Title: Built on Values: Creating an Enviable Culture that Outperforms the Competition by Ann Rhoades

Book Summary

I. Introduction to Workplace Culture and Values

Ann Rhoades, in her book “Built on Values: Creating an Enviable Culture that Outperforms the Competition,” argues that cultivating a strong, values-driven organizational culture is essential for business success. Rhoades, with vast experience in human resources at companies like JetBlue and Southwest Airlines, draws on her background to provide a practical guide for building and sustaining a high-performance culture. The primary thesis is that embedding core values within every layer of an organization leads to enhanced performance, employee satisfaction, and customer loyalty.

Actionable Insight: Begin by assessing your organization’s current cultural state and identify gaps between espoused and actual values.

II. The Importance of Values Alignment

A. Defining Core Values
– Rhoades emphasizes that values should be co-created with input from all organizational levels, ensuring they resonate company-wide.
– Example: At JetBlue, values like safety, caring, integrity, fun, and passion were identified collaboratively.

Actionable Insight: Host workshops and surveys to gather input from employees on what values they feel are most important and representative of the organization.

B. Hiring for Values
– Rhoades highlights that hiring practices must reflect organizational values to ensure cultural fit. She provides the example of Southwest Airlines, which hires based on a candidate’s alignment with company values.
– Example: Southwest known for valuing a warrior spirit, fun-loving attitude, and servant’s heart, screens for these traits during their interviews.

Actionable Insight: Integrate questions into the interview process that assess candidates’ alignment with your core values.

III. Values-Driven Leadership

A. Leadership Commitment
– Leaders must embody and champion the organization’s values consistently.
– Example: Herb Kelleher of Southwest Airlines was known for his hands-on leadership style that exhibited the company’s value of putting employees first.

Actionable Insight: Leaders should regularly communicate and demonstrate values in their daily actions, possibly through storytelling and recognition of value-based behaviors.

B. Training and Development
– Continuous training helps employees understand and execute values. This process requires ongoing reinforcement.
– Example: At Doubletree Hotels, all employees receive training focused on the company’s values and customer service excellence.

Actionable Insight: Develop onboarding and ongoing training programs that focus explicitly on core values and their application in daily tasks.

IV. Creating Accountability

A. Performance Management
– Incorporating values into performance reviews and reward systems solidifies their importance.
– Example: JetBlue includes values assessments in their performance appraisals, ensuring employees are evaluated on both their results and how they achieve them.

Actionable Insight: Redesign performance appraisal forms to include assessments based on alignment with core values.

B. Feedback Mechanisms
– Establish channels for open communication and feedback to maintain accountability.
– Example: At the Cheesecake Factory, employees are encouraged to provide feedback on how well the company adheres to its stated values.

Actionable Insight: Create regular feedback loops, such as surveys or suggestion boxes, where employees can share their views on how well values are being upheld.

V. Values in Action

A. Empowering Employees
– Encouraging employees to take initiative by trusting them with decision-making authority aligned with the company’s values.
– Example: At Nordstrom, employees are empowered to make decisions that benefit the customer, reflecting their value of superior service.

Actionable Insight: Develop guidelines that empower employees to act in ways that reflect the company’s values, removing unnecessary bureaucratic barriers.

B. Building Community
– Foster a sense of belonging and mutual respect within the organization.
– Example: At Zappos, team-building activities and a strong emphasis on work-life balance help employees feel valued and connected.

Actionable Insight: Organize regular team-building activities and encourage practices that promote a healthy work-life balance.

VI. Measuring the Impact

A. Quantifying Cultural Success
– Rhoades suggests tracking metrics to observe the impact of a values-driven culture on performance metrics like turnover rates, employee satisfaction, and customer satisfaction.
– Example: Companies like JetBlue actively monitor Net Promoter Scores and employee engagement surveys to gauge success.

Actionable Insight: Set up a system to regularly measure key performance indicators related to both business outcomes and cultural health.

B. Continuous Improvement
– Regularly revisiting and refining values based on evolving business needs and employee feedback ensures relevance and effectiveness.
– Example: At DaVita, a healthcare provider, values are periodically reviewed and updated to stay aligned with the organization’s goals and the industry environment.

Actionable Insight: Schedule annual or biennial reviews of your core values to ensure they remain reflective of the organization’s direction and market conditions.

VII. Case Studies and Examples

A. JetBlue’s Exceptional Customer Service
– Rhoades shares how JetBlue’s commitment to its core values fostered a customer-centered culture that delivered exceptional service.
– Example: JetBlue’s ‘Blue Chip’ recognition program celebrates employees who exemplify company values by going above and beyond for customers.

B. Chick-fil-A’s Customer Loyalty
– The fast-food chain attributes its high customer loyalty to a culture centered on service and community.
– Example: Employees are trained thoroughly in the company’s values of respect and care, reflected in Chick-fil-A’s consistently high customer satisfaction ratings.

Actionable Insight: Develop recognition programs and customer service training that align with your core values to reinforce and celebrate desired behaviors.

VIII. Conclusion

In “Built on Values,” Ann Rhoades provides a comprehensive framework for building a high-performance culture rooted in clearly articulated and widely embraced values. Through numerous examples and actionable insights, she demonstrates that a values-driven approach not only enhances organizational performance but also fosters a more fulfilling work environment.

Final Actionable Insight: Consciously and deliberately embed values into every facet of your organization from policies to daily interactions, ensuring that they are not just statements on a wall but a lived experience for all members of the company.

By integrating these principles and strategies into your organization, you can create a thriving culture that stands out in the competitive landscape, just as the successful companies profiled in Rhoades’ book have done.