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In all my years of coaching, working with individuals, teams, and entire organisations, there is one tool that consistently creates the greatest transformational change.
It’s not strategy.
It’s not goals.
It’s not even performance.
It’s values.
Because when you truly understand your values, and more importantly, when you live in alignment with them, everything else starts to fall into place.
What are values, really?
At their core, values are your internal compass. They represent what is important to you in life, what drives you, what inspires you, and what you want more of. They shape your thoughts, your decisions, your behaviours, and ultimately, the life you create.
Psychologists describe values as enduring beliefs that guide behaviour across situations, helping us determine what is good, desirable, and worth pursuing¹. Whether we are aware of them or not, they are always operating in the background, influencing how we show up and the choices we make.
And here is the key point.
Your life today is a reflection of your values.
Why values matter more than you think
Every day, you are making decisions, often hundreds of them. What to prioritise, what to say yes to, what to walk away from, how to spend your time, your energy, and your attention.
When you are clear on your values, those decisions become easier. There is less noise, less second-guessing, and more confidence. You know what matters, and you can act accordingly.
When you are not clear, or when you are living out of alignment with your values, things feel different. You can feel busy but not fulfilled. Successful on paper but disconnected in reality. You may find yourself saying yes to things that don’t feel right, or constantly feeling pulled in different directions.
This is not just a feeling, it is supported by research. Studies show that when people live in alignment with their values, they experience greater wellbeing, motivation, and life satisfaction². When there is a mismatch between what we value and how we live, it creates internal tension, stress, and dissatisfaction³.
Your values as your North Star
I often describe values as your North Star.
They do not give you the exact map, but they ensure you are heading in the right direction.
Life is busy. Careers are demanding. Businesses grow, families evolve, and priorities shift. In the middle of all of that, it is very easy to drift.
Drift into habits.
Drift into expectations.
Drift into a life that looks good from the outside but does not quite feel right on the inside.
Your values bring you back. They help you pause and ask, “Is this aligned with who I am and who I want to be?”
The Alignment Gap: Where transformation happens
One of the most powerful moments in coaching is when someone realises there is a gap between how they are living and what truly matters to them.
I often refer to this as the gap between the “current you” and the “future you”.
For some people, those two are closely aligned. For others, there is a significant gap. And that gap is often where stress, frustration, and a sense of being stuck come from.
Living in alignment means your real behaviours reflect your ideal values. When they do, there is a sense of clarity, energy, and ease. When they don’t, even high performers can feel off track.
This idea is supported by psychological research on self-discrepancy, which shows that the greater the gap between who we are and who we believe we should be, the greater the emotional discomfort we experience⁴.
Values are not static, they evolve
Your values are not fixed.
They evolve as you grow, as your life changes, and as your priorities shift. What mattered to you ten years ago may not hold the same weight today. That is why revisiting your values regularly is so important.
It is also one of the most powerful conversations you can have, not just with yourself, but with the people around you. When families, teams, or organisations share and understand each other’s values, it creates connection, trust, and alignment.
In a business context, shared values are one of the strongest drivers of culture and performance⁵.
From insight to action
Of course, insight on its own is not enough.
The real power of values comes from putting them into practice.
That is why I use a simple but powerful process with my clients, which you will find in the accompanying Values Matrix and Scorecard.
Start by identifying a broad set of values that resonate with you. From there, narrow them down to your top five, define what each one means to you, and then assess how aligned you are currently living them.
This is where it becomes real.
Because when you rate yourself honestly, you can clearly see where you are living in alignment, and where you are not.
From there, the question becomes simple and powerful:
What is one action I can take to move one step closer?
Not a complete life overhaul.
Just one intentional step.
Because small, consistent shifts, over time, create meaningful and lasting transformation.
Designing a life that feels as good as it looks
At the end of the day, success is not just about what you achieve. It is about how you live.
Your values ensure that your success is meaningful. That your decisions are intentional. That your life feels aligned, not just externally successful, but internally fulfilling.
Because the goal is not just to build a great career or a successful business.
It is to build a life that feels right. Energising. Authentic. Yours.
A life by design, not by default.
When your values are clear, your decisions are easy and that’s how you live your best life.
You can get in touch with Cate at Inspiration Cafe.
Sources
- Schwartz, S.H. (1992). Universals in the Content and Structure of Values.
- Sagiv, L. & Schwartz, S.H. (2000). Value priorities and subjective well-being.
- Ryan, R.M. & Deci, E.L. (2000). Self-Determination Theory and Well-Being.
- Higgins, E.T. (1987). Self-discrepancy theory.
- Barrett, R. (2010). The Values-Driven Organisation.
The Money & Life website is operated by the Financial Advice Association Australia (FAAA). The views expressed in this article are those of the author and not those of the FAAA. The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article. Nor does it endorse or assume responsibility for the information.
