What are Company Values?
Company values are the core principles and beliefs that guide an organization’s behavior, decisions, and actions. They form the foundation of the company’s identity, influencing its culture, strategy, and operations. These values are not just words on a page; they are the ethos that shapes how a company conducts itself, both internally and in the market.
5 Ways Values Contribute to a Company’s Bottom Line
1. Guiding Decision-Making:
Clear values help in making consistent decisions that align with the company’s long-term goals. They act as a compass that helps in navigating complex business scenarios, ensuring that decisions are not just profitable but also ethically sound and aligned with the company’s ethos. This consistency in decision-making fosters a sense of reliability and integrity both within the company and in its dealings with clients and partners.
2. Shaping Culture:
Values define the workplace environment and influence how employees interact with each other and with customers. Values are the underpinning elements that create and maintain the workplace atmosphere. They influence how employees behave, collaborate, and resolve conflicts, leading to a more harmonious and productive work environment. A strong culture based on shared values can also become a unique selling point in attracting top talent.
3. Enhancing Brand Identity:
Values strengthen the brand by providing a clear message about what the company stands for. A company’s values contribute to its unique brand identity, differentiating it from competitors. They communicate what the company stands for to its customers, helping to build a brand that’s not just recognized for its products or services, but also for its principles and ethics.
4. Driving Productivity by Attracting and Retaining Talent:
Many employees seek workplaces with values that resonate with their personal beliefs. Employees today are looking for more than just a paycheck; they seek purpose and alignment with their personal values. Companies with clear, appealing values are more likely to attract and retain employees who are not just skilled but also passionately engaged with their work and the company’s mission.
5. Building Customer Trust:
Customers are more likely to engage with companies whose values align with their own. In an era where consumers are more socially and environmentally conscious, they tend to support companies whose values resonate with their own beliefs. This alignment helps in building long-term customer loyalty, as customers feel they are contributing to a cause or ethos they believe in.
How to Create Company Values
1. Reflect on Your Company’s Mission and Vision:
Delve into what your company aims to achieve in the long term and how it wants to be perceived. Ask yourself what core beliefs are needed to support this vision, considering the impact on all stakeholders, including employees, customers, and the community.
2. Involve Your Team:
Encourage open discussions and workshops where employees from various levels can share their perspectives. This inclusivity not only fosters a sense of ownership among employees but also ensures that the values resonate across different departments and roles.
3. Look at Your Company’s History:
Analyze key milestones and turning points in your company’s journey. Identify the values that were reflected in these moments, whether in overcoming challenges or achieving successes, and consider how these values can be integrated into your current ethos.
4. Consider Your Stakeholders:
Engage with customers, suppliers, and community leaders to understand their expectations and perceptions. This external insight can provide a broader perspective on the values that are important not just internally, but in the wider market and community.
5. Be Authentic:
Avoid adopting generic or trendy values that don’t genuinely represent your company. Consider what makes your organization unique and how your values can authentically reflect your company’s true character and aspirations.
6. Keep it Simple and Clear:
Use language that is easy to understand and relatable. Avoid jargon and complex concepts so that the values are easily communicable and memorable to everyone within the organization, regardless of their role or background.
7. Make Them Actionable:
For each value, define clear and observable behaviors that employees can incorporate into their daily work. This helps in translating abstract values into concrete actions that can be practiced and measured.
8. Communicate and Embed:
Utilize various channels like internal newsletters, meetings, and training sessions to reinforce these values consistently. Incorporate them into your branding, marketing materials, and social media to ensure a consistent message internally and externally.
9. Review and Evolve:
Regularly assess whether the values are still relevant and effective in guiding the company’s direction and culture. Be open to evolving them as the company grows and the market changes, ensuring they remain aligned with your current mission and vision.
10. Lead by Example:
Leadership should consistently demonstrate these values in their actions and decision-making. This sets a powerful example and sends a clear message about the seriousness with which the values are regarded within the organization.
Conclusion
Company values are more than just a set of words; they are the DNA of your corporate identity. They define how you do business, interact with your employees, customers, and the broader community. By carefully defining and living these values, you can build a strong, cohesive, and successful organization that stands the test of time.
Dr. Patty Ann
