What Is Values-Based Leadership?

A Practical Guide for Today’s Teams

In a world of shifting priorities, rapid change, and growing complexity, today’s teams don’t just want a leader who gets results—they want a leader who stands for something.

That’s the heart of values-based leadership.

But let’s be honest—“leading with values” can sound like a corporate buzzword. What does

it actually mean? How do you live it out in a fast-paced workplace with deadlines, personalities, and pressure?

And perhaps more importantly: How do you know what your values really are?

At Lacuna Leadership, we believe values-based leadership starts not with strategy or slogans—but with identity. Who you are. What you believe. And how your leadership reflects it every single day.

Let’s unpack what values-based leadership looks like in practice—and how tools like the Stability of Self Inventory (S2i) can help you grow into a leader your team will trust, follow, and remember.

Defining Values-Based Leadership

Values-based leadership is the practice of making decisions, setting direction, and interacting with others based on a clear understanding of your personal and organizational values.

It’s not about being perfect or always having the right answer. It’s about leading from a grounded place—where your beliefs and behaviors align.

In practical terms, values-based leaders:

• Know what they stand for

• Communicate and model those values consistently

• Create cultures where values are lived, not laminated

• Make tough decisions guided by purpose—not pressure

When teams experience this kind of leadership, they’re more likely to feel connected, motivated, and engaged. And in today’s multi-generational, mission-driven workforce, that’s not just helpful—it’s essential.

Why Values Matter More Than Ever

In a volatile, uncertain world, values are a stabilizer. They guide us when the rules change. They keep us anchored when the pressure rises. And for leaders, they offer a powerful filter for decision-making, especially when trade-offs are on the table.

The research is clear: leaders who act from their core values build more trust, inspire greater loyalty, and navigate transitions with resilience.

But here’s the catch—many leaders think they’re values-based… without ever clearly naming or reflecting on their actual values.

That’s where the S2i comes in.

Build Values-Based Leadership from the Inside Out with the S2i

The Stability of Self Inventory (S2i) is a research-backed assessment designed to help leaders develop a clear, resilient, and authentic sense of self.

At the heart of the S2i framework is the Upward Self, which includes:

• Core Values – The beliefs that shape your decisions and behaviors

• Meaning & Purpose – The “why” behind your leadership

• Connection – Your ability to stay grounded in relationships and mission

The S2i helps leaders move beyond vague ideals and into practical alignment. It shows how your values actually show up in your leadership—and where they may be missing in action.

5 Steps to Lead with Your Values—Starting Today

Here’s how to begin practicing values-based leadership in your real-world context:

1. Name Your Core Values

Start by identifying 3–5 values that genuinely define who you are. Not just who you want to be—but what truly guides your decisions. (If you’re not sure, the S2i will help reveal them.)

Example: integrity, growth, courage, generosity, excellence.

2. Audit Your Alignment

Ask yourself:

• Do my actions reflect these values at work?

• Where am I compromising—or thriving—in my leadership?

• How would my team describe what I value?

The S2i interpretive report includes reflection questions and “coaching moments” to help you clarify these answers with honesty and direction.

3. Communicate Your Values

Values can’t just live in your head—they need to be lived out loud. Start sharing the “why” behind your decisions. A simple shift like, “We’re making this change because it aligns with our value of innovation,” can reinforce clarity and trust.

4. Use Values in Tough Decisions

In moments of tension, ask:

• Which option aligns with my core values?

• What decision would I be proud of one year from now?

Values-based leadership doesn’t always lead to the easiest path—but it leads to the most meaningful one.

5. Build a Team Culture Around Shared Values

Help your team define collective values, reflect on them regularly, and celebrate them in action. The S2i can be administered across teams to spark meaningful conversations and culture shifts rooted in purpose.

The Bottom Line

Values-based leadership isn’t just about doing the right thing—it’s about being the real you.

It’s what allows leaders to stay steady during change, make bold yet grounded decisions, and build cultures of trust and engagement that actually last.

If you're a coach, executive, HR leader, or emerging professional looking to lead with greater clarity and confidence, the S2i is your next step.

Ready to Lead from Your Values?

Visit www.lacunaleadership.com to take the Stability of Self Inventory, explore tools, and start building your leadership from the inside out.

Because leadership is only as strong as the identity behind it—and your values are the foundation.