Why Do We Have Corporate Values?

Corporate values are essential for several reasons, shaping the behavior, culture, and identity within an organization. Understanding and embracing these values can lead to a myriad of benefits, from guiding decision-making and behavior to enhancing employee alignment and attracting like-minded talent.

From a strategic standpoint, corporate values play a vital role in guiding an organization in times of crisis, building stakeholder trust, and fostering brand identity. They provide a moral compass, guiding employees on how to work and what the company stands for. When these values are effectively communicated and lived, they can inspire and guide employees, leading to a more engaged and motivated workforce.

The Evolution of Corporate Values

It’s hard to imagine a company without a set of documented values. Whether they’re explicitly stated as capital-V “Values” or more informal catchphrases, these values serve as a moral compass and a reflection of an organization’s core principles.

Typically, values can be categorized into two types: the “do no harm” values, such as respect and integrity, which are often essential for multinational corporations due to their scale. However, for most companies, values can be imbued with more specificity and uniqueness. These values can capture the magic of who the company is and serve as a guide for both today and the future.

Examples of Effective Corporate Values

Let’s explore three effective corporate values from different organizations and the strategic intent behind them:

IBM: Treasure Wild Ducks

IBM’s values are rooted in fostering outside-the-box thinking. The company’s former Chairman, Thomas J. Watson Jr., once said, 'We are convinced that any business needs its wild ducks.' The value 'Treasure wild ducks' encourages innovation and encourages employees to pitch non-traditional ideas. The Wild Ducks Ritual program invited employees to present their ideas for company and global improvements. This value reflects IBM’s commitment to maintaining its leadership in the technology industry through constant innovation and disruptive thinking.

Google's Moonshot Factory: Be Passionately Dispassionate

Alphabet’s Moonshot Factory values Be passively dispassionate—an intellectual honesty that involves pursuing ideas with conviction but also being open to reassessing and changing course when necessary. The Gimbal employee handbook emphasizes this approach, stating that successful moonshot projects are those that acknowledge potential failure and pursue more promising ideas. This value supports the organization’s ability to tackle complex problems and to pivot when necessary, ensuring that resources are allocated to projects with the highest potential for success.

Harry's: Look Left to Find Right

Holiday brand Harry’s values Look left to find right: encouraging a critical questioning of conventional wisdom and a search for the best path. This value reflects the company’s pursuit of innovation in its products and its belief in finding better alternatives. For instance, the Harry's Masculinity Report is a collaborative research project that aims to understand and champion positive masculinity in the 21st century. This value has contributed significantly to the brand’s unique competitive advantage and market position.

Defining and Activating Corporate Values

The process of defining and activating corporate values can be highly personal and unique to each organization. Here are some golden rules to guide you through the process:

Crafting and Activating Your Values

1. Do your research: Ask your company’s leaders and employees to share their experiences and intentions. Listen to what they hold dear and use questioning techniques to unearth the unstated values driving your business. Avoid getting too attached to specific language at this stage; focus on surfacing the themes and value territories.

2. Pressure-test your hypothesis: Facilitate sessions with stakeholders to gather feedback and refine your values. This process helps make your values sharper and more authentic, while also engaging your people in the creation process. Consider pressure-testing with your customers to ensure the values resonate with their perception of your company.

3. Narrow your values: Focus on the values that are uniquely yours—your “bottled magic” set. Keep these values highly strategic; ask yourself which values, if fully embraced, would create an outsized positive impact for your business and customers.

4. Articulate your values: Use authentic, specific, and emotive language. Metaphors, parables, and turns of phrases can help make your values more memorable. Listen deeply to your people and the language that is meaningful to them, and incorporate these into your value statements.

5. Bring your values to life: Vividly activate your values to inspire and guide employees. Methods for activation can include company-wide decision-making filters, campaigns for spot values in the wild, and values jams. The ultimate goal is for your values to become part of your ongoing rituals and how you do business.

The Importance of Expectations in Defining Values

Expectations play a crucial role in defining values. When crafting your values, set clear expectations for yourself and your employees. Share your vision for the future and make it a reality. Expectations are the benchmarks by which you hold your values accountable. They help keep your organization aligned and focused on its mission and goals.

Corporate values are not just empty promises; they are the heart and soul of your organization. They shape the way you do business and the way you engage with the world. By defining and activating these values effectively, you can inspire and guide your employees, build stronger brands, and drive long-term success.