The Problem with Core Values

They’re not actionable. They’re not specific. They’re not complete. There’s a better way.

Good Morning!

Here are today’s highlights:    

• In California, only about 16 percent of employer establishments are enrolled in E-Verify, even lower than the national figure of 27 percent. Why?

• Shawn Busse explains how to make productive use of Linkedin and how to think about the return he gets.

• The Supreme Court’s recent decisions have ignited a wave of lawsuits challenging regulations.

• Kamala Harris is proposing a new standard deduction for small businesses that would be similar to the one that individual filers can use.

MANAGEMENT

Michael Girdley says core values are lame—and offers an alternative: “Communication. Respect. Integrity. Excellence. Great concepts, but do your eyes glaze over? Mine do. This could be any business in America. But guess what? Those ‘Core Values’ belong to Enron. You know: manipulated financial statements, insider trading, a cutthroat firing policy … even suspending their ‘code of ethics’ so leadership could do shady stuff. So what happened to Integrity?”

• “Here are three big problems with core values: They’re not actionable. Of course integrity is important. So what? They’re not specific. Is excellence working a 60-hour week or getting the job done well? They’re not complete. You can’t proscribe an entire culture with three to five buzzwords. Life’s too complicated.”

• “A few years ago, a CEO friend of mine named Andrew was frustrated with his company’s values. So he introduced a set of 18 core behaviors. Using behaviors fixes the three big problems with the classic Core Value approach. They’re specific. They’re actionable. And with 18 behaviors listed, they’re closer to a complete picture of how the team operates.” For example:

• “Be a fanatic about response time: Our customers expect a response to their questions in minutes, not hours. Rapid response is one of the easiest and best ways to stand out from the crowd.”

• “Be systems- and process-oriented: The best companies are built on foundations of highly successful, continual processes. Look to create processes for every aspect of your work, and turn those processes into habits to achieve consistent results.” READ MORE