Why are Company Values important?
Ultimately, it’s the human condition to have purpose, and know why you’re doing something. If your staff know their purpose, they’re more likely to be happy, motivated and productive. Therefore, company values have the potential to be a hugely powerful asset. Not only do they attract potential talent to your organisation, but they can shape the future of your organisation guiding your current employees to achieve the best for your business. Having values in place that are lived and breathed can provide a robust framework for long term success.
The ‘why’ of coming to work
Everything from strategy, to hiring, to branding can be guided by your core value belief system. A solid set of core values also plays a critical role in attracting new talent to your organisation, with a survey finding that 46% of job seekers said a strong culture is very important in applying. One of the key underlying variables enabling a company to maintain high performance and become an iconic institution like Apple or Disney is to have an underlying set of core values that do not change. A company without thoughtful and authentic core values will have a tough time finding success. You can’t build a great team, deliver for your customers, or grow as a business without them. Values are crucial, but most founders spend little time on them, or just get them plain wrong. So, let’s take a look at how companies can build this integral part a business for long-term success.
Our 5 steps to creating Company Values
1. Start with personal values
As a founder, it’s your role to plant the seed of what you want a company to be. As such, company values often originate from within a founder and what’s important to them. As the creator of your business, it’s taken mostly all your time and effort to build, so don’t stop there. What do you believe matters? How do you want your business to be perceived? What are your personal values? Begin by jotting down your strongest personal values, making a list of 5-10 personal values, but don’t limit yourself (we’ll get there later). Values aren’t a fashion statement. They’re a reflection of who you are. Write them as raw and unfiltered as possible as they can always be refined later. The next steps will help you develop your personal values into core values the entire company can get behind.
2. Form a core team
If you want to give your values legs you need to have a strong core team that will share them. And by core team, we don’t mean just the HR department. Instead of shipping off the company values to HR, build a team of seven or fewer core members of the business. You need to span all departments for the values to be successfully delivered. For early-stage startups, the founding team should lead this effort. As you stage up in your business journey, continue to involve the remaining founders, and then add the CEO, and key employees that play a role in developing your overall culture and vision. Forming a core team simplifies succession planning, by ensuring the right people are in place.
3. Identify team characteristics
As your business and team grow, it’s critical to find themes among all your personal values so you can create company values that speak to everyone. Here’s how to do it. Each person in your core team notes three people at the company they admire. Then, list all the characteristics of each admirable person. When you combine the lists of characteristics on a whiteboard, you’ll see some patterns emerge. For instance, if ‘being highly adaptable’ crops up regularly, you can shape your values around this. At the end of the exercise, you’ll be left with 5-10 themes that will form the crux of your values.
4. Write your company values
The last exercise left you with a lot to think about, but it’s time to shrink those themes into five or fewer value statements that align with the company mission, vision, and your personal values. Start by finding 1-2 people in your core group (CEO, Line Manager) and reduce the 5-10 themes into 5 or fewer core value phrases. The key is to make them actionable and memorable and avoid using single words. These impactful phrases become your company values and once these are chosen, they can’t be changed. Easier said than done, I know. Writing actionable and memorable company values that align across the business is no walk in the park.
To help inspire the process, here’s an example of some company values:
- Lead by example.
- Adapt and overcome.
- Always be learning.
Note how they’re specific, actionable, and unique. Hitting all three of those marks is crucial if you want your values to have any effect.
5. Bring values to life with specific examples
Lead by example
Your leadership team sets the tone. If one of your values is ‘collaboration’, leaders can demonstrate this by involving team members in decision-making or cross-departmental brainstorming sessions. When leaders embody values, employees are more likely to follow suit.
Celebrate value driven behaviour
If ‘innovation’ is one of your values, celebrate a team member who introduces a creative solution. Highlight their impact in company meetings to reinforce what’s important in your company culture. Better still, promote these behaviors in the company newsletter, or on social media. Showing that your values are actually put into action means they’re much more likely to resonate with other employees.
Make values part of your performance reviews
Combine goals and achievements with your values. If ‘continuous learning’ is a core value, encourage professional development and evaluate your team’s growth in feedback sessions. As a result, your values aren’t just talked about, they’re lived everyday making them a powerful force.
Integrate values into hiring
If you want your values to truly stick, include them in your interview process. From day one, this ensures that new hires understand and align with what matters most. For instance, if ‘customer first’ is a company value, include questions to highlight how employees would prioritise customer needs or solve client challenges.
Building a legacy through Company Values
Creating meaningful company values is a crucial step towards building a strong, successful organisation. When values are embedded in every part of the business, from the way you hire to how you lead, they become much more than just words. It takes time and effort, but the payoff is significant. By following these steps, you’re setting up your team for long-term success, fostering an environment where everyone knows their purpose and is motivated to contribute to the wider vision. The companies that get this right stand the test of time because their values don’t just live on paper, they guide every decision. The true power of values is clear when they are never forgotten, becoming part of your company’s legacy.
