The dynamic cycle of value formation: A model on how behavior forms and evolves

Introduction

Understanding the formation and evolution of our values is not just crucial for individual self-awareness and meaningful relationships, but it is also vitally important for organizational success. Values act as the cornerstone of corporate cultures, influence how teams collaborate, and shape the decisions that organization stakeholders make every day. Therefore, having a nuanced understanding of how values form and evolve can be invaluable for leaders looking to foster a cohesive and effective organizational culture. In this post, I’d like to present a new theory that offers a cyclical perspective on how values form and change, providing executives with a framework to better understand this complex phenomenon.

The cycle of values

The model I propose describes value formation as a continuous cycle consisting of three major stages: Root values, Emerging values, and presented values. Once presented values are established, the cycle can loop back to either emerging or root values, indicating a dynamic and ever-evolving process.

Root values

Root Values are the foundational principles and beliefs acquired early in life. These typically originate from family upbringing, cultural background, religious teachings, and early life experiences. These values serve as the basic framework for interpreting the world and guiding our actions.

Emerging values

Emerging Values are the evolving beliefs and principles that develop as we grow, gain experiences, and encounter a diversity of perspectives. They may either be refinements of our root values or new values altogether that result from shifts in our life circumstances, perspectives, or personal growth.

Presented values

Presented Values refer to the beliefs and principles that we outwardly express and act upon. These may or may not fully align with our internal (root and emerging) values, often due to social pressures, strategic considerations, or even self-exploration.

The cycle repeats

The dynamic doesn’t stop at the presentation of our values. When we express and act upon these values, a feedback mechanism is triggered. This feedback can either reinforce our root values or stimulate the reconsideration of emerging values. Both cognitive and subconscious processes play a role in this feedback loop, making the cycle a complex and ongoing journey of self-discovery and growth.

Complexity and fluidity

It’s important to note that this model is neither linear nor strictly cyclical. The stages of value formation are interconnected in a more complex and fluid manner. Cognitive processes such as reflection, social influences, and even subconscious elements can cause shifts or reinforcements at any stage in the cycle.

Application in organizational settings

One of the most compelling aspects of this model is its applicability in various contexts, from individual self-exploration to organizational culture building. The cyclical nature of value formation addresses the fact that values are subject to evaluation and re-evaluation throughout our lives. As individuals, the values imbibed in childhood don’t remain static. As we grow older, gain new experiences, and widen our perspectives, these root values are revisited, evaluated, and sometimes challenged or modified. The same phenomenon also applies in the evolution of organizational values.

In an organizational setting, employees are also in a constant state of evaluating and potentially challenging the values presented by their workplace. This ongoing process of reflection is crucial for employers to understand, as a misalignment between an employee’s values and those of the organization can result in decreased engagement, lower job satisfaction, and even attrition. Executives and stakeholders can thus use this model to anticipate shifts in employee sentiment and adapt their value promotion strategies accordingly.

The importance of value discussion and presentation

For organizations looking to foster a particular set of values, the first step is to clearly discuss and present these desired values to all members. This serves as the organizational equivalent of “Presented Values,” setting the stage for individual and collective value formation within the organization.

Frequent reinforcement

However, a one-time presentation is insufficient. For these values to take root and lead to the desired behavioral outcomes, they must be reinforced repeatedly. Regular discussions, workshops, and activities focused on these values can act as the “feedback loop,” guiding the emerging and root values of both individuals and the organization as a whole.

Guiding behavior through value formation

Over time, this process of frequent reinforcement and discussion can lead to a realignment or refinement of individual and organizational values, shaping behaviors to align with organizational goals.

Dynamic adaptation

It’s also important to note that the value fostering process within an organization is dynamic and may need to be adapted as the organization evolves. Just as individual values can be fluid, organizational values may need to be reassessed and updated to remain relevant.

Case example

There was a well-established company that underwent a change in ownership. The measured staff Quality of Working Life (QWL) index was not optimal, and attrition was a concern. The company had a profit-driven and results-oriented culture, which the new owner wanted to transform into a more human-centred focus, emphasizing not just outcomes but also the well-being and engagement of its teams. The new management board, enthusiastic about instilling this human-centred approach, decided to allocate a budget of 500€ per team for enhancing team spirit. This budget was meant for activities that fostered a sense of belonging and collective well-being – anything from team-building exercises to providing regular healthy snacks like fruits.

As the year progressed, the board expected to see significant changes in how teams operated and interacted. However, they encountered an unexpected challenge. By the year’s end, only about 25% of the teams had utilized the allocated budget. This outcome, as a practical KPI, was a revelation to the board and highlighted a crucial aspect of the value formation cycle:

• Root values: The existing root values of the line managers, deeply ingrained in a profit-focused mindset, were still dominant.
• Emerging values: The new human-centered approach introduced by the management was supposed to become an emerging value, yet it hadn’t fully taken root.
• Presented values: Despite the opportunity to exhibit new values through the use of the budget, many teams continued to operate under the old value system, showcasing the gap between presented values and the new emerging values the board hoped to foster.

Realizing that change wouldn’t occur organically, the management board took a more proactive approach. They initiated a series of workshops and regular communication focused on what human-centered management meant and how it could be practically implemented. These workshops served as a platform for re-evaluating existing root values and nurturing the new emerging values. Line-managers shared experiences, discussed potential strategies to enhance team spirit, and gradually started embracing the new values. The QWL measurement confirmed that the change was happening. More teams started utilizing their budgets creatively, not just for leisure activities but also for initiatives that fostered personal growth and team cohesion. QWL improved and attrition reduced significantly. In addition, the business outcome became better as customer satisfaction improved.

Closing remarks

Understanding the formation of values as a dynamic cycle provides us with a more nuanced perspective on self-growth, interpersonal relationships, and societal interactions. Whether you’re pondering your own value system or trying to understand others, this model offers a comprehensive framework for dissecting the complexities involved in value formation and evolution.

The concepts presented in this post were inspired by experience and various psychological theories, including cognitive dissonance theory, social intelligence and strategy forming theory, among others. However, the cyclical model proposed is an original concept aimed at encapsulating the fluid and dynamic nature of value formation.