Core Values Scorecard: How Does Your Company Stack Up?
Barry Raber
Forbes Councils Member
Forbes Business Council
Barry Raber is president of Carefree RV Storage, a Portland Entrepreneur of the Year and shares business secrets at realsimplebusiness.org.
Core values can play a pivotal role in shaping a company’s destiny. I have seen cases where impactful core values helped companies become wildly successful, a few where they had little or no effect, and some where they hindered success.
To widen my perspective, I collected examples from 30 companies: I sent a request out to the members of a networking group I am part of, and 25 members sent their core values to me. The businesses all have at least $1 million in revenue, and some have as much as $40 million. I also looked up five national household names online.
My first impression? Wow: No two sets of core values were even close to each other—they’re almost as unique as fingerprints.
First, let’s define what makes a great core value.
Values must be authentic and unique to your company, not one-word cookie-cutter values like “trust” that leave unwanted wiggle room for interpretation. Enhance each value’s meaning with a clear, creative, concise definition that explains what it means for your company in practical terms that anyone can understand. One strong example? “Wow the client.”
With that in mind, I studied the sample pool. Some were really good; others were decidedly not. Finally, a clear division emerged. I came up with a 10-point scoring system to assess and rate core values. The results:
• Score of 9-10 points: 37% of companies.
• Score of 6-7 points: 30% of companies.
• Score of 0-4 points: 33% of companies.
(Note that due to the scoring method, it is not possible to get 5 or 8 points.)
The next obvious question:
Are the companies with top scores "better" than those with low scores?
That question is even more subjective than the idea of scoring values—because what does “better” even mean?
Here are some values that scored high from the sample pool:
• We inspire 5-star reviews.
• Dedicated (x 1,000,000).
• Foster happiness.
• Collaborate and share the credit.
And some that scored low:
• Authenticity.
• Balance.
• Fun.
• Trust.
• Liberated.
It’s possible to score low on core values and still do well in business. A company can be bad at values but compensate in other areas. The leader’s charismatic personality can drive the company forward, or its product offering could be so strong that values take a backseat.
Of the five household-name samples I reviewed, one of them, Facebook, scored in the bottom third—a good example of how you might score low but overcome it with first-mover advantage, strong founder personality and some tech.
The strongest correlation I noticed: Top-scoring companies often have “flow,” meaning more success with less effort, discord or controversy—and a fairly smooth ride to the top. Their teams seem aligned, rowing in the same direction with company leadership. I noticed that newer companies with great values experienced success very quickly. By comparison, companies like Facebook have often endured setbacks, including internal issues and public/customer discord.
The bottom group has to work harder to overcome challenges, higher turnover and a zig-zagging trajectory. They are also usually more reliant on the company’s leader, adding stress for that person.
How is the core values scorecard implemented?
Here’s how I scored them.
1. Are there four or five total values—no fewer, no more?
If yes, award 3 points.
Employees need to resonate with company core values deeply, genuinely and personally. Their innate personal values must match the company’s values. You should only hire people who match your values, but that gets rarer the bigger you grow. It would be impossible to find 50 people who all share seven values personally plus possess the specific skills required for each role.
But it is totally possible with four values. Also, hiring to match core values and building recognition programs around them becomes overwhelming with more than five values. Conversely, I've found that any less than four values is not enough to be distinctive.
2. Are the values active or action-oriented, either future or current tense, but never just one word?
If yes, award 3 points.
A single word is too vague and open to interpretation. It’s surprising how many different ways people can interpret, for example, the term “pride.” Instead of pride, craft a more specific statement such as, “We deliver solutions we can be proud of.” Instead of “customer service,” add action: “Wow the client.”
3. Are at least half of the values about the customer, how you treat or serve them and how you deliver unique value to them?
If yes, award 3 points.
When a company’s values are all about what employees have in common or how you work together, you’re not putting enough focus on serving customers to create flow toward revenue growth, customer satisfaction and company success. No company exists entirely for the benefit of its employees; by definition, companies serve customers.
4. Have you clearly defined your values with an explanation of what the company intends each value to represent?
If yes, award 1 point.
Even with straightforward and simple values, an explanation that elaborates on behaviors, actions or additional context is beneficial, especially when it comes to hiring and reinforcing it.
How did you score?
If you’re at the top, does your company accomplish goals relatively easily thanks to its well-defined values? Do you hire individuals with shared values? Is your company clearly successful?
If you scored low, do you notice that your company’s direction and people don’t always seem cohesive and aligned? Might it be worth tweaking your values?
Core values can be super powerful. They possess the potential to drive your company to tremendous success. If your values stack up well, congrats—enjoy the ride. If they don’t, it’s worth the hard work to perform a redux and unleash the power of core values done right.
Barry Raber, is an Entrepreneurs’ Organization (EO) Member, CEO of Business Property Trust, a Portland, Oregon, company that owns and manages RV storage through Carefree Covered RV Storage and self-storage through Bargain Storage. He is also a thought leader who shares experiences for businesses at Real Simple Business.
