We all know how important it is to foster the right culture at work. No doubt you've heard a lot of people talking about the need to set meaningful Values and Principles. But what does this actually mean and how does it impact your teams behaviours? No doubt you've been looking around for a clear answer and landed here hoping to find an answer!
Well we have you covered. Here's a simple comparison of the difference between Company Values, Principles and Behaviours. Use these guidelines to set the right values for your business and turn them into action with clear principles. First, some definitions.
Values, Principles and Behaviours Defined
Values: What we hold important. It's the idea that something is held to deserve the importance, worth, or usefulness of something. In short, it's what we hold important.
Principles: Guardrails which drive our behaviour based on a given situation.
Behaviours: This specific ways in which we act or conduct ourselves, especially towards others.
Values, Principles and Behaviours Compared
Values | Principles | Behaviours |
|---|---|---|
Indicate what we hold as important | Guidelines influencing how we operate and make decisions | Actual behaviours we exhibit / have exhibited |
Based on core ideologies | Based on what we value | Guided by our principles |
Not actionable in itself | Actionable | The action itself |
Example: Creativity above all else | Example: We work with only the most innovative people | Example: 1. Not hiring a qualified but low creativity candidate. 2. Seeking talent only in creative domains. |
How does this relate to setting our company values?
Assuming you are planning on setting your values, here's why it's important to consider your Values, Principles and Behaviours holistically. As we've explored, values are not terribly actionable. The additional context the principles bring give us a much better idea of how we bring the values to life.
They'll help inform expectations and give us an indication of where we need to do things differently.
If you want to do some further reading, Lencioni has some great material on this in his HBR Article.
Up until this point it's all academic. This is where the behaviours come in. I like to talk about specific instances where we have lived or not lived our principles and values. The more specific we can be about the situation, the more actionable it is. These real situations help engrain tangible examples in people's minds which they can follow in the future.
This practice also helps sharpen our principles by washing real situations by them.
How do you set Values, Principles and Behaviours?
Setting your Company or Team's Values, Principles can take some time. Follow these 9 steps to setting your Values, Principles and Behaviours, to make the process much easier:
Step 1: Reflect on the Core
Start by asking: “What truly matters to us?” and "What's needed to achieve our vision?".
Avoid buzzwords which look good on a poster. Consider what you, your team, and your company stand for at your core. Think about past decisions, the moments you're most proud of, and what makes your company unique. Write down everything that comes to mind, no matter how small.
Step 2: Engage the Team
Values aren’t dictated from the top; they’re discovered. Bring your team together and have an open discussion. Use stories and real examples of when your team felt aligned with the company’s spirit. Capture these stories as they often reveal the authentic values and behaviors in action.
Step 3: Identify the Common Threads
Look for patterns in the stories and reflections. What words or themes keep popping up? These recurring elements are likely your core values and principles. Aim for 3-5 key values that everyone can remember and rally around.
Step 4: Define Values
For each value, write a clear definition. Avoid jargon and buzzwords. Instead, use plain language that everyone understands. Also, include a couple of real-life examples of how this value plays out in your day-to-day operations. This makes the values tangible and actionable.
To add some extra spice to your values, you may want to break them into the following categories:
- Positive values: Current values which drive the business forward.
- Negative values: Current values which hold the business back.
- Aspirational values: Values that we need to work on and aspire to live in the future.
This allows you to avoid setting values that just are not true, or be blindsided by persistent bad behaviours and values that derail your efforts.
Step 5: Establish Principles
Principles are the guiding truths that underpin your values. They are the fundamental beliefs that shape your company’s decisions and actions. For each value, identify the principle that supports it.
For example, if one of your values is "Customer First," the principle might be "We believe in creating exceptional experiences for our customers at every touchpoint."
Step 6: Translate Values into Behaviors
Values need to guide actions. For each value, outline specific behaviors that exemplify it. Behaviors are not exhaustive lists but provide examples, particularly showcasing tricky situations.
Think about how these behaviors show up in different scenarios—interactions with customers, decision-making processes, or team collaborations. This helps ensure that the values just stuck to a poster somewhere, they're actually lived breathed in everyday activities.
Example:
- Value: Integrity
- Principle: We believe in doing the right thing, even when it’s hard.
- Behaviors:
- Being honest and transparent with clients, even when it may lead to difficult conversations.
- Admitting mistakes promptly and taking steps to correct them.
Step 7: Communicate and Embed
Share your values, principles, and behaviors widely within the company. Incorporate them into onboarding processes, performance reviews, and team meetings. Make sure they’re visible, not just in posters, but in the actions of leadership and team members.
Step 8: Live by Example
Leadership needs to walk the talk. If leaders consistently demonstrate the values and principles in their decisions and behaviors, it sets the tone for the entire company. When employees see leaders living the values, they’re more likely to follow suit.
Step 9: Review and Evolve
Your company’s values should evolve as your company grows. Regularly revisit them to ensure they still reflect your core. Gather feedback from the team and be willing to update them as necessary to keep them relevant and impactful.
Should you communicate your Company Values, Principles and Behaviours?
If you're wanting to guide behaviour as your business grows, then absolutely communicate your Values and Principles. Reinforce them every chance you get.
Communicating behaviours can be a little trickier and not always necessary. We don't want to publicise every example we have. We also want to be exceptionally careful about negative examples. No one wants their screw up to be cemented on the company charter!
Instead, I like to have each team discuss behaviours they've seen and how they align to the Company Values and Principles. This makes the examples much more tangible and actionable for them.
Next: Creating an outcome mindset
By now your should understand the difference between Values, Principles and Behaviours. If your team lives by these standards, you're primed for success. Unfortunately it's all for naught if they're not aligned on the same priorities.
The challenge is, most executive teams and businesses are not aligned. They have no clear outcome they're striving for in mind. The worlds biggest and best tech companies solved this a long time ago.
Companies like Google, LinkedIn and Meta use a framework called Objectives and Key Results (OKR for short) to focus their teams and their efforts. If you're new to this, check out my introductory article.
If you're a founder or executive leader, OKR is a game changer for you: Introduction to OKR