How to Determine Your Business's Values: A Step-by-Step Guide

As a business owner or leader, you may have heard of the importance of defining your company’s values. Values are the core beliefs and principles that guide the decisions and actions of your business. They serve as a compass for your team to navigate through challenges and opportunities. In this blog post, we’ll walk you through a step-by-step guide to determine your business’s values.

The Importance of Business Values

Before diving into the process, it’s important to understand why defining your business values is crucial. Your values help establish your business’s culture and identity. They communicate what your business stands for, what you believe in, and what you aim to achieve. Values also influence how you interact with customers, partners, and employees. They can impact your marketing strategies, hiring processes, and decision-making.

Step 1: “Word Spaghetti” the Wall

The first step in determining your business’s values is to brainstorm a list of potential values. This is a free-flowing process where you jot down any word that comes to mind. Don’t worry about organizing or filtering them at this stage. You can use tools like Seth Godin’s “thrashing” method or Taylor Pearson’s list to inspire your brainstorming. Stop when you have 10-15 words.

Step 2: Invert the Value

Once you have your list of values, it’s time to apply an inversion technique. Take each value and think of its opposite. This will help you identify the practicality and relevance of your values. If the inversion of your value doesn’t make sense, it’s probably not a practical value for your business. Aim to narrow down your list to 3-6 values at this stage.

Step 3: Tool-ify Your 3 Values

Now that you have your final list of values, it’s time to make them useful and actionable. Ask yourself how you can use these values to make decisions, hire employees, and solve problems. Think of specific situations where these values can guide your actions. Consider adding adjectives to your values to clarify their meanings. Ensure that your values are condensed and non-negotiable.

Step 4: Imagine Your Business Without One Value

The final step is to imagine your business without one of the values. This thought exercise can help you understand the importance of each value and how they work together. Just like a stool needs three legs to stand, your business needs all three values to operate effectively. Eliminating one value can have significant consequences on your business’s culture and performance.

In conclusion, determining your business’s values is a vital process that can positively impact your company’s culture, decision-making, and success. By following these four steps, you can create a set of values that reflect your business’s identity and guide your team towards achieving your goals. Remember, your values should be authentic, actionable, and non-negotiable.