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How Values Shape Behavior and Decision-Making Across People and Things: A Two-Dimensional Framework

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How Values Shape Behavior and Decision-Making Across People and Things: A Two-Dimensional Framework

Values are at the heart of every organization’s culture and strategy, influencing everything from personal behaviours to tactical decisions. At ViDA, we work with organizations to ensure their values are clearly defined and consistently applied. Well-articulated values impact both people (how we interact and treat one another) and things (how decisions are made and resources are allocated). This dual application creates a cohesive culture that aligns with strategic goals.

Our strategic alignment framework, illustrated in the diagram, captures this two-dimensional approach. It highlights how values influence both human behavior and organizational processes across four quadrants: Relational (Human), Self, Tactical (Task), and Team.

The Four Quadrants: Values for Strategic Alignment

The framework divides values into two dimensions:

  • Personal (Self/Team): These quadrants relate to individual and group behaviours.
  • Organizational (Relational/Tactical): These quadrants focus on decision-making and task execution.

Together, they show how values operate across an organization's people and things sides. Let’s explore each quadrant with real-world examples and actionable insights to bring the framework to life.

Values Applied to People (Cultural Principles)

Values shape how individuals and groups interact, guiding behaviours and setting cultural expectations. This dimension includes:

  • Relational (Human):
    This quadrant focuses on shared norms and group dynamics—how teams collaborate, solve problems, and foster belonging. For example:
    • Real-World Example: Google fosters a culture of psychological safety, where inclusivity and respect allow teams to speak openly without fear of judgment. This value-driven approach enhances collaboration and innovation.
    • Application: A value like respect could be applied to meeting structures, ensuring every voice is heard and feedback is delivered constructively.
  • Self:
    This quadrant reflects how individuals align with organizational values in their behaviour and decisions. For example:
    • Real-World Example: Patagonia encourages employees to align their personal values with the company’s environmental mission, empowering them to take part in sustainability initiatives like activism and eco-friendly practices.
    • Application: A value like accountability might inspire employees to set clear goals, hold themselves to high standards, and seek out opportunities for growth.

These cultural principles create the moral code of an organization, defining the standards of behaviour and communication that ensure cohesive teamwork and healthy interpersonal dynamics.

Values Applied to Things (Strategic Principles)

On the operational side, values guide decisions, resource allocation, and strategy execution. These are the Strategic Principles that align values with organizational priorities.

  • Tactical (Task):
    This quadrant governs the technical side of work—how tasks are prioritized, resources are distributed, and strategies are implemented. For example:
    • Real-World Example: IKEA’s value of sustainability drives decisions around sourcing renewable materials and adopting eco-friendly production processes.
    • Application: A value like efficiency might guide how resources are allocated to maximize output while minimizing waste.
  • Team:
    This quadrant focuses on how values influence collective decision-making. A company valuing transparency might implement open communication practices during strategy discussions or resource allocation. For example:
    • Real-World Example: Buffer lives its value of transparency by openly sharing salary data and decision-making processes, fostering trust and alignment within the organization.
    • Application: A value like collaboration might guide how decisions are made, ensuring input from diverse stakeholders and aligning efforts toward shared goals.

By grounding decisions in values, organizations can ensure their strategies are efficient, ethical, and aligned with their broader mission.

Culture as the Connecting Thread

Culture connects these four quadrants, embedding values into both behaviors and decisions. Real change happens when values guide actions—how people interact and how work gets done. At ViDA, we emphasize that defining values is only the first step. To create alignment, values must actively inform decisions, processes, and strategies.

Visualizing the Framework:
To clarify the relationship between these quadrants, here’s a quick summary of their roles:

Actionable Steps for Implementation

The post currently explains the framework well, but adding clear, actionable steps can help organizations implement these ideas effectively. Here's how to apply the two-dimensional framework:

  1. Conduct a Values Audit:
    Evaluate how current values influence both cultural and strategic principles. Are your stated values impacting both behaviour (people) and strategy (things)?
  2. Define Measurable Outcomes:
    Link values to specific behaviours and decisions. For example:
    • If inclusivity is a value, track diverse hiring practices and engagement survey results.
    • If efficiency is a value, measure productivity against clear benchmarks.
  3. Align Performance Systems:
    Ensure that task execution and decision-making processes reflect your core values. For example:
    • A value like sustainability might drive procurement policies, while accountability could shape performance reviews.

Providing these steps encourages readers to move from understanding the framework to applying it in their organizational culture and processes.

Conclusion: Two Lines of Values

Values are the foundation for aligning culture and strategy. By applying values across the dimensions of people and things, organizations can ensure their culture reflects their beliefs while achieving their strategic goals. This two-dimensional framework ensures that values guide behaviour and decision-making at every level, creating an organization that thrives through consistency and alignment.

Whether shaping how employees treat one another (Cultural Principles) or guiding resource allocation (Strategic Principles), values are the compass that steers both culture and strategy. When these two dimensions align, the organization moves forward with clarity and purpose.