Every organization understands “what” they do as well as “how” they do (or should be doing) it. But relatively few organizations know “why” they do what they do. “Why” refers to purpose – in other words, what is driving your organization to do what it is doing, and why should anyone care. Often, a mission or vision statement will encompass the “why”.

Core values, then, might be better understood as the groundwork you set down beneath the “how”. They allow internal employees as well as external stakeholders (including customers) to align themselves with the “why” in a way that is clear, actionable, and grounded in the work that the business is doing on a daily basis.

Core values, also referred to as “values statements” are a short list of concise, actionable values that should aim to capture the priorities and operational spirit of the organization. Core values should help your employees and customers understand what is important to your business, and put a window pane up against your company culture.

Ideally, core values are effective both internally and externally. As well as being a guide for internal operations, it should also serve as a marketing message that speaks to your core audience.

If your core values pander too much to your external stakeholders (and are not grounded in clear, actionable language) you run the risk of confusing and demoralizing employees with a limp, hollow message.

Likewise, if your core value statement is too clinical or technical, and designed with pure operational efficiency in mind, you may potentially alienate external stakeholders by delivering a message that has no chance of captivating or compelling them.

Core values are important because they clearly define and illuminate the behaviour and operations that your organisation has approved as “best practice”. If done well, core values will also demonstrate personality and send a clear brand message.

• It acts as an anchor for almost all work done in your business.

• It can help unite teams and eliminate ambiguity around how to resolve issues or make decisions.

• It will help you onboard new employees by clearly communicating company culture and expectations.

• It will resonate with your core audience by showing that you care about the same things as they do.

Almost any internal (and often external) operation will be made easier for new and old employees alike with a firm foundation of core values to rest upon. Not to mention that clearly defined core values help to stave off bad habits and essentially function as a form of preventative risk management.

Does your organization have a clear and strong set of values?