Principles vs Values

Stop just talking about your values. Learn how to live them. The powerful difference to build a company, team, and culture that thrives.

@flatironschool

grew to 600 employees with incredible retention and NPS. The Product and Engineering team I led was 60 people with incredible culture that built incredible software. Leading that team is my greatest career achievement yet.

Principles vs. Values: What’s the Difference?

1. Values: Who We Are at Our Core

Values are the moral and ethical compass of an organization (or individual). They speak to the character you want to embody: honesty, empathy, curiosity, speed, innovation, etc. Values tend to be more internal—they guide how we behave and make decisions, particularly when those decisions are difficult or unpopular.

? Example: If you say your company values “speed,” it implies a preference for acting quickly and decisively. When a situation arises that demands a choice between spending an extra month testing vs. shipping something now, your value of speed pushes you to prioritize quicker delivery—unless other values (like quality or safety) outweigh speed in that instance.

? Key Insight: A value only matters if you’re willing to defend it when it’s tested. It’s easy to claim you value “speed,” “transparency,” or “diversity” in smooth times. But you prove that value when it’s inconvenient—for example, going slower to ensure you ultimately move faster in a stable way, or making a decision that’s transparent even when it could invite criticism.

2. Principles: How We Operate

Principles are often more universal or fundamental guidelines that shape how you approach problems and strategies. They’re typically phrased as operating truths or “rules of thumb” that help you apply values effectively. Where values speak to character, principles speak to methods or approaches.

? Example: A company might have a principle like, “Continuously solicit and incorporate feedback.” It’s an operational habit that springs from values like curiosity, humility, and respect. Principles often function like guardrails or best practices that keep you aligned with your values while still moving the business forward.

? Key Insight: If values say, “We believe in speed,” then a principle could be, “Ship a minimum viable product quickly, gather user feedback early, and iterate rapidly.” The principle is the method that expresses the value of speed in day-to-day work.

Why Both Matter—and Why They’re the Foundation

1. Consistency and Culture

? Values define the why behind your decisions—why you care about speed, quality, authenticity, or user satisfaction.

? Principles outline the how—how you transform a value into tangible actions.

? Together, they create a consistent culture where people can predict outcomes, trust each other, and move in the same direction.

2. Clarity in Decision-Making

? When employees face tough, ambiguous situations, principles and values serve as signposts.

? If an urgent client request threatens to compromise your usual level of quality, the tension between “speed” and “quality” gets resolved by referencing both your values (e.g., “We stand for excellence and trustworthiness”) and your principles (“We test thoroughly before shipping to maintain trust”).

3. Empowered Teams & Self-Management

? Teams that share the same values and principles can self-manage more effectively. They can make swift, autonomous decisions because they already know the moral and operational framework.

? This is critical in agile or fast-paced environments where top-down micromanagement stifles creativity and speed.

4. Adaptability with Integrity

? Principles can evolve with new technology or market conditions, but they always stem from your core values.

? Values remain relatively stable (though a company can refine or pivot its priorities over time), but they’re meant to hold firm under pressure. If you claim a certain value but abandon it the moment it’s inconvenient, you risk eroding trust and culture.

Tensions and Trade-Offs

A compelling aspect of values is that they often come into tension. You might value both “speed” and “quality,” but the real world forces you to choose how to balance them:

? Scenario: Your product is nearly ready, but you know it could use an extra two weeks of testing.

? Speed says: “Ship now—we can always patch later.”

? Quality says: “A rushed release might harm the user experience or brand reputation.”

Which path you choose might hinge on additional values—like user trust, brand reputation, or your specific principles around release processes. If one principle is “Always minimize user disruption,” that might tip the scales toward investing time in more thorough testing.

This is where your real values are revealed, because you have to make a judgment call. It’s easy to say you value “speed and quality,” but the real test is where you put your resources, time, and effort when there’s a genuine conflict.

Putting It All Together

1. Identify Core Values

? Pick the few that truly define your organization’s character. Ask: What would we defend even at a short-term cost?

2. Define Operating Principles

? Translate values into clear, repeatable “rules of engagement” or “ways we work.” Make them action-oriented: “Test quickly,” “Keep direct lines of communication,” “Involve end-users early,” etc.

3. Acknowledge Tensions

? Be transparent that sometimes, your values will pull in different directions. Own that tension and give people guidance on how to handle those tough calls.

4. Lead by Example

? People take cues from leadership. If leadership preaches one thing but does another under stress, the values become hollow. If leadership consistently upholds the stated values—even at a cost—those values become part of the cultural DNA.

5. Review and Reinforce

? Continually revisit your values and principles as the organization grows or the context changes. Recommit to them, refine them if necessary, but keep them front and center in decision-making.

Final Thoughts

Values are your ethical roots—your non-negotiable sense of who you are and what matters—and they set the moral tone. Principles are the practical frameworks or guidelines that keep you on track, guiding how to execute those values. Both are tested when it really counts, and it’s in those moments of challenge that a company’s true character emerges. If you live up to your values—even when it’s costly or less convenient—you’ll build a strong, resilient culture capable of meeting any challenge.