# The Value of Values: How HR Creates Value for Individuals, Leaders, Organizations | Capterra > Find out the value of values for organizations for all four domains of human capability in today’s world of work and how HR departments can help individuals and leaders of organizations. Source: https://www.capterra.com/resources/the-value-of-human-resources --- HR BasicsHuman Resources # The Value of Values: How HR Creates Value for Individuals, Leaders, Organizations By Dave Ulrich Dave Ulrich Dave Ulrich is the Rensis Likert Professor at the Ross School of Business, University of Michigan and a partner at The RBL Group, a consulting firm focused o... [See bio & all articles](https://www.capterra.com/resources/author/dulrich/) Published February 6, 2023 6 min read Table of Contents - [1\. Value of values for individuals](#1-value-of-values-for-individuals) - [2\. Value of values for leaders and leadership](#2-value-of-values-for-leaders-and-leadership) - [3\. Value of values for organization culture](#3-value-of-values-for-organization-culture) - [4\. Value of values for the HR department and people](#4-value-of-values-for-the-hr-department-and-people) - [Value of values and future of work](#value-of-values-and-future-of-work) ## By understanding what values mean to an organization, HR departments can embrace and advance human capability. Value and values are not the same, but when combined they are complementary. When we understand the value of values, we focus our values on the value they create for others. While values matter because they shape beliefs, beliefs embody attitudes, and attitudes determine behaviors. Defining the value of values matters for all four domains of human capability ([talent](https://www.capterra.com/talent-management-software/), leadership, organization, [HR](https://www.capterra.com/human-resource-software/)) in today’s evolving world of work. **Values** **Value** Shape behaviors and initiatives Determines the outcome of initiatives Focus inside on self (character)  Focuses outside on stakeholders (customers, investors, community) Emphasize the past Creates the future  Change through self awareness Changes through other service Are measured by their strength Is measured by impact  Define success by the giver Defines success by the receiver  As the world evolves to new realities with ongoing viruses, technological/digital innovations, social justice movements, and political upheavals, traditional values-based questions about the four domains of human capability can be better answered by considering the value of values. 1. **Individual**: How do I realize personal meaning from my work? 2. **Leadership**: How do I (or we) lead, or prepare others for leadership, in the new world of work? 3. **Organization**: How can my organization create the right culture to shape how work is done? 4. **Human resources**: What can HR (both the department and individual members) do to influence the [future of work](https://www.capterra.com/glossary/future-of-work/)? ## 1\. Value of values for individuals For individuals, values clarification is an important initial step for personal progress. In coaching, my first question is often “What do you want?” If those I coach don't know what they want, based on their values, someone else will likely define their wants, which won't always be in their best interest. The second coaching question I ask magnifies the first and represents the value of personal values: “Whom do you serve?” Without serving others, personal wants (based on values) are acted on more often in isolation and at a distance from others. This can cause loneliness, one of the fastest growing psychological threats. When individuals define their values, they can identify and then build on their strengths. ## 2\. Value of values for leaders and leadership Perhaps the simplest and most intuitive test of an effective leader is how often people leave an interaction with a leader feeling better about things. While individual leaders are wisely encouraged to demonstrate character by living their values (authenticity, emotional intelligence, credibility, trust), if their values don't create value for others, they fail to use their power to empower others. Leaders are ultimately known by the impact they have on others, and how they help others recognize and live their values. Most companies build leadership competency models based on successful leaders’ attitudes, knowledge, and behaviors. While important, too often these competency models are inside-out, determined by looking back to identify competencies of leaders based on past actions inside the company. The value of values examines leadership outside-in by starting with the brand promises made to customers looking forward. When leaders' actions reflect customer promises, leadership values create value for others through a leadership brand. ## 3\. Value of values for organization culture [Company culture](https://www.capterra.com/glossary/corporate-culture/) is receiving enormous attention, with a particular focus on how to create a culture in the new world of work.[\[1\]](#sources) Traditionally, an organization’s culture is defined as values that shape behaviors, norms, expectations, patterns, unwritten rules, and rituals inside a company. The [culture playbook](https://www.capterra.com/resources/playbook-for-company-culture-transformation/) has evolved the definition of culture to focus on the identity of an organization in the mind of its best customers, made real to every employee. The value of an organization’s culture is not just inside behaviors with employees but also increasingly the outside identity with customers, investors, and communities. For example, an airline had a list of values with words like respect for the individual, teamwork, serve, integrity, accountability, etc. But when they defined the value of those values to customers, this generic list became much more focused: on-time arrivals, quick response when things go wrong, and good in-flight services (food, movies, and staff). The value of the airline culture gave employees specific actions to take which, in turn, gave customers better experiences. A similar outside-in logic (value of values) could be applied to investors or communities. ## 4\. Value of values for the HR department and people The HR department or function is like a business within a business, with its own reputation, customers, mission, goals, products or services (HR practices), governance structure, analytics, and people. Increasingly, the value of these HR department actions is less about the activities performed and more the value those activities create for others. The values embedded in HR practices like staffing, training, compensation, and communication should create value for customers. For HR, this means being an employer of value, offering resources that would increase customer confidence, and communicating the same message to both employees and customers. HR is not just about how the values of the firm are embedded in HR practices but the value created by HR practices for customers, investors, and communities. ## Value of values and future of work The human capability questions about the future of work can be best answered with  a few key questions: - **How do I realize personal meaning from my work?** By individuals using their strengths to strengthen others and living their values to create value for others. - **How do I lead, or prepare others for leadership, in the new world of work?** By each leader using their power to empower others, and by establishing a leadership brand connecting leadership competencies to customer value. - **How does my organization create a culture that shapes how work is done?** By establishing the right culture through matching external stakeholder promises (value) to internal people and organization actions (values). - **What can HR (department and individual members) do to influence the future of work?** By defining HR less as HR practices and tools and more by the value they create for others. The value of values assumes that sustainable value is defined by the receiver more than the giver. For more of Dave’s insights, check out these pieces: - [A Playbook for Company Culture Transformation: Why, What, and How](https://www.capterra.com/resources/playbook-for-company-culture-transformation/) - [Building Human Capability as the Future of HR](https://www.capterra.com/resources/building-human-resources-capability/) [Certainty in the Face of Business Uncertainty](https://www.capterra.com/resources/certainty-in-the-face-of-uncertainty/) - [Certainty in the Face of Business Uncertainty](https://www.capterra.com/resources/certainty-in-the-face-of-uncertainty/) ## Capterra's 2026 Software Buying Trends Report ### Download our 2026 Software Buying Trends Report to see how successful software adopters avoid disappointment and how your business can, too. * * * Sources 1. [LinkedIn Top Voices in Company Culture: The 10 creators to follow in the U.S. & Canada](https://www.linkedin.com/pulse/linkedin-top-voices-company-culture-10-creators-follow-us-/), LinkedIn News * * * ### Was this article helpful? * * * ## About the Author [### Dave Ulrich](https://www.capterra.com/resources/author/dulrich/) Dave Ulrich is the Rensis Likert Professor at the Ross School of Business, University of Michigan and a partner at The RBL Group, a consulting firm focused on helping organizations and leaders deliver value. He edited Human Resource Management (1990-1999), served on the editorial board of four other journals, and on the board of directors for Herman Miller. 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