You have probably heard the term “core values” recently. It has been a popular buzzword in the business world for the past few years. What are core values and why is it so important for a business to have them? Core values are the very foundation of your organization. Core values are not vague proclamations such as “do the right thing” but rather they are concise action statements such as “honesty” or “transparency.” Today, eighty percent of the Fortune 100 companies tout their values publicly and more and more companies are adopting core values daily.
Core Values Drive Performance
Companies with a high sense of purpose outperform others by 400%. That is an incredible figure! Value driven companies outperform their competition in the way they do business. Core values directly affect company culture, which directly affects performance. Without core values, a culture is left to form by itself without any guidance. With core values in place, employees have a clear map to follow when it comes to interactions with both employees and customers alike.
Core Values Help Guide Employees
Human management becomes easier with core values. Core values are the guiding principles that dictate human behavior and action. These values can help people to know what is right from wrong and it acts as a guideline for decision making in the company. For example, if a company touts a core value of honesty, employees come to understand and respect the importance of honesty in their own communications. If a company has a core value of transparency, an employee can feel confident being transparent with a customer when it comes to having a difficult conversation.
Core Values Attract Customers
When companies have clearly written values, they tell the world what they stand for, give their employees a reason for what they do and their customers a reason to believe in cheer for them. Empathy is a common core value for companies. Inc.com explains that practicing empathy in customer service interactions helps humanize relationships with customers and assures them the brand is invested in their satisfaction. In 2018, customers have come to expect this from companies.
It’s always better to teach values than to teach rules. Core values at its basic structure defines the dos and don’ts. More so than that though, core values help to drive performance, guide employees and attract customers. Whether your company’s core values need tweaked or created from scratch, with the above information you will be in a much better position to do so!