How Core Values Shape An Organization

We hear a lot about ‘core values’ in business today, and many experts and strategists argue how important they are to employees and an organization. However, the notion of core values is often rubbished as being little other than modern business-speak – something that is not integral to an organization at all. Nothing could be further from the truth.

Core values determine a company’s culture – they form the guiding principles it embraces to inform behaviors as it moves toward the fulfillment of its goals and long-term objectives. Studies from numerous business schools have shown that establishing and nurturing a clear set of values makes an organization is more likely to thrive. Without enduring and actionable principles, an organization has no direction. Though it may be aware of what its goals are, it will have no idea how to get there. Here are a few ways having core values helps and shapes your organization:

Core values determine a company’s culture – they form the guiding principles it embraces to inform behaviors as it moves toward the fulfillment of its goals and long-term objectives. Studies from numerous business schools have shown that establishing and nurturing a clear set of values makes an organization is more likely to thrive. Without enduring and actionable principles, an organization has no direction. Though it may be aware of what its goals are, it will have no idea how to get there. Here are a few ways having core values helps and shapes your organization:

Here are a few ways having core values helps and shapes your organization:

• They help prospective employers and employees identify if they are a good fit

Think of core values as the qualities of the people who make up the organization. If we share values with people, we are more likely to work well, get on better, and respect each other. Hiring employees with the same values creates more harmonious working relationships and a solidified team.

• They make decision-making more efficient

Because a core value of Quality Assurance, for example, clearly states the standard demanded by the company, there is no grey area. The decision-making process is thereby more black and white and enables the immediate omission of any option that does not ensure the highest quality.

• They give customers an insight into what a company stands for

Customers are persuaded to do business with an organization because of many factors such as cost efficiency, international support, etc. However, customers also want to understand the values of a company and they wish them to mirror their own values. It’s another way for them to see what distinguishes you from your industry competitors.

• They inspire employees to be more aware of the effects of their behavior

Clear core values determine how employees are expected to treat each other, as well as how proactive they are expected to be in their positions. Though employees are always aware of the expectations on them when it comes to deliverables, they are not always sure about what behavior will be tolerated when seeking to deliver.

• They create a spirit of togetherness and a sense of purpose

Core values give an outline of the common behaviors that are critical for all employees to personify. The effect of this is like-minded people with similar goals all working in unison. This creates fantastic morale, as well as a unified sense of purpose. The organization becomes a family.

Ultimately, core values support the company’s vision by deciding the company’s identity – its belief system. They improve organizational morale and pride, and unite employees of all levels, wherever they are based. Most importantly, they provide the behavioral standards that an organization demands from its people.