The Essential Role of Core Values in Business Success

 

I recently had an engaging discussion with a friend about core values, and we both concluded that they are essential for every business. Core values must guide the way things are done within an organization. If this is true, then we must carefully develop our core values. They must authentically represent who we are, and we must be intentional about operating by them.

Unfortunately, many businesses develop their core values without truly adhering to them. They adopt these values because it’s trendy in the business world, without any real intention to live by them. This is not just wrong; it's totally unacceptable. For instance, why would a business include integrity as one of its core values and yet engage in or endorse practices that are not legitimate? Why have core values that you do not intend to keep? Core values should be "tangible expressions of who we are as an organization."

Core values are the fundamental beliefs of a person or organization. They help people know what is right from wrong, assist companies in determining if they are on the right path and fulfilling their business goals, and provide an unwavering guide. Core values support the vision, shape the culture, and reflect what the organization values and is prepared to commit to. I encourage my clients to expand their core value statements to include "what it means" and "how each of the values will be expressed." Why is this important?

It is important because everyone in the business should know and live out these values. This means there needs to be a common understanding of each value. Core values draw from your vision and mission, often crafted by the business owners. These values ensure that every employee, from the driver to the manager, is engaged in living out the business's dreams because they understand what the values mean and how they should be expressed in their daily work.

Core values are the essence of a company's identity – the principles, beliefs, or philosophy of values. They guide decision-making processes. For example, if one of your core values is to stand behind the quality of your products, any product not meeting satisfactory standards is automatically eliminated. Samsung's recall of the Galaxy Note 7 after incidents of fires and explosions worldwide is a prime example. Living out your core values is crucial, even when it comes with a price because it ensures your market position. It's a price well worth paying for success.

Core values are traits or qualities that represent an organization’s highest priorities, deeply held beliefs, and fundamental driving forces. They define what your organization believes and how you want it to resonate with and appeal to employees and the external world. Core values should be so integrated with your employees' belief systems and actions that clients, customers, and vendors see these values in action.

Core values are also called guiding principles because they form a solid core of who you are, what you believe, and who you want to be. This explains why significant efforts are needed to drive the knowledge and understanding of core values across the organization. A failure of any of these values at any point can damage the organization's reputation, leading to severe consequences.

Core values are becoming increasingly important in attracting and retaining high performers. Job seekers now research companies to see if their values align with their own. Here are some common core values across various industries:

• Accountability: Acknowledging and assuming responsibility for actions, products, decisions, and policies.
• Balance: Taking a proactive stand to create and maintain a healthy work-life balance.
• Commitment: Committing to great products, services, and initiatives that impact lives within and outside the organization.
• Community: Contributing to society and demonstrating corporate social responsibility.
• Diversity: Respecting diversity and striving for the best composition. Establishing an employee equity program.
• Empowerment: Encouraging employees to take initiative and give their best. Adopting an error-embracing environment to empower employees to lead and make decisions.
• Innovation: Pursuing new creative ideas that have the potential to change the world.
• Integrity: Acting with honesty and honor without compromising the truth.
• Ownership: Taking care of the company and customers as if they were one's own.

In conclusion, values form the foundation for everything that happens in an enterprise. The enterprise must ensure everyone understands what the values mean and how they are to be expressed. Leadership must set the tone, as their adherence to core values shapes the organization's culture.

What do you think?