Beyond the Told

by Dr. David M Robertson

Validation Exchange Theory – Organizational Currency

Validation Exchange:

  • the practice of a leader checking or proving the validity or accuracy of something in exchange for the recognition or affirmation that a worker, their efforts, their feelings, or opinions are valid or valued.

Validation Exchange can be an amazing tool for communication, goal traction, engagement, performance management, quality control, and relationship/team building (among others).

An Example of Validation Exchange in Play:

A leader asks a worker to compile a report on (X, Y, and Z) and have it available by the end of the day. When the worker provides the requested report, the leader then reviews it alongside the worker (in a one-on-one setting, if possible). Doing so ensures that the report fulfills the requirements of the need and provides an opportunity for alterations, critique, and an opportunity to ask clarifying questions before using the report for its intended purpose. The leader then provides authentic validation for the work and efforts on the report with a “job well done” or some other form of kudos. If time allows, it can also provide an opportunity for open dialogue.

The Theory Behind It

  • The desire for approval and validation is a central theme of the human experience.
  • Recognizing a worker’s efforts in a meaningful way is an essential part of a leader’s role that also fosters the worker’s engagement.
  • Leaders need engaged followers in their organization, and leaders are a central component of that engagement. However, such engagement is statistically rare, as less than one-third of Americans say they are engaged in their jobs in any given year.

Validation Exchange aims to enhance this by increasing both actual and perceived approachability and engagement through authentic and tangible interactions. Additionally, it demonstrates appreciation and fosters mutual respect. This will ultimately breed leader and organizational loyalty due to the natural increase in involvement, trust, and support.

Considerations

The Validation Exchange is to be viewed as “organizational currency,” where each transaction requires a product/service and some form of “payment” beyond standard wages. So when a worker presents a product or service for “delivery,” the leader then “pays” for it through Validation Exchange.

As demonstrated by Maslow’s Hierarchy of Needs, humans need to feel a sense of belonging and acceptance among social groups, including their co-workers and professional organizations. However, it is important to note that when someone is unhappy at work (or engaged), that feeling doesn’t stop at the door of their job. This tendency compounds over time, directly and negatively impacting the worker’s overall well-being as the stress begins to infiltrate their home and social life.

Eventually, the worker comes to dread coming to work. This often equates to poor performance and the eventual removal of the worker, either voluntarily or through termination. This is costly from both the workers’ and the organization’s perspectives.

Validation Exchange is a simple practice that aims to stop these problems by fulfilling the stated needs of the worker, leader, and organization in a meaningful way. Ultimately, Validation Exchange initiates a new cycle that enables the worker to better fulfill the vision of the stated requirement and organization, while allowing them to go home feeling accomplished, valued, and more engaged. At the same time, it allows leaders to spend some much-needed time with their workers while ensuring quality control and continual improvement of the work. This translates to improved overall organizational performance and a more positive work experience across the entire organization.

The additional benefits potentially exceed the scope of this analysis.


This theory is part of the Reasoned Leadership framework and works well in conjunction with the GF Proposal Model and the Three-Part Communication Model.


This theory has been updated and validated.


Use of this work is permitted with proper citation.

  • In Text: (Robertson, 2019)
  • Bibliography: Robertson, D. (2019). Validation Exchange Theory. [online] DMR Publications. Available at: https://www.dmrpublications.com/2019/08/the-validation-exchange-theory/ [Accessed Date].
  • Link To: https://www.dmrpublications.com/2019/08/the-validation-exchange-theory/