5 Steps to Define Core Values in a Company and Ideology Behind it

Core values are the fundamental beliefs and principles that shape a company’s culture, strategy, and decision-making processes. They define the company’s personality and guide its actions and behaviors. Defining core values is essential for any organization looking to create a unique identity, build a strong culture, and establish a clear direction for its future. In this blog, we will discuss the five crucial steps that can help you define core values that align with your company’s mission and reflect its ideology. Whether you are an entrepreneur starting a new venture or a leader looking to revamp your company’s values, this blog will provide you with valuable insights and practical tips to create a strong foundation for your organization. So, let’s dive in and explore the process of defining core values for your company.

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What do you mean by core values?

Core values are the guiding principles that establish an organization’s priorities, forming the foundation upon which the company is built. They define the company’s vision, shape its culture, and guide its actions towards its goals. In today’s fast-paced business environment, where society and technology are constantly evolving, core values provide a much-needed constant. While technical competencies are important, core values are the driving force behind sustained success. As Tony Hsieh, the founder of Zappos, recognized, defining core values from day one is crucial to a company’s success. Core values are like sails on a boat, providing direction and purpose to the organization.

How to set-up core values?

• Build a team- Firstly it involves building a team that will be responsible for defining the core values that will shape the company’s identity. It’s crucial to carefully consider who will be part of this team, and representatives from different departments and hierarchical levels should be included. It’s important to ensure that everyone on the team is aligned and committed to the task of drafting and implementing the core values in company. The team should be capable of brainstorming, compromising, stepping back, and assessing and reassessing until they arrive at a set of values that everyone believes in.
• Analyze- The analyzing phase involves generating a range of ideas and then narrowing them down to the most relevant ones that align with the organization’s mission statement. The team members should individually list their ideas for employee core values and then consolidate the input. This process is time-consuming and should not be rushed, and it’s best to spread it over several meetings to allow for deliberation and discussion. Top management should also provide core value suggestions since their vision will guide the company’s direction. They must introspect and identify values that align with the company’s trajectory in the years ahead.
• Consolidation and settlement: Thenext step involves consolidating and settling the employee core values. It’s important to keep the number of values to a manageable amount that can be easily remembered. To achieve this, the team should sort and analyze all the collected data. The affinity mapping exercise can be helpful in grouping similar ideas into 5-7 categories to make sense of the data. Affinity mapping is particularly useful when dealing with a large amount of data and trying to identify correlations. Once the data has been sorted, similar values can be merged, duplicates can be eliminated, and insignificant ones can be left out. Most companies have between 5-10 core values. Therefore, it’s important to ensure that the final core values embody the company’s vision and can be upheld by employees. After finalizing the core values, it’s essential to set aside time to discuss what each value means to the organization and its employees.
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• Presentation– The next step is to introduce and communicate the final list of core values to the entire organization. This exercise aims to familiarize all employees with the values that form the identity of the organization. Providing a brief explanation of how these specific values were selected in alignment with the company’s goals will help build employee loyalty and enhance brand value. It is vital that employees comprehend how each value applies to them individually and to the company as a whole. Even the most well-intentioned employee may misunderstand or misapply a value, so clear communication and understanding are essential.
• Incorporation of values-  After defining the core values in company, it is crucial to incorporate them into every aspect of the company’s operations. This includes internal reviews, sales and marketing pitches, and even hiring practices, orientation, and onboarding processes. The company’s success lies in its employees, and it is essential to highlight those employees who embody the core values as an example for others to follow. Rewarding employees who consistently uphold the core values at regular intervals can reinforce their importance amongst all employees and serve as a constant reminder to the entire workforce.

The purpose of setting up core values in an organization

The ideology behind setting up core values in an organization is multifaceted and can include the following:

• Defining organizational identity: Core values help define the identity of an organization and its unique position in the market. They are the essence of what the organization represents.
• Guiding behavior: Employee Core values serve as a guide for employee behavior, ensuring that employees act in a way that is consistent with the organization’s values and beliefs.
• Encouraging accountability: When core values are clearly defined, it is easier to hold employees accountable for their actions. This helps to ensure that all employees are working towards the same goals and objectives.
• Fostering company culture: Core values help to shape the company culture by setting a standard for the behavior and attitudes of employees.
• Attracting and retaining talent: Companies with strong core values often attract and retain talented employees who share similar values and beliefs.
• Building brand value: Core values help to build brand value by establishing a positive reputation and creating a sense of trust among customers and stakeholders.
• Driving decision-making: When core values are integrated into the decision-making process, they can help guide decisions that align with the company’s overall goals and objectives.

Core Values of Companies

AMAZON

Here are some of Amazon’s core company values:

• Customer Obsession
• Ownership
• Invent and Simplify
• Are Right, A Lot
• Learn and Be Curious
• Hire and Develop the Best
• Insist on the Highest Standards
• Think Big
• Bias for Action
• Frugality

MICROSOFT

Here are the core values of Microsoft:

• Empower every person and organization on the planet to achieve more
• Innovate for our customers
• Create a diverse and inclusive culture
• Operate with integrity
• Deliver value to our customers
• Obsess over customers
• Build trust with transparency
• Continuously learn and grow
• Embrace a growth mindset

Conclusion:

core values is an essential step for any company that seeks to establish a strong identity and achieve success. It involves assembling a team, brainstorming, condensing and finalizing the values, unveiling them to the entire team, and delineating them into all aspects of company operations. The ideology behind setting up core values is to align the company’s actions and behaviors with its mission, vision, and culture. By identifying and implementing core values, companies can create a positive work environment, retain employees, attract customers, and ultimately achieve their goals.