What Is the Purpose of Values — What Is There to Consider?

Every organization needs to have specific and clearly defined values. Some believe that this is just a mere formality, but the importance of clearly defined core values is much higher.

By having the right values, you will make sure the entirety of your company is going in the same direction — working toward achieving the same goals.

In this piece, we’ll tell you all you need to know about core values, why they are essential, and how to create clearly defined core values that will improve your brand. Keep on reading, as this is not something you can miss out on.

What Are Core Values and Why Are They Important?

Company values are not just some jargon speech through which you can state what you believe matters for your company. They need to represent your organization, what it truly is and what people can expect from it.

More than half of CEOs and CFOs believe that such corporate culture massively influences creativity, productivity, and, most importantly, profitability. This number is only going to get higher as more and more executives realize the importance of core values:

  • They shape the company’s culture and its character by giving it a strong sense of identity.
  • They provide the continuity that holds the organization together in the face of change.
  • They make it easier for the company to make decisions.
  • They help you quickly communicate principles to clients and customers.
  • They enable you to hire employees with the right attitude who genuinely fit the company.

Every value needs to show the soul of the company. That’s why they are messages that convey the beliefs, principles, and philosophies that drive your whole business. They effectively show both your team members and customers what’s truly important to your company and its culture.

For this reason, core values have to be distinct and easy-to-define for everyone while at the same time displaying what you stand for. They are your company’s DNA and help you differentiate yourself from other companies in a somewhat similar way to your mission statement.

This also means that your company and its members need to respect these values, or their existence will become futile. If everyone appreciates them, you can build trust in your company, which will, in turn, enable it to function like a well-oiled machine.

That’s because clearly defined core values let employees know what the whole organization stands for and what it strives for, which will give them a sense of responsibility.

Mission, Vision, and Values — Key Differences

Before we explain how you can clearly define your company’s core values, we need to understand the differences between your company’s mission, vision, and values.

The three form the foundation of your company and every activity it and its employees partake in. Here are the differences between them, in the simplest of terms:

  • The mission statement is there to differentiate the company from its competitors, so it has to be very specific.
  • The vision statement tells us what the company will be in the future. It’s designed to be inspirational, broad, and it is mainly targeted at stakeholders and company members.
  • The values exist to define how the people in the organization need to behave, and they need to exemplify the core values your company shows in practice. It’s a guideline for critical decision-making.

How to Create Your Company’s Core Values?

Creating and clearly defining your core values is not something that you can do overnight. It’s a process that needs to incorporate several steps if you want it to be truly successful. Here are a few actions you should take on this journey:

  • Have a brainstorming session with the team.

Call up all of your most important and most trusted team members for a brainstorming session. Make sure this session is fully open to all of their opinions. If you want to define your core values, members of the organization need to voice their views, as your company is the sum of its parts.

Create a list of core values by grouping them, and revisit that list in a week or later to see if everyone still agrees.

  • Try to be as specific as possible

The clearest of values can help you make all decisions through them. While this is next to impossible in the real world, your goal is to get as close as possible.

Core values need to be a framework for hiring the right people, and they should be specific enough that they attract the right people on their own.

It all comes down to having clear, specific, and unified values that will turn your organization into a massively successful company.

  • Ask vital questions.

If you ask yourself some fundamental questions about your company, you can clarify its values.

Ask questions like:

  • What behaviours and actions should the company value more than profit?
  • Do you want to change things up in the industry or keep them as they are?
  • Do you want the company to value hard work, entrepreneurial spirit, or something else?

These and other similar questions will bring you a step closer to defining your company’s values.

  • Get help from the company’s mission.

Even though the mission and values are different, sometimes, a company’s core values can naturally emerge from the mission statement.

So, make sure to have a clearly defined mission statement and revisit it to see if it can help design your company’s core values or help you determine them.

Bottom Line

This advice should be beneficial in your effort to define your company’s core values. However, if you run into problems, you can always reach out to us.

We have a helpful Core Values Worksheet that can help you understand, document, and effectively communicate your company’s core values.

We’ve designed it to help our clients create a clear guide for employee behaviour and organizational decision-making, which is precisely what you need your core values to do.