Running a business is a lot like growing a tree. Without healthy roots, it might fail in the lightest wind. But with healthy soil and deep roots, it has a foundation to flourish.

Developing your business's core values is a process that demands authenticity and thoughtful consideration. The Entrepreneurial Operating System (EOS®) uses core values as a key part of building out your company’s vision. EOS® core values are not manufactured; they are uncovered by probing what your company truly stands for and what it offers the world. Shared by every member of your organization, these values breathe life into your company culture, creating a cohesive environment where purpose and actions align.

Your core values help you work cohesively with your internal team and stand out in the market. Ultimately, they help you get traction in your industry. In this blog, we delve into the significance of core values: how they impact your success and how to nurture them throughout your organization.

What Are EOS® Core Values?

Core values serve as the cultural bedrock of an organization, embodying the guiding principles that shape actions and behaviors within the workplace. Typically, a company will have between three and seven core values. Each one should be both essential to the business’s identity and designed to withstand the test of time. They are not fleeting trends but enduring foundations that represent the ethos of the company.

Expressed through the organization's mission and brand identity, your organization’s core values are brought to life by each employee, fostering a shared sense of purpose among your team. We’ll touch more on integrating core values in a later section, but it’s important to note that these values are your company’s non-negotiables. As a leader, you should set firm boundaries on adhering to these values. They act as a moral compass, dictating decisions and actions and ensuring that principles are not compromised. Identifying and adhering to core values is a key part of the EOS® process—it’s why you spend two full days on Vision Building and discovering your core values.

The Impact of Core Values on Your Business

Embracing core values is not just a ceremonial exercise but a strategic imperative. In this section, we delve into the tangible benefits of clearly defined core values, ranging from enhancing your value proposition to fostering a purpose-driven culture, aligning decision-making, and holding leaders accountable.

Strengthened Value Proposition

Understanding and articulating your company's identity through core values becomes a powerful tool in pitching your value proposition to potential clients. Clearly defined core values contribute to a unique selling proposition, setting your business apart from competitors. Clients are drawn to organizations that can confidently communicate their principles, creating a distinctive brand identity that resonates with customers.

Internal and External Alignment

Core values play a pivotal role in shaping the workplace mentality and interactions, both internally and with clients. More than 50% of CEOs state that company culture influences productivity, creativity, profitability, firm value, and growth rates. By providing a shared sense of purpose, core values foster a positive work culture that extends to customer relationships. This alignment not only enhances employee satisfaction but also contributes to a more compelling and authentic brand image.

Decision-Making Ease

Intrinsic core values serve as a compass for decision-making, aligning actions with foundational beliefs. They provide a framework for resource allocation and success measurement, streamlining decision-making processes. For instance, when faced with a challenging client conversation, sticking to a core value like integrity can empower the team to address issues head-on, even if it involves short-term challenges. Over time, this commitment builds trust, leading to improved customer retention and long-term success.

A Culture of Accountability

Core values set the tone for company culture, serving as a standard by which leaders and employees hold themselves accountable. When core values are embraced across all levels of the organization, they become the foundation for efficient business operations. By adhering to shared principles, leaders set an example, fostering a cohesive work environment that permeates interactions with customers. This alignment not only ensures consistency but also contributes to increased operational efficiency.

How To Identify Your Business Core Values

As you can tell from the impact core values have on organizational success, setting EOS® core values isn't merely a branding exercise; it's about defining the soul of your organization.

A significant risk in this process is adopting superficial buzzwords that lack genuine meaning. To harness the benefits of a purpose-driven culture, selecting values that authentically represent your company's ethos is crucial. Here are our tips to help you identify and articulate your unique core values.

Reflect on Organizational Identity: Begin by introspecting on your company's identity. Consider its history, successes, and even failures. What principles have consistently guided decisions and actions in the past?
Engage Employees in the Process: Core values are not just a top-down imposition; they should resonate with everyone in the organization. Engage employees in discussions to learn what attributes they admire in their colleagues and how they contribute to the ethos of the organization.
Prioritize and Refine: The list of potential values may be extensive, but it's essential to prioritize. Select 3-7 values that are both timeless and non-negotiable. Then, challenge each proposed value by asking: Does this genuinely represent who we are, or is it merely an aspirational desire? Each chosen value should be inherently connected to your organization's identity and culture.
Articulate with Precision: Avoid vague or generic language when articulating your core values. Be precise and clear, ensuring that each value is easily understood by employees and stakeholders alike. With each value, identify actual examples of it being used in your organization.

By following these steps with diligence and sincerity, your organization can identify and articulate core values that align with your mission and vision.

Best Practices in Integrating Core Values

Successfully integrating core values into the fabric of your organization demands more than just talk. It necessitates a holistic approach that leaders, employees, and operational systems all contribute to. Here are key strategies to seamlessly infuse core values into the daily operations of your organization:

Lead by Example: As a leader, embodying your company's core values is paramount. Live and breathe these values in your daily conduct, fostering trust and credibility among your team. When employees witness leaders embracing their values authentically, it sets the tone for the entire organization.
Open Dialogue during Hiring and Onboarding: Make core values a focal point in hiring discussions and onboarding processes. Ensure that potential employees resonate with these principles, setting the stage for a cohesive and values-aligned team from the outset.
Implementing Core Values in Operations: Design systems and operations that inherently function within the framework of your core values. For example, if one of your core values is innovation, your workflow processes should give plenty of room for ideation and testing.
Recognize Value-Centered Acts: Actively identify and acknowledge instances where employees exemplify core values. Recognizing and celebrating these behaviors not only boosts morale but also reinforces the practical application of values within the organization.
The Core Values Speech: Craft a compelling narrative around your core values, using stories and analogies to convey their significance. In EOS®, we see at least five different scenarios that you need to adapt this speech for: EOS® rollout, the quarterly state-of-the-company addresses, hiring processes, employee reviews, and discussions with vendors. Most people need to hear the same thing seven times before they hear it. Having this speech integrated into all these opportunities will help you feel confident that your core values are being communicated effectively.

By weaving core values into everyday operations, conversations, and leadership practices, your organization creates an alignment between your actions and the guiding principles that define your identity.

Transforming Businesses with EOS® Core Values

When an entire company gets into a flow state with its core values, we start to see the magic happen. For example, Apple’s full-throttle commitment to innovation has kept them on top of the consumer technology market. They even have a goal to kill their own products with new releases—when they released the iPhone, it made iPods useless. This dedication to their core value of innovation has continually secured them a spot as an industry leader. Apple is the perfect example of how the authentic integration of core values can drive growth, enhance customer loyalty, and elevate a company's overall performance.

Conclusion

As the principles that help manifest your company’s mission, your core values are the guiding stars for your organization. By grounding decisions, shaping culture, and fostering authenticity, these values become more than words—they transform businesses. Aligning your processes with your core values is not just an integral part of EOS®, it’s foundational to finding success in any industry.

Do you think you need to realign with your values? Or want support discovering them in the first place? GCE fractional integrators offer can help facilitate the identification, articulation, and implementation of core values. In their hands, core values cease to be mere aspirations; they become the catalysts for organizational cohesion and resilience.

Reach out today to learn how one of our incredible integrators can help you get back in touch with your roots.

Understanding EOS®: Identifying Your Business Core Values