If you are going to have Values in your business, make them mean something. Too many businesses tick off values as yep we’ve done that now let’s move on to strategy. Peter Drucker was famous for his saying “Culture eats strategy for breakfast”, we believe this is outdated because culture is your most powerful strategy.

There are so many smart people out there with unlimited access to information, technology, and know-how and while this stuff is important it cannot sustain a competitive advantage in the long run, not even in the medium term. The environment we now live in is so fast, markets and businesses are disrupted at an alarming rate.

You cannot maintain a position of being the smartest group of people on the planet, you can’t outrun the competition, anything you can invent they are 2 seconds behind you, if not already in front of you.

BUT

Culture is something that cannot be replicated. If you are serious about building and scaling a sustainable business that can have a long-term impact on the world, then you must understand the power of your culture. Understanding your true, authentic Purpose is a huge first step, now you need to articulate the Values. There are lots of things that impact culture but well-crafted and communicated Values are the cornerstone of clearly and consciously driving the desired culture in your business.

Our Values tell us how we agree to behave around here

When you are forming your values you need to be honest, we are talking core values here; not aspirational or BS values the PR company helped you write. Think of your core values as the few behavioral traits that are inherent in your business… they are the small set of essential, enduring principles that define your culture.

Your values must be authentic and communicate who you are at your core. Values matter because, values help us establish the culture we want: They provide the foundation for creating a healthy company culture. By clearly communicating and living by values a business can foster a positive and productive work environment.

For instance they help;

Attract and retain the ‘right’ employees: People want to work for a business that shares their values. By promoting and prioritizing values that resonate with job seekers and employees, a business can attract and retain talented and committed people.

Exiting people from the business: Values can guide us in making the hard decisions of getting the wrong people off the bus. Highly competent people who do not share the values of the business will be detrimental to the business in the long run.

Having difficult behavioral conversations: Our Values help people understand how they are expected to behave, they are helpful if someone is struggling to fit in with the behavior that is expected.

Guide decision-making: Values can serve as a compass for making ethical and principled decisions. For example, if a company values honesty and transparency, then financial reporting or customer communication decisions should reflect these values.

Build trust with customers: Values can also help a business build trust with customers. By prioritizing values such as customer service, quality, and reliability, a business can establish a positive reputation and earn the loyalty of its customers.

Define a unique brand identity: Values can help a business differentiate itself from its competitors. By promoting and living by values that align with the business's purpose and goals, a company can create a unique brand identity that resonates with customers and stakeholders.

Every member of your Leadership Team must be prepared to walk and talk your values. Nothing will kill a healthy culture faster than leaders behaving in a way that is not aligned with the stated values. We strongly recommend that all leaders seek regular feedback from their peers and direct reports and reflect on how they are living the values.

A tip for creating values:

• name it - use a verb or an active doing word.
• create a description to capture the meaning
   

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