How Do Organizations Develop Core Values That Are Actually Valuable?

What are the core values that drive your organization?

It’s an important question that determines what your organization is known for…

Both the good and the ugly.

If answered correctly, it produces a thriving culture for both the community and your staff. If answered incorrectly–or even worse, not at all–you might just find you’re standing on principles you don’t even believe in.

Jim Collins, the author of Good to Great defines core values as the “essential enduring tenets of an organization.” They’re a small set of guiding principles that have intrinsic value that promotes extrinsic synergy.

In its most simplistic form, core values can be boiled down to your organization’s:

  • Highest priorities

  • Deeply rooted beliefs

  • Foundational motivation

But that’s just the tip of the iceberg:

Core Values will make or break your culture

The origin of anything begins with a thought – Your organization's culture is no exception.

The values you hold determine the norms you live by.

In other words – what you think determines how you act and ultimately who you are.

Ralph Waldo Emerson understood this when he said, “Sow a thought and you reap an action; sow an act and you reap a habit; sow a habit and you reap a character; sow a character and you reap a destiny.”

So if you haven’t taken the time to intentionally nail down your fundamental core values, the health of your organization is put at risk. Problems with culture can always be traced back to core values, or lack thereof.

This is a growing issue that many nonprofits are having to address as they realize the culture of their organization isn’t what they want it to be.

Here’s the problem: 

When organizations start off by jumping into their areas of service, (offering food assistance, plumbing, writing code, or whatever it might be), they neglect the driving force that will ultimately lead to their success: establishing core values

By doing so, they’re unintentionally building a culture that’s leading them to dysfunction.

Why? 

Because they didn’t take the time to think through what their culture should be.

Here’s the challenge:

If you’re an established organization that never took the time to establish core values, do you talk about what your values currently are, or what you want them to be?

Well if you want to change your organization, you have to first understand what your organization values today. And that might not be good news... 

You may find that you value individuality, profit, or technical excellence. Perhaps by themselves, they pose no threat, but you have to ask yourself:

  • How are those working for you?

  • Are they taking you down a path you’re not happy with?

  • Are those values promoting the culture you desire?

If you find your core values are leading you down a path you’re unhappy with, pivot to answering this question instead:

  • What do you want to grow into and aspire to be?

When you can answer this question with clarity, you’ll be able to intentionally incorporate core values that positively change your culture.

So when you look at your organization in the mirror, do you like what you see?

If not, you’re not alone.

Recently, a local CEO realized, “We are terrible at collaboration – in fact, we don’t collaborate with other organizations at all. It's a part of our DNA that we don’t even talk about, and it's really hurting us as an organization. We used to think we could do it all, and now we realize we can’t.” 

Facing the reality of a stagnant or unhealthy culture is discouraging, but there’s a remedy you can put in place. 

Here’s the solution:

In order to turn the tide, you have to go back to the beginning.

So grab your Expo marker and go back to the drawing board. Determine what thoughts and beliefs you want to live by, and brainstorm: 

  • What are the main 3-5 things you want your organization to be known for?

  • What words do you want people to say when they point to your organization?

  • What values are you willing to live by? 

  • What beliefs do you want your staff to hold so deeply that it inspires their every action?

Remember, who you are as an organization is determined by how you and your staff think. 

As a leader, the power is in your hand.

Your staff, your volunteers, and your community are all watching you. As they see you living and breathing your core values, they, too, will buy into your beliefs.
And that is how a culture is formed.

Once you’ve done the work to establish your core values, now it’s time to use them.

How are Core Values practically used?

  1. Core values help you hire the right people (and keep your turnover low)

An organization’s culture is determined by core values, but it’s lived out through the people.

Nonprofits are intrinsically passionate and value-driven – as are the people they attract. But if you’re onboarding people that aren’t driven by your same core values, it won’t be a good fit.

Often organizations wait to talk about their core values after they’ve completed the interview and hiring process. 

This is a mistake.

Instead, begin the process of hiring a new team member by laying out your organization's core values at the first meeting.

Explain your values, and ask them to give you specific examples of when they’ve personally demonstrated those. 

For example, if one of your core values is service, ask, “How have you demonstrated service to someone when you received no recognition?” 

Depending on how they answer, you'll instantly know whether or not your prospective staffer is in alignment with your organization’s culture.

Culture is a garden that must be tended to. Make sure you’re watering the right seeds. 

  1. Core values help you deal with substandard behavior

When an animal is cornered, they immediately go into attack mode. It’s a classic move of self-defense

Your employees are no different.

Core values are the external reference points that are used as a guidepost in corrective situations – use them

Say you have to approach an employee with substandard behavior…

When you begin the conversation by pointing your finger and demanding an explanation, you’re inviting adverse discourse. 

But when you begin the conversation by pointing to a specific core value they failed to uphold, you’re inviting a growth opportunity.

By having your employee refer back to the organization's core values, you’re giving them the opportunity to compare their mistake to the organization’s standards. 

This approach now becomes a conversation of discovery, humility, and accountability.

Don’t put your employees on the defense with the notorious “you vs. me”. Instead, give them the opportunity to compare the expectation of the organization to their behavior.

  • How does the current condition compare to the target?

  • What core value relates to the unwanted behavior?

  • Where is the gap between what you value and how you act?

This approach helps minimize emotional conversations and promotes a positive growth opportunity for both parties. 

Win-win.

  1. Core values help you promote your brand 

Having clearly stated core values is what your brand rests on, and what your logo stands for.

They are both the foundation and the pillars that uphold your organization. 

But this takes timemaking it even more important to start with the end in mind.

Society is so focused on extrinsic motivation, whether that be salary, a certain level of benefits, or status.

But what really matters (and what actually strengthens your culture) is the intrinsic joy and motivation of making a difference. Once again proving why using core values to filter conversations with potential hires is critical.

But here’s the thing:

Just like new employees need to have the values taught, seasoned employees need to have the values reaffirmed.

If you’re not regularly reflecting and reaffirming your values, you’ll eventually lose them. 

Schedule a time at least once a year to reflect as a staff and ask:

  • Are we being true to who we say we are?

  • If not, why?

  • How are our core values compared to our behavior?

Take the time to step back and reflect so you can move forward.  

As a leader, this is how you can take your organization from good to great. 

Here’s an example of how core values affect a mission:

Serve Denton cares about core values so much, they made it their acronym:

  • Collaboration

  • Accountability

  • Respect

  • Empathy

  • Service

These 5 values are the driving force behind every decision, conversation, and action they make.  Establishing collaborative conversations on a mutual foundation of respect is critical to growing their positive community relationships. 

Because ultimately, collaboration without respect becomes steamrolling. 

Recently, CEO Pat Smith talked with a local nonprofit about their greatest pain points and needs. 

His motive was simple: Show respect.

He asked questions, sought to understand their obstacles, showed empathy, and served them…

The result?

Serve Denton’s Shared Services partnered with the nonprofit to provide a functional space that they wouldn’t have been able to get otherwise. What once was this nonprofit’s far-off dream is now within eyesight.

An even better…

An authentic relationship was established and trust was gained–showing the true power of respect and collaboration for years to come.

Shared Services can help you, too

Establishing core values that promote a thriving culture is simple.

But that doesn’t mean it’s easy.

Culture is what carries an organization forward, and it’s the people who buy into that culture that execute the mission. 

To change a culture, strategic capacity is needed. This is where Serve Denton’s Shared Services can help.

Shared Services can partner with you to develop a strategic plan to both create and implement core values. 

We can offer tools to help you:

  • Build your team (with the right people)

  • Establish and promote your brand

  • And ultimately, shape your organization into what you want it to become

Are you ready to harness the power of core values and see your nonprofit soar?

Schedule a consultation to see how we can help your nonprofit thrive.

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