Goal Core · Purpose · Module

Core values

The small set of commitments the organisation will not trade, even when trading them would be profitable — which is the only test that separates a value from a preference.

The idea

How it works

Values sit alongside purpose because they answer the same question from the other side. Purpose says why the organisation exists; values say what it will not do in order to continue existing. Neither is a goal and neither can be completed.

The test Collins and Porras proposed remains the sharpest one available: would the organisation keep this value even if it became a competitive disadvantage? A value that costs nothing has not been tested, and a value nobody has ever paid for is a preference wearing a stronger word.

Working with it

In practice

  1. 01

    Keep the list to three or four

    Every addition weakens the set. A list of eight is a list nobody can recall, which means it is a list nobody applies.

  2. 02

    Name the price each has been paid

    A real value has cost something — a deal declined, a hire not made, a shortcut refused. Where no instance exists, the value is untested.

  3. 03

    Exclude the ones everyone holds

    Integrity and quality are entry requirements rather than values. Anything a competitor could not credibly disclaim is not distinguishing anything.

  4. 04

    Enforce them at departure, not at induction

    Values are established by what happens to a high performer who breaches one. Everything else is a poster.

One level in

The components of core values

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The value set

    The three or four commitments themselves, each with what it rules out.

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  2. The price paid

    The occasions where holding the value cost the organisation something.

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  3. The enforcement record

    What actually happens when a value is breached, including by someone valuable.

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A value that has never cost anything has never been tested. Find the occasion or drop the word.