Follow Kirk on TwitterAre Core Values Overrated?
May 13th, 2010 by Kirk Dando
I recently had the privilege of working with a company that is wildly successful by anyone’s standard. Even in this economy, it’s growing rapidly, has a culture that attracts the best talent, is winning award after award in its industry, and has a CEO who was named local business leader of the year.
This company is clearly on its way up The Business Lifecycle™ (an approximation of how successful businesses scale and some of the problems — The Top 12 Warning Signs of Success™ — they encounter).
However, after meeting with several of the company’s key leaders and employees, it occurred to me that although they had some very clear short-term objectives and were driving the company toward iconic levels of short-term success, the core values, or what I call the SOUL, and ultimately the long-term success, of the company was in danger of being compromised, due, ironically, to its hyper-growth.
When I say SOUL, I’m not talking about the “soul” that is drenched in marketing jargon and marched out to the employees and the public as a feel-good statement, then hung around the office. Did Enron have a soul or a feel-good mission? Did Bernard Madoff’s company have a soul or a feel-good mission? Enron’s 4 values (Integrity, Communication, Respect, Excellence) were chiseled in marble in the main lobby but had very little to do with the real values of the organization.
Most companies have 3 basic components: 1) a skeleton, 2) a central nervous system and 3) a SOUL.
- The skeleton is the organizational structure of the company and tells the story of how the organization functions. It is very difficult for a company to have the skeleton of a starfish yet perform like a cheetah. Sadly, many companies think they have the skeleton of a cheetah but in reality, they have the skeleton of a rake (one dominant leader with a bunch of people reporting to that individual).
- The central nervous system includes the systems that create consistent and predictable outcomes for a company. As the saying goes, if you do not design the systems, they will design themselves, often very poorly.
- The SOUL of a company includes the invisible but very real NON-NEGOTIABLE vision, core values, and goals put upon it daily by the actions, behaviors and passions of the people who created and work at the company. The SOUL of a company is both the most significant way for leaders and their team to positively influence the bottom line AND truly make a significant contribution toward making the world a better place…if done authentically.
Simply put, the SOUL of a company is what happens when no one is looking.
WHY DOES YOUR COMPANY NEED A SOUL?
Having been an athlete (some would say “competitive junkie”) my entire life, I have come to recognize one thing that makes a sports team uniquely focused and ultimately prepared to win…no matter what, is the same thing that makes companies uniquely focused and ultimately prepared to win…no matter what.
That “thing” is the NON-NEGOTIABLE shared vision, values and goals. The SOUL consistently inspires you and your team toward the right behaviors and anchors you and your team during challenging times. When “corporate tsunamis” strike and they will, you need that anchor to be REAL, to be CLEAR and most importantly, to reflect the DNA of you and your team.
If you pull an “Enron” and have what I call a ”SOUL HOLE” (meaning you say one thing and do another) you and your team will no doubt be measured by your actions, and the next stop on that journey is hypocrisy, doubt, fear and cynicism overtaking the corporate culture.
PASSION…YOUR SOUL HAS GOTTA HAVE IT!
There are a dizzying amount of books, articles, blogs etc. about how to come up with your vision and values statement. Quite simply, your vision and values have got to reflect the passion of you and your team. Each word has got to have personal significance to you and your team. NOT what you want it to be, not what you think will feel good to the customers and your employees but what you ARE NOT willing to negotiate on, EVER! Write your vision, values and goals so they reflect who you and your team really are, sprinkle your personalities on top and serve it up for your employees, customers, partners, etc to enjoy!
The SOUL of your company should be simple, should be memorable and should drive the right behavior.
KEEPING THE SOUL ALIVE
If your vision and values are not in some form or fashion at the forefront of everything you do, every meeting you have, every new employee interview you conduct, every decision you make, then you run the very real risk during growth or simply with the passing of time of having the SOUL of your company fade and in extreme cases (e.g. Enron) die.
DO NOT BE A COWARD, BE A LEADER
If your vision and values are REAL, AUTHENTIC and drive your team’s DAILY behaviors, congratulations, you are one of the elite. My guess is, although you may experience difficulties from time to time, your organization thrives amidst any crisis they may encounter.
If your vision and values statements are feel good statements that rarely get discussed and do not reflect the REAL values of you, your team and your company then do not be afraid to ask for forgiveness from your team and employees and embark on a journey to develop the values and mission that inspire you and your team.
Or if your vision and values have lost their meaning and significance during rapid growth or over time, do not beat yourself up; this is actually a warning sign of your SUCCESS! Instead, use this opportunity to pull your team back together and breathe life back into your vision and values or maybe adjust accordingly to reflect what is REAL and AUTHENTIC about you, your team and your company.
I HOPE YOU HAVE THE COURAGE TO MAKE YOUR COMPANY AND THE WORLD A BETTER PLACE… HAPPY SOUL SEARCHING!
KEY QUESTIONS:
What do you think? Are core values overrated, or are they a must-have to scale a business? Please comment below.
Core Values are important and constructive when they are in sync with the corporate Soul, and together the two can be a powerful projection of corporate culture. No doubt though that Soul overshadows the core values when they’re not in sync, in which case the stated “Core Values” just become more evidence of a poisonous “Soul Hole”!
This hits home on several points for me. In my view, the most accurate line of the article is, “Simply put, the SOUL of a company is what happens when no one is looking.” Having worked in both corporate America and for small, private companies, too often there are key employees that aren’t worried about core values unless someone is watching. So, I don’t feel that CORE Values can ever be overrated. However, too often the CORE Values of a company are NOT reflected in who they hire OR in the general mood/tone that a company portrays. In my estimation, the biggest mistake a company can make is hiring someone that doesn’t fall into line with their CORE values. Additionally, an employee in a KEY position that isn’t in line with the CORE values can be poisonous and toxic. This is because it is only when a group of people come together with a shared passion or belief that truly great work (or deeds) is achieved.
I love the last sentence of your comment…because it is so true! Experience has taught me that there are a handful of overly obvious and embarrassingly simple (but not easy) ‘things’ that when they are ignored, down played or not treated with proper urgency always cause companies to get themselves wrapped around the axle. Ignoring the importance of hiring the RIGHT PEOPLE who have REAL shared values is one of those things. We all hear about the importance and know the importance of hiring right but I have not seen a lot written or discussed about what “right” really means. In my estimation, to often unfortunately, talent gets placed ahead of values when hirinig and then when someone gets let go it is typically because of their behavior or values. Getting this sequence in the right order is critical…values first then talent! Thanks Luke!!
Johannes, very well put! You nicely summed up what is one of the 12 Warning Signs that hold companies back, frustrates great people and causes them to simply start going through the motions so they can keep a pay check coming in and hopefully survive until something better comes along and taps them on the shoulder… a poisonous “Soul Hole” Seems obvious it is a really bad idea to create a “Soul Hole” but why do so many people leading companies do it??
LOVE this article! Core values are not overrated, they are the essential life blood to what makes a successful company thrive. If you believe in them and live them they are reflected in all that you do and will attract top notch talent and bring you unbridled success. They are also there to get you through the tough times and the tough decisions. You are right, sometimes you need to revisit them, like when you grow or when you feel like you need a refresher. 7 out of 10 new companies fail, 2 “make it” and one knocks it out of the park. The one that knocks it out of the park is the one with core values. Great article, can’t wait to read and share more like it Kirk!
The timing of reading this article could not be better for me. I was an integral part of developing my company’s core beliefs and values and for the past year I have had this nagging feeling that it’s time for a “facelift.” Just the way teams and talent change with time, so do the core values need to be a living, breathing thing that changes and flexes with an organization. If either the team or the values seem not to fit with one another, it’s likely an indicator that it’s time to go back to the drawing board. Thanks Kirk for your insight!