Building Actionable Core Values

Core values are the foundational principles that guide a business’s decisions, culture, and interactions amongst stakeholders. They represent the essence of the organization's identity and purpose, providing employees and leaders with a moral and strategic compass. However, the real impact of core values is only realized when they are actionable — integrated into daily operations, decision-making, and culture. Core values are often nothing more than inspirational words on a wall with no impact on benchmarking behavioral expectations. Making core values actionable ensures they are not just aspirational statements but transformative principles that drive actions, routines, and ultimately the success of your business.

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Importance of Actionable Core Values

1. Building Trust and Authenticity

When core values are actionable, they enhance trust among stakeholders. Customers, employees, and investors can see the alignment between stated values and behaviors. This alignment builds credibility. According to Kouzes and Posner in The Leadership Challenge (2017), leaders who model shared values foster greater loyalty and commitment, as their actions reinforce their authenticity. In Managing Business Ethics (2017), Trevi?o and Nelson also emphasize that visible adherence to core values strengthens an organization’s ethical climate and reinforces trust.

2. Driving Employee Engagement

Actionable values create a cohesive culture, helping employees understand their role in achieving organizational goals. When employees see core values reflected in leadership actions and company policies, they feel more connected to their work. Research by Gallup (2020) highlights that engaged employees are 17% more productive and 21% more profitable compared to their disengaged counterparts. Trevi?o and Nelson further assert that ethical leadership—grounded in core values—significantly influences employee morale and engagement.

3. Supporting Strategic Decision-Making

Core values act as guiding principles for decision-making, ensuring choices align with the company’s purpose and long-term vision. In uncertain situations, actionable values provide clarity and consistency, reducing the risk of misalignment or unethical behavior. Patrick Lencioni, in his article Make Your Values Mean Something (2002), argues that true core values guide decisions even when inconvenient or costly, reinforcing their role as a strategic anchor.

4. Enhancing Brand Identity

A brand’s reputation depends on its ability to uphold its stated values. Businesses that consistently act according to their core values foster customer loyalty and differentiate themselves in competitive markets. As a company that identifies itself as providing the best customer service and highest quality products, our operational policies and behaviors reinforce those positions which leads to a better customer experience, loyalty to our brand, and word of mouth trusted referrals.

Methods to Make Core Values Actionable

To operationalize core values, businesses must embed them in formalized practices, codified within policies, and culturally established expected behaviors. Below are effective methods to achieve this:

1. Define Clear and Specific Behaviors

Abstract values like "Service" or "Teamwork" must be translated into concrete actions. Including a verb into the value statement such as “Embody Service” and “Foster Teamwork” help establish the value as one which requires action and effort. This transforms the value from a mere concept to a behavior established through repeated decision making and actions.

Another step in translating values into actionable forms includes defining in more specific terms what behaviors symbolize each value. For instance, Teamwork can mean transparent communication, appreciating other perspectives, and encouraging collaboration. Businesses should provide examples of what each value looks like in practice, ensuring consistency across teams. Trevi?o and Nelson suggest that training programs and codes of conduct are instrumental in defining and promoting actionable behaviors tied to core values. Lencioni warns against "permission-to-play" values—those so generic that they fail to differentiate the organization—stressing the need for unique and clear definitions.

2. Integrate Core Values into Hiring and Onboarding

Recruitment processes should assess candidates’ alignment with core values. Behavioral interview questions, such as "Can you describe a time you demonstrated teamwork in a challenging situation?" reveal whether applicants share the organization's values.

During onboarding, new hires should receive training on the importance of core values and how they influence daily operations. As the CEO, I meet with all our new hires on their first day to discuss the history of our business, my background, and their background to establish ourselves on a personal level. We end our meeting with a review of our mission statement and a review of the Core Values which they have seen multiple times at that stage. I emphasize the importance of the core values in setting our expectations for how all employees should act.

3. Incorporate Values into Performance Reviews

Performance evaluations should measure adherence to core values rather than purely operational goals or achievements. It is my opinion that operational issues and successes should be addressed and recognized as early as possible. Managers should not wait for yearly performance reviews to work on employee course correction or acknowledging accomplishments. The yearly review should focus more on personal character traits and behaviors, and how these are aligned or misaligned with the core values. By recognizing and rewarding behaviors aligned with core values in this formal setting, managers reinforce their importance.

4. Embed Values in Policies and Procedures

Policies must reflect the organization’s core values to ensure consistency in operations. For example, a company that values customer service should implement policies for customer first mentality, quick response time, and connection with clients. When these policies are consistently applied, they demonstrate a tangible commitment to values from the business management.

It is critical that you do not establish core values that do not align with culturally established behaviors and routines. Doing so would immediately be seen as unrealistic and ignorant of where your business currently is. As Jim Collins wrote in Building Your Company’s Vision (1996),

?“You do not create or set core ideology. You discover core ideology. You do not deduce it by looking at the external environment. You understand it by looking inside. Ideology has to be authentic. You cannot fake it. Discovering core ideology is not an intellectual exercise. Do not ask, What core values should we hold? Ask instead, What core values do we truly and passionately hold? You should not confuse values that you think the organization ought to have – but does not – with authentic core values. To do so would create cynicism throughout the organization. (“Who’re they trying to kid? We all know that isn’t a core value around here!”)”

5. Leadership Modeling

Leaders must embody core values through their actions and decisions. As role models, their behavior sets the tone for the organization. Kouzes and Posner emphasize the "Model the Way" principle, noting that employees are more likely to emulate behaviors they observe in their leaders. Trevi?o and Nelson add that ethical leadership fosters a culture of accountability and integrity. Lencioni stresses that leaders must be willing to make difficult decisions to uphold core values, even at the expense of short-term gains.

6. Regular Communication and Storytelling

Frequent communication about core values helps keep them top-of-mind for employees. Sharing stories of individuals or teams who exemplify these values reinforces their relevance. Patagonia, for example, uses storytelling to showcase employees who advocate for environmental conservation, aligning with their core value of sustainability. Patrick Lencioni underscores that organizations must tie rewards and recognitions directly to core values to embed them deeply into the culture.

Combining the concepts of feedback/recognition and storytelling, we recognize an employee who symbolizes one of our core values with an announcement as the “Core Values Superstar” of the month. This recognition goes to our entire staff with a detailed description of how this individual regularly lives one of our values. To make it fun, we have them hold a “core values superstar” token and take a picture that accompanies the message and is posted on our core values wall in our corporate headquarters.

7. Integrate Values into Decision-Making Frameworks

Core values should guide strategic and operational decisions. For instance, a business valuing "customer-first" should prioritize customer feedback in product development. Decision frameworks, such as balanced scorecards, can include metrics tied to core values to ensure alignment.

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Embedding Core Values in Formalized Processes

1. Strategic Planning

Core values should be a cornerstone of strategic planning. Businesses can use them to evaluate initiatives and partnerships, ensuring alignment with organizational goals. Google’s strategic focus on "innovation" and "inclusivity" is reflected in its investments in cutting-edge technology and diversity programs.

2. Training and Development Programs

Employee training programs should emphasize core values and their application in various scenarios. Role-playing exercises, workshops, and e-learning modules can provide practical insights into living the values. For instance, training on conflict resolution can reinforce values like respect and collaboration.

3. Customer Service Protocols

Core values must shape customer interactions. Zappos, known for its commitment to "delivering WOW through service," empowers employees to go above and beyond for customers, creating memorable experiences. Protocols and scripts should emphasize empathy, problem-solving, and value-driven communication. In our organization, we have developed a codified 5 steps to successful customer experience which is posted at all locations and referred to in companywide messaging.

4. Corporate Social Responsibility (CSR) Initiatives

CSR programs offer opportunities to demonstrate values externally. A company valuing "community" might engage in volunteering, donations, or partnerships with local organizations. Such initiatives not only reflect the company’s values but also enhance its reputation.

5. Crisis Management

In times of crisis, core values provide a guiding framework for response. Businesses that adhere to their values during challenges build resilience and stakeholder trust. Johnson & Johnson’s handling of the 1982 Tylenol crisis—guided by their commitment to "do no harm"—is a classic example of values-driven crisis management. Trevi?o and Nelson highlight the role of values in maintaining ethical decision-making under pressure.

6. Feedback Mechanisms

Encourage employees to provide feedback on how core values are upheld in the workplace. Anonymous surveys, focus groups, and suggestion boxes can identify gaps and areas for improvement. Feedback loops ensure continuous alignment and adaptation of core values to evolving contexts. The “Core Values Superstar” mentioned in Regular Communication and Storytelling above, is identified every month by their coworkers. If we do not have employee-based solicitation, we will not award a monthly superstar. We have yet to have a month without multiple staff being nominated.

Challenges in Operationalizing Core Values

While actionable core values are critical, their implementation poses challenges:

• Lack of Clarity: Vague or generic values are difficult to operationalize. Specificity and contextual relevance are crucial.
• Inconsistent Application: Discrepancies between leadership actions and stated values undermine credibility.
• Resistance to Change: Embedding values often requires cultural and structural shifts, which may face resistance from employees or managers.
• Measurement Difficulties: Quantifying adherence to core values can be challenging. Defining clear metrics and using qualitative assessments can address this issue.

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Conclusion

Making core values actionable transforms them from abstract ideals into tangible drivers of organizational success. By embedding values in hiring, training, performance reviews, decision-making, and everyday behaviors, businesses can foster a culture of trust, engagement, and alignment. Leaders play a pivotal role in modeling values, while structured policies and processes ensure consistency and accountability. In a world where authenticity and purpose are increasingly valued, actionable core values serve as a competitive advantage, enabling businesses to thrive and create lasting impact. As Peter Drucker famously said, "Culture eats strategy for breakfast"—and actionable core values are the cornerstone of a resilient and adaptive organizational culture.

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