovation: We foster a culture of creativity and continuous improvement.
- Integrity: We act with honesty and transparency in all our dealings.
- Teamwork: We value collaboration and teamwork to achieve common goals.
- Sustainability: We are committed to operating in an environmentally and socially responsible manner.
How do you communicate guiding principles to employees?
Communicating guiding principles to employees is essential for ensuring understanding and buy-in. This can be done through various channels, such as:
- Town hall meetings and presentations.
- Company newsletters and intranet.
- Training and onboarding programs.
- Performance evaluations and feedback.
- Recognition and rewards programs.
How do you ensure that guiding principles are followed?
Ensuring that guiding principles are followed requires a commitment from leadership and a supportive organizational culture. This can be achieved by:
- Leading by example and demonstrating the principles in daily actions.
- Incorporating the principles into decision-making processes and performance evaluations.
- Creating a culture of accountability and transparency.
- Providing ongoing training and reinforcement of the principles.
How do you review and update guiding principles?
Guiding principles should be reviewed and updated periodically to ensure that they remain relevant and aligned with the organization’s evolving vision and goals. This can be done through a formal review process, involving feedback from employees, customers, and other stakeholders.