7 Key Ideas on the Value of Core Values

I have been re-reading Gino Wickman’s book, Traction: Get a Grip on Your Business. It is an excellent read. So practical, so simple to understand. He has many templates built into his theory that makes it easy to apply his principles to your situation.

One of the ideas Gino drives home is the importance of getting clear on your Core Values. “Once they are defined, you must hire, fire, review, reward, and recognize people based on these values. This is how to build a thriving culture around them” (page 35).

It is critical for your organization to define its core values. Core values inform your vision and shape your culture more than anything else except the people you hire. They are the essence of the organization’s identity – the principles, beliefs, norms and aspirations.

Establishing strong core values is one of the most important responsibilities of any organizational leader.

Here are 7 key ideas that will help you understand what core values are all about; why they are important and how to bring them into day-to-day management.

Key Idea #1: If you have a large binder of policies and procedures but don’t have a shortlist of core values, your organization is probably over-managed and under-led. Value clarification is one of the most important roles of leadership.

Key Idea #2: Core values provide a solid foundation for strategic decisions. Without them, your organization is vulnerable to mission creep.

Key Idea #3: Core values ensure you get the right people on the bus because the values they espouse must align with the core values of the organization. In the absence of clearly defined values, you have no way of predicting culture fit before hiring.

Key Idea #4: Core values make clear how people are treated, recognized and rewarded. In the absence of core values, each department head will recognize staff performance as they see fit. Inconsistent rewarding and surprising promotions foster suspicion and breed office politics.

Key Idea #5: The strongest cultures are driven by a handful of core values expressed in simple but meaningful words. Start by answering these three important questions. What makes this organization unique? These define your mission. What constitutes great performance? These define excellence. How are people treated around here? These are your relationship values.

Key Idea #6: When it comes to communicating the meaning of core values, great leaders understand the power of using stories. Core values are like glue, they hold the organization together. Repeated stories become legends and organizational legends are like a living compass, they set organizational direction. Stories remove cryptic language and inspire the heart.

Key Idea #7: Core values should have a prominent place in everyday management. When you make a decision, tie it back to a core value especially when cascading the decision to the entire organization. When you affirm a staff member relate their behaviour to a core value. When you offer constructive feedback, bring in the core values as well. Leaders need to become chief reminding officers and be creatively redundant when referring to them all the time.

The real value of defining your core values is igniting passion – in you, your team and those attracted to the organization. Passion goes a long way in getting things done.