While many companies codify 'core values' or 'leadership principles,' few see them translate into tangible shifts in culture and performance. The cases of the Haas School of Business and Trinity Business School, featured in MIT Sloan Management Review, demonstrate how to build 'living principles' that stir a shared sense of purpose, not just draft another manifesto. The process proved that inspiration can be a more powerful motivator than money alone. Further details are available in the source material.
The successful principle-crafting journeys at both institutions yielded four universal lessons:
- The 'Process' of Creation Matters More Than the Output: Authentic buy-in requires bottom-up dialogue and numerous iterations. Haas evolved its terminology from 'values' to 'principles' to 'defining principles,' refining them into actionable guides.
- Principles Must Reflect the Organization's 'Distinctive Character': They should encapsulate what makes the organization unique—its history, mission, and vision. Generic statements borrowed from others hold no power.
- Dynamic Principles Create Dynamic Organizations: Principles are not fixed rules but living compasses that guide behavior and decision-making in a changing environment.
- Leadership Principles Should Be 'Enjoyable': Sustainable high performance emerges when people are inspired by their impact and find meaning and joy in the work itself.
Beyond theory, what were the practical outcomes? While Haas and Trinity followed unique paths, both documented a demonstrable enhancement of organizational capabilities and innovation. This directly translated into reputational and financial benefits. The key was fully integrating the principles into hiring, evaluation, compensation, and daily decision-making, rather than merely framing them on a wall. This made the principles part of the 'operating system,' known and shared by all stakeholders.
This case offers crucial implications for executives. Establishing leadership principles is a strategic investment in the organization's future, not a one-off event. Success requires genuine commitment from the top coupled with a co-creation process where everyone feels ownership. As you examine your organization's current principles or prepare to shape new ones, apply the four lenses of process, distinctiveness, dynamism, and enjoyment. Leadership that inspires will, in the end, be rewarded with superior business results.