And Why Are They So Important?

When leaders bring up the topic of core values in their organization, it’s usually followed by a deafening silence from the rest of their team, like you can hear crickets chirping type of silence. Why is this? Do teams not understand what they are? Are they those soft, squishy things that nobody likes to talk about because it takes you away from “real” work? Are they really necessary? Let’s discuss why they are important.

What Are Core Values?

Your Dictionary defines the term as “the fundamental beliefs of a person or organization. These guiding principles dictate behavior and can help people understand the difference between right and wrong. Core values also help companies determine if they are on the right path and fulfilling their goals by creating an unwavering guide.” In more simple terms, they are the guiding principles within an organization. They are used to define your culture and what your organization stands for. Usually, they aren’t created because they already exist, so you need to discover them. And they may exist in many forms and sometimes they can surprise you. I’ve seen organizations display their core values, such as respect, teamwork, integrity, on posters around the office but that doesn’t mean everyone buys into them. In reality, how people talk to each other and behave when nobody is watching is the best indicator of the organization’s core values.

Core values are driven by the actions of leaders within their organization and there are often formal, such as the owner, and informal leaders, such as thought leaders or long-standing employees. While it’s important to identify the words, it’s equally and maybe even more important, to model the behaviors that describe what they mean and how to use them in situations like dealing with an unhappy customer or addressing issues with fellow employees.

For example, I worked with a manufacturing company that identified integrity as a core value and splashed it on signs around the workplace. They didn’t define what integrity meant in their work environment…in my simple terms integrity is keeping your promises…and the owner often made promises to employees about improving the workplace, adding benefits and being transparent. Well, when none of these promises were fulfilled, employees saw how hollow it really was and they didn’t live it in their day-to-day work environment. The result was employee turnover was extremely high and the company developed a bad reputation in the community. By the way, their sales also suffered from their distributors over time because they never delivered on the promises they made.

Steps to Identify Them

Core values do matter within an organization and the following steps can help you define and live them in your company:

• They are a small set of timeless guiding principles.
• 3 – 7 is the rule of thumb. Less is more. It’s easier to remember.
• Use short examples to describe your core values in your workplace (Integrity – we always keep our promises).
• They define your culture – who you are – what you stand for.
• They describe “the right people” for your organization.
• They help attract people who share your core values.
• They can be used to hire, fire, review, reward and recognize employees.
• They are discovered not created (they already exist).
• Communicate and live your core values by talking about them often and applying them consistently.
• Use them as a filter for decision-making (would you take action on an opportunity to make a quick buck that violated your core values?)

Living your core values is a lot like parenting…define a handful of rules, repeat them often and apply them consistently. In organizations, identifying and living your core values can be the difference between success and failure. They can help attract the right people and can be used to guide your team through challenging situations. Are core values important? Absolutely, if you get them right!