In today’s fast-paced workplace, where burnout rates are soaring, company values are often viewed as abstract ideals—framed on a wall or displayed on a website. However, when businesses fail to uphold their values, the consequences can be severe, leading to employee burnout, high turnover rates, and even business failure. On the other hand, companies that genuinely embrace their values foster resilience, reduce stress, and achieve lasting success.
Steward Health Care: A Case Study in Misaligned Company Values
A striking example of misaligned company values is the downfall of Steward Health Care. Once a leading hospital chain, it filed for bankruptcy in May 2024. Despite publicly emphasizing patient care and community health as core values, the reality painted a different picture. When its CEO brought in an investment firm, the company prioritized profits over people.
In 2016, Steward paid a $790 million dividend to its private equity owner, Cerberus Capital Management, even while reporting a $300 million net loss. (WSJ) This financial strategy significantly weakened the company’s stability, leading to operational challenges such as staffing shortages and resource constraints. Employees voiced concerns, stating that financial decisions compromised patient care and workplace conditions.
While investment partnerships can be beneficial, Steward’s focus on short-term financial gains over long-term sustainability eroded trust with employees, patients, and the communities they served—ultimately contributing to its collapse.
Loma Linda University Medical Center: A Model of Value-Driven Success
In contrast, Loma Linda University Medical Center (LLUMC) exemplifies how living by core values drives resilience and long-term success. LLUMC is guided by principles such as:
- Compassion
- Excellence
- Humility
- Integrity
- Justice
- Teamwork
- Wholeness
These values are woven into every aspect of the organization. Through initiatives like the “Values in Practice” program, employees are encouraged to embody these principles daily, resulting in:
- High employee satisfaction – with an average tenure of 5.1 years, exceeding industry norms.
- Holistic patient care – addressing physical, mental, and spiritual health.
- Enhanced reputation – attracting top talent and improving patient outcomes.
By embedding values into their culture, LLUMC has built a strong foundation for long-term success and employee well-being.
Turning Values into Action for Sustainable Growth
Your company values are more than just words—they shape your brand and influence how employees and customers perceive you. To create a thriving work environment and drive business success, consider these actionable strategies:
- Communicate Values Clearly
- Reinforce them in meetings, newsletters, and daily interactions.
- Lead by Example
- Ensure leadership embodies the values consistently.
- Recognize and Reward Alignment
- Celebrate employees who exemplify core values in their work.
- Align Business Goals with Values
- Make decisions that prioritize both profitability and people.
By transforming values from abstract concepts into actionable strategies, businesses can reduce burnout, foster loyalty, and achieve sustainable growth.
Key Takeaways:
- Misaligned values can lead to business failure, as seen with Steward Health Care.
- Authentic commitment to values fosters success, exemplified by Loma Linda University Medical Center.
- Embedding values in daily operations creates a resilient and thriving work environment.