Values Are Not a Branding Exercise. Here Is How to Find Yours and Make Them Work.
Walk through the website of almost any company today and you will find a values page.
Integrity. Innovation. People first. Community. Excellence.
The words are everywhere. They are printed on office walls, embedded in employee handbooks, and featured in recruiting materials. They are announced with conviction at all-hands meetings and reiterated in annual reports.
And in a remarkable number of organizations, they mean almost nothing.
Not because the people who wrote them were dishonest. Most of them were not. They meant what they said, or at least what they thought they said. The problem is that values defined in a conference room and values that actually shape how a business operates are often two entirely different things. One is an aspiration. The other is a system. And most companies mistake one for the other.
This is not a minor distinction. When a company says it values people and then eliminates benefits under financial pressure without explanation, employees notice. When a company says it values integrity and then rewards behavior that contradicts it, trust erodes. The words do not just become meaningless. They become evidence of something worse than silence. They become proof that what leadership says and what leadership does are not the same thing.
Values washing is not a niche problem. It is one of the most common and most costly failures in organizational culture. And it almost always begins not with bad intent, but with a process that was never designed to produce real values in the first place.
The good news is that there is a better way. Getting clear on your actual values, and building the systems that make them real, is some of the most important work a business can do. And it is available to any company willing to do it honestly.
Here is how to start.
Why Most Values Processes Fail Before They Begin
The standard approach to defining company values goes something like this. A leadership team schedules an offsite, or a consultant is brought in, or a small committee is formed. A list of candidate values is generated, often through brainstorming, sometimes through surveys. The list is refined, debated, and eventually narrowed down to a set of four to six words or phrases. Those words are polished, sometimes given definitions or supporting statements, and then communicated to the organization.
The problem is not the output. The problem is the input.
When values are generated from the top down, in a compressed timeframe, by a group optimizing for words that sound right, the result almost always reflects how the organization wants to see itself rather than how it actually behaves. The values are aspirational at best, performative at worst. And because they were never grounded in observed reality, they have no traction.
Real values are not invented. They are discovered. They are uncovered through honest examination of how decisions are actually made, what behavior is actually rewarded, what gets protected when things get hard, and what the organization has consistently shown it is willing to sacrifice for.
That examination requires a different kind of process. One that is slower, more honest, and more inclusive than most leadership teams are accustomed to.
A Framework for Finding Your Real Values
The following process works for founders who are just starting out and for established organizations that are ready to take an honest look at what they actually stand for. The steps are sequential, but the work is iterative. Expect to move back and forth between them.
Step 1: Observe before you define.
Before anyone writes a single value statement, spend time gathering evidence about how your organization actually behaves. This means looking at real decisions, not intentions.
Ask yourself, and ask others, these questions:
When we have been forced to choose between two things we care about, which one have we consistently chosen?
What behavior has been rewarded here, even informally, even when it contradicted what we said we valued?
When something went wrong, what did we protect, and what did we let go?
What do people here feel comfortable saying out loud, and what do they only say in private?
If a new employee watched us operate for thirty days without reading any of our materials, what would they conclude we value?
This is uncomfortable work. It is supposed to be. If the answers are entirely flattering, the questions were not honest enough.
Step 2: Look for patterns, not aspirations.
Take the evidence gathered in Step 1 and look for recurring themes. Not what the organization wants to be, but what it has repeatedly demonstrated it is.
You are looking for values that are already true, even imperfectly. Values that show up in decisions even when they are costly. Values that people cite when explaining why they stay, or why they came in the first place.
These are the values worth naming. Not because they are perfect, but because they are real. A value that is already present in behavior can be strengthened and made more consistent. A value that is purely aspirational requires a much harder transformation before it means anything.
This does not mean aspirational values have no place. But they should be named and treated differently. Distinguish between the values you live and the values you are actively building toward. Honesty about that distinction is itself a form of integrity.
Step 3: Test for specificity.
Vague values are not values. They are sentiments.
Every candidate value should be tested against two questions. First: what does this actually look like in practice? Second: what does a violation of this value look like?
If you cannot answer both questions concretely, the value is not specific enough to be useful.
"Integrity" tells people almost nothing. "We say what we mean, we do what we say, and when we fall short we name it and fix it" tells people something they can actually use. "Innovation" is a placeholder. "We treat every customer complaint as a signal we have not solved the right problem yet" is a value that shapes behavior.
Push every value statement until it becomes a sentence that could guide a real decision. If it cannot do that, it is not ready.
Step 4: Pressure test with the people closest to the work.
Values defined only by leadership are values that belong only to leadership.
Before any values are finalized, they should be tested with the people who experience the organization from the inside. Employees, partners, long-term customers. Not to get approval, but to get honesty. Do these values reflect what you have experienced here? Do they ring true? Where do you see the gaps between what we say and what we do?
This step does two things. It improves the values themselves, by surfacing blind spots leadership cannot see from their vantage point. And it begins the process of organizational ownership, making values something the whole organization recognizes rather than something handed down from above.
Step 5: Write the hard version.
Most published values statements are written to impress. They are smooth, broad, and safe. They are also forgettable.
The most useful values statements are the ones that are honest enough to make someone uncomfortable. Not provocative for its own sake, but genuinely specific about what the organization stands for and, by implication, what it does not.
A values statement that everyone agrees with is probably not saying anything. The best values function as a filter, attracting people who are aligned and signaling clearly to those who are not. That requires being willing to put something real on the page.
From Values to Outcomes: Making the Connection Explicit
Defining your values is the beginning. The work that most companies skip is the step that connects those values to how the business actually operates and performs. Values are not separate from business outcomes. They are a mechanism for producing them. But that connection does not happen automatically. It has to be built.
Here is what that looks like in practice.
Hire and evaluate against your values explicitly. If a value is real, it should show up in your interview process, in your onboarding, and in how you evaluate performance. Not as a checkbox, but as a genuine lens. Does this person's judgment reflect what we stand for? When this employee navigated a hard situation, did their decision reflect our values? If your values have no bearing on who you bring in or how you evaluate performance, they will not survive contact with growth.
Use values as a decision-making framework. When facing a hard call, whether about a product feature, a pricing decision, a difficult client, or an internal conflict, values should be explicitly invoked. Not as a way to avoid hard decisions, but as a way to make them more consistently and more transparently. Teams that regularly use values as a decision-making tool tend to make faster, more coherent decisions over time because the underlying logic is shared.
Measure what your values commit you to measuring. Every real value implies a metric. If you value your employees' wellbeing, you should be measuring something that reflects it. If you value environmental responsibility, you should be tracking your impact. The data does not have to be perfect to be useful. But if there is no measurement tied to a stated value, the value is aspirational at best.
Make accountability visible. The fastest way to destroy a values culture is to have values that apply to everyone except the people with the most power. When a senior leader's behavior contradicts a stated value and nothing happens, every employee draws the correct conclusion: the values are decorative. Accountability has to be applied consistently, including upward, or it does not hold.
Revisit and evolve. Values are not a set-and-forget exercise. Organizations change. Teams grow. The external environment shifts. A values framework that made sense at ten employees may need to be examined at one hundred. Not to abandon what worked, but to make sure the language and the systems still reflect the reality of the organization. Revisiting values annually, not to rewrite them from scratch but to ask honestly whether they are still alive and still true, is a sign of organizational health.
What Values Actually Do
When values are real, when they are grounded in observed behavior, specific enough to guide decisions, and backed by systems that hold people accountable, they do something that no marketing strategy can replicate. They create coherence.
Coherent organizations are easier to lead because the logic of decisions is shared. They are easier to hire for because the right people self-select in and the wrong people self-select out. They are more resilient under pressure because the framework for navigating hard situations is already internalized. And they are more trusted, by employees, customers, and partners, because what they say and what they do are recognizably the same thing.
That coherence is not soft. It is one of the most durable competitive advantages a business can build. It compounds over time as culture strengthens, as institutional knowledge deepens, and as reputation accumulates.
But it starts with honesty. Honesty about who you actually are, not just who you want to be. Honesty about the gap between your stated values and your current behavior. And the willingness to do the work of closing that gap, slowly, systematically, over time.
That work is never finished. But it is always worth starting.
Frequently Asked Questions About Defining Company Values
-
Real values are discovered, not invented. The process starts with honest observation of how the organization already behaves — what decisions it makes under pressure, what it rewards, what it protects when things get hard.
Values that are already present in behavior can be named, strengthened, and made more consistent. Values that are purely aspirational require a much harder transformation before they mean anything. That does not make aspiration useless, but it means being honest about the difference between the values you live and the values you are building toward.
The test for a real value: can you describe what it looks like in practice, and can you describe what a violation looks like? If not, it is not specific enough yet.
-
Most values processes are designed to produce words that sound right, not to surface what is actually true. When values are generated from the top down, in a compressed timeframe, by a group optimizing for aspirational language, the result reflects how the organization wants to see itself rather than how it actually operates. Because those values were never grounded in reality, they have no traction.
The other common failure is the absence of systems. Even genuinely good values fade without hiring practices, decision-making frameworks, accountability structures, and metrics that reinforce them consistently over time.
-
Values washing is the gap between the values a company publicly claims and the values its behavior actually reflects. It matters because employees are perceptive. When a company says it values people and then makes decisions that contradict that, trust erodes fast and is slow to rebuild.
When leadership's behavior is held to a different standard than everyone else's, the message received is that the values are decorative. The cost is real: disengagement, turnover, reputational damage, and a culture where cynicism becomes the default. Values washing is often not intentional, but it is always damaging.
-
The connection has to be built deliberately. Values do not automatically produce outcomes, they require systems. That means hiring and evaluating people against your values explicitly. Using values as a genuine decision-making framework, not just a communications tool. Measuring what your values commit you to measuring. Making accountability visible and consistent, including for senior leaders. And revisiting your values regularly to make sure they still reflect the reality of the organization.
When values are embedded in these systems, they create organizational coherence — a shared logic that makes decisions faster, hiring cleaner, and culture more resilient over time.
-
At minimum, annually — not to rewrite them from scratch, but to ask honestly whether they are still alive and still true. Organizations change. Teams grow. The external environment shifts. A values framework that made sense at ten employees may need to be examined at one hundred. The goal is not to abandon what worked, but to ensure the language and the systems still reflect who the organization actually is. Revisiting values regularly is a sign of organizational health, not instability.
-
Buy-in follows inclusion. Values defined only by leadership are values that belong only to leadership. Before any values are finalized, they should be tested with the people who experience the organization from the inside. Not to get approval, but to get honesty.
When employees are part of the process, when their experience is genuinely reflected in the values that get named, they recognize them as real rather than handed down.
That recognition is the foundation of ownership, and ownership is what turns a values statement into a culture.
-
Core values are already true. They show up in decisions even when they are costly. They are what people cite when explaining why they stay or why they came in the first place.
Aspirational values are what the organization genuinely wants to become but has not yet consistently demonstrated. Both have a place, but they should be named and treated differently. Conflating them, claiming an aspirational value as a current one, is where values washing begins.
Being honest about the distinction is itself a form of integrity, and often the starting point for the harder work of actually closing the gap.
-
Specific enough to guide a real decision and specific enough to identify a violation.
If a value statement could apply equally to any company in any industry, it is not doing any work.
The most useful values function as a filter, they attract people who are aligned and signal clearly to those who are not. Push every value statement until it becomes a sentence someone could actually use when navigating a hard situation. If it cannot do that, it is not ready.
-
Yes and it is one of the most durable ones available. When values are real and backed by systems, they create coherence. Coherent organizations make faster, more consistent decisions. They attract and retain people who are genuinely aligned. They are more resilient under pressure. And they build the kind of trust — with employees, customers, and partners — that compounds over time.
That is not soft. It is structural. And unlike many competitive advantages, it is very difficult to copy, because it is built from the inside out, through thousands of consistent decisions made over time.