As the founder of your business, you should have a clear understanding of your company's core values--before you ever hire your first employee, before you seek out investors, and before you make your first business transaction.
In this workshop:
In this workshop:
- Defining Core Values: They are the solid foundation upon which you can build your business
- Determine your Core Values: Why is it important to understand your values? What are your Core Values?
- Share your Core Values: Determine your values based on your vision and your actions
Defining Core Values
A well-constructed building starts with a solid foundation--something steady and unchanging to expand upon. Similarly, your company needs a foundation which is steady and unchanging that is common to all. Your core values--steady, ubiquitous and able to stand the test of time--are the important structure upon which you can build your business.
Core values are your deepest-held ideals for your business. These are things you'll NEVER violate in order to make a profit. Your business methods may evolve over time, but core values never change. They should be just as important on Day 1 as they are on Day 3,001; and they are important on Day 1.
You'll make many decisions--big and small--when you're running your business. You need to know in advance what is most important to you and communicate it with others like investors, partners, customers, employees. Even if your values are not posted to visually see, everyone you interact with should see your values through your actions in how you conduct your business.
Every decision is a trade-off; what you decide to pursue and at what cost, reveals your values. Every decision you make for your business has a cost. Will you invest in that user-friendly payment system, at the cost of some of your capital? Will you pursue that new investor who has exciting ideas for how to grow your business, at the cost of them having complete and unencumbered control over your business? There's no right decision, only the decision that is "right" for your business. Your values determine which opportunities you take and what you're willing to give up to chase those opportunities.
Knowing your core values can make the "right" choice more clear.
Core values are your deepest-held ideals for your business. These are things you'll NEVER violate in order to make a profit. Your business methods may evolve over time, but core values never change. They should be just as important on Day 1 as they are on Day 3,001; and they are important on Day 1.
You'll make many decisions--big and small--when you're running your business. You need to know in advance what is most important to you and communicate it with others like investors, partners, customers, employees. Even if your values are not posted to visually see, everyone you interact with should see your values through your actions in how you conduct your business.
Every decision is a trade-off; what you decide to pursue and at what cost, reveals your values. Every decision you make for your business has a cost. Will you invest in that user-friendly payment system, at the cost of some of your capital? Will you pursue that new investor who has exciting ideas for how to grow your business, at the cost of them having complete and unencumbered control over your business? There's no right decision, only the decision that is "right" for your business. Your values determine which opportunities you take and what you're willing to give up to chase those opportunities.
Knowing your core values can make the "right" choice more clear.
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Knowing your company's values early-on also makes it easy to build an awesome team. When it comes to hiring team members, understanding and communicating your core values during interviews will help you find people who can support your values.
Now, we're not advocating for hiring "yes men." Your team members should have different opinions, skills, perspectives, backgrounds, etc. because diversity is healthy. Your employees should have different approaches to situations, but they shouldn't have different values.
When your team members share the same values, they are united in purpose and it's easier to hold employees accountable to a certain standard of performance. For instance, if one of your core values is "Transparency," you're saying that you'll share information openly and honestly, even if it reveals issues in your company or a problem in your performance. If one of your employees conceals a major error, you can draw them back to this value. If it proves to be a value that they can't embrace, you can point out actions that are directly opposed to this value. This makes it easier on both parties if and when it's time to part ways with that employee.
Often, when people sit down to write out their core values, they get caught up in ideals, and not reality. We're going to work to uncover your actual values--NOT words you'll use to market or distinguish yourself, but the things you value enough to take on the costs associated with them.
Be honest with yourself in this process, because if you end up with ideals instead of values, you might find that they're hard to live up to standard. When you don't practice what you preach, customers and employees alike see your organization as inauthentic and dishonest.
So forget what you think your values might be. Let's spend some time uncovering what your values are.
Now, we're not advocating for hiring "yes men." Your team members should have different opinions, skills, perspectives, backgrounds, etc. because diversity is healthy. Your employees should have different approaches to situations, but they shouldn't have different values.
When your team members share the same values, they are united in purpose and it's easier to hold employees accountable to a certain standard of performance. For instance, if one of your core values is "Transparency," you're saying that you'll share information openly and honestly, even if it reveals issues in your company or a problem in your performance. If one of your employees conceals a major error, you can draw them back to this value. If it proves to be a value that they can't embrace, you can point out actions that are directly opposed to this value. This makes it easier on both parties if and when it's time to part ways with that employee.
Often, when people sit down to write out their core values, they get caught up in ideals, and not reality. We're going to work to uncover your actual values--NOT words you'll use to market or distinguish yourself, but the things you value enough to take on the costs associated with them.
Be honest with yourself in this process, because if you end up with ideals instead of values, you might find that they're hard to live up to standard. When you don't practice what you preach, customers and employees alike see your organization as inauthentic and dishonest.
So forget what you think your values might be. Let's spend some time uncovering what your values are.
Determining Your Core Values
Grab a notebook or pull up a new file on your computer. We're going to be working through a number of questions to help reveal your values.
Take your time and really work through the exercises. Remember that your values are the foundation of everything else you do--so it's worth taking some time to think about them.
Often, values get confused with ideals--what you want to be true about your business. But it's worth being honest with yourself and talking first about what you actually value; What is so important to you that it's worth sacrificing for?
As you answer the questions below, think about how your responses indicate what you value. List these values in your notebook.
Take your time and really work through the exercises. Remember that your values are the foundation of everything else you do--so it's worth taking some time to think about them.
Often, values get confused with ideals--what you want to be true about your business. But it's worth being honest with yourself and talking first about what you actually value; What is so important to you that it's worth sacrificing for?
As you answer the questions below, think about how your responses indicate what you value. List these values in your notebook.
>> Let's start with some brainstorming:
By the end of the process, you should end up with 3 or 4 core values. But at the beginning of the process don't limit yourself, write down whatever comes to mind.
If you've already thought about what your core values are, or if you've written them down somewhere, try to set that work aside and start from scratch. You might be surprised where you end up.
If you've already thought about what your core values are, or if you've written them down somewhere, try to set that work aside and start from scratch. You might be surprised where you end up.
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>> Let's see what your actions say about your values:
Now you should have a list of descriptors and values that represent your ideal. This is who you think you are, or who you want to be in business. But your actual values are clearly seen in your actions. If you're not conducting business according to your written values, then those written values aren't your true values.
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>> Let's narrow down the list:
Now you should have a pretty sizable list of values that describe your ideals and your business reality.
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>> Finally, test each of your statements:
Remember that values are the core of how you'll do business and they don't change as your business grows. There are other ways to express important concepts, but your values are sacred. Don't include anything that doesn't belong. Be ruthless as you cull your list.
Look at each item on your list individually. Test it against the following statements, and if you can't enthusiastically answer "yes" to ALL three questions, eliminate it from your list:
Look at each item on your list individually. Test it against the following statements, and if you can't enthusiastically answer "yes" to ALL three questions, eliminate it from your list:
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Anything that survived that process represents a core value.
You should narrow it down to 3, if possible. Because your core values should never be overlooked, the more values you have, the more potential you create for those values to conflict.
Remember -- there are other ways to communicate all the things that are important to you, but your core values should represent the deepest foundations of your business.
You should narrow it down to 3, if possible. Because your core values should never be overlooked, the more values you have, the more potential you create for those values to conflict.
Remember -- there are other ways to communicate all the things that are important to you, but your core values should represent the deepest foundations of your business.
Sharing Your Core Values
Once you know your values, you have to become comfortable talking about them with others.
First, consider why these values matter to you. Unless your values matter to you, they won't matter to anyone else. Look at each of the values or statements you ended the workshop with:
Next, consider why these values should matter to your customers. Think about the kinds of people that are likely to want your service or product:
Lastly, consider why these values will matter to your employees. People take jobs for many different reasons, and their reasons usually reflect their own personal values. For example, one person may be most interested in the paycheck and is willing to do less desirable work for better pay, whereas another may be most interested in gaining experience and may be willing to settle for a lower salary if it means better opportunities in the future. If your business's values complement your employee's values, it leads to a healthier culture, higher retention rates and a more satisfied team.
But when they don't? Aligning values can take a lot of time and effort. While that's something you'll be called on to do as a leader in your company from time to time, it's much easier to start with a team that values the same things you do.
Be ready to talk about these values in interviews, and be as honest as possible. Talk about why these values will set you apart from other companies. But also talk about the cost of upholding these values.
First, consider why these values matter to you. Unless your values matter to you, they won't matter to anyone else. Look at each of the values or statements you ended the workshop with:
- Why are you willing to sacrifice profits or opportunities to uphold this value?
- How will it affect the way you'll do business?
Next, consider why these values should matter to your customers. Think about the kinds of people that are likely to want your service or product:
- What kinds of things are important to them?
- How closely do those align with your list of values?
- Why should a customer want to buy from an organization that values these things?
- Why do your values make you unique as an organization?
Lastly, consider why these values will matter to your employees. People take jobs for many different reasons, and their reasons usually reflect their own personal values. For example, one person may be most interested in the paycheck and is willing to do less desirable work for better pay, whereas another may be most interested in gaining experience and may be willing to settle for a lower salary if it means better opportunities in the future. If your business's values complement your employee's values, it leads to a healthier culture, higher retention rates and a more satisfied team.
But when they don't? Aligning values can take a lot of time and effort. While that's something you'll be called on to do as a leader in your company from time to time, it's much easier to start with a team that values the same things you do.
Be ready to talk about these values in interviews, and be as honest as possible. Talk about why these values will set you apart from other companies. But also talk about the cost of upholding these values.
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Can I See An Example? (Click for MoRe)
You're up against a tight deadline for a client, and the project isn't up to your usual standards. You can usually find a creative way to deliver a great product within the timeline, even when you're under pressure, but this time is different--you've exhausted all of your usual options.
Now you have a difficult choice to make:
Either value (punctuality or excellence) is a good value to uphold. Neither is more "right" than the other. But what happens when you, the business owner, put a higher value on punctuality, while the employee who executed the project puts a higher value on excellence? What happens when values conflict? As the head of your business, you have the right and the responsibility to make those kinds of decisions--to decide for your business what you'll pursue, and at what cost--and your employees will be expected to uphold your values. It's much easier for both of you if everyone is clear about those values before you begin working together. Employers who are trying to fill a position sometimes worry about "scaring off" a great worker, but if it's not a good fit for them, it's not a good fit for you either. It's better to know that up front and keep looking, rather than hiring someone who becomes increasingly dissatisfied and then quits a few months into their employment. |
When it comes to developing the right team, it takes time and effort to let the process be guided by your core values. It's much easier to hire the first qualified person who comes along. But if you make the investment now, it'll pay off tenfold in the long run.
Shared values are the starting point of your company culture; and culture naturally reinforces itself. So the best time to lay a foundation for a healthy culture is when you're making your first few hires. So even if it takes extra time and effort, you should ensure that your first few hires are fully aligned with your core values.
Shared values are the starting point of your company culture; and culture naturally reinforces itself. So the best time to lay a foundation for a healthy culture is when you're making your first few hires. So even if it takes extra time and effort, you should ensure that your first few hires are fully aligned with your core values.
What Are The Next Steps?
What's next after you know your core values? Don't put them on the shelf. Revisit them and measure your actions against them. Use them to build your team. Use them to hold yourself and your team accountable.
>> Ready for more?
The guidance of an experienced HR partner is essential for reaching your business goals. We've provided these free resources to help get your business off to a good start, but once you're up and running, we would love to take your business higher.
Our Go HIHR Online Community is designed to equip you with HR tools and guidance so you can lead and support your team most efficiently. The subscription includes monthly advisory sessions with a dedicated HR partner, in-depth articles, monthly live webinars, a community forum, tools, templates and more!
We also offer full-service HR support to clients of any size and industry. We have HR business partners across the country supporting many of our clients remotely and traveling when our clients request it. We're happy to handle all of your HR needs so that you're free to do what you do best.
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Our Go HIHR Online Community is designed to equip you with HR tools and guidance so you can lead and support your team most efficiently. The subscription includes monthly advisory sessions with a dedicated HR partner, in-depth articles, monthly live webinars, a community forum, tools, templates and more!
We also offer full-service HR support to clients of any size and industry. We have HR business partners across the country supporting many of our clients remotely and traveling when our clients request it. We're happy to handle all of your HR needs so that you're free to do what you do best.
Click the buttons below to learn more:
>> Want more free resources?
If you're still in the early stages of establishing your business, you may find our other free courses helpful. With our courses, you can plan to build a solid foundation for a healthy culture and sustainable growth before establishing your team.
