Business Tips and Tricks

Core Values In Business - Who, What, Where, When and Why?

by Sam Kaufman on Sep 04, 2023

Core values play a significant role in the success of a business. They not only define the company's ethos but also serve as a guide for decision-making processes, shaping the clientele, molding the workforce, and overall business operations. In the podcast episode "Understanding and Establishing Effective Core Values in Your Business," host Sam Kaufman delves into this profound process, explaining how businesses can identify and establish core values that align with their vision.

According to Kaufman, defining core values is just a fraction of the job. The real work lies in implementing these core values within the business. These core values are the foundation of everything that your business decides moving forward, from choosing clients to hiring employees and even to recognizing or reprimanding staff. This requires a massive shift in how your business communicates, operates, and makes decisions, as it involves a radical change in the foundational aspects of your business operations.

One crucial step in establishing core values is involving all stakeholders in your business. Stakeholders are not just shareholders who own a percentage of the business, but also individuals whose lives are directly impacted and who are deeply invested in the company. Involving stakeholders in defining core values ensures that these values resonate with everyone connected to the business, thus facilitating their implementation.

Once core values are defined, implementing them within the business is an equally significant task. As Kaufman points out, implementation is not merely about banners and emails; it involves consistently integrating these values into daily business activities and conversations. In Kaufman's company, core values were discussed every Monday for the first 12 months after their definition until they became a part of the company's culture.

Kaufman also highlights the importance of applying core values in hiring, promoting, recognizing, and reprimanding employees. These values guide the decision-making process, ensuring that the decisions align with the business ethos. If an employee does not meet the company's core value structure, it is reflected in their performance, which can lead to termination.

Implementing core values can significantly transform a business. However, it's important to note that this process may also result in some turbulence within the organization. It's possible that some employees may not align with the newly defined values, leading to their departure from the company. Despite these challenges, the benefits of implementing core values far outweigh the initial discomfort. As Kaufman explains, it ultimately results in a robust, value-driven organization that operates with clarity and consistency.

In conclusion, core values are not just mere words; they are the foundation of a business's ethos and decision-making process. They help create a value-driven organization that resonates with its stakeholders, employees, and clients. Defining and implementing these core values can revolutionize business practices, leading to greater success and growth.
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