Having Strong Corporate Values for Startups as a Decision Filter

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The Definition of Us

Startups change. It’s the nature of the beast. Ideas change. Plans change. Teams change. The one constant for startups is change. But how can a startup handle and excel through so much change?

Some companies have a very strong system of corporate values in place. They use it as a definitive guide for everything they do. They use it as a decision filter for hiring, feature development, etc. Google’s “do no evil” can be considered one such corporate value, although I wonder if it’s definition is too open for interpretation.

Here are two great examples of companies that have DNA-like corporate values, with slightly different styles:

Using strong, well-defined corporate values as a decision filter is very interesting. Startups face so much uncertainty and so much change, it’s incredibly easy to fall off the path of success. It’s tempting to chase every opportunity, make quick decisions to keep momentum, and “do what’s necessary to hopefully survive.” It’s easy to lose your vision and ability to execute on it effectively.

One of the most common startup failures is a lack of communication with customers (as obvious as communicating with customers might seem.) Beyond that, you see patterns of startups that had an idea, assumed it was great, built something, launched it, and kept on running based on intuition, instinct and opinion. And most of the time, they failed. We see the importance of getting out from behind the computer screen, interacting with customers, testing assumptions, etc. But beyond that, where do company values play a role?

So these are questions running through my mind — hopefully you can help me answer / discuss them:

How important is it to have strong, well-defined corporate values?
Have you ever created any, or participated at a company that had strong values?
Can strong corporate values serve as a worthwhile decision filter?
Can using corporate values as a constant decision filter improve a startup’s response and resilience to change & craziness?
Do companies stick with them through thick and thin, or abandon them when it’s convenient?

I believe companies have a personality. I believe they have a culture. And I believe startup founders have to visualize that personality and culture upfront and build a team to evolve and refine things from there. The definition of us is important. But how important?

If you enjoyed this post, please share it!

June 10, 2009 Posted in Startups by Ben Yoskovitz

http://www.marketingscoop.com/seotraining.htm SEO Training Guy

Thanks for the post.. strong values is a topic that isn't discussed enough. The company I work for is WAY off course from our founders values and the values of the business. How did it get that way? I think it's largely a function of apathy and indifference to the importance of values in the workplace.

This is very unfortunate because over the long term, individuals become demotivated and lost. Re-invigorating the process can be done but takes a substantial amount of work once a business has veered off course.
http://magnt.com/ Brett Tilford

I agree with SEO Training guy that strong values is probably underrated, I mean it does sound pretty old fashioned right? Our startup hasn't really taken the time to lay out “these are our specific core values” however I think that could be a really helpful process. I worked at a non-profit for awhile that had the core value of “real relationships” and it had a profound impact on the organizational culture. Everyone took the initiative to chat with each other and long conversations around the water cooler weren't frowned upon. The beautiful thing was that when the yogurt hit the fan there was enough relational capacity for people to work through their issues with one another. This kept the workplace light, fun, and enjoyable.
Austin

I work at a company with a strong, well-defined set of values as well as an annually updated list of 3 or 4 primary corporate goals. Because the business is so globally distributed (customers and employees on 6 continents), it's critical to maintain an above-the-board image that is palatable to any cultural taste. Corporate management never addresses the public or a large body of employees without pointing back to those core values and goals.
http://www.FreeToBeParents.com/ Jason Stein

I've done some independent contracting with http://www.Providence.org and I was blown away at how their decision making always comes down to if the decision will be in alignement with their core values.

They also have a complete mission integration team that continues to presence the core values with employees and most recently refused to due layoffs when they were facing a budget challenge.
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yeah thats true. i totally accept “The definition of us is important”. But the question is “HOW”?
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nice post.
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Great post! Everyone here seems intelligent enough! Has anyone every tried one of those google money maker things? like at this webpage http://www.bestcashonthenet.com/turnkeybusiness…

Are they Scams?

Thanks for the advice…
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The real def of us is who we set ourselves to be. We have to work hard to define ourselves.
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Hi, very nice post. Thank you.
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we can explain the us as the all efforts that we put for our self.
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Speaking from a point where, my dads company struggled in an industry where huge corporations tried everything, includining unethical practices to out bid or run him out. But he kept his good values, and retaliated smart.
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thats true. i totally accept “The definition of us is important”. But the question is “how”???
http://www.focusid.com/ greg bowen web development

Many of my clients seem to think that they are taking too much risk by allowing cusomers to comment – and the excact opposite is true.

Using a blog or CMS, you can adapt to your cusomer feedback, and optimize your site and prevent them from bouncing to the competition.

Yes, there will be bad apples, but they will talk bad about you other places as well.
http://www.bodybybuford.com/ Keegan

Yes, letting your employees and costumers run the company is the best way to make money. I see way to many of the higher guys calling all the shots and you know what they don't have a clues as to whom their customers are
http://www.saipanportal.com/ Saipan

I think it's a known fact that more startups fail than are successful. Entrepreneurship is definitely a hard business and only a few people have what it takes.
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Nice article. But as one of my VC friend told me: “You need to behave like you are the leader – or people will ignore you”. It was kind of eye opener for me.

Arun
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I believe it's true that most startups just have an idea and run with it, but fail to think of the customer or do any real research. I think these type of startups don't really develop any codes to follow and help them make important decisions, which is why the majority of startups fail.
http://www.atlantapcrepairs.com/ Joe- Atlanta PC Repair Guy

Eben Pagan talks about creating your customer avatar. And we have done that with my company Nerds Next Door. The next step however is creating your company avatar. If your company were a person who would they be, how would they act, how would they make decisions. We call our avatar Bob, and we are constantly asking ourselves “What about Bob?”.

It makes a difference corporate wide in that we are always thinking in terms of how to execute our jobs in a way that conforms with the nature of “bob”. Works for us.
http://www.instigatorblog.com Benjamin Yoskovitz

Joe – I've looked at customer avatars in the past as well. Turning it inside and creating a company avatar is an interesting idea. So how is Bob doing?
http://www.instigatorblog.com Benjamin Yoskovitz

I agree. But does having strong corporate values … a real definition of “us” … help a startup's chances?
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This title sounds very deep … “the definition of us” hahahahha.
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In times such as these, a recession, these companies have to place extra effort in keeping their values and morals, especially with the eager eyes of the press flickering about the place.
As consumers we place trust in these businesses and their structures, so we can only remain optimistic about them through hard times.
http://www.firednetwork.com/ Patricia

Dear Ben:

Having learned about the importance of company values for strong decision making in school, it is great to see it being discussed openly in the real world. It seems to be a theme that is always taught but rarely remembered. Please share them with the community at FiredNetwork.com: https://firednetwork.com/forum/forumdisplay.php…

Thanks!
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You got a really useful blog I have been here reading for about an hour. I am a newbee and your success is very much an inspiration for me.
Anthony

If you want to keep up with Seattle start ups this is a great link to do so: http://search.komonews.com/Business
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An interview tip….ask for the companies corporate values if they don't have them on the website and prepare to discuss them if they are online. It will not only demonstrate you plan to work with intergrity but will also give you an idea of what kind of company you are planning to work for.
http://notquiteivy.tumblr.com notquiteivy

The definition of us is important, but only so far as it's taken in context of the whole picture. That's where any definition, of us or otherwise, gains its value.

The image and the imagination of a company, it's drives and core values, shape it. And there are moments when a company must lean on those values and stick to its vision, even when it seems otherwise. This comes through especially on the creative side. When there is a big idea that needs to be followed, because you know it's right. Because you know it will deliver.

There is a balancing necessary of vision and means and the market. You have to balance what you want to do with what you can do with how it will interact with everything around you. You can not neglect your customers; you must adapt to them. Sometimes, you mold yourself so you suit their needs. Sometimes, suiting their needs will be to stick to your vision in the long run. Sometimes, it will be resisting outside pressures. And sometimes, those core values will hold your creative integrity and allow a project to flourish.

But if those values constrain you; if they stop creativity and stop innovation. If they hold back your ability to effectively utilize your assets to deliver something truly remarkable, then they must be revised.

Because Vision is the Big Idea. And the Big Idea is amorphous and changing.
http://www.thediscountclothes.com/ Discount Clothes

“… it’s incredibly easy to fall off the path of success. It’s tempting to chase every opportunity, make quick decisions to keep momentum, and “do what’s necessary to hopefully survive…”

Very true – it is hard habit to get out of but anyone in business, start-up or not, should close down any opportunity immediately that doesn't keep you on track with your current goals- easier said than done for start-ups but very good advice.
http://www.wrike.com/ Daria

I do think that having strong values is important. But I don't think that many start-ups have well-defined values. People start thinking about actually defining their values, when the business grows and when they need to communicate these values to their employees. Later they find out that it may be cool to tell their customers what they value. I personally think this is wrong. I work for a company, that puts customer focus as its first value and we're trying to communicate it to our clients every time we shoot an email. It helps us to build better customer relationships.
Speaking of a “worthwhile decision filter”, in our company we try to make our values fit this definition. I think that when announcing your values to make a promise to your customers that you’ve got to keep. If you can't keep this promise your customers will leave you. Thanks for the post!
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EnvironmentalWaste

I agree with SEO training guy. The company where I recently started working had a really unique approach to values…..they were totally willing to turn down a client (who was willing to pay a lot) for reasons that were specifically related to values…. Times are changing, especially when you feel so refreshed to actually confront some values.
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Excellent and thought-provoking article. I think in economic times such as these it is highly important to have positive corporate values to ensure the customer that you are trustworthy and willing to do business the 'right way'.
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Very powerful stuff indeed. Having started two of my own companies, and being part of countless others, I strongly agree with you on many of these points. Establishing strong values, sticking them to, and thus creating a polished company image is an important must in branding!
http://www.hudemajice.si/ Majica

Agree with importance of building culture, but problem is that once your company reaches certain stage (say 20-25 people), it gets life of its own… At that time, it is difficult to keep the culture which worked when company was 10-15…
ashevillewebdesign

The idea of personifying a company and then asking “What would that person do” is both simplistic and brilliant.

Too often companies create values that are so theoretical and so difficult to apply that they simply don't use them in practical, day to day decision making. “What would Bob do” is something that can guide a company in a practical fashion toward company values AND company goals. Definitely something some consultant up there should pick up.
http://www.earnpak.com/ sonumrana

Nice article. But as one of my VC friend told me: “You need to behave like you are the leader – or people will ignore you”. It was kind of eye opener for me.

Thanks a lot….
Sonum Rana.
http://www.earnpak.com/ sonumrana

Nice article. But as one of my VC friend told me: “You need to behave like you are the leader – or people will ignore you”. It was kind of eye opener for me.

Sonum Rana.
http://www.mbrmarketing.com/ Auto Dealer Supply

As the economic climate and culture change, there are always certain things that stay the same. Provide your customers with value and outstanding customer service and they will return…
http://www.instigatorblog.com Benjamin Yoskovitz

Majica – Culture may change over time as a company evolves, gets bigger, etc. but it's still possible to foster a strong culture. Just look at companies like Zappos that are well-known for their culture throughout their existence.
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Nice article. I completely agree with everything you said!
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Nice article! I completely agree with everything you said!
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Startup has to face a lot of challenges such as unexpected changes but it;s the people sitting at the back(the founders) who has to mantain their core values to create a strong foundation for the next batch to carry on with it.
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Startup has to face a lot of challenges such as unexpected changes but it;s the people sitting at the back(the founders) who has to mantain their core values to create a strong foundation for the next batch to carry on with it.
Pingback: Why company culture is more important for startups | Solid Startups

About Ben Yoskovitz

I recently joined GoInstant as VP Product. GoInstant changes how we use the web, making it shareable like never before.

I'm also a Founding Partner at Year One Labs, an early stage accelerator in Montreal. Previously I founded Standout Jobs (and sold it). I'm a hands-on startup guy, helping companies grow successfully from the idea forward. You can reach me at byosko at gmail dot com.

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