How to create Company Values that matter

A google definition of company values reads ‘ Company values, corporate values or core values, are the fundamental beliefs upon which your business and it’s behaviour are based. The guiding principles that you use to manage your relationships with all stakeholders, from suppliers to employees to customers ."

From this definition it could appear that values are simply about rules and control – yet in the quest for differentiation, company values offer a real opportunity for competitive advantage.

In fact, the real benefits are perfectly summed up here by Patrick Lencioni ( HBR.org ) ” Values can set a company apart from the competition by clarifying its identity and serving as a rallying point for employees .”

Meaningful values will attract and resonate with potential clients, unite your team and even draw potential talent to your business, showing everyone what you believe is important in business and what to expect when working with you.

So, why when we look at big corporations can they seem so bland?

Research, by Maitland into the FTSE 100 companies found the 5 most common values are

1. Integrity
2. Respect
3. Innovation
4. Safety
5. Transparency

All admirable, upstanding values - Yet do they really tell you anything about the organisation and more importantly would they attract you as a potential customer or employee?

You wonder if these organisations picked ‘respectable’ values that seek to please everyone. Meaningful values should be polarising – some people will say ‘definitely not for me’ whilst others will say ‘yes, that’s the one!’

Let’s face it we are all honest, ethical and experts in our field (If we weren’t, we wouldn’t be in business for very long) so sorry those just aren’t going to cut it.

Consider instead these examples of bold, differentiating values:

Learn Fast " We’re in love with customer problems more than our solutions. We walk in our customers’ shoes and experiment our way to success. The only failure is the failure to learn fast". – Intuit

Create fun and a little weirdness. ‘One way that we differ from other companies is that we’re not afraid to be a little weird. Weird certainly isn’t a bad thing – it can actually be fun! One of the reasons why our company culture is so successful is because our atmosphere is fun and employees are never afraid to be themselves. – Zappos

Warrior Spirit – Strive to be the best. Display a sense of urgency. Never give up – Southwest Airlines

Embrace The Adventure – Be curious, ask for help, and demonstrate an ability to grow. Own and learn from mistakes. Bring joy and optimism to work. - AirBnB

You can read more about these here https://peakon.com/blog/workplace-culture/best-company-core-values/ )

These are companies that are not afraid to be bold and use their values to stand out from their competition.

Firstly, avoid the temptation to google ‘50 most common company values’, or to check out your competitors website – we can be drawn to values that we think are positive and that would sound good and can be tempted to ‘match’ the competition.

Remember your values already exist in your business, you just need to bring them out.

The best way to start is to get the right people in the room with a stack of post it notes and consider these questions

Questions for Solopreneurs

• What is more important than profit? Consider a situation where doing something will cost the you more, what would make you accept a lower profit?
• What makes you proud to work in your business?
• What do your customers say about how you do business?
• What stories or examples can you recall?

Extra question for teams

• What qualities do you value in co-workers and leaders?

If you get stuck, you could think about things you would never do and consider the reverse of that!

Capture each idea on post it notes and stick them up on the wall.

Keep going (allow at least 10 minutes) – don't edit your thinking.

When the writing has stopped, review all the values and start grouping them together, if there are duplicates don’t throw them away, put them together as they indicate a strong topic.

Most likely you will see clear groups forming however don’t dismiss any ‘odd’ ones, ideally ask the person to tell you more, ideally to give an example – sometimes these less immediately obvious values can be a really powerful.

When you have the groupings, look for the one value that really captures the essence and spirit of the group.

Try to avoid a broad term here- i.e. teamwork what do you really mean collaboration, cooperation, coordination, collegiality, partnership, community, reciprocity, synergy, solidarity, togetherness, unity?

You are looking for 3 – 5 values . Remember, these should be strongly held beliefs and will eventually have both behaviours and measurement attached.

Identify and record at least one specific example where this value has been demonstrated and the impact it had.

Your core values are the things that currently exist and are demonstrated within your business, these can be seen and experienced today. However, if you recognise that things will need to be different in the business in future, these should be seen as aspirational values and identified as things you are working towards.

After you have defined your values Patrick Lencioni recommends letting them ‘mature like a fine wine’. Before committing and publishing them everywhere – reflect on them over a month or two – in different scenarios, do they sit well or could they cause a conflict?

If you are a Solopreneur spend some time working on these alone; gather and review feedback from your customers. Then seek input from people who know you and your business well yet who will be objective in their view. A great question to ask them is ‘does this sound like me and really reflect what is important to me in business?’

If you have a small team then get everyone involved. For larger organisations or if it’s not practical to get everyone together then I don’t think you can get better advice than that of Jim Collins – author of Built to Last. When asked the same question he posed this scenario “Imagine you’ve been asked to recreate the very best attributes of your organization on another planet,” he said, “but you only have seats on the spaceship for five to seven people. Who would you choose?” It is this group that Collins says should be entrusted with establishing the core values of organisations down here on Earth.

Whilst I’m not suggesting you all chant the company values every morning, simply creating a list of values and posting them on your website and or even on the wall is just the beginning. You need to identify appropriate actions, standards and behaviours which will bring the values to life.

What are the rules? For each value create some behaviours/criteria – what does this look like in practice?. What are the standards against which you can hold yourselves accountable?

How will you roll them out through your business, how do they appear on your website and social media, job descriptions, interviews and performance appraisals? For example, if customer delight is one of your values, regularly share delighted customer feedback with your team or discussing any negative feedback with a view to improving it in future.

Consider annual or quarterly awards to recognise, celebrate and re-enforce these values.

For solopreneurs how can you share and demonstrate your values through your social media

To make your values meaningful you can’t have a gap between what you are saying and what you are doing.

Values, when carefully defined can create a real identity for your business. Whilst external people may not recognise you instantly from your values, overtime it’s important that your stakeholders, employees and customers can.

If you would like to create meaningful values for your business then get in touch and see how I can help either through 1-2-1 coaching or team workshop facilitation.

Janet Doran , works as a Business Coach across North Yorkshire, UK. enabling small business owners in creative and professional service industries to win in competitive markets.

Find out more at www.thepositivepen.co.uk or call 07505 120051

Posting daily, information/inspiration for small business owners, on twitter @ thepositivepen