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When they define core values, they don’t think in terms of inspiring positive behaviors, but on buzzwords that would excite people.Īpproaching your culture by merely listing some inspirational (and politically correct) values won’t do your organization any good. Leaders pay lip-service to beautiful-sounding words to define their culture. Most values mean nothing.īoeing stands for “Integrity,” “Trust,” and “Safety.” That doesn’t seem to come from the same company that, according to internal memos, had “clowns designing its airplanes.” That’s a big issue with most organizations they don’t live up to the standards their executives once defined. These are the corporate values of Enron, as stated in the company’s annual report. What very few people remember is what Enron stood for - their corporate values. Everyone is aware of how the once seventh-largest company in the world ended up being a big scam filled with lies and manipulation. Your company values may be doing more harm than good.Įnron is considered the biggest fraud in history. One of Atlassian’s values is “don’t f**k the customer.” Customers are their lifeblood and, by avoiding formal corporate language, it looks like they mean it.
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Values help establish clear priorities they make it easier to say “no” to the things that are not aligned with their core beliefs.Ĭore values educate customers about who you are: When a company brings its beliefs to life, their partners and clients know what they expect (or not) when doing business with that organization.Ĭorporate values create differentiation: They don’t just represent what you believe, but your unique behavior.Ītlassian is a hugely successful software company. Your core values define what you stand for and will help attract the talent that is right for your organization.Įmployees are willing to earn less money to work in an organization that’s aligned with their personal values.Ĭompany values simplify decision-making: It’s easier to make choices when everyone knows what matters (or not) to the organization. Values attract the right people: People don’t leave companies they leave toxic workplace cultures. Your values define your company beliefs and bring people together, building a community.
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Values drive community: If you want your employees to act like one, you need a shared code of behavior. Here are the key benefits of defining your company values. They are one of the ten building blocks of the Culture Design Canvas. When put into practice, well-defined core values are crucial for creating a thriving culture. Values are only helpful when they’re expressed in everyday behavior. Unfortunately, most companies have a disconnect between ‘proclaimed’ values, and ‘behavioral’ values, as Nik Beeson wrote here. Showcasing the company values on a PowerPoint, your headquarters’ wall, or in a marketing campaign won’t bring those core beliefs to life.Ĭompany values only make sense if they’re practiced. They define the desired behavior to accomplish the company’s ‘why.’ Once set, they should affect every aspect of the business, from reward models, compensation, and policies, to strategic decisions and public affairs. They define not only how employees treat each other, but also the behavior expected toward clients, partners, and the broader community.Ĭompany values are at the service of your organizational purpose. The core values of an organization impact both internal and external affairs. Corporate values help people function together as one and shape the way employees (should) behave. What Are Company Values?Ĭompany values, also known as core values, are the set of guiding beliefs upon which a business is based. You can read the post in order–or jump to a particular section using the table of contents below.
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This in-depth post covers everything you need to know about company values, from how to define them, to how to communicate them, as well as examples of core values, and actionable tips. In this article, I won’t just share the sunny side of values, but what you also need to watch out for.
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Others, like Enron, talk about the importance of integrity, but then become a quintessential example of fraud. They promote safety, as Boeing does, but then put people’s lives at risk. Unfortunately, most companies don’t live up to their values. They should encourage positive behaviors and discourage anything that harms the working environment. Values are how you expect people to behave they bring your ‘why’ to life.Ĭompany values are not just words, but a guide on how people operate and what’s expected of them. Every thriving company culture has a clear set of core values that supports the organizational purpose.