A report of a research study conducted by Leeds Beckett University and the Worshipful Company of Chartered Secretaries and Administrators, the City of London Livery Company for Governance Professionals.
The report
examines how organisational values impact governance practices across various sectors, including education, finance, and public services. It stresses that good governance is not merely about adhering to compliance codes but about deeply embedding values into organisational culture and daily operations. The research, which involved 13 organisations from diverse sectors, identified key themes across three categories: communication, behaviors, and context.
Summary of Key Ideas:
- Communication: Clear and visible communication of organisational values is crucial for their successful embedding. This includes using succinct values statements, codes of conduct, and behaviors that staff are expected to embody.
- Behaviors: Organisational values must be actively lived through behaviors, particularly in leadership, governance practices, and human resource management. Ensuring that these behaviors are reflected in performance management and staff recruitment processes is essential for embedding values.
- Context: Organisational history, risk management, and the impact of global events like the Covid-19 pandemic were highlighted as factors influencing the enactment of values. Generational differences in how values are perceived and enacted were also noted, with younger employees expecting greater flexibility and alignment between personal and organisational values.
New Ideas Raised in the Report:
1. Values as a "Living" Element of Governance: The report argues that values should be "lived and breathed" within organisations, not merely presented as abstract ideals. This goes beyond typical discussions of governance, which often focus on compliance rather than culture.
2. Link Between History and Current Values: The research suggests that organisational history plays a pivotal role in shaping current values. For example, some organisations continued to be influenced by their foundational culture, which persisted even as they evolved. This dynamic relationship between historical and contemporary values is less frequently addressed in governance discussions.
3. Value Cascading and Dilution: The study highlights the difficulty of ensuring that values cascade effectively from top leadership to front-line staff. It found that in some sectors, including education, values became diluted as they were passed down through layers of management, suggesting a need for greater focus on value transmission at all levels of the organisation.
4. Generational Differences in Value Perception: The report points to significant differences in how various generations (particularly Millennials and Gen Z) perceive and engage with organisational values. Younger generations tend to prioritise work-life balance, flexibility, and authenticity, which are not always reflected in organisational values. This generational gap in value alignment is an area that could be explored further in governance research.
5. Incorporating Values into Risk Management: Particularly in financial sectors, the report found that values are often integrated into risk management processes, but this connection was not widely recognised in other sectors. This presents an opportunity to explore how values can be leveraged for proactive risk management in other areas of business.
6. Impact of Hybrid Working on Values Enactment: The shift to hybrid working due to the Covid-19 pandemic raised questions about how organisational values can be maintained in remote or hybrid work environments. This has not been a central focus in traditional governance literature but is becoming increasingly relevant in the modern workplace.
These new ideas challenge traditional views on governance by suggesting that the role of values goes beyond compliance and should be a central part of organisational strategy, culture, and risk management. The report calls for a more holistic approach to governance that recognises the dynamic and living nature of values, especially in the context of changing work environments and generational expectations.