Does Company Values Matter? How To Develop Core Values?
Company values are important because they serve as guiding principles that define the company’s culture, mission, and overall identity. They provide a shared sense of purpose and direction, which can help to align employees, management, and stakeholders around a common set of goals and beliefs.
Here are some specific reasons why company values are important:
1. Defines the company’s culture: Values are the foundation of a company’s culture, which includes the company’s vision, mission, and behavior. They help to create a sense of belonging and shared purpose among employees, and can also attract new talent to the organization.
2. Guides decision-making: Company values provide a framework for decision-making, particularly in situations where there are competing priorities or values at stake. They help to clarify what’s most important and provide a basis for making difficult decisions.
3. Enhances brand reputation: A company that lives its values consistently is more likely to be respected and trusted by its customers, suppliers, and other stakeholders. This can help to enhance the company’s brand reputation and increase its long-term success.
4. Drives employee engagement: When employees feel connected to the company’s values, they are more likely to be engaged and motivated at work. They feel a sense of pride in what they do and are more likely to be committed to the company’s mission and goals.
5. Improves organizational performance: A company that embraces its values is more likely to have a positive and productive workplace culture, which can lead to higher levels of innovation, productivity, and overall performance.
According to Daniel Suero Alonso company values are important because they serve as a foundation for a company’s culture, guide decision-making, enhance brand reputation, drive employee engagement, and improve organizational performance. It even reflects your ideals and establishes you as a serious business owner.
How to develop your company values?
Developing your company values involves defining the guiding principles and beliefs that will govern the behavior and decision-making of your organization. Here are some steps that can help to develop your company values:
1. Define your company’s purpose and vision: The purpose and vision of your company should be established before defining the values. It will provide a clear direction to the values and help to determine what your organization wants to achieve.
2. Conduct stakeholder analysis: It is important to understand the perspectives and expectations of your stakeholders, including employees, customers, shareholders, and partners, when developing your company values.
3. Brainstorm values: Gather a team of key stakeholders and brainstorm values that are aligned with your company’s purpose and vision. Consider the principles and beliefs that your organization wants to promote and reinforce.
4. Prioritize the values: After brainstorming, prioritize the values based on their importance and relevance to your organization’s success.
5. Communicate the values: Once the company values are established, it is important to communicate them with all your stakeholders. It will ensure that they are understood and integrated into your company’s culture and practices.
Some examples of company values include integrity, transparency, ethics, innovation, creativity, teamwork, customer-centric, diversion, and inclusion. There are many more, which you can brainstorm but choose core values that will worthily represent your brand.