Core values are foundational to a business, defining where you are going and how you’re going to get there.

Key Takeaways:

• Core values guide organizational decisions, acting as foundational “guardrails,” not aspirations.
• Actively integrate core values into recruitment, hiring, and performance evaluations.
• Reinforce core values regularly using gamification and performance review methods.
• Continuous commitment to core values ensures a strong, adaptable company culture.

Our company’s core values are not mere words. They are real behaviors that drive alignment in our organizations, giving life to the concept of the EOS® People Analyzer that helps you identify those who fit your culture, embody your core values, and fill the right seat. Without strong core values, teams and clients become misaligned, and time and money are wasted dealing with the wrong vendors. 

Core values are not aspirational but foundational. In other words, core values are the “guardrails” that guide all organizational decision-making. It’s about organizational clarity as defined by the Vision/Traction Organizer®: entrepreneurs need a clear vision of where we’re going and how we get there. 

In this article, we’ll look at why core values matter, how to discover and activate them, how to build teams aligned with them, and how to reinforce them to drive team success. We’ll also look at how to create a value-driven business ecosystem and sustain a value-driven culture. Let’s get started. 

What are Core Values? And Why Do They Matter?

So, how do you find those core values that form the foundation for transformational change? Often, talk of core values sparks confusion about a business’s core values versus its products and services. What’s the difference?

• Core values describe HOW you conduct business and drive company culture.
• Purpose contains the WHY your company does what it does.
• Products and Services are WHAT your business does.

Your core values are never right or wrong, and they must be organic, uncovered with your leadership team via a deliberate discovery process. Core values can’t be dictated from above or outside – they should be grounded in the founder’s strengths, creating a culture by design. It’s a matter of authenticity, far removed from accidental, aspirational, and permission-to-play values. 

So what are accidental, aspirational, and permission-to-play values? 

• Accidental Values are imposed with little to no examination of an organization’s key strengths. Instead, they are driven by the latest management or self-improvement fad. Resulting in a tremendous waste of resources and time.
• Aspirational Values are values that a company lacks but believes it will need to develop if it is to succeed over the long term.
• Permission-to-Play Values are the bare minimum for competing in an industry. You will be hard-pressed to differentiate yourself from the competition with these.

Core values are expressed with active verbs chosen to provoke specific behaviors so that people understand how to live core values now – in the present. A great phrase to describe this is: “Do it as if your mom is watching,” always being on your best behavior, always doing things the right way, as if someone is watching, you don’t want to disappoint. This value makes you accountable.

By using active verbs, you send a clear signal about how you do things, or at least how you aspire to do things. And the great thing about verbs is that they tend to be less ambiguous and nurture a bias toward action. Compare that to the vague aspirational values of “integrity,” “respect,” and “responsibility.” These are widely admired traits, but they mean so many different things to so many different people.

Let’s look at an example of an EOS-run company and its core values. Twinlab Consolidated Corporation and NutraScience Labs, dietary supplement manufacturers, is one such company. Here are some of its core values:

1. Putting customers first
2. Having passion and commitment
3. Prioritizing “we” over “I.”
4. Transparent communication

So, how do you discover your core values? Important to this process is the Clarity Break, a regularly scheduled calendar appointment with yourself away from distractions. Go to a coffee shop with just a blank pad of paper. Set aside your devices and stare at that blank pad. Ideas will pop up. 

Discover and Activate Core Values

For owner-entrepreneurs, uncovering your core values, translating them into actionable language, and integrating them into your business takes guts – because when you integrate core values, you make yourself accountable along with everyone else in your organization for upholding those values. 

This brings us to an important point: you can’t get anyone to buy into your core values. They must be predisposed to them. Once you discover your core values, it’s time to activate them. The best way to do this is to use them to recruit, hire, review, and reward employees.

Bringing your core values actively to light means you’re building a successful base for your company culture and forging a strong “How” for your business. When you clarify your core values, you create an equally clear code of behavior, defining what “doing things right” means for you and how you expect people to act. 

Activating core values transforms an organization by aligning leadership, employees, and even customers around shared principles.

Hire and Build Teams Aligned with Core Values

Fair warning: I estimate that about 20% of the people in your company won’t be there a year after you implement your core values. This process highlights who is aligned with your values and who is not. Use the People Analyzer – it’s a practical tool to keep core values alive, helping to determine job compatibility, which means they embody your core values and will fit into your culture.

Hiring based on shared core values means creating teams that are more engaged and cohesive. Remember that skills can be taught, but core values are non-negotiable. People either have them, or they don’t. 

It starts with recruitment. You can make candidates a better fit from the start by integrating value language into job descriptions. You want applicants who are not only qualified but also value-aligned. When you clearly state your core values, you create an equally clear expectation of behavior. Enforcing this at the hiring stage works as a powerful filter to find which candidates’ values are in alignment.

It’s about putting the right people in the right seats. Use the GWC® –Get it, Want it, and Capacity framework. This asks three important questions: do they get it? Do they want it? Do they have the capacity to do it? Any “no” answer means that person is in the wrong seat. Finding people aligned with core values goes beyond cultural fit. It also includes their ability to thrive in their roles. 

Here’s an example: 

When I coached Marc Cerniglia of Spotlight Branding on his core values, he quickly discovered how they streamlined his operations. A key area for him was how value awareness helped shape his hiring questions. One of Marc’s cores is “Do it better.” He would then present candidates with a challenge: Think of examples where something was good but could have been better.

This “questions from values” approach let Marc know how candidates really felt about his core values. Were they excited when they responded? Did they show enthusiasm? Another of his values is to “communicate with intention,” so he would study interviewees to see if they did just that. If they were rambling, unprepared, or speaking without forethought, he’d know this wasn’t a fit.

Use value-based performance reviews

Once you have the right people in the right seats, you’ll have to perform reviews. Is your team living the core values? These values give you a shared reference point, and if your team is not living them, they will never fit into the culture you’ve designed.

Use the People Analyzer, which takes core values from subjective to objective. You can input your values during performance reviews to easily discover who is already aligned, who wants to be, and whether they have the capacity to align. 

Use the 5-5-5™ Tool. It gives you a guideline for quarterly conversations that each manager should be having with each member of their team to ensure they are performing with the 5 core values, 5 responsibilities, and 5 rocks. This reinforces the practical application of core values. 

Reinforce Core Values to Drive Team Success

Rewarding employees for living the values motivates employees and strengthens the overall culture. There are a number of ways to do this. 

Try gamification – adding game mechanics to increase participation. It’s a great concept. It boosts engagement, motivation, and collaboration. More importantly, it can emphasize company culture and reinforce core values. It’s also your chance to spotlight and applaud team members who embody them. Gamification is another way to constantly reinforce your cores and let people know how their behavior compares.

For example, put a bowl on every employee’s desk and add coins based on how well they fulfill core value behaviors. Employees can add coins, and whoever has the most at the end of the month wins. Make sure your gamification aligns with your company’s incentives and bonuses to avoid conflicting messages.

Games are a great adhesive for a team. People bond. Values strengthen. It’s the whole point of this exercise, but sometimes it also exposes the gaps. There are different ways to gamify your core values, and there are different tools out there that can help you do it, including reward software tracking companies like Crewhu and promotional gift programs like Positive Promotions. 

How to correct misalignment and build a value-driven business ecosystem

Not everyone you hire will rise to the challenge of meeting your core values. And that’s okay. After all, your core values serve to identify employees, vendors, and clients who are not aligned. If you do have to fire someone, remember that they will be happier somewhere that is more aligned with their core values while you’re free to hire a better fit. 

“Someone” doesn’t just mean employees. It also includes vendors and customers. It will be incredibly difficult to reach your goals if all of those involved are not aligned with your values. A case in point:

I had one large client that represented $350,000 a year in revenue but was always complaining about how we did things. My team couldn’t understand why. We went above and beyond for them and did everything in our power to make things the way they asked for.

My leadership team realized that no matter what we did, our client would never appreciate it because they were not aligned with HOW we did things. They did not fit our core values. On top of that, the account was not all that profitable, and it was taking time away from other large clients, so we had to let them go.

Three months later, the client returned and hasn’t complained once since. There had been a staff change, and the person responsible for all the complaints was gone. Their absence allowed the new vendor to realign with our values and appreciate how we did things. They have grown as a profitable client for us, and our relationship is strong. This proves the value of making sure everyone is in alignment: I couldn’t believe the impact one person had on our relationship. 

Sustain a Value-Driven Culture

Living by core values requires an ongoing commitment. Conduct regular review meetings and performance assessments, and devise ways –such as gamification– to keep employees engaged. While core values are written in stone, ways to reinforce them are not. 

Mom may not be watching, but the world is. I’m here to tell you that you can do it. I’ve thrived by embodying my own values and helping clients do the same. I see how the process consistently unlocks potential and enables people to leave behind their fears and live life by design.

Core Values are the Cornerstone of Long-Term Success

Core values are fundamental to shaping and directing the culture and operations of a company. They are not just aspirational ideals but actionable behaviors that guide decision-making and form the backbone of an organization’s identity.

By effectively uncovering, activating, and aligning these values through tools like the EOS® People Analyzer and Vision/Traction Organizer®, leaders can create a strong, cohesive environment that enhances team performance and drives sustainable success.

The practice of integrating core values into every facet of the organization—from hiring and team-building to client relationships—ensures a robust, value-driven culture that not only defines “how” businesses operate but also sets them apart in the competitive landscape. By living these values consistently and visibly, companies can foster a dynamic ecosystem where employees, vendors, and clients are fully aligned, propelling the organization toward its envisioned future.

The Profit Recipe is here to support your journey. We’ve taught leaders of all stripes to be more self-aware, embrace their vulnerability, and learn to delegate effectively to lead by design, not by accident. We understand the leadership skills entrepreneurs need for success, and we can show you how to elevate your company and your team.

You’ll become part of a community of entrepreneurs who are thought leaders in their own right. You’ll not only share your own expertise but gain specialized knowledge to help you along your leadership journey. 

Leaders, both new and experienced, can become the kind of coaches and managers who direct valuable teams that drive growth. Let us support your entrepreneurial journey –schedule a call with one of our experts today or send us a message.