The Value of Values in Company Culture

April 17, 20196min

We hear a lot of talk nowadays about a company’s culture and values. Why are these so important? What do they add to a company? How can we make sure we live by these values?

The core values of a company are the essence of its identity. They are the principles and beliefs which should underlie every decision. In family-owned and owner-managed businesses, the values often reflect the values of the founder. However, many business owners and directors fail to articulate their values. It can be time-consuming to work out what is truly important to you in a business, so why is it worth the effort?

Company values will guide decisions at every level, big and small; it is just as important for the directors to evaluate their strategy against company values as it is for a receptionist to express these company values when answering the phone. A strong value system will enable directors to delegate more – a company’s values will guide many of the decisions its staff have to make.

A strong value system also simplifies decisions. For example, if a company value is “always to put the client first”, and one afternoon you are pressed and find yourself having to decide between doing something urgent for a client, or working on a big pitch taking place the next day for a large new contract, which should you do?

You refer to your values. Decision made! Looking after your current clients’ needs must come first.

A company culture based on clearly articulated values will inspire your workforce. Employees motivated by the company’s values are likely to work to the best of their ability and speed. The number of sick days taken will fall as a culture of teamwork and support for one another builds. Increased loyalty to an inspiring business will improve employee retention and reduce staff turnover.

Strong company values will similarly attract new recruits, who will want to work for a company with meaning and purpose, where they feel they can add real value.

Strong values don’t just make life easier and more enjoyable for those working at the company – they also become a differentiator for the business in the market place. Customers will be attracted to the culture and know what they are getting. The most popular company values are: 

  • Dependability
  • Reliability
  • Loyalty
  • Commitment
  • Open-mindedness
  • Consistency
  • Honesty
  • Efficiency

Wouldn’t we all be likely to buy from a company delivering on even just three of these values?

A strong culture adds tangibly to the value of a business; when shareholders seek to raise capital or sell their business, they will experience first-hand the importance of a committed and loyal workforce. Investors unfailingly place value on a company’s ability to recruit and retain competent, motivated staff, recognising that this is an indicator of a well-run and successful business.

It is vital to remember that values are caught, not just taught. They have to reflect who we really are – it’s no good the CEO endlessly espousing on values if no one actually lives them out.

It is also a mistake to have too many values, as no-one will be able to remember them all. Three to five is a realistic number, ideally grouped into a memorable acronym. Each value needs to be unpacked and explained regularly so that everyone understands how the values should impact behaviour and decision-making. How about putting them on all your meeting agendas and on the wall in the staff kitchen?

Employees, customers, suppliers, and investors all cry out for a strong company culture; values create enormous value!

Emma Keeling

Emma Keeling

A 2019 UK Employee Experience Awards judge, Emma Keeling is COO of corporate finance adviser Corbett Keeling, and is passionate about the value of company culture and employee engagement.

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