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In the fast-paced world of business, having a set of core values is a necessity. Core values shape a company’s culture, guide decision-making, and create alignment across teams. But how do you actually develop those values? Where do you start?
I have outlined the exact steps I’ve used to create core values for my own businesses, and I will share how you can apply this process to your company. Here’s a breakdown of the 7 steps to help you build the foundation for your company’s core values. I have created a worksheet to help you outline your core values; use this as you read through the 7 steps.
1. Reflect on Your Company’s Purpose
Before diving into the “what” of your values, ask yourself why your company exists. What impact do you want to create in your industry, community, or customer base? Reflecting on your company’s mission and vision is crucial because your core values should align with these higher goals. What difference do you want to make?
2. Identify Key Behaviors
Look at the moments of success in your company. What behaviors contributed to those wins? What attitudes or actions made your business thrive, even under pressure? How do your team members operate when things go wrong? Identify what truly drives success in your organization—and what behaviors are non-negotiable.
3. Engage Your Team
Core values shouldn’t be created in a vacuum. Your team’s input is vital. Ask them what they think makes your company great. What principles do they think are vital? When engaging your team, seek alignment across all levels—leadership to entry-level—and ask tough questions like, “When is it appropriate to prioritize the team’s needs over the customer’s?” These conversations will deepen the connection to the values you’re developing.
4. Analyze Your Personal Values
As the leader, your personal values will influence your company’s culture more than you might realize. Reflect on the principles that guide your decisions, actions, and relationships. How do your personal beliefs align with your company’s mission, and how should they shape your company’s values?
5. Examine What Sets You Apart
What makes your company unique in the market? What do your customers and partners appreciate most about your business? Core values often highlight these differentiators and help you define what makes your company stand out from the competition.
6. Test for Authenticity
Authenticity is key to effective core values. They should resonate with the way your company operates today, and reflect where you want to go in the future. Your core values need to be real—something your team can actually act on every day, not just words that sound good on paper.
7. Prioritize and Finalize
Once you’ve gone through all the steps, it’s time to narrow down your values. Brainstorm a list, then group similar ideas together. From there, select three to five core values that encapsulate your company’s ethos. Make sure each value is accompanied by a phrase or explanation so that your team knows exactly what each one means.
Putting It All Together: Action Steps
The work doesn’t stop after defining your values. To make them truly impactful, integrate them into your company’s processes. Embed your core values into your hiring practices, performance reviews, and decision-making frameworks. Recognize and celebrate behaviors that exemplify your values. Consistent recognition and reinforcement will help ensure these values live and breathe within your company culture.
The key takeaway here? It’s not enough to create core values; you must also make them actionable. By embedding these values into your company’s operations, you’ll set yourself up for long-term success.
P.S. I shared this entire concept on a recent episode of my podcast. You can listen to the full episode here.
