Core Values - how to make them work for you

Core Values Are A Strategic Advantage

Core Values are a key foundational growth catalyst of any business.  They are the expectation of how people will act and operate to help drive successful outcomes.  Every business that I have previously worked for has had core values. The biggest challenge is that execution often fails.

If you have worked for one more businesses, you'd seen the values posted in the kitchen, maybe on the office walls.  You may receive a card with the values on them.  Or maybe they are placed on the business intranet.  But, the key test is ... can you recite all of them, AND is it expected and measured that you represent these values regularly?  Is your performance measured based on the values?  The answer unfortunately is probably no.

Though it is rare, there are a few businesses that I have seen that truly live by their values.  They hire by them, they fire by them, they live by them.  Two I know of are Amazon and Tractor Supply Company.  I'm sure there are more though.  What you'd see is that the people at businesses such as these have clear expectations on performance.

I've seen both good and not quite as good values.  Also, I've seen businesses both develop the values and push top-down versus having the team members create them.  I've even seen a business hire McKinsey at a 7 figure amount to determine the right values for the business ... then McKinsey just surveyed the team members as to what values would be most appropriate.  I strongly believe that the leadership team should determine the best values that they believe would help the business accomplish its goals and long term vision. And deploy top down. 

Examples of Good and Bad Core Values

Well Written Values:
Why are these good?  Because they are clear, actionable, and measurable.  We know if we're taking ownership or delivering results.  These are real examples.

• Deliver Results -- We / leaders focus on the key inputs for their business and deliver them with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion and never settle.
• Ownership -- We / leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say “that’s not my job.
• Development - Learn from each other.  Teach, coach, and listen.  Create an environment where everyone can be a "star".
• Accountability - Know your commitments.  Live up to your responsibility.

Poorly Written Values:
These are poor as they are not clear, not measurable or actionable.  Integrity is a confusing term and people may not understand it.  These are real examples.

• Transparency -- we are clear with all of our teammates and customers.  Why this is poor?  It is not actionable, will not lead to strong business outcomes.
• Integrity - We uphold the highest standards of integrity in all of our actions.  Be real.  Why this is poor?  The term integrity tends to be confusing to most people.  You cannot measure it.
• The need for information crosses all borders.  Why this is poor?  Its great it is short and simple, but how does this drive good business outcomes?  You cannot perform it.  You cannot measure it.

When Creating Core Values:

It is important to follow these three key guidelines when creating business values.

• Simple:   Keep them simple -- easy to understand and short.  Is there a definition of a few sentences to clarify expectations?
• Actionable:  Keep them actionable  and measurable -- can we all do it.  Is it clear if we are not?
• Integrated:  Ensure that the core values are the expectations of how you expect the team members to operate.  That they are the foundation of the business to drive the success and outcomes you expect.  They are integrated into all aspects of how you operate from hiring, promoting, rating performance, feedback, operating, firing, etc.  

Core Value List

Here's a short list of core values I believe are valuable and can be used as a starting point -  but this is only the first step.  The best thing is to work with your leadership team (whether it is at the top level or mid-level) and roll down.  For example, I was a GM at one business that didn't have a core value list and not was interested in them.  So we created our own.

• Deliver Results:  We focus on the key inputs for their business and deliver them with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion and never settle.  (Amazon Core Value List)
• Ownership:  We are owners.  We think long term and don’t sacrifice long-term value for short-term results. We act on behalf of the entire company, beyond just our own team. We never say “that’s not my job." (Amazon)
• Development:  Learn from each other.  Teach, coach, and listen.  Create an environment where everyone can be a "star".  (Tractor Supply Core Values)  Create  goals based on target business outcomes.
• Teamwork:  We value different viewpoints.  Execute the agreed upon plans.  Together everyone achieves more.
• Innovation:  Innovation motivates action: to take risks, encourage curiosity and new ideas, learn from mistakes, and constantly strive to exceed expectations. Through innovation, we generate solutions for our customers and raise the bar — both within our workplace and throughout our industry." (Affinitiv Core Value List)
• Fast is Better Than Slow:  (Google)  This is good, simple though their definition is a little wordy.  My believe here is that most decisions can be made quickly with 60-70% of the information.  Those larger decisions that may not be able to be reversed, should be considered at a higher degree of certainty.  See One Way Door vs Two Way Door.

This core value list is of course a starting point to think from.  Do you want more or fewer.  Maybe you start with 4-5 values which is small enough to easily memorize yet large enough to help set direction.  Nothing is ever permanent and it creates a good foundation for moving forward.

Deploying Core Values

Make it a big deal that we want to enhance how we operate.  Explain the rationale.  Why are the values important and why is each one relevant and important.  Roll these top-down, regularly discuss them at all hands meetings, weekly team meetings, hiring, performance management, etc -- they're never just a card on your desk or a paper in the kitchen.   We expect each team member to represent these and/or strive to improve how they embody them.  There will always be situations where people are better at some values than others -- but it creates an opportunity to improve.

The focus should be on ongoing momentum and emphasis of how important that we (the leadership team and all team members) all represent these values.  And over time, you will see the values continue to gain traction, buy in, and value-based execution. 

And become a catalyst for growth.