The notion of corporate values has been around for quite some time. For many organizations, they are words on a wall, a page in the annual report or a graphic on a careers site. It’s not hard to see, however, why there is growing cynicism when it comes to corporate values — especially when you think about companies like Enron, which claimed to have values such as integrity as part of its corporate mantra but clearly didn’t adhere to them.
While most businesses claim to have a set of values, often they’re not technically values. These “values” are often communicated as a list of directives and behaviors, and the list is typically exhaustive and may include terms that contradict each other (e.g., “collaboration” and “autonomy” — how do you know which to follow?). For some companies, their values are well-defined, but often they’re not ingrained in the business. Therefore, they don’t act as a tool to shape and reinforce the organization’s unique culture. So what’s the point of having them?
Values can be a critical tool in your corporate arsenal. They represent the codification of your culture, and culture can be key when it comes to high-performing organizations. A business’s goal is often to hire people who personally share and align with its values. In my experience, when we all believe in the same thing and have a shared sense of purpose, we’re more likely to thrive. In fact, the majority of the workforce believe that it’s important for the values of the business they work for to match their own.
As the leader of a people marketing and communications firm, I work with brands of different sizes across a variety of sectors. We’re privileged to become an extension of their businesses and advise them on connecting their people strategy to their business strategy. Through our work, we’re able to learn about each business’s corporate brand structure — and values are often a key part of that.
Here are some important things to keep in mind when defining your business’s values:
What are values? Values are a common set of beliefs that reflect an organization’s identity and personality and shape its behaviors. They’re not behaviors in themselves. They’re a way of capturing or crystallizing what a company stands for and believes in and how it chooses to achieve its goals. They define the standards by which its practices can be judged.
Why are values important? Values are the heart and soul of an organization. They’re the core principles that set the tone and shape its culture and activities. They also express how an organization will choose to achieve its objectives and interact with clients, partners and employees. When people share values, trust can be built. Trust leads to higher levels of collaboration, productivity and engagement.
How should they be expressed? Some values are implicit or too generic to be worth including in a company’s value set. For example, “honesty” is an obvious, integral part of business practices and a value that most companies claim to adhere to. As Simon Sinek wrote, “if you have to write ‘honesty’ on your wall to remind you to do it, then you probably have bigger problems anyway.” Express your values as verbs because verbs are actionable. The only way to hold people accountable is if these principles can be acted upon.
How many values should you have? Less is more when it comes to clear, concise and unique company values. Four to five values are ideal, as this requires a business to home in on authentic expressions of what they stand for and refrain from overlap or repetition. Going beyond five can make the values much harder to recall and reinforce.
Who should adhere to them? Everyone. It’s that simple. Values start from the top and ideally should be adhered to by everyone in the business. No excuses. Incorporate them into every piece of communication — both formal and informal.
How do you define them? There are many ways to do this, and it will really depend on your organization’s dynamic. I believe that defining values should be a co-creation of leadership and your employee base, ideally done in an engaging and interactive way. Don’t take this exercise lightly. It may take time and effort. Once you publish them, you’ve made it known that those values are what you stand for, so ensure that they’re accurate and suit the ambitions of your business. Remember: They will likely have to last for years to come.
How do you embed them? Embed your values throughout the candidate/employee life cycle — in the interview process, in performance management and in reward and succession planning. Make your values a yardstick for decision making at all times. It’s important that employees understand the values and make sure that they represent them in all areas of their work life. Communicating your values clearly and regularly can ensure that they become part of your company’s DNA.
I’ve found that many businesses are looking to reshape or relaunch their values. Businesses are changing, their solutions are now more digitally focused and new types of talent have entered the workforce. The bland values that once graced the walls of many organizations’ entryways may no longer cut it, and the cultures they once had may not enable them to be successful in the future. To shift the ways you work and the behaviors you expect in your business, it’s important to build a unique, thoughtful set of values that everyone can get behind and live every day. By defining your values, you’re shaping what your business is today and what it will be in the future.
