Defining and Implementing Core Values in Business

When we work with small businesses and not-for-profits, it often becomes apparent that many struggle with one crucial aspect: defining what truly drives their organisation. You might think it’s all about profits or service delivery, but there’s something deeper that shapes every decision and interaction - your organisational Core Values. These are the guiding principles that tell everyone what you stand for and how you operate. Without them, you’re like a boat without a rudder, drifting aimlessly.

Let's take you through why having a set of Core Values matters, and how to identify them; plus, practical ways to embed them into your daily operations.

Why organisational Core Values matter more than you think

You may be wondering, “Why bother with Core Values? Isn’t it enough to just deliver quality outcomes and make money?” Well, yes and no. Quality outputs are essential, but values are the glue that holds your team and mission together. They influence behaviour, shape culture, and even affect how your customers and community perceive you.

Think of it this way: if your organisation was a person, your Core Values would be its personality. Without a clear personality, people won’t know what to expect or why they should trust you. For example, if honesty is a Core Value, your team will be encouraged to be transparent, even when it’s tough. If innovation is on the list, you’ll foster creativity and welcome new ideas.

Here’s a quick story. we once worked with a not-for-profit that was struggling with employee turnover. After some digging, we realised the problem wasn’t pay or workload but a lack of shared values. Their people didn’t feel connected to the organisation’s purpose. Once we helped them define and communicate their Core Values clearly, team engagement improved dramatically. People felt part of something meaningful.

Team discussing organisational values

How to identify your organisational Core Values

Finding your Core Values isn’t about picking fancy words from a list. It’s about reflecting on what truly matters to your organisation. Here’s a simple process you can follow:

1. Gather your team - Include people from different levels and departments. Diverse perspectives help.

2. Ask the right questions - What do you think we stand for? What makes us proud? What do we want to be known for?

3. Look at past successes and challenges - What values helped us succeed? What values were missing when things went wrong?

4. Narrow down to no more than 5 values - Too many values dilute the message. Keep it focused.

5. Define each value clearly - What does it mean in practice? How do we live it every day?

   
   

Remember, these values should feel authentic. If you pick values just because they sound good, your team will see through it. Authenticity builds trust.

Defining the Values so they are not just words

Now, let’s get practical. Take the five values that resonate most with your organisation and add an explanatory statement.

Here are some common ones with explanatory statements that you can use as an example, but don’t feel limited by this list:

• Integrity - Doing the right thing, even when no one is watching.

• Collaboration - Working together to achieve more.

• Accountability - Taking responsibility for actions and outcomes.

• Empathy - Understanding and valuing others’ perspectives.

• Innovation - Embracing change and new ideas.

  
  

Try this exercise: write down the selected Values and then ask each team member to write the definition of each. Compare notes and discuss any differences. This can be a revealing conversation that helps align everyone’s thinking.

Consolidate the suggestions and wordsmith each until everyone can live with the definition.

Once you have your list, make sure to document it clearly. You might want to create a simple poster or a digital document that everyone can access.

Three team members sharing ideas on sticky-notes on a glass wall

Building a behavioural framework from your Core Values

The next phase in the process is using the Core Values as the overarching principles that guide each person's actions, behaviours and decisions.

Try this exercise: Each week, share one of the Core Values (can be on flipchart paper or digitally shared) and ask each team member to think about what they would be doing, or how they would be behaving if they were living the Value and share this with the rest of the team. They should also think about what kind of behaviours they would be seeing if they saw a teammate living the Values (it is often interesting to see how these are different).

For example, if you choose “Respect” as a Value, define what respect looks like in your workplace. Is it listening actively? Valuing diversity? Giving constructive feedback?

Here is an example that will help guide your process:

Team (the Core Value)

Our best is achieved through collaboration (the explanatory statement) Underpinning behaviours

• We collaborate by seeking feedback from and learning from each other

• We catch-up regularly as a team to share ideas and get to know one another better

• We respect one another by taking time to understand others' needs, priorities and workload

Bringing Your Values to Life: Implementation Tips

Defining your values is just the start. The real challenge is embedding them into your organisation’s DNA. Here are some practical ways to do that:

• Lead by example - Leaders must model the values consistently. If you say “respect” is important, show it in your interactions.

• Recruit with values in mind - Use your values as criteria when hiring. Ask candidates how they demonstrate these values.

• Incorporate values into performance reviews - Discuss how employees are living the values, not just what they achieve.

• Celebrate values-driven behaviour - Recognise and reward people who exemplify your values.

• Use values in decision-making - When faced with tough choices, ask “Which option aligns best with our values?”

• Communicate regularly - Keep values visible through newsletters, meetings, and signage.

  
  

For example, one small business we worked with started a monthly “Values Champion” award. It was a fun way to highlight people who went above and beyond in living the company’s values. It boosted morale and reinforced what mattered most.

Team discussion presenting the Core Values

Keeping Your Values Relevant and Alive

Organisations evolve, and so should your values. It’s a good idea to revisit them every couple of years. Ask yourself:

• Are these values still relevant to our mission and culture?

• Do they reflect who we are today?

• Are we living up to them consistently?

  
  

If the answer is no, it’s time for a refresh. This doesn’t mean changing values on a whim but thoughtfully considering if they still serve your organisation’s purpose.

Also, be patient. Embedding values takes time. It’s a journey, not a quick fix. Keep reinforcing them, and over time, they’ll become second nature to your team.

If you want to explore more about how to define and live your Core values, you can look at our Core Values, or use our tool Core Values Statement Example. But remember, the most important thing is to make them real and relevant to your unique organisation.

By investing time and effort into your organisational core values, you’re not just creating a list of words. You’re building a foundation for a positive workplace environment, stronger team cohesion, and a clearer path to achieving your goals. And that’s worth every bit of effort.

So, what are you waiting for? Start the conversation today. Your organisation’s future self will thank you.