Business Fundamentals: The Importance of Core Values for Growth
There’s a pretty good chance that you’ve walked by, driven by, or are reading this right now inside of a Starbucks. You have core values to thank for that.
Core values are the backbone of any successful organization, guiding decisions, behaviors, and culture. At the height of the 2008 financial crisis, Starbucks was struggling because of an internal crisis. Declining food quality, poor treatment of workers, unethical sourcing, and a steep drop in customers could have been its end.
Instead of hunkering down and just trying to wait out the storm, Howard Schultz returned as CEO and asked a simple question: Are we staying true to our core values?
That introspection became a turning point for Starbucks and helped it become the brand we know today. Starbucks didn’t just tweak its business strategy — Schultz refocused on the core values that made them who they were: quality, community, and sustainability. To get there, he fired executives, redoubled efforts to ethical sourcing, pushed to repay workers, and even temporarily closed all U.S. locations to retrain staff.
Using core values to guide business decisions and rebuild its culture saved the brand. “I’m doing the right thing. We are retraining our people because we have forgotten what we stand for, and that is the pursuit of an unequivocal, absolute commitment to quality,” said Schultz at the time. “You have to have a 100% belief in your core reason for being.”
(Hear the whole story directly from Schultz on this amazing episode of the Acquired podcast.)
Understanding the Value of Core Values
It’s easy to paint words on a wall, add them to your website, or add lines to an employee handbook. But core values are much more than that. They are the behaviors and actions based on what you philosophically believe. To live your core values in a way that guides your organization and is clear to others, they must align with your internal (beliefs, philosophy, how you treat others) and external (actions, words) policies.
Each value represents the company’s beliefs and how those beliefs translate into behavior. When put into action, as Schultz demonstrated, they serve as a guide that ensures your company is consistent in the ways it deals with people, practices, partners, and customers.
He was likely guided by the famous line from Roy E. Disney: “When your values are clear to you, making decisions becomes easier.”
In our lives today, think of core values as a trusted GPS. You define where you need to go, and your core values help you get there. But you’re still driving and making the right decisions to get there safely.
Owners who take time and careful consideration to craft these values often see them as a tool that shapes culture now and builds a long-term vision for the future.
Experiencing The Magnet Effect of Well-Crafted Core Values
People like being around those who share their values. Across all relationships, including work, science tells us that our desire to find like-minded people is hard-wired. One of the most direct ways for companies to ensure their team members are like-minded in ways that matter is to have core values that people can live by and demonstrate.
When you take the time to build core values that accurately represent who your company is and how it wants to work, you’ll attract the right people and repel those who have different fundamental beliefs. As a leader, you must be comfortable insisting on only having the right people on your team — meaning both hiring and firing decisions.
That said, avoid trying to build core values that make you right and someone else “wrong.” Instead, ask yourself what’s best for you now and for when you look back at the legacy you built.
At Arcqus Group, Faith is our leading core value because it provides the right guidance for us. That does not mean we view someone of a different faith – or a company that does not include faith in its core values – as wrong, nor do we treat them differently. But it does help the people we work with know that our faith drives our behaviors and actions. It is who we are, and what we believe.
That core value helps people and companies say yes to working with us. It also helps some people say no. And we’re a better organization because of both.
Facing the Consequences of Unclear Core Values
If you set a core value of “making someone’s day,” would you be willing to give them everything in your business bank account if they asked? That might accomplish your core value but it would quickly close your doors.
That’s why core values can’t be aspirational. They must be tangible and clear so your team can follow them and leaders can reinforce them. When a core value is aspirational, it’s tough for teams to follow it consistently, and it never becomes part of your company’s DNA.
Without clear guidance, people default to personal values, which may not align with the company’s mission. That misalignment can lead to internal conflict, weakening the culture. When leaders fail to communicate and reinforce the company’s core values, the vacuum will inevitably be filled by external forces, which could steer the company in unintended directions.
How can you expect people to make value-aligned business decisions when they’re not clear on your values?
Weak, murky core values also have a direct impact on you as a leader. They make it hard to be consistent and run your business in a way that you feel comfortable day in and out. When values lack clarity, it’s also easy to let things slip or cut corners you normally wouldn’t.
Putting Core Values into Action for Your Customers
Core values are the guiding principles that dictate how work gets done. They should influence every key decision, from hiring and firing to promotions and rewards. When consistently applied, core values create a framework that holds everyone accountable and ensures consistency in actions across the organization.
Chick-fil-A is another strong example of the core value of faith and stewardship. You can see this in action not only with it ensuring every team member has Sundays off but also in how each store runs. Its “Second Mile Service” approach includes requirements like team members carrying trays to tables, offering refills, and being polite throughout the dining experience. And the Chick-fil-A Foundation, which focuses on youth education, hunger, and homelessness.
The company’s culture of going the extra mile for service and support is something everyone from leadership to the newest hire at your local store must say “yes” to when they join. Customers see this too. Through decades of action on these core values, people will assume that it sets the direction and tone for which Chick-fil-A hires, fires, and promotes.
Creating a Path to Implementation
Understanding the benefits of clear, well-defined core values that you agree with is, unfortunately, the easy part. The difficulty comes with choosing and creating your core values. Here’s part of our process for helping companies like yours define their core values and put them into practice:
The path is: Words → Behaviors → Actions → Celebration.
Start by talking about core values and clearly articulating them. Be specific so that you can easily define behaviors you want to see at work. When everyone can understand the words and behaviors, they can judge how well individual actions fit the workplace. That process makes it easy to identify when someone is demonstrating your core values, creating an opportunity to celebrate their commitment.
For a core value of “Curiosity,” the behaviors we would want to reinforce are continuous learning and trying new ways to innovate regular tasks. An action could be reading to stay informed about your customers’ businesses or finding a safer way to move around a facility. You would then celebrate the attempt to do something new, instead of being upset about that use of time.
Celebrating people for their accomplishments improves employee engagement and job satisfaction. Tying this to core values helps consistently reinforce your brand internally, which customers and partners will be able to see as well. That’s why it’s not enough to simply state your values—they must be lived out daily by every team member, from the top down. It’s up to leaders like you to demonstrate core values and keep everyone working toward common goals.
Curious to learn more about core value behaviors and actions? One of my favorite tools is the “People Analyzer” from Gino Wickman’s book Traction. It can help you evaluate whether employees align with the company’s core values and figure out smart next steps.
Are You Struggling to Get Your Core Values Right?
Values aren’t just words. They’re the reasons you do what you do; principles actively guiding and shaping our actions and decisions to create a positive culture.
A company’s core values serve as its compass, making it easy to find your way. This informs who you hire, how you structure your day, how you choose customers and partners, and how you grow. Without a clear understanding of our values, we risk getting lost in the chaos of daily life and losing sight of what truly matters. But with the right ones in place, you can build a legacy you’re proud to pass on one day.
It can feel daunting to start the process of creating your core values, but I don’t want you to give up. To help, I’ve created a straightforward, custom GPT to walk you through questions and exercises to identify the core values you already hold and then build a framework to help these values guide your daily operations.
It’s free and I’m happy to share it directly with you. All you have to do is sign up below for access. It’ll also ensure you have my contact details if you hit any roadblocks in creating an actionable framework or if you want to explore how to use core values for hiring, pruning, and celebrating your amazing team.
A final inspirational thought to leave you with:
“Set your expectations high; find men and women whose integrity and values you respect; get their agreement on a course of action; and give them your ultimate trust.” John F. Akers, former CEO of IBM
If you’re looking for guidance, we’d be honored to work with you. Together, we’ll uncover what matters most to you and your team and create a clear path forward to align your leadership and decisions with those values. Schedule your free consultation with our Founder and CEO, Dusty Holcomb, today.
FAQs
Core values are the fundamental beliefs that define your organization’s purpose, behavior, and decisions. They help create a consistent culture, guide team actions, and ensure decisions align with your mission. Without core values, businesses can lose direction and struggle to stay focused.
Start by reflecting on what truly matters to you and your business. Consider the principles that guide your decisions, the qualities you want to see in your team, and the legacy you want to leave. Think about moments where your business has been at its best—those often reveal the values you already hold.
Without clear core values, decision-making becomes inconsistent, and the culture can feel disjointed. Team members may rely on personal values that don’t align with the company’s mission, creating internal conflict and undermining progress. Clear values bring focus and direction.
Core values act as a filter, drawing in people who share your beliefs and discouraging those who don’t align with your purpose. By living and communicating your values clearly, you create an environment where like-minded individuals want to be—and where those who don’t fit naturally opt-out.
Start by clearly defining the behaviors that reflect your values. Communicate them often, and lead by example. Reinforce values through hiring, promotions, and decision-making, and celebrate team members who demonstrate them in action. Consistency begins with leadership.
Core values provide a framework for evaluating options and staying aligned with your mission, especially in tough situations. When decisions are filtered through your values, they reinforce your culture and ensure your business stays true to its purpose. As Roy E. Disney said, “When your values are clear, making decisions becomes easier.”
