In strategy consulting, we regularly encounter companies that devote considerable energy to developing their vision or launching major transformation projects – without first answering a fundamental question: what do we actually stand for?

It sounds obvious, yet in practice the answer is often inadequate. Corporate values receive little attention in many organisations, even though they provide the foundation for any strategic development.

Values serve as a compass, never as decoration

Many leaders regard values as a soft, almost esoteric subject – a pleasant statement for the careers page, ticked off and forgotten. Yet this approach is a mistake with far-reaching consequences.

Clearly defined values that are genuinely put into practice provide direction in an increasingly complex and dynamic environment. They bring clarity to decisions, offer stability during necessary change and shape the culture of leadership, collaboration and customer relationships. Corporate values therefore serve as a strategic compass for everything the organisation does. At a time when employees seek purpose and principles, and customers reward authenticity, they are a crucial source of differentiation.

Why the effort pays off: the strategic benefits of putting values into practice

The true influence of values becomes apparent in their practical application. They are the DNA of your organisation and can drive transformation in several areas:

Faster decisions and greater confidence to act: In an increasingly complex world, values provide a clear frame of reference. Teams can make decisions independently that align with those values, without constantly referring matters to senior management.
Attracting and retaining talent: Generations Y and Z seek more than a pay cheque. Authentic values act as a magnet, attracting employees who bring both the right qualifications and cultural alignment. This reduces employee turnover, increases engagement and makes your company an employer of choice.
Building trust and managing reputation: Internally, values put into practice create a sense of security and fairness. Externally, this authenticity becomes a powerful brand asset. Customers and partners value companies that deliver on their promises through both their products and behaviour consistent with their values.

Three crucial questions should therefore be asked at the beginning of any strategy development process:

What do we really stand for?
How are our values expressed in everyday practice?
What do our shared values mean for our approach to leadership and customer relationships?

Answering these questions honestly – including acknowledging any contradictions with the current situation – lays the foundation for credible strategy development. Only genuine, enduring values can support a mission and vision that can take root within the company.

Values must be put into practice – not simply written down

Defining values is only the first step. What matters is communicating them and making them tangible in everyday work: in how people lead, how customers and partners are treated, how achievements are assessed and celebrated, and how conflicts are resolved. This starts with senior management and requires values to be translated consistently into attitudes and behaviour.

However, nothing is more damaging than a gap between stated values and reality. If a company promotes “innovation” but penalises the mistakes that inevitably accompany it, employees will become demotivated, while external trust in the company and its brand will suffer.

Practical implementation: from paper to organisational DNA

Co-creation rather than a top-down approach: Values emerge through dialogue with employees at every level. What truly defines us? What are we proud of? What motivates us?
Make values tangible through behavioural examples: Values such as “team spirit” must translate into observable actions: “We share knowledge proactively” or “We support colleagues without being asked”.
Integrate values into processes: Embed values in recruitment, onboarding, performance reviews and development programmes.
Lead by example: Leaders must demonstrate values every day. Reward behaviour that reflects those values, even when results occasionally fall short.

Corporate values are more than a simple communication exercise. They are an ongoing leadership responsibility and the foundation for action. Defining and implementing them takes time – time for dialogue across the organisation.