Company Core Values: Why Have Them?

Core values are extremely important to any organisation. They are what support the company mission and vision, and help shape the company’s culture. They are the backbone of the company’s identity, expressing the company’s principles and beliefs. They are the heart of who you are and what you do and they communicate the company’s authenticity and uniqueness.

Many companies make the mistake of putting their core values to the side and instead ensuring that their core competencies such as teamwork, reliability and communication are at the forefront of the company. However they should be putting the emphasis on the company core values, and hiring people who share those same values. By doing so, the core competencies will naturally stem from the values-based culture that will have been created.

Doing this will help things run smoothly both internally and externally and contribute to the overall success of the organisation. As business owners, one must identify and live out the core values of the company for the following reasons:

  • Clarify the identity of the company – They educate all stakeholders and potential customers about what the company is and what they stand for. The values are often what the public base their perception of the company off and so getting these right is crucial from the outset.
  • Act as a source of competitive advantage – Core values are what differentiate a company from competitors within the field. People are attracted to values that resemble their own. Having a clear set of core values that speak to the public can instil confidence and trust in customers to want to buy from a company. This in turn will foster long-term relationships with the brand, thus proving to act as a source of competitive advantage.
  • Key for employee recruiting and retention – Hiring the person who best fits a team is vastly more important than the technical expertise that they may bring, as a company can always train them in the skills necessary. When companies clearly outline their core values, it makes it easier to attract like-minded people who fit in with the company culture thus leading to greater productivity.
  • Influence overall behaviour – Core values act as a guideline for employee behaviour. When clearly defined, they can inspire employees to hold themselves to a higher standard which can help shape the way they do their jobs. You can easily tell when the values are at the heart of an organisation’s culture, as the employees live the values out, and every company ultimately wants this.
  • Help with decision-making – Core values make decision making easier as a business is not going to make a decision if the outcome doesn’t align with their values. Thus they help align your whole business. They assist with the smooth internal running of the business, and this is then automatically transitioned externally.

Throughout all of the Entrepreneurs Academy courses, emphasis is placed on company values and the importance of having them. This is particularly true for the Ignite courses, which are specifically designed for Start-ups. Often Start-ups try to jump straight into getting the business up and running, not realising the importance of having a strong foundation and identity for the company, something which is built around a set of core values. If you are a Start-up seeking expertise help, check out the range of courses available to you here. Or for any other additional information you may need, get in contact with us, we’d be happy to help.